The India We Want

The India we want 2 Dec 2007, 0021 hrs IST , SWAPAN DASGUPTA , TNN Print Save EMail Write to Editor The controversy over Bangladeshi writer Taslima Nasreen has forced Indians to confront a larger question: what sort of an India do we want to live in? The answers are neither easy nor uncontested. For a start, there is the weight of inheritance.

When minister of external affairs Pranab Mukherjee invoked ”civilisational heritage” in Parliament to define the government’s policy of sheltering the persecuted, he probably had Swami Vivekananda’s Chicago address of 1893 in mind: ”I am proud to belong to a religion which has taught the world both tolerance and universal acceptance. I am proud to belong to a nation which has sheltered the persecuted and refugees of all religions and all nations of the earth. ” From the time it accorded sanctuary to harried Jews and Parsis, India has played willing host to the persecuted.

Armenians escaping ethnic cleansing, Chakmas dodging Bangladeshi settlers, Tibetans at odds with Chinese occupation and Afghan opponents of the Taliban have at various times made India their home. And this is not to include the three million people who fled East Pakistan in 1971 to escape army retribution. Unlike western powers that knowingly sent back tens of thousands of Lithuanians, Estonians, Ukranians and Tartars to certain death in Stalin’s Soviet Union after World War II, India has allowed compassion to prevail over both realpolitik and even economics.

The present government may be wary of the Dalai Lama but, unlike Nepal, India is unlikely to forcibly handover a Tibetan asylum seeker to the Chinese authorities. The information that the government overruled the Left Front’s objections to give Taslima an Indian visa is reassuring. The question of sanctuary apart, the agitation over Taslima’s writings has thrown up another complex question: what constitutes legitimate curbs on free expression? The Constitution and other laws acknowledge that freedom of expression is not total and is tempered by other considerations, notably decency, harmony and national security.

The administration and the judiciary have been conferred extraordinary powers to be the arbiters of the common good. The presumption is that robust commonsense and an innate commitment to pluralism will guarantee against unreasonable restrictions on the climate of openness. To a very large extent, India has maintained an adequate balance between rival compulsions. Like anywhere else, there was always a mismatch between ordinary decencies and creative licence. But conflicts were sought to be settled on the principle of mutual accommodation and generosity towards contrarian views.

Vote-bank politics complicated matters but odd distortions haven’t made India less of an open society. We are not Sudan; we don’t jail people for naming their stuffed toys inappropriately. Since the ban on Salman Rushdie’s Satanic Verses, a religious police has arrived with a determination to impose the rules of blasphemy on a democratic culture. Both Taslima and M F Husain are in the dock for allegedly defiling a sacred space. Telegenic maulvis are projecting the controversies as battles between believers and non-believers – a clever twist that conceals their distaste for the liberal space.

Despite the government’s implicit assurance to extend her visa, the deportation of Taslima is being plotted with the very same instruments of judicial harassment that forced Husain into exile. Artists and writers have traditionally been heretics, questioning staid conventional wisdom. They neither shape popular thinking nor are they the soul of democracy; yet they are indispensable to an open society – a reason why Communists and the Taliban can’t digest their existence. If a rebel like Taslima is allowed to be judged through the prism of blasphemy, India will become a much smaller country.

Mini Case Study

Writing Assignment 2: Mini Case Analysis ECON 634 Bangalore, Dec/Jan 2009/10 100 Points Due Date: Tuesday Jan 5 at 1pm; 25 point penalty per day late This is a team-based writing assignment. My strongly preferred team size is four, but I will consider team sizes of three or five on a case-by-case basis. Your assignment is to Read the Harvard Business Review short case study “Class- or Mass”. Write an analysis of the case following this outline (submit one report for your entire team): Identify 3 possible actions the firm could take to deal with its excess inventory problem.

These actions may be options identified by characters in the case, or actions you think of yourself. Start your review be stating clearly each of the three options to be considered in your analysis. After stating each of the three options, go back to the first option and analyze its relative strengths and weaknesses. What is most attractive about this option? What is least attractive about this option? Why? Repeat step 3 for the second option Repeat step 3 for the third option Next, identify what specific information it would be most useful to have before having to choose between the three options.

Speculate on how the firm might be able to obtain that information. Finally, select one of your three options as the option you would take if you had to make the decision now without any additional information. Clearly explain your reasoning for selecting that option. NOTE: your analysis should focus upon identifying key pieces of information from the case itself and your identification of other specific pieces of information that would be useful to the key decision-makers. Your analysis will NOT be of the “And I Want a Pony Too! type in which you just assume everything will work out just the way you want it to happen. For example, you will not give me an option that is “I will have marketing prepare an ad campaign that increases demand enough that all excess inventory is quickly sold without any need to adopt any new pricing or production strategies. ” That is not analysis, it is hoping. When hoping replaces analyzing, things often end badly. Format & Other Guidelines You will format your page so the report has 1 inch margins on all four sides, uses 11 or 12 point font, and is double-spaced.

On the first line (two if needed), type the names of each team member (AND Student ID #) and ‘Class or Mass Mini Case Study Analysis’ Start your review on the next line, do not leave several blank lines below the top line. Do NOT insert any subheadings or other titles within the text. Do follow the outline given above. The minimum length for your analysis is that your report extends on to the third page, but does not go beyond a third page. Class or Mass? by IdaleneF. Kesnerand Rockney Walters HBR CASE STUDY

Stuck with excess inventory,Neptune Gourmet Seafood is toying with the idea of launching a second,inexpensive product line. But if Neptune stoops to conquer, rivals might retaliate with price cuts,and the new line might end up cannibalizing the old. JIM HARGROVE’S Startled expression would have been amusing had he not been in such a pitiable state. He was standing in the yacht’s magnificently appointed galley, wondering if his stomach would be able to hold down the cola he was pouring into a crystal flute, when his colleague, Rita Sanchez, said something outrageous.

Now the drink had spilled down the length of his pleated khakis, and he was sputtering. “You aren’t seriously suggesting that we reduce prices by 50%. Are you? ” It had been a long day for Hargrove, marketing director of $820 million Neptune Gourmet Seafood, North America’s third-largest seafood producer. When the firm’s chairman and CEO, Stanley Renser, had invited his senior managers to sail with him to inspect one of Neptune’s new freezer trawlers. Hargrove had demurred. He hated sailing on small boats-they made him sick, he told his boss.

Renser had pointed out that the 120-foot yacht he owned wasn’t exactly small. Besides, Poseidon II never rolled, even in a storm; the renowned Tommaso Spadolini had designed it. In fact, it was one of the last boats built by Italy’s famous Tecnomarine boatyard! Eventually, Renser had won him over, and Hargrove had arrived that Friday morning as eager to see the yacht as he was to visit one of the state-of-the-art fishing vessels on which Neptune had bet its future. Hargrove hadn’t felt seasick all morning. There were no swells that day.

Flat and glassy, the ocean glittered in shades of turquoise, silver, and gold. Aboard the freezer trawler, he had been fascinated by the technologies that allowed the vessel to catch fish in an environmentally sustainable way and to freeze them in a manner that gave Neptune an edge over rivals. But when the yacht had started to head back to Fort Lauderdale, Hargrove had crumpled. While his colleagues had made a beeline for the sundeck, he had spent the afternoon in the oak-lined main saloon, where he’d sunk into a leather sofa, clenching and unclenching his muscles to fight the ocean’s incessant motion.

Tired of trying to take his mind off the problem by focusing on the distant horizon, Hargrove was exploring the galley when Sanchez, his counterpart in sales, had walked in. “Hey, Jim. You better? “she had asked solicitously. “I’ll survive,” Hargrove had grimaced. “We can’t be too far from home now. But let’s not talk about it. What’s happening topside? ” “Oh, nothing much. Stanley’s showing people the garage where he parks the water scooters and Windsurfers,” Sanchez informed him. She gave Hargrove a challenging look and added: “You want to hear something that’ll really take your mind off your seasickness?

I ‘m convinced that we have to drop our prices by 40% to 50%-and soon. ” Big Fish in a Small Pond Hargrove snatched a stack of cocktail napkins to mop up the cola, but his eyes never left Sanchez’s face. He hoped she’d break into a smile to indicate that she was teasing him about the price cut. It had to be a joke, right? Seafood was a high-end business in North America, and Neptune was an upmarket-many believed the most upmarket-player in the $20 billion industry. During the past 40 years, the company had earned a reputation for producing the best seafood, and Neptune did everything it could to preserve that premium image among customers.

The company reached its consumers, who were extremely demanding, through various channels. Neptune generated about 30% of its revenues by selling frozen and processed fish products to U. S. grocery chains, like Shaw’s Supermarkets, and organic food retailers, like Whole Foods Market, all along the eastern seaboard and in parts of the Midwest. The Neptune’s Gold line of seafood products, manufactured in two sophisticated plants near Cedar Key, Florida, and Norfolk, Virginia, dominated most segments in terms of quality, and therefore sold at premiums compared with other brands.

For example, Neptune’s Gold canned salmon, tuna, sardines, mackerel, herring, and pilchard enjoyed a 30% higher price point, on average, than other brands; and Neptune’s Gold lump crabmeat, anchovies, clams, lobster meat, mussels, oysters, and shrimp commanded a 25% premium over rival products. That wasn’t the company’s biggest market, though. Neptune had emerged as the supplier of choice to the best restaurants within 250 miles of its Fort Lauderdale headquarters as well as to the biggest cruise lines, which together accounted for a third of the company’s sales.

Another 33% came from wholesalers that distributed the company’s products to restaurants all over the United States. In fact, sushi bars from New York to Los Angeles increasingly bought Neptune’s frozen fish instead of buying fresh fish and freezing it themselves. And, befitting the humble origins of founder John Renser, approximately 4% of Neptune’s sales came from a fish market outside Fort Lauderdale that the company owned and operated. It wasn’t easy to live up to the tagline “The Best Seafood on the Water Planet. Dogged by competition – especially from China, Peru, Chile, and Japan-as well as tough fishing laws, Neptune invested heavily to stay ahead of rivals. Stanley Renser, the company’s largest shareholder, had recently expanded the firm’s equity base, although doing so had shrunk his share to 10%. The capital infusion allowed Neptune to invest $9 million in six freezer trawlers of the kind Hargrove had visited. Those ships’ autopilot mechanisms guided them to the best fishing grounds, manipulated fishing gear, landed catches, and reported data to shore.

Other systems, along with new fishing equipment, ensured that only mature fish were caught and that the nets were not overfilled, thus reducing damage to the haul. As a result, Neptune increasingly landed only top-quality catches. What’s more, the freezer trawlers used a new technology to superfreeze fish to -70° F (instead of the usual -10° F or -23°F) within four hours of capture. The fish would freeze so quickly with this method that ice crystals couldn’t form in them or on them. That allowed the fish to retain their original flavor,texture, and color; and when cooked, they tasted like they were fresh out of the water.

Moreover, by packing the catch in snow made from dry ice and surrounding it with liquid nitrogen, the process increased shelf life by 50%. No wonder the gourmet magazine Connoisseur’s Choice had rated Neptune’s products foremost in quality for the tenth year in a row. Against the Current To Hargrove, the company’s premium image, investments in new technologies, and obsession with quality made any price cut – let alone the notion of chopping prices in half – unthinkable. But Sanchez refused to back down. I’m not kidding, Jim. It’s pretty clear that we have a big inventory problem.

We have to slash prices to get rid of those excess stocks. ” Hargrove knew exactly what Sanchez was talking about. In the past three months, Neptune’s finished goods inventory had shot up to 60 days’ supply-twice the normal level and three times what it had been a year ago. Like many of his colleagues, Hargrove considered the inventory pileup a temporary phenomenon; stocks had risen because the company had added ships to the fleet and could process catches more efficiently than before. Surely, if Neptune sold some old ships and stuck to its plan of launching ready-to-eat, fish-based meals, its inventory would soon fall to normal levels.

Sanchez and her sales team, however, were convinced that they faced a more enduring situation. “I told you this a month ago, Jim, and I’ll say it again. The new laws have reduced our access to fish near the coast and forced us to go farther out to sea. Because the fishing grounds are richer there, and because we’re using new technologies, our catches have grown bigger on average. That’s why, even in the past four weeks when we’ve seen demand reach an all-time high, our inventory has continued to grow. ” “First of all, it makes no sense to me to cut prices when demand is rising,” Hargrove said, exasperatedly. Besides, think about how customers would perceive a large price cut. If you slash prices by 50%, people will think there’s something wrong with the fish-like it’s rotten or full of mercury! It would destroy our premium image and permanently erode our brand equity. ” Sanchez shook her head. “Customers recognize that we sell a perishable product and that the supply of fish fluctuates from day to day. They expect prices to vary. The prices of fruits, vegetables, and flowers change all the time, don’t they?

A few years ago, coffee bean prices plummeted when growers realized they’d be better off selling inventories than watching the beans rot. Since then, coffee prices have gone up again. No one seems to object when the prices of chicken, beef, or pork rise and fall because of changes in the market place. I’m not willing to leave money on the table by refusing to react to supply-and-demand fluctuations. ” “But why do you want to cut prices so drastically? Why not just offer customers a 10% discount? I can see us doing that in the winter, when sales are slow, anyway,” Hargrove pointed out. Sanchez shook her head again. It won’t work, Jim. Our warehouses are so full that it’s going to take a lot more than that to make a difference. And with $9 million tied up in the new ships, you know we won’t be keeping them in harbor. Our inventories are going to keep growing unless we do something radical. ” “Selling product at a loss is radical, all right,” Hargrove muttered grimly. On many of its products, Neptune wasn’t making enough profit after manufacturing costs to sustain a deep price cut In fact, the company’s margins had already shrunk by 10% in the past year because of rising costs and growing competition. You’re talking about sunk costs,” Sanchez shot back. “Selling product at a loss to generate some revenue is better than throwing it away. What I’m proposing, though-” “Have you considered how our competitors will react? ” Hargrove cut in. “If we do this, some of them are bound to retaliate with even deeper price cuts, and then we’ll be in a price war none of us can afford – Neptune least of all, given our cost structure. ” Sanchez held up a hand. “Of course, of course. But you’re assuming it says ‘Neptune’s Gold on the discounted product. I actually envision a new brand. Hargrove exploded. “You don’t create a new brand to deal with a temporary increase in supply! Besides, you won’t fool anybody. Everyone will know who’s responsible for flooding the market and eroding margins. ” It was clear to Sanchez that she wasn’t making much headway with Hargrove. “Look, Jim, this really isn’t the place for this discussion, and perhaps I’m not being as clear as I should be. 1 want to put this issue on the MOC’s agenda for Friday. ” The Marketing and Operations Council, which comprised Neptune’s top executives, met twice per month. Fine, as long as Stanley is at the meeting, too. I’ll go up on deck and talk to him right away,” said Hargrove, his seasickness all but forgotten. “The sooner you stop thinking about a price cut, the better. ” Swimming with the Sharks As the week progressed, word spread about the solution that Sanchez had proposed to tackle Neptune’s inventory problem. Both Hargrove and Sanchez were drawn into lively debates with their colleagues, and they soon realized that whether people were in favor of price cuts or against them, everyone had an opinion on the subject.

A day before the MOC meeting, Sanchez received an unexpected visitor. It was Nelson Stowe,the company’s legal counsel and a longtime confidant of the Renser family, hovering at her door. “Ah, Rita. Got a minute? ” Stowe asked in his mild-mannered fashion. Realizing that this was no ordinary visit- Stowe had never called on her before-Sanchez quickly invited him into her office. After they had settled in, Stowe got slowly to the point. ” I’ve been hearing that you want to launch a mass-market brand. Interesting! You know, before we opened the fish market, John Renser wanted to do something similar.

He wanted to sell some of our fish at a low price so that more people would eat seafood. But that was a long time ago. “I’m sure you’re thinking through the implications of your strategy,” he continued, “but one issue concerns me. Have you thought about how the Association will react? ” Stowe was referring to the powerful U. S. Association of Seafood Processors and Distributors, whose members, such as Neptune, accounted for 80% of America’s seafood production. The ASPD infiuenced American and global policies related to the fishing industry and imposed quality standards on members.

It also conducted surveys of wholesale and retail seafood prices and, twice a year, published benchmark prices that influenced the pricing policies of seafood producers and distributors. “I don’t know. Nelson,”Sanchez sighed. “But I doubt that the Association can do anything. ” “1 wouldn’t be so sure,” said Stowe. “At the prices you’re suggesting, you’re likely to endanger our ASPD Gold Seal of Approval. We’re the only company that has the seal on every product we sell. But the Association could easily change that. ” “No! ” Sanchez cried out. “It can’t!

Regardless of the prices we charge, our products will still meet the ASPD’s quality standards. Besides, we’re just selling the same fish under a different brand. ” “Don’t fool yourself, Rita. The Association has a great deal of discretion about who gets the Gold Seal and who doesn’t. If it believes that our pricing strategy will cost the fishing industry a lot of money, it might withhold the seal on our low-end products-for starters. I’d like us to remember that the Association isn’t going to stand by idly while we disrupt the industry,” Stowe warned as he got up to leave. “Keep me posted, will you? ” A Pretty Kettle of Fish

At 8 AM on Friday, Sanchez walked into the conference room on Renser’s heels. “How was Newfoundland? ” she asked. “Lousy,” croaked Renser, who had returned late the previous night after delivering the keynote address at the Canadian Fish Producers’ annual conference. “I caught a cold,” he complained. “Happens every time I fly commercial. ” “At leastriding in planes doesn’t make you feel nauseated,” Hargrove quipped as he joined them. “That’s more than I can say for riding in boats. ” Once everyone had settled down, Hargrove got the meeting under way. “We have several routine items on the agenda,”he began. But Rita and I have added a topic we think is important, so I suggest we move to that first. ” When everyone nodded in agreement, Sanchez and Hargrove ran through the issues they had discussed on the yacht. As they concluded their summaries, Bernard Germain, Neptune’s COO, spoke up. “Do we know which of our rivals are considering price cuts? We aren’t the only company facing overcapacity. It would be naive of us to believe that all our competitors will hold prices for the industry’s good. ” “I can’t believe it! ” Hargrove burst out. “You’re in favor of price cuts? ” “I don’t know yet, Jim.

I’m trying to understand why Rita’s suggestion that we introduce a low-priced seafood brand is so off-the-wall. Why can’t we use a new brand to appeal to value-minded customers? Seems to me that we have the product; we can distribute it using our existing channels; and we can achieve a new positioning through packaging, advertising, and pricing. I don’t see the difference between this strategy and what companies like Kellogg do with their private-label businesses. In fact, if we don’t want to launch a second brand, we could think about supplying retailers with private-label products. “I’m not suggesting that we get into the private-label business,” Sanchez was quick to reply. “That can pose problems, as many consumer goods manufacturers have discovered. I feel we should create a mass-market brand called, say, Neptune’s Silver. ” “That’s terrible! ” snapped Hargrove. “By calling it Neptune’s Silver, you’re positioning the cheap product right next to Neptune’s Gold in the eyes of consumers. Then they’ll be more likely to try it and, once they do, they’ll realize there’s no difference in quality. We’ll end up cannibalizing our own sales.

Why would any company in a high-end segment do something so crazy? ” “I guess you don’t remember what transpired in the wine industry a couple of years ago,” responded Pat Gilman, the head of Neptune’s institutional business, whose taste for high-end products was well known. “A Califomia vintner. Bronco Wines, did something exactly that ‘crazy. ‘ It was the same kind of situation: a glut of grapes, huge inventories. They slapped a new brand name on the stuff and sold it through Trader Joe’s for $1. 99 a bottle. It’s called Charles Shaw, but people nicknamed it Two-Buck Chuck. ” Not only do I know about it, but I’ve also tried it,” Sandy McKain, head of the company’s consumer business, piped in. “I can tell you, it’s worth every penny. But Pat, I don’t think the scenario is exactly the same. Even in Bordeaux, a lot of winemakers offer a premium wine and several cheaper wines, but they use grapes of different qualities to make the different grades. Would we be doing that? ” “In Bronco’s case, it was the same grapes they’d been using for higher-priced wines,” Gilman said. “As for Jim’s point, I’m sure they had some customers migrate to the cheaper stuff.

But think about the upside. In the United States, 88% of wine sold is consumed by 12% of the population-” “Hey, Pat,”Hargrove called out. “How much of that do you personally account for? ” Gilman joined in the laughter before continuing: “The point is, more people will opt for a bottle of wine with dinner if they can get a passable one on the cheap. Wine sales have grown at the expense of other beverages in recent years. The same thing could happen to us. Even with people eating healthier things, seafood sales lag behind those of beef, chicken, and pork.

The way I see it, this isn’t about reducing inventory. It’s about introducing our products to a bigger market: the more budget-conscious consumer. And if it’s like wine, the educated consumer will then trade up to Neptune’s Gold. ” A furious discussion followed about how hard it would be for Neptune to win shelf space in supermarkets for a new brand, particulariy for a low-priced product that might go head-to-head with the grocers’ own private-label offerings. The group was also divided about whether it should sell a second brand through the same channels or through different ones.

Germain wondered aloud whether Neptune should target new geographic markets-like South America and Central America with a low-priced offering. “Hang on! ” exclaimed a clearly frustrated Hargrove. “When we started, weren’t we debating whether it made sense to launch a new brand to deal with a temporary inventory problem? That would mean we’d kill it once we solved that problem. I -” “If customers like our new brand, it might constitute a better growth strategy,” Sanchez interrupted. “The way I look at it, the second brand could prove to be a win-win proposition. ” I don’t know if it’s as simple as that,” Germain said slowly. “Every luxury company I know of-Gucci, Mercedes-Benz, BMW, Tiffany, even Hyatt – has struggled to go mass without destroying its premium image. For that matter, when fashion designers like Isaac Mizrahi create an affordable line for a retailer like Target, I wonder if that adds to the brand’s luster or tarnishes it? ” Renser, who had been quiet until then, cleared his scratchy throat. His colleagues were starting to rehash territory they had already covered, and instead of sharpening their arguments, they seemed to be obfuscating them.

On one hand, they appeared to agree that it would be important to keep the two brands separate. On the other hand,they were talking about migrating customers from the low-end brand to the high-end brand, which would mean linking the two. Renser knew that the group was waiting to hear where he stood, but he didn’t yet know what to say. How long could he leave them hanging – along with his company’s fortunes – between the devil and the deep blue sea? Should Neptune launch a mass-market brand?

Consumer Goods Classification

Introduction: The classification of goods (physical products) is essential to business because it provides a basis for determining the strategies needed to move them through the marketing system. The two main forms of classifications are consumer goods and industrial goods. We are interested in this paper to elaborate more on Consumer Goods Classification only. Consumer Goods: Consumer goods are defined as goods that are bought from retail stores for personal, family, or household use. Or, they can also be defined as: Products intended for use or consumption by individuals, as opposed to organizations, companies or businesses.

Consumer goods are generally divided into subcategories according to the method by which they are purchased or on the basis of consumer buying habits into: Convenience Goods, Shopping Goods, Exclusive or Specialty Goods, and Non Sought Goods. Consumer goods can also be differentiated on the basis of durability. Durable goods are products that have a long life, such as furniture and garden tools. Nondurable goods are those that are quickly used up, or worn out, or that become outdated, such as food, school supplies, and disposable cameras. Convenience Goods:

Convenience goods are items that buyers want to buy with the least amount of effort, that is, as conveniently as possible. Most are nondurable goods of low value that are frequently purchased in small quantities. Or they can be defined as those goods purchased with a minimum of effort, because the buyer has knowledge of product characteristics prior to shopping. The consumer does not want to search for additional information (because the item has been bought before) and will accept a substitute rather than have to frequent more than one store.

These goods can be further divided into two subcategories: staple, impulse & emergency goods. Staple convenience goods are basic items that buyers plan to buy before they enter a store, and include milk, bread, and toilet paper. Impulse items are other convenience goods that are purchased without prior planning, such as candy bars, soft drinks, and tabloid newspapers. Emergency goods are items purchased out of urgent need, such as an umbrella during a rainstorm, a tire to replace a flat, or aspirin for a headache.

Since convenience goods are not actually sought out by consumers, producers attempt to get as wide a distribution as possible through wholesalers. To extend the distribution, these items are also frequently made available through vending machines in offices, factories, schools, and other settings. Within stores, they are placed at checkout stands and other high-traffic areas. Convenience goods need intensive distribution. The product has to be in millions of outlets. We must think of how many places we can purchase a newspaper or a cup of coffee.

Many convenience goods are sold in vending machines to increase the number of outlets. For example, products sold in vending machines include newspapers, coffee, soda, and candy Shopping Goods: Shopping goods are purchased only after the buyer compares the products of more than one store or looks at more than one assortment of goods before making a deliberate buying decision. These goods are usually of higher value than convenience goods, bought infrequently, and are durable. Price, quality, style, and color are typically factors in the buying decision.

Televisions, computers, lawnmowers, bedding, and camping equipment are all examples of shopping goods. Or they can be defined as those goods for which consumers lack sufficient information about product alternatives and their attributes, and therefore must acquire further knowledge in order to make a purchase decision. The two major kinds of shopping goods are attribute-based and price-based. For attribute-based shopping goods, consumers get information about and then evaluate product features, warranty, performance, options, and other factors. The good with the best combination of attributes is purchased.

Sony electronics and Calvin Klein clothes are marketed as attribute-based shopping goods. For price-based shopping goods, consumers judge product attributes to be similar and look around for the least expensive item/store. Consumers will exert effort in searching for information, because shopping goods are bought infrequently. Hyundai Automobile and store-brand clothes are marketed as price-based shopping goods. Because customers are going to shop for these goods, a fundamental strategy in establishing stores that specialize in them is to locate near similar stores in active shopping areas, in other words, shopping goods equire selective distribution. Ongoing strategies for marketing shopping goods include the heavy use of advertising in local media, including newspapers, radio, and television. Advertising for shopping goods is often done cooperatively with the manufacturers of the goods. Specialty Goods: Specialty goods are items that are unique or unusual—at least in the mind of the buyer. Buyers know exactly what they want and are willing to exert considerable effort to obtain it. These goods are usually, but not necessarily, of high value, and they may or may not be durable goods.

They differ from shopping goods primarily because price is not the chief consideration. Often the attributes that make them unique are brand preference (e. g. , a certain make of automobile) or personal preference (e. g. , a food dish prepared in a specific way). Other items that fall into this category are wedding dresses, antiques, fine jewelry, and golf clubs. They can also be defined as those goods to which consumers are brand loyal. They are fully aware of these products and their attributes prior to making a purchase decision.

They are willing to make a significant purchase effort to acquire the brand desired and will pay a higher price than competitive products, if necessary. For specialty goods, consumers will not make purchases if their brand is not available. Substitutes are not acceptable. Producers and distributors of specialty goods prefer to place their goods only in selected retail outlets, in other words, specialty goods require exclusive distribution. These outlets are chosen on the basis of their willingness and ability to provide a high level of advertising and personal selling for the product.

Consistency of image between the product and the store is also a factor in selecting outlets. Conclusion: The distinction among convenience, shopping, and specialty goods is not always clear. As noted earlier, these classifications are based on consumers’ buying habits. Consequently, a given item may be a convenience good for one person, a shopping good for another and a specialty good for a third. For example, for a person who does not want to spend time shopping, buying a pair of shoes might be a convenience purchase.

In contrast, another person might buy shoes only after considerable thought and comparison: in this instance, the shoes are a shopping good. Still another individual who perhaps prefers a certain brand or has an unusual size will buy individual shoes only from a specific retail location; for this buyer, the shoes are a specialty good. References: •http://academic. brooklyn. cuny. edu •http://www. marketing. org. au •http://www. studymarketing. org •http://www. answers. com •http://www. learnmarketing. net •http://en. mimi. hu/marketingweb

Case, Munro

CASE I SUSAN MUNRO, SERVICE CONSUMER Ray – Ann Julian MW 1:00 – 2:30 Sir Daniel Hebron Services Marketing In the course of a single day, a busy young woman makes use of a wide array of service… Susan Munro, a final-year business student, had worked late the night before on a big paper and overslept the following morning in the apartment she shared with three other students. Her roommates, who had early classes, had already left when she got up. After showering, she dressed hurriedly, then made a quick cup of coffee. But she skipped her usual bowl of cereal, figuring she could pick up a bagel at school.

Noticing that the weather outside looked ominous; she clicked onto the Internet to check the local weather-forecast. It predicted rain, so she grabbed an umbrella before leaving the apartment and walking to the bus stop for her daily ride to the university. On the way, she dropped a letter in a mailbox. The bus arrived on schedule. It was the usual driver, who recognized her and gave a cheerful greeting as she showed her monthly pass. The bus was quite full, carrying a mix of students and office workers, so she had to stand. Arriving at her destination, Susan left the bus and walked to the School of Business.

Feeling hungry, she entered the main lobby and headed to the small, cheerfully decorated food stand in the far corner. “Sorry,” said the attendant in answer to her question. “We just sold the last of the bagels and are waiting for more French Roast. Would you like decaf? ” Susan sighed. It wasn’t the first time this had happened. But the class was about to start and she couldn’t wait. Joining a crowd of other students, she took a seat in the large classroom where her finance class was held. The professor lectured in a near monotone for 75 minutes, occasionally projecting charts on a large screen to illustrate certain calculations.

It didn’t help that she was still feeling sleepy. Susan reflected that it would be just as effective—and far more convenient—if the course was transmitted over the Web or recorded on DVDs that students could watch at their leisure. She much preferred the marketing course that followed because this professor was a very dynamic individual who believed in having an active dialogue with the students. Susan made a several contributions to the discussion and felt that she learned a lot from listening to others’ analysis and options. She and three friends ate lunch at the recently modernized Student Union.

The old cafeteria, a gloomy place that served unappetizing food at high prices, had been replaced by a well-lit and colorfully painted new food court, featuring a variety of options. These included both local suppliers and brand-name fast-food chains, which offered choices of sandwiches, as well as ethnic foods, salads, and a variety of desserts. Although she had wanted a sandwich, the line of waiting customers at the sandwich shop was rather long, so Susan joined her friends at Burger King and then splurged on a caffe latte from the adjacent Hav-a-Java coffee stand.

The food court was an unusually crowded today, perhaps because of the rain now pouring down outside. When they finally found a table, they have to clear off the dirty trays. “Lazy slobs! ” commented her friend Mark, referring to the previous customers. After lunch Susan stopped at an ATM inserted her card, and withdraw some money. Remembering that she had a job interview at the end of the week, she telephoned her hairdresser and counted herself lucky to be able to make an appointment for later in the day because of a cancellation by another client.

Leaving the student union she ran across the rain-soaked plaza to the Language Department. In preparation for her next class, Business Spanish, she spent an hour in the language lab, watching an engaging video of customers making purchases at different types of stores, then repeating and listening to her own recorded voice. “My accent’s definitely getting better! ” she said to herself. With her last class over and Spanish phrases filling her head, Susan headed off to visit the hairdresser. She liked the store, which had a bright, trendy decor and well-groomed, friendly staff.

Unfortunately the cutter was 20 minutes, which she used to review a chapter for tomorrow’s human resources course. Some of the other waiting customers were reading magazines provided by the store. Eventually it was time for a shampoo, after which the stylist proposed a slightly different cut. Susan agreed, although she drew the line at the suggestion to lighten her hair color. She sat very still. Watching the process in the mirror and turning her head when requested. She was pleased with the result and complimented the cutter on her work.

Including the shampoo, the process lasted about 40 minutes. She tipped the cutter and paid at the reception desk. The rain had stopped and the sun was shining as Susan left the store, so she walked home, stopping to pick up clothes from the cleaners. This store was rather gloomy, smelled of cleaning solvents, and badly needed repainting. She was annoyed to find that although her silk blouse was ready as promised, the suit she would need for her interview was not. The assistant, who dirty fingernails, mumbled an apology in an insincere tone without making eye contact.

Although the store was convenient and the quality of work quite good, Susan considered the employees unfriendly and not very helpful. Back at her apartment building, she opened the mailbox in the lobby and collected the mail for herself and her roommates. Her own mail, which was rather dull, included a quarterly bill from her insurance company, which required no action since she had signed an agreement to deduct the funds automatically from her bank account. There was also a postcard from her optometrist, reminding her that it was time for her to schedule a new eye exam.

Susan made a mental note to call for an appointment, anticipating that she might need a prescribed prescription for her contact lenses. She was about to discard the junk mail when n she noticed a flyer promoting a new dry-cleaning store and including a coupon for a discount. She decided to try the new firm and pocketed the coupon. Since it was her turn to cook dinner, she wandered into the kitchen, turned on the light, and started looking in the refrigerator and then the cupboards to see what was available. Susan sighed – there wasn’t much in there.

Maybe she would make a salad and call for home delivery of a large pizza. STUDY QUESTIONS 1. Identify each of the services that Susan Munro has used or is planning to use. Categorize them according to the nature of the underlying process. 2. What needs is she attempting to satisfy in each instance? 3. What proportion of these services: (a) involve self-service, (b) some degree of customer involvement with the production process, and/or (c) dependence on the service provider? Where do you see more potential for self-service and what would be the implications for customer and supplier? . What similarities and differences are there between the dry-cleaning store and the hair salon? What could each learn from studying the other? ANSWERS & ANALYSIS: 1. Identify each of the services that Susan Munro has used or is planning to use. Categorize them according to the nature of the underlying process. This is the list of services Susan had used and is planning to use. The services were classified based on the nature of the underlying processes it takes to take effect, namely; People processing, Possession processing, Mental stimulus processing, and Information processing.

People processing o Apartment lodging o Bus trip o Food stand o Food court o Hair salon o Optometrist Possession processing o Water service (utilized when she took her shower) o Mail (when she sent the letter, and in another instance received a letter form the Insurance company) o Dry – Cleaning ( includes the present and future service provider) o Electricity service (when Susan turned the kitchen lights on) o Pizza delivery Mental stimulus processing o Weather forecast o Education o Telephone Information processing o Internet o ATM o Insurance o Bank account 2.

What needs is she attempting to satisfy in each instance? The needs Susan is attempting to satisfy in each instance are: o Apartment – lodging o Water services – to take her shower (hygienic purposes) o Internet – information about the weather o Weather forecast – to prepare precautionary actions for the update o Mail – communication o Bus trip – transportation o Food stand (bagels) – hunger o Education – to gain knowledge and job opportunities for the future o Food court (burger and a caffe latte) – negate hunger and thirst o ATM – to withdraw some money Telephone services – to set an appointment with her stylist o Hair salon – to improve her appearance o Banking – handy access to her financial assets o Dry cleaning – caring for her belongings for her own hygiene o Insurance – asset protection o Optometrist (eye exam) – eye health o Electricity service – provide light o Pizza delivery- easier way to solve hunger for herself and her roommates 3. What proportion of these services: (a) involve self-service, (b) some degree of customer involvement with the production process, and/or (c) dependence on the service provider?

Where do you see more potential for self-service and what would be the implications for customer and supplier. • Self-service: o Water o Internet o Weather forecast o Mail o Telephone o ATM o Electricity • Physical involvement with production process: o Apartment lodging o Education (trough her classes), o Hairdressing o Eye exam o Bus trip o Food services • Dependence on service provider: o Dry cleaning o Mail delivery o Pizza delivery o Insurance o Regulation of bank funds ? To summarize, the services fell to 38. 89% (7/18) for those involving self-service, 33. 3% (6/18) for those that requires physical involvement with the production process, and 27. 78% (5/18) * And talking about if where do I see more potential for self-service and the implications for the customer and supplier, I think that the video-on demand for certain classes, just like what Susan wished for her finance class should taken into consideration. The implication of this for the students is that they would enjoy the chance of watching the clip over an over again, and this would be very convenient for them.

On the supplier’s side, which is the school, the quality of their service would move up. And, they could support the policy through the provision of viewing facilities for the materials. 4. What similarities and differences are there between the dry-cleaning store and the hair salon? What could each learn from studying the other? The hair salon and the dry-cleaning services were similar due to both are yielding physical or tangible changes after the performance of the service. The only thing is that they are intended for different recipients.

The dry cleaning store is aimed to make a change on the dirty clothes; therefore, it is focused on possession processing service. While the hair salon involves people processing for it is intended to make a transformation on Susan. Difference wise, the two entities were poles apart when it comes to the involvement with the service process. Susan is obliged to be physically present and participate by cooperating with the stylist and by making decisions about her hair’s outcome. While, the only thing that she could in the dry cleaning shop is to bring the clothes to the shop and pick them up after.

Another common thing between the two service agencies with respect to the case situation is the failure of the both parties to observe timeliness in their service delivery, The hair salon for being late of the stylist, and the dry-cleaning shop for Susan’s suit that is not yet ready though it’s time now for pick-up The dry-cleaning shop could learn from the hair salon by taking into account the importance that the salon is putting in its physical representation of the establishment. It is not enough to offer only good service but the overall package should also be monitored.

The dry-clean shop should also do what the hair salon’s system with regards to its employees. The employee’s hygiene and attitude towards customer service should be a major factor. On the other hand, the salon could learn from the dry-cleaning shop through the latter’s miscues. The salon should maintain, or better is to improve its customer service and the well-being and appearance of the establishment. Because if they fall short on doing this things they might fail to attract new customers, and loyal customers might just slip out of their hands.

Mid Term Break – Seamus Heaney

Mid-term Break Seamus Heaney’s ‘Mid-Term Break’ is a shocking and heart-rending poem about a schoolboy going through the after effects of the death of his four years old younger brother. It shows the reader the emotions and events that the boy has to go through, and explains what the words ‘Mid-term Break’ really mean to the young boy. The narrator is a schoolboy, telling us the story of his experiences through the wake, remembering every detail and addressing us with every memory and emotion he can remember.

The poem is talking in the past tense, as though the boy is looking back at his past and telling us about it at the same time. The poem is a true story about the poet when he was younger, and now Heaney reflects back to his emotions and feelings. At first glance, the title tricks the reader into thinking that it’s a happy poem, most people associate the words mid-term break with joy and playfulness, but by reading more into the first stanza, it is obvious that this is not the case.

The simple three lines stanza structure makes the poem look rather appetising for the eye and makes it easy to read. Heaney has used enjambment to mark out the different scenes, making it easy to understand where and when the poem moves on, and the lack of punctuation makes the poem flow when read aloud. The first scene is set in the school’s sick bay- a quiet place for the boy to come to terms with the news. The use of the words ‘sick bay’ is a sign that there is something wrong, and although we do not know what the problem is yet, this indicates that he needed a quite place to be alone.

The narrator gives a clue to the problem by using the word ‘knelling’, which implies that there has been some kind of a death, ‘Counting bells knelling to a close. ’ It shows that the time is dragging on, while he counts the bells, bringing him closer and closer to the end of the day. This could mean that he is somewhat dreading the day ending, or is agitated to be picked up and to go home. The fact that he remembers the exact time when he’s picked up shows how clear the memory is and how he can remember every small detail that went on.

When his neighbours drive him home, it comes to a surprise to the reader, and the reader starts to question why. It indicates that there has probably been a death in the family, as his parents are too busy to come and pick him up themselves. Of course, we do not know this for certain yet, but it may imply that the relative was quite close family as his parents are too preoccupied. The next stanza is set on a porch, supposedly of his house, where the narrator is met by his father and ‘Big Jim Evans’, who could either be a relative or a family friend.

The fact that his father is crying and that normally funerals do not affect him, ‘He had always taken funerals in his stride’, is another sign that the death was very close to him and his family and the fact that it’s a funeral backs up the thought that it’s a death. The words of Big Jim Evans have a double meaning. The reader can assume two main things, that something might of hit the person hard, and that that was the cause of death, or that the death was a emotional ‘hard blow’ to the family.

This would explain the fact that his father is crying, and he might have meant that there was a lot of grief and shock to everyone in the family, especially the father. As we are slowly introduced to the death and what is actually happening, the reader gets small clues to what has happened, and by this moment there is a slight suspicion to the cause of death, and although the reader might assume that the death was part of the family, we do not know anything about the person’s age or how close he/she is to the narrator. The next three stanzas are linked; Heaney uses enjambment to show that the scene carries on across the stanzas.

The scene is set in the sitting room, where lots of friends and family await. He describes a variety of different aged people, starting with a young baby who’s oblivious to the disaster, ‘The baby cooed and laughed and rocked the pram’, to old men who try and comfort him, ‘…And tell me they where “sorry for my trouble”’. He describes the strangers to him, being informed that he was the eldest, which shows that it must have been a very big occasion for them to come and visit. The fact that his mother is ‘coughing out angry tearless sighs’ is quite surprising.

Normally, you would imagine the mother as crying her eyes out, while the father stands by her side trying to comfort her, but still grieving. This is not the case here, if not the opposite. The use of the word ‘angry’ to describe his mother may have several meaning. She might be angry at herself for letting her son get killed, she might be angry at her husband for breaking down in front of all these people, she might be angry at the car for running into her son, we simply do not know, but she might be in shock as she is ‘coughing out angry tearless sighs’.

This might show that she is too shocked to even cry or is trying her hardest not to show how much grief she feels or let down her family pride in front of her friends and family. The last two lines of the fifth stanza are very detached from the narrator, and although there is a lot of detail that shows how vivid the memory is again, the narrator does not let on any emotion. This might mean that the corpse maybe unfamiliar to him now, after he has been tidied up, and maybe he feels as though he is not his brother anymore, just an empty body that looks like his brother.

We might suspect this because he refers to him as ‘the corpse’ instead of maybe a name or even ‘my brother’. Heaney does not use enjambment to link stanza 5 and 6, which states that we are again in a different scene, this time the next day. He describes the room quite detailed, personifying and using onomatopoeia to give a calm impression, ‘Snowdrops and candles soothed the bedside’. This is creating a scene of relaxation, as though the family want to leave the boy in peace until the end.

It sounds like a very peaceful place for everyone to say their last goodbyes and to show their emotions to the corpse and not be in front of other people while they do it. It is quite emotional and sad when he says that it’s the first time he’s seen him in six weeks, and now he is dead and that it’s the last time he’s ever going to see him again. This makes the reader feel the pain that Heaney’s going through and can relate to the young boy and feel pity. He compares what his brother looks like from when he last saw him, ‘paler now, wearing a poppy bruise on his left temple’.

This shows how he must feel to see him in front of him, not much changed in his looks, yet totally different. He describes the bruise on his head like a poppy, a symbol of remembrance, and yet a sign that he was hit by something. He describes the small coffin as a cot; ‘He lay in the four foot box as in his cot’. This indicates just how small his brother must have been, and makes the reader feel even more sorry for the young schoolboy. He describes that there were ‘no gaudy scars’ and that ‘the bumper knocked him clear’.

The schoolboy might feel upset that he lost his brother to such a small thing, not even a scar to prove the death. He may feel regret that he wasn’t there to help look after him, and then maybe he wouldn’t have lost him to such a stupid accident. By now the reader knows that a car knocked him down, the use of the words ‘bumper knocked him clear’ make it obvious. The difference in the structure at the end, give a very tense effect and giving the last sentence it’s own line emphasizes the severity of the disaster.

The rhyme at the end is very effective, as it is the only rhyme in the whole poem. Heaney has chosen the final stanza to have one line to make it shocking, moving and effective, and in my opinion he has succeeded to create those feelings. Although it is short, the last sentence succeeds to be very moving, with a hidden meaning that makes the reader think, ‘A four foot box, a foot for every year’. This is the only time we get to know how old the child was, and leaves the reader thinking and moved even after finishing the poem.

In my opinion it is a very successful poem, very moving and sad, and makes the reader really value their and their family’s lives. This shocking poem moved me dearly, and very nearly brought me to tears, the effectiveness and it’s detailed truth makes it a very interesting and moving read, and shows just how the mind remembers every small detail of such a big occasion, and although he might have tried to forget it, the thoughts and emotions are still there. I love this poem, for it’s sheer power and emotion, and could read it over and over again and still feel sadness and shocked with every line. arcoiris95

Social Media.Doc

Social Media and its impact on the traditional Promotion Mix In this ever-changing fast moving world, companies need to put an extra effort to meet new challenges to reach the customers and satisfy their needs. Companies need to develop strategies to market the product in an effective way. Social media is one of the effective tools of marketing the product, as it deepens its roots way into the hearts of the customers, leaving behind the traditional promotion mix, as customers are more tending to live in virtual world of Internet technology.

The emergence of Internet-based social media has made it possible for one person to communicate with hundreds or even thousands of other people about products and the companies that provide them. Traditional media or the promotion mix is one-way approach of marketising the product. Whereas, on the other hand Social Media is the hybrid element of both the traditional and non-traditional marketing. Wherein the traditional approach, the companies talk to the consumers and in the non-traditional approach it enables the consumers to talk to each other about the product.

The question may arise that why is the social media gaining popularity? How and why it is the most effective way of marketing? The answer is ‘Don’t waste my time! ’ According to a recent poll by Ruder Finn, 100% of the people on the Internet go online to pass the time. [pic] ‘Thus more and more number of people are dependent on communities, blogs, You- tube . Why don’t we capitalise on this opportunity. ’ Impact on consumer behaviour: The tools and strategies for communicating with customers have changed ignificantly with the emergence of the phenomenon known as social media, also referred to as consumer-generated media. This form of media “describes a variety of new sources of online information that are created, initiated, circulated and used by consumers intent on educating each other about products, brands, services, personalities, and issues”. Thus the consumer can depend on a reliable source and know about the product in a broader perspective to make his choice. What do the critics say? Consumers are turning away from the traditional sources of advertising: radio, television, magazines, and newspapers. Consumers also consistently demand more control over their media consumption. They require on-demand and immediate access to information at their own convenience ([Rashtchy et al. , 2007] and[Vollmer and Precourt, 2008]). • Social media is perceived by consumers as a trustworthier source of information regarding products and services than corporate-sponsored communications transmitted via the traditional elements of the promotion mix (Foux, 2006).

The table below shows the retailers in US using the social media for marketing: [pic] Conclusion: The marketing strategies appear to be moving from the traditional one way approach to the multiple technological highways comprising the traditional and non-traditional approach as the virtual world is getting bigger and bigger. Reference: 1. Business Horizons, Vol 52,Issue 4,July-Aug 2009: W. Glynn Mangold and David J. Faulds 2. Social Media Marketing Blog

Pakistan Winning the 20-20 World Cup

PAKISTAN WINNING 20-20 WORLD CUP: A Nation battling Terrorist Attacks on a daily basis, An Attack on a visiting cricket team a few months ago threatened to isolate its national team and the country as a whole from the rest of the cricketing world with all the countries canceling their tours citing security reasons.

To Make Matters Worse, The ICC cancelled all the matches which were allotted to Pakistan as a Host Nation for the 2011 Cricket World Cup & also shifted the Champions Trophy to a different Country, Pakistan’s players were barred from playing in the season 2 of the Cash Rich Indian Premier League with many of it’s franchisees terminating its contracts with the Pakistani Players. – Clearly a Nation on the brink of Isolation from World Cricket.

When The Pakistani Team landed in UK For the Second ICC World Twenty20 in June, Many people predicted this side as a dark horse purely on the basis of sheer talent present in this side, But Not many people or Cricket Analysts predicted that this side can actually turn out as champions because they had already assigned that title to the defending champions India & to South Africa – one of the most disciplined & professional Cricket Side in the World.

And to an extent they were to be proved right as Pakistan suffered 2 heavy losses to South Africa & arch rivals India in the Warm Up Games before the start of the Championship and then to England in a Group match, Matters got even worse when the Pakistan Skipper made outrageous comments in press conferences by defining T20 Cricket as more of Fun & Entertainment for the Crowds & an odd comparison to a WWE Wrestling match, resulted in a furor especially among the Cricket Selectors back home in the PCB & lead to the Chief Selector Abdul Qadir resigning from his post.

Fans were frustrated and were preparing to see their team exit before the Super 8’s nearly with all the talent present in the form of Afridi, Shoaib Malik, Misbah struggling so far in the tournament. – Pakistan enters in a Do or Die Situation where only winning could keep them alive in this World Cup. There is a Famous Quote – “History Repeats Itself” – Pakistan, The Cricket Team had faced a similar situation in the 1992 World Cup Pakistan lost three of their first five games and would probably have been eliminated but for the Adelaide game against England being rained off. The revival started with convincing ictories over Australia and Sri Lanka at the WACA, before back-to-back wins against highly fancied New Zealand put them into the final. Wasim Akram’s mastery of swing did the rest. If it was Wasim Akram in 1992, This time for the first time – Pakistan had many match winners – Gul, Afridi, Ajmal, Aamir & Razzaq who revived the complete turn around and scripted a grand revival for Team Pakistan & especially for Younis Khan, New Zealand was blown away by accurate deadly yorkers of Umar Gul which tore the Kiwi batting to shreds, Ireland was taken care off with a joint team effort and Pakistan qualified for the Semi Finals.

This time they had to play South Africa who were undefeated in the tournament and looked a balanced side with the punters predicting this side as the potential tournament winner. But Sadly for them One Man discovered his form with the bat – Shahid Afridi – The Man known as Boom Boom Afridi – with the potential & sheer talent by which he can blow any bowler away, who till this match was struggling even to get to a double figure score. he comes to bat at No. and plays a rather subdued and mature inning & compiles a fifty & later delivers two knock out punches with his quick leg spin by dismissing inform South African batsmen – Gibbs & A. B De’Villiers by knocking their stumps back & raising his left arm in triumph towards the crowd – South Africa never recover from this blow & Pakistan becomes the only team in T20 Cricket World Cup history so far by qualifying to the finals of the World T20 for the second time.

Sri Lanka being the other team apart from South Africa to remain undefeated in the tournament so far with its Opening batsman – Dilshan being the highest run getter & who gets better with each game invents a new kind of slog – scoop pull over the keeper’s head leaving the opposition bowlers bewildered, with the middle order ably supported by Kumar Sangakkara, Jayawardene & Chamara Silva. With its’ bowlers in great form especially the 3 M’s – Malinga.

Muralitharan & Mendis, And after the Semi Final drubbing which they handed over to West Indies – It clearly became the hot favourites of the punters and Cricket experts alike as the most balanced side with an inform batting attack capable of defending any total & the batting lineup clearly in form to chase any total. – The Odds favouring Sri Lanka & once again Pakistan became the Underdog – A Situation which the team loves as they can play with any preassure and only with the intention of Winning.

Two years ago against India, in the inaugural World Twenty20 final in Johannesburg, Pakistan blew their chance for glory when Misbah-ul-Haq choked on his emotions at the end of a stunning match-turning counterattack, and chose the wrong ball to flick over fine leg. Pakistan was committed not to repeat it this time. And When the Final did start – Pakistan produced a totally different kind of Performance – Which not only stunned the Sri Lankan Batsmen but also the World, A Performance which was Clinical, professional and un-Pakistani!! It was a clinical, thought-out and utterly professional display.

Very un-Pakistani. Yorkers didn’t thud in to the pads or uproot stumps; there were no magic moments from the spinners either; and the ball didn’t fly over the ropes. Bowlers stuck to the game plan and mixed short length deliveries on a regular basis, batsmen relied more on single’s & two’s, formed partnerships & again it was the Boom Boom Man – Shahid Afridi – Resolute, restrained, mature and measured. Not in the most bizarre of your dreams would you associate these words with Afridi. But those very words summed up his performance today. He wanted the responsibility, he grabbed it and fulfilled it.

And his approach to the game was a microcosm of how Pakistani played the final. His consecutive magical performances both with the ball & the bat in the semi finals and final made the huge difference & enabled Pakistan to be crowned as the Twenty20 Champions. And as Wasim Akram had rightly written in his column that to bring out the best in Afridi, pamper him – tell him he is important – give him his freedom & he will perform and perform he did and that too at such a stage which will be forever recorded in the history of Pakistan Cricket – The Day when Pakistan bought it’s second World Cup Home after 17 years.

Younis Khan followed in the footsteps of his hero Imran Khan and lifted a World Cup for Pakistan. Each intervening year has made this victory sweeter. Younis also followed his hero in two other ways. First, he managed to pull together a disjointed Pakistan team into a world beating unit. Second, he announced his retirement–but only from Twenty20 cricket. He may as well. How can you beat the drama of this moment? The past years of desperation in Pakistan; isolation in international cricket. No cricket ground you can call home.

At the end Younis Khan dedicated the victory to Bob Woolmer, his mentor, and to the long-suffering people of his homeland. And Thus Younis has now stepped aside from Twenty20 cricket, much as Imran Khan bowed out on a high in 1992. For all his quiet insistence that this competition lacks the prestige of the 50-over World Cup, he knows that he and his players have achieved something wonderful, and every bit as lasting as the memories forged by Imran, Miandad, Wasim and Mushtaq, way back in the mists of time. I’m the second Khan winning a World Cup for Pakistan, so I’m very proud of my Khans,” said Younis. “This is my dream. I dreamed all the time of lifting the World Cup. My thinking in all my career is that I will be remembered for a team like 1992. I was not in the Imran Khan team, and this is a dream come true. I’m really happy. Though this World Cup is Twenty20, at least we won our second World Cup. This is a gift to our whole nation. ” A Rise of A Team Like a Phoenix – From Being Called as an Underdog to Eventually be Crowned as a World Champion.

History of Whirlpool Corporation

HISTORY OF WHIRLPOOL CORPORATION Founded 1911 Headquarters Benton Harbor, Michigan, USA Key people Jeff M. Fettig, (Chairman & CEO) Michael A. Todman, (President, Whirlpool North America) Paulo F. M. O. Periquito, (President, Whirlpool International) Industry Major appliances, Small appliances Products Clothes washers and dryers, refrigerators, freezers, dishwashers, ranges, compactors, room air conditioners, microwaves ovens, counter top appliances. Revenue ^ USD 18. 907 billion (2008)[1] Operating income USD 549 million (2008)[1] Net income ^ USD 418 million (2008)[1] Total assets USD 13. 32 billion (2008)[1] Total equity USD 3. 006 billion (2008)[1] Employees 70,000 (2008) Website Whirlpoolcorp. com Whirlpool Corporation (NYSE: WHR) is a Fortune 500 company and a global manufacturer and marketer of major home appliances, with annual sales of approximately $20 billion, more than 70,000 employees, and more than 70 manufacturing and technology research centers around the world. The company markets Whirlpool, Maytag, KitchenAid, Jenn-Air, Amana, Gladiator Garage Works, Inglis, Estate, Brastemp, Bauknecht, Consul, and other major brand names to consumers in nearly every country around the world.

After acquiring the Maytag Corporation on March 31, 2006, Whirlpool Corporation became “the largest home appliance maker in the world”, prior to which Electrolux was the largest home appliance maker in the world. Whirlpool’s global and North American headquarters are in Benton Harbor, Michigan. In the U. S. , Whirlpool has manufacturing facilities in Fort Smith, Arkansas; Evansville, Indiana; Iowa (Newton and Amana); Tulsa, Oklahoma; Ohio (Clyde, Findlay, Greenville and Marion); and Cleveland, Tennessee. Contents * 1 Chronology * 2 Diversity * 3 Trivia * 4 Major brands 5 References * 6 External links Chronology Year Event 1911 Louis, Frederick and Emory Upton founded the Upton Machine Company and began to produce electric, motor-driven wringer washers. Federal Electric ordered 100 machines, but a gear failed in the transmission of them. Louis Upton immediately replaced them at no cost to Federal Electric, who was so impressed with Upton’s ethics, they immediately doubled their order. 1916 Sears, Roebuck & Co. began selling Upton manufactured machines under the “Allen” brand, one for $54. 75 and a deluxe model for $95. 929 Upton merged with Nineteen Hundred Washer Company from Binghamton, NY, taking the name Nineteen Hundred Corporation. 1942 Nineteen Hundred Corporation began converting all of its factories for war production. 1946 Nineteen Hundred Corporation begins manufacturing appliances for John Inglis and Company of Canada. 1949 First top-loading automatic washer sold manufactured for sale under Sears’ brand. 1950 The Nineteen Hundred Corporation was renamed as the Whirlpool Corporation, and sold its first top-loading automatic washer sold under the Whirlpool brand. 951 Establishment of the Whirlpool Foundation, a philanthropic arm of Whirlpool Corporation. 1955 Acquires Seeger Refrigerator Company and RCA’s air conditioner and cooking range lines including ownership of RCA’s Estate brand name. Company changes its name to Whirlpool-Seeger Corporation and began using the RCA-Whirlpool brand name until the mid-1960s. Whirlpool acquires appliance division from International Harvester Company. 1956 Opened a 100-acre (0. 40 km2) administrative center in Benton Harbor, MI. 957 The RCA Whirlpool Miracle Kitchen was introduced with an estimated 15 million television viewers. The company changed its corporate name back to Whirlpool Corporation. 1962 Won NASA’s contract for the development of the feeding and waste systems for Project Gemini. 1967 Introduced a 24-hour helpline. 1968 Surpassed $1 billion in annual revenues. 1978 Surpassed $2 billion in annual revenues. 1986 Acquired KitchenAid, a division of the Hobart Corporation. 1987 Began selling compact washers in India and acquired majority interest in Inglis of Canada. 988 Begins a joint venture with Philips called Whirlpool International with Whirlpool owning 53% of the company. The joint venture was formerly Philips’ major appliance subsidiary. 1989 Acquired the Roper brand and Bauknecht of Germany. Surpassed $6 billion in annual revenue. 1991 Whirlpool becomes full owner of Whirlpool International by buying Philips’ 47% stake. 1997 Acquired majority stake on Embraco, a Brazilian world-leading maker of compressors for refrigeration. 2000 Acquired Brazilian appliance maker Multibras, owner of the brands Brastemp and Consul, including its stake on Embraco. 001 Inglis Ltd. changes its name to Whirlpool Canada. Whirlpool continues to market Inglis appliances to this day. Surpassed $10 billion in annual revenues. 2002 Surpassed $11 billion in annual revenues. 2003 Surpassed $12 billion in annual revenues. 2004 Surpassed $13 billion in annual revenues. 2005 Maytag Corporation shareholders voted to accept Whirlpool Corporation’s stock purchase. U. S. Justice Department began a review of the merger. Surpassed $14 billion in annual revenues. 006 Acquired the Maytag Corporation, including the Maytag, Jenn-Air, Amana, Jade, Magic Chef, Admiral, Hoover, and Dixie-Narco brands, after Justice Department approved the merger. Sold Dixie Narco to Crane Co. , and Amana Commercial to AGA. Surpassed $18 billion in annual revenues. 2007 Sold Hoover to Techtronic Industries, TTI Floorcare. [2] and Jade Appliances to Middleby Corporation. Also closed plants in Newton, Iowa; Searcy, Arkansas; and Herrin, Illinois. This resulted in the sudden loss of 4500 jobs in the affected communities. Surpassed $19 billion in annual revenues. 008 Location closings in La Vergne, Tenn; Reynosa, Mexico; and Oxford, Miss. Diversity Whirlpool Corporation has seven employee run diversity networks that are involved with business, employee, and community projects to address the needs of the groups they represent. These diversity networks are The Women’s Network (TWN), the Native American Network (NAN), the Whirlpool African American Network (WAAN), The Pride Network (PRIDE), the Whirlpool Asian Community (WAC), the Whirlpool Hispanic Network (WHN), and the Young Professionals Network (YP).

Whirlpool received a 100% rating on the Corporate Equality Index released by the lesbian, gay, bisexual, and transgender (LGBT) equal rights organization Human Rights Campaign starting in 2004, the third year of the report. Trivia Whirlpool Corporation is a principal supporter of Habitat for Humanity, a non-profit organization dedicated to building low-cost, affordable housing. The company’s commitment to Habitat for Humanity has exceeded $34 million and it has donated more than 73,000 appliances for Habitat homes.

The company plans to support every Habitat home built globally by 2011, either through product donations, cash, or home sponsorship. [3] In November 2006, Whirlpool started the annual Building Blocks program, designed to raise awareness and help eliminate substandard housing in the United States. Each year the program recognizes an outstanding U. S. Habitat for Humanity affiliate and its relationship with its local community by holding a week-long build in the affiliate’s community.

The program kicked off in Nashville, Tennessee, in 2006 when Whirlpool united 100 local residents with 100 Whirlpool employees and volunteers from 100 Habitat affiliates. These 300 volunteers built 10 homes on one block from Nov. 5-10, 2006. Whirlpool built nine homes near Phoenix, Arizona, in May 2007,[4] and nine more homes in Dallas, Texas in October 2008. The 2009 build is set to begin August 31 in Atlanta, Georgia. [5] In 2006, more than 20 Whirlpool India employees participated in the week-long Jimmy Carter Work Project in India, which resulted in the completion of 100 homes in a village near Mumbai.

In 2005, Whirlpool India began a partnership with Habitat for Humanity India. Volunteers from Whirlpool participated in the build organized by Habitat for Tsunami victims in the southern part of India. In June 2005, Habitat for Humanity held its annual Jimmy Carter Work Project (JCWP) in Benton Harbor, Michigan. This week-long effort culminating in the completion of more than 230 houses in Michigan. Whirlpool was the lead sponsor for the build and 270 Whirlpool employees from 19 nations worked together to build 10 houses during the week.

To facilitate Hurricane Katrina relief efforts, Whirlpool worked with Habitat to support “Operation Home Delivery. ” Whirlpool employees helped construct approximately 50 pre-built homes in New York’s Rockefeller Center that were boxed and shipped to Louisiana and Mississippi and later erected with the help of Whirlpool employees in St. Tamany Parrish, Louisiana. In January 2007, Whirlpool chose to hold its annual sales meeting in New Orleans. As part of that meeting, more than 1,000 Whirlpool employees spent one day volunteering with Habitat for Humanity in an effort to continue rebuilding New Orleans’ residential areas.

Since 2004, Whirlpool has sponsored entertainment icon Reba McEntire’s music tours to raise awareness and more than $500,000 for Habitat for Humanity. Cook for the Cure: Cook for the Cure presented by KitchenAid, was created in 2001 to give passionate cooks a way to support the Susan G. Komen Breast Cancer Foundation. Cook for the Cure has raised more than $4 million through donation-with-purchase programs, special fundraising events, auctions and grass roots initiatives. KitchenAid also supports breast cancer foundations in other countries including Canada, France, Germany, South Africa, Greece and Israel.

Major brands * Whirlpool * Maytag * KitchenAid * Jenn-Air * Amana * Roper * Acros * Estate * Inglis * Bauknecht * Brastemp * Consul * Gladiator GarageWorks Whirlpool also manufactures certain appliances under the Kenmore label, (manufactured for Sears Holdings Corporation). Whirlpool has expanded the marketing of Inglis appliances which are sold in the United States at Best Buy stores. Whirlpool also manufactures IKEA brand appliances for low-cost home products retailer IKEA and Admiral appliances for Home Depot. References . ^ a b c d e “Financial Tables”. Whirlpool Corporation Investor Relations. http://www. google. com/finance? q=NYSE:WHR=ii. Retrieved 2009-01-23. 2. ^ “Whirlpool to Sell Hoover Business For $107 Million to Techtronic. ” Lam, J. The Wall Street Journal. December 7, 2006. 3. ^ Whirlpool extends commitment to Habitat for Humanity, Habitat for Humanity. [1] 4. ^ Whirlpool Building Blocks project welcomes home new Habitat homeowners. Habitat for Humanity. [2] 5. ^ Whirlpool Building Blocks heads to Atlanta. [3] Wisconsin Historical Archives FAQ External links Companies portal * Official Site * Whirlpool India * Yahoo! – Whirlpool Corporation Company Profile * Google – Whirlpool Corporation Company Profile * The Wonderful World of Wash and Wear, a film produced by the Jam Handy Company for RCA Whirlpool Retrieved from “http://en. wikipedia. org/wiki/Whirlpool_Corporation” Categories: Companies listed on the New York Stock Exchange | Whirlpool brands | Companies based in Michigan | Home appliance manufacturers | Companies established in 1911

Title: “with a Point of Departure from the Managerial Economics Theory (Ies) of Your Choice Describe How Managerial Economics Is Applicable in Your Work Place of Your Choice.”

MZUMBE UNIVERSITY (CHUO KIKUU MZUMBE) DAR ES SALAAM BUSINESS SCHOOL STUDENT NAME: KARUGABA RUGAIMUKAMU REGISTRATION NUMBER: 1375/T. 09 COURSE: MSC. MARKETING MANAGEMENT SUBJECT: MANAGERIAL ECONOMICS COURSE LECTURER: DR. PROSPER NGOWI TERM PAPER ASSIGNMENT TITLE: “WITH A POINT OF DEPARTURE FROM THE MANAGERIAL ECONOMICS THEORY (IES) OF YOUR CHOICE DESCRIBE HOW MANAGERIAL ECONOMICS IS APPLICABLE IN YOUR WORK PLACE OF YOUR CHOICE. ” CASE STUDY: ZAIN TANZANIA TABLE OF CONTENTS Table of contents………………………………………………………………. i List of Abbreviations……………………………………………………………ii 1. Introduction………………………………………………………………… 1 1. 1Economic Theories Explanation……………………………………. 1. 2Theories to be Discussed…………………………………………… 2. 0Zain Tanzania History and Background……………………………………. 2. 1Zain Market Share and the Status of Telecommunication Sector…… 2. 2Zain Organization Structure………………………………………….. 2. 3Zain Products and Services…………………………………………… 3. 0Challenging Managerial Decision Areas in Zain Tanzania-Real Cases……… 3. 1Choice of Product……………………………………………………… 3. 2 Determining the Price of a Product…………………………………… 3. Choice of Technology…………………………………………………. 3. 4 How to promote Sales………………………………………………… 3. 5 How to Manage Inventory…………………………………………… 3. 6 Choice of Business and Nature of Product……………………………. 4. 0 Impact of the Decisions in the Short Run and Long Run…………………….. 4. 1 Impact of Product Choice……………………………………………… 4. 2 Impact on Price Setting………………………………………………… 4. 3 Impact on the Choice of Technology…………………………………… 4. 4 Impact on Decisions Made to Promote Sales…………………………… 4. 5 Impact from the Management of Inventory……………………………… 4. Impact Associated with the Choice of Business and Nature of Product….. 5. 0 Conclusion and Recommendations……………………………………………….. Appendix i: Illustration of Application of Economics to Managerial Decision Making….. Appendix ii: Zain Tanzania Organization Structure Chart………………………………… Appendix iii: Telecommunication Operators, Voice Subscription and Teledensity……….. Appendix iv: Subscriber Shares and Trend of Voice Operator Subscriptions……………….. References……………………………………………………………………………………… LIST OF ABBREVIATIONS: BDCs: Business Development Coordinators

CAD: Corporate Affairs Director CAM: Corporate Affairs Manager CAOs: Corporate Affairs Officers CCD: Customer Care Director CCMs: Customer Care Managers CCO: Chief Commercial Office CCRs: Customer Care Representatives CCSs: Customer Care Supervisors DM: Director of Marketing EDGE: Enhanced Data rates for Global Evolution FD: Finance Director FDI: Foreign Direct Investment FMs: Finance Managers FOs: Finance Officers GPRS: General Packet Radio Service GSM: Groupe Special Mobile’ (Global System for Mobile Communications) HRD: Human Resource Director

HRMs & AMs: Human Resources Managers and Administration Managers HROs & AOs: Human Resources Officers and Administration Officers M-Banking: Mobile Banking MD: Managing Director MDC: Min Distribution Centre MMS: Multimedia Message MMSs: Marketing Managers-Segments MOs: Marketing Officers MRDC: Mini Regional Distribution Centre PCs: Project Coordinators PMs: Project Managers R & D: Research and Development SD: Sales Director SMS: Short Message Service TCRA: Tanzania Communication Regulatory Authority TMs: Territory Mangers TTCL: Tanzania Telecommunication Company Limited

Zap: Zain Pesa 1. 0 INTRODUCTION Before embarking to this paper it is wise to show how different economics gurus have defined Managerial Economics. Webster (2003) defines Managerial Economics as the application of economic theories and quantitative methods (Mathematics and Statistics) to the managerial decision making process. According to Dwivedi ( 2008), “Managerial economics can be broadly defined as the study of economic theories, logic and tools of economic analysis that are used in the process business decision making.

Economic analysis and techniques of economic analysis are applied to analyze business problems, evaluate business options and opportunities with a view to arriving at an appropriate business decision. ” In my view I see all the definitions to contend on the common concept of directing the objective of Managerial Economics at making optimal business decisions using economics theories and statistical logics. All managers therefore have to make use of Managerial economics theories for the success of their enterprises. 1. 1 ECONOMIC THEORIES EXPLAINATION:

Generally, economic theories are concerned with how society answers the basic economic questions of what goods and services should be produced, and in what amounts, how these gods and services should be produced (i. e. , the choice of appropriate production technology), and for whom these goods and services should be produced. Over the past two decades, Tanzania has been transformed from a centrally planned/command economy to a market oriented system through successful implementation of trade liberalization measures.

The Government has taken deliberate steps to encourage private sector led growth through restoration of market forces and less interference in commercial activities. These measures including privatization of state owned companies, reduction of tariff and non-tariff barriers and fiscal/monetary reforms have opened doors for expansion of private sector operations in all spheres of business triggering Foreign Direct Investments (FDI). Hence, Zain Tanzania (an FDI operation) as in the case of all profit-maximizing firms produce only the goods and services her customers demand. Why?

Webster (2003) warns that profit maximization implies cost minimization in competitive markets since firms that do not combine productive inputs in the most efficient (least costly) manner possibly will quickly be driven out of business. 1. 2 THEORIES TO BE DISCUSSED For the purpose of this discussion the following microeconomic theories (as laid down by Dwivedi (2008)) shall be used to explain how problems faced by managers in the work places particularly Zain Tanzania are dealt with: •Theory of Demand. This answers questions as: How do consumers decide whether or not to buy a commodity?

How do they decide on the quantity of a commodity to be purchased? When do they stop consuming a commodity? How do the consumers behave when the price of the commodity, their income and tastes and fashions change? At what level of demand, does changing price become inconsequential in terms of total revenue? The knowledge of demand theory can, therefore, be helpful in making the choice of commodities, finding the optimum level of production and in determining the price of the product. •Theory of Production. Production theory explains relationship between inputs and output.

It also explains under what conditions cost increase or decrease; how total output behaves when units of one factor (input) are increased keeping other factors constant. How can output be maximized from a given quantity of resources; and how can the optimum size be determined? Production theory, thus, helps in determining the size of the total output and the amount of capital and labor to be employed, given the objective of the firm. •Pricing Theory. This explains how price is determined under different kinds of market conditions.

It can be helpful in determining the price policy of the firm. •Profit Analysis and Profit Management. Profit making is the most common objective of all business undertakings. This is not always since organizations operate under the environment of risks and uncertainties. Profit theory guides firms in the measurements and management of profit, in making allowances for the risk premium, in calculating the pure return on capital and pure profit and also for future profit planning. •Theory of Capital and Investment Decision. Capital is the foundation of business.

Its efficient allocation and management is one of the most important tasks of the managers and a determinant of the success level of the firm. The major issues related to capital are: choice of investment project, assessing the efficiency of capital and most efficient allocation of capital. Knowledge of capital theory can contribute a great deal in investment-decision making, choice of projects, maintaining the capital, capital budgeting etc. 2. 0 ZAIN TANZANIA HISTORY AND BACKGROUND: Zain Tanzania (then Celtel Tanzania) was launched in October 2001 and is part of Zain Group.

Celtel Tanzania a Multinational Enterprise as Foreign Direct Investment came into existence in the country as a result of partial privatization of Tanzania Telecommunication Company Limited (TTCL). Zain Group comprises of 22 countries’ operations; 5 in the Middle East and 17 in Africa. These are: Burkina Faso, Chad, Congo Brazzaville, Democratic Republic of Congo, Gabon, Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria, Saudi Arabia, Sierra Leone, Sudan, Tanzania, Uganda, Zambia, Bahrain, Iraq, Jordan, Kuwait and Lebanon. The government of Tanzania has 40% ownership shares in Zain Tanzania.

Zain Tanzania is the most innovative mobile phone operator and has introduced many “firsts” in the telecommunication sector in Tanzania. Above all, Zain Tanzania is the Cellular operator with the widest network coverage as compared to other operators: Vodacom, Tigo, Zantel, Sasatel, TTCL Mobile, and BOL. Zain Tanzania has its executive headquarter in Zain House at Kijitonyama, A. H. Mwinyi road, Dar es salaam. In August 1, 2008 Zain group rebranded its Africa operations from “ Celtel ” to “ Zain “ in line with its objectives of operating under one brand in all the 22 countries.

Zain Mission, Vision and Values: •Mission “To cement Zain as a leading global mobile operator that provides professional, world -class mobile and data services to all . our customers, wherever they are, worldwide. And Zain aims to achieve this by exceeding its customers’ expectations, rewarding its employees, and providing returns beyond reasonable expectations for its shareholders”. •Vision “Zain will become a global wireless operator by 2011 through a 3 x 3 x 3 profitable expansion”.

It is through this ambitious Vision of progressive growth that moved Zain from a single operator in Kuwait at the beginning of 2003 to a company with a commercial presence in 22 countries by March 2009. The 3 x 3 x 3 is the strategy that will make Zain a global player in three stages regional, international and global, with each stage completed in three years, with an aim of reaching a customer base of 150 million. In essence, with this plan, Zain aims to achieve in nine years what other companies have taken more than 27 years to achieve. Values “At Zain we become one international family, building on the outstanding progress we have made over the past five years, and adopting core values that remain constant irrespective of the different national cultures and identities that we share. These Values are: Radiance, Heart and Belonging. Radiance is about leading the way with imagination and vision, bringing joy, color, and richness to our business environment. Heart represents living our lives with courage and resolve, engaging our spirit and touching emotions.

Belonging means exactly what it says … being part of the fellowship and community spirit that knows no territorial boundaries”. 2. 1 ZAIN MARKET SHARE AND THE STATUS OF TELECOMMUNICATION SECTOR. Out of approximately 40 million people in Tanzania, a teledensity (penetration) of 36% as of June 2009 has been reached and this is viewed as possessing prospects in the telecoms sector. According to Tanzania Communication Regulatory Authority (TCRA) prior to 2005 the teledensity was below 10%. Statistics show Tanzania’s telecom sector grew by 20. 1 per cent in 2007, and 19. per cent in 2006 obviously due to the continual FDI conducive environment created by TCRA policies on telecom sector liberalization. Zain is ranking second with a market share of 30% while Vodacom is still leading the market with more subscriptions (40%). See appendix iv. 2. 2 ZAIN ORGANISATION STRUCTURE: Zain Tanzania operation is a multinational subsidiary of Zain Group. Zain Tanzania is under Zain East Africa Region comprising of Tanzania, Kenya, Uganda and Madagascar. Zain Tanzania is following a 3-level managerial level style having the Directors, Managers and the Departmental Functional Members.

However, the top managerial level members are the on participating in making corporate strategies that describes Zain Tanzania’s overall direction in terms of its general attitude growth and the management of its various businesses and product lines. The organization structure is illustrated in a chart on appendix ii. 2. 3 ZAIN PRODUCTS & SRVICES: Conforming on its Mission, Vision and Values, Zain has come with various products and service to suit its customers in Tanzania. The products and services are in six categories as mentioned below: i. Personal Plans •Prepaid •Postpaid •Jirushe Tariff International Tariff •Broadband Tariff ii. Business Plans •Postpaid Plan •Xcelerator per minute •Xcelerator per second •Prices •Know your Bill iii. Phone Service •SMS text messages •Voice Mail •Roaming •Missed Call Alert •Call Waiting •International Dialing •Fax •Internet Access •One Network •Me2U •One Office •Choose a Phone •Black Berry •Phone Care •Driving Safety •Sim Card Registration iv. Zap v. Extra Service •Zain Portal •SMS Info Services •Compatibility Chart •MMS •Zain Rewardz •My Vibes vi. 24-hour Customer Care Centre 3. 0 CHALLENGING MANAGERIAL DECISION AREAS IN ZAIN TANZANIA-REAL CASES: 3. CHOICE OF A PRODUCT Zain Tanzania believes that customers have the right not only to extensive coverage and quality services but also to affordable tariffs. This concept makes the company to come with various products for instance one among them being PAMOJA 10 which enables the Zain subscribers to make voice calls to 10 selected favorite numbers at a call rate of 1/sec. Pamoja 10 is a direct response to Zain customers request and will conveniently enable people to make more calls for less. Since Zain is committed to live to her promise of creating a wonderful world to her customers.

Hence here we see that the economic question of what product and services to be produced being answered. More acquisition of subscribers was obtained and retention rate accelerated as a result of Pamoja 10 launch. This situation conforms to the demand theory. Following an extensive research done by Zain in Tanzania ,it was revealed that banking services and paying methods of various services is absolutely very inconvenient thus in February 2009 Zain Tanzania launched its brand new M-Banking service Zap for which 1,400 customers were signed only in 10 days period.

Zap allows Zain customers to use their mobile phones as mobile wallet. Services payments via Zap include: LUKU power purchase, DAWASCO water bill payment, mobile banking using NMB and Postal bank. 3. 2DETERMINING THE PRICE OF A PRODUCT. According to Kottler and Keller, (2009) firms pass through a six-step procedure in setting the price and these include: selecting the pricing objective, determining demand, estimating costs, analyzing competitors’ costs, prices, and offers, selecting a pricing method and selecting the final prices.

Currently the mobile communication industry in Tanzania is of oligopoly nature and is facing price wars among its players i. e. , Zain, Tigo, Voda and Zantel. Price wars involve a state of intense competitive rivalry accompanied by multi-lateral series of price reduction. Tigo with its pricing objective being survival is always a prices leader in lowering tariffs. Zain Tanzania pursues a product-quality leadership pricing objective. For instance, in December 2008 TIGO officially launched their Longa Longa 3 tariff for their cellular subscribers to a reduced rate of 1 sh. er second being a 65% tariff slash, for 24 hours throughout the country. When Tigo launched EXTREME sooner had it done so Zain and Voda followed by announcing their JIRUSHE and CHIZIKA respectively. Tigo EXTREME could enable an acquisition of a reasonable number of subs to shake the giants Zain and Vodacom. 3. 3CHOICE OF TECHNOLOGY Cateora, Graham and Salwan, (2008) explain how demand is affected by technology in the global business-to-business markets by pinpointing that, “ Not only is technology the key to economic growth, but for many products it is also the competitive edge in today’s global markets.

The ability to develop the latest information technology and to benefit from its application is a critical factor in the international competitive of managers,, countries and companies. The competition to meet this global demand will be stiff; the companies with the competitive edge will be those whose products are technologically advanced, of the highest quality, and accompanied by world-class service. Zain Tanzania a MNE is very keen on availing the new technologies.

It was the first cellular operator to introduce the first GPRS/EDGE Service in Tanzania in September 2006 that enables data connections significantly faster than dial up and traditional GSM. Since technology is an important and expensive factor input the concept of production theory was much adhered to. 3. 4HOW TO PROMOTE SALES Despite the profit maximization objective Zain Tanzania also has a number of other objectives including maximization of sales revenue. Thus the company does its best effort in promoting sales.

Major decisions to revamp sales were done in May 2008 on the size of the sales force where the number of regional sales representatives was doubled. Concurrently, a 1,000-man freelance sales team was formed countrywide. Again, the theory of production was seriously checked since this includes labor as the factor input. 3. 5HOW TO MANAGE INVENTORY Learning to manage inventory efficiently and correctly will allow a company to stock a sufficient quantity of product to meet customer needs. Not enough inventory causes delays and is bad for business.

Excessive inventory costs money. It is crucial to manage inventory so that profit are maximized and costs are minimized. When Zain (then Celtel) commenced business in Tanzania in November 2001 only four shops were established; one in each zone that is, in Dar es salaam , Arusha, Iringa, and Mwanza which represented the respective zones of Coastal, North, South and Lake. In 2005 the company decided to relocate the Iringa shop to Mbeya after learning that Iringa was not a representative potential strategically point for the Southern zone regions.

However, the Iringa shop was not closed entirely but was given to a third party to run. As the number of subscribers grew a number of shops have since been opened including Unguja, Dodoma, Mororogro, and Mtwara. 3. 6CHOICE OF BUSINESS AND NATURE OF PRODUCT In optimizing cost, many companies are coming up with an idea of outsourcing when it comes to the choice of business and nature of product. According to Wheelen and Hunger, (2008) outsourcing is purchasing from someone else a product or service that had been previously provided internally.

Outsourcing is becoming an increasingly important part of Strategic decision making and an important way to increase efficiency and often quality. Zain has recently (November 2009) decided to outsource its network operations to Nokia Siemens. The objective being delivery of improved quality of service and enhanced coverage for Zain. Many decisions of such nature had been done by Zain in the past for instance the outsourcing of distribution tasks to National Dealers, Min Distribution Centre (MDC), and Min Regional Distribution Centers (MRDC) . 4. IMPACT OF THE DECISIONS IN THE SHORT RUN AND LONG RUN In my point of view I see that all managerial decisions have impacts whether positive or negative and that can happen in either short run or long run or both. Companies decision making activities are done under the conditions of risks and uncertainties arising due to various forces : political-legal, social- cultural, economical, technological as well industrial forces for example: the customers, creditors, suppliers, communities, special interest groups, employees/labor unions, shareholders, competitors, trade associations etc..

Further all the decisions are made on the basis of selecting the best out of available options with the objective of maximizing gains from the given scarce resources. In understanding the impact of decisions made in the course of daily operations in Zain Tanzania; let’s revisit the areas of managerial decisions as mentioned above: 4. 1IMPACT ON PRODUCT CHOICE On launching Pamoja10 Zain Tanzania could attract a number of new acquisitions and hence increased its subscriber base but the product in the long run killed the existing Zain product of Pay phone service i. . , a public call service. Product cannibalization. Likewise, when Zain launched Jirushe, a product which allows customers to make call for the whole day for only T. Shs. 1,500 the impact was in a short run felt. Some of the corporate clients (companies customers with contractual billing systems/post paid) began requesting to be deactivated and return back to the traditional prepaid plan so that they could enjoy Jirushe tariff. 4. 2IMPACT ON PRICE SETTING Due to the tense competition that Zain Tanzania is facing especially on the ngoing price wars in the industry Zain is becoming more of reactive than being proactive. Lowering prices with cost remaining the same; means cutting profits. This is logically done from mathematical expression that total profit equals total revenue minus total cost. Profit = Total Revenue – Total Cost Profit = PQ – C where P= Price, Q = Number of customer and C= Cost Scenario 1: When P is lowered while Q and C remaining the same, Profit will be less Scenario 2: When P is lowered and Q is raised with C remaining the same, Profit will be higher.

Hence, the lowering of price makes rational sense if and only if it is concomitantly with rising in customer number and where elasticity of demand is applicable. In this case profit maximization theory will be appreciated. 4. 3IMPACT ON THE CHOICE OF TECHNOLOGY Certainly Zain Tanzania is the leader in technology here in Tanzania in the Telecommunication Industry inter alia. With the introduction of Zap, One Network, 3G. From the theory of production, Technology, T as an input variable is put in the Capital, K category because technology remains constant over a period of time.

The product function Qarpu = f (K, L) Where: Qarpu = Quantity measured in average revenue per user K = Capital as Technology L = Labor The production function above implies that the quantity of average revenue per user depends on the quantity of Technology/Capital input (K) and Labor (L) employed to promote the products. At Zain decisions to acquire new technology and use it is done in long run period whereby the supply of capital is elastic. The introduction of 3G technology for example, had to imply making a complete overhaul of its network Back bone and Base Transmission Stations (BTS). . 4IMPACT ON THE DECISIONS MADE TO PROMOTE SALES By increasing the Sales work force last year, Zain’s new connections rate grew from an average of 7,000 new subscribers per day to an average of 12,000 subscribers per day that being an increase of 71%. Although, the doubling of the sales force created higher costs in terms of salaries, incentives and training needs but the company could enjoy the economies of scale particularly economies in production where always division of labor improves productivity of labor per unit of cost and time. 4. IMPACT FROM THE MANAGEMENT OF INVENTORY. Inventory control is a very important subject and its role cannot be ignored. My experience shows me that improper management of inventory always results in lost sales, and customer dissatisfaction. Zain Tanzania’s strategically establishment of shops, points of sales, dealer shops and customer care points countrywide shows its commitment towards serving its customers in marketing oriented manner and thus enjoying economies in transport and technology. According to Kotler and Keller (2009), inventory levels represent a major cost.

Inventory level increases at an accelerating rate as the customer-service level approaches 100%. They further argue that management needs to know how much sales and profits would increase as a result of carrying larger inventories and promising faster order fulfillment times, and then make a decision. 4. 6IMPACT ASSOCIATED WITH THE CHOICE OF BUSINESS AND NATURE OF PRODUCT Perhaps the decision made by Zain Tanzania recently to outsource its network operations to Nokia Siemens is among the major decision done since its business commencement.

One of the first incidences is the transfer of Zain Tanzania employees belonging to the network operations department Nokia Siemens. The announcement of the decision ignited reactions and questioning their gratuity and terminal benefits entitlements. The company has possibly overlooked personnel issues in the outsourcing decision; this may lead to employee (labor- a factor input) loosing commitment to the firm and hence affecting productivity negatively. The significant advantages of this outsourcing are that Nokia Siemens Networks is a market leader in managing outsourced networks.

Moreover, Zain will be in a stronger position to dedicate resources and assets to its core business operations, continue to improve customer support, developing and launching new products, services. 5. 0CONCLUSION AND RECOMMENDATIONS: According to Wheelen and Hunger (2008), as organizations grow larger and more complex, with more uncertain environments, decisions becuome increasingly complicated and difficult to make. Most of the decisions made by Zain as illustrated above are more reactive in nature than proactive.

The two authors suggest the use of Mintzberg’s Modes of Strategic Decision Making which has four typical approaches: Entrepreneurial mode, Adaptive mode, Planning mode, and Logical incrementalism. From the perspective of Zain Tanzania’s provision of various products and services, it is hereby suggested that the company to keep on innovating new products and this can be achieved by investing in Research and Development (R & D). Certainly, managerial decisions can make rise to various impacts as explained above; it is therefore the responsibility of decision makers to bear in mind the interests of all stakeholders.

The example of misunderstanding between Zain Management and operations department staff who will be transferred to Nokia Siemens. Despite the global financial crisis the telecommunication sector in Tanzania is continuing to grow as shown in appendix iii and iv. Unfortunately, the data to show sectoral contribution in the development of Tanzania economy was not able to be obtained. But, definitely the data available in the appendix iii and iv shows a prosperous future in the sector and Zain has an opportunity of achieving its objective of being among the top ten global wireless operators by 2011.

Zain Tanzania was recently voted the 2009 Most Respected Company in Tanzania and a- 2008 Most Respected Company in East Africa; with these victories it surely can achieve its objectives but if and only if it uses effective managerial decision making. Appendix i Managerial decision Areas •Assessment of Investible Funds •Choice of Product •Determining Optimum Output •Determining Price of the Product •Determining Input-Combination and Technology •Sales Promotion Application of Economic Concepts and Theories in Decision-Making Use of Quantitative Methods •Mathematical Tools Statistical Tools •Econometrics Managerial Economics Application of Economic Concepts, Theories and Analytical Tools to find optimum Solution to Business Problems. Fig. Application of Economics to Managerial Decision-Making. Source: Dwivedi (2008) Appendix ii Fig. Zain Tanzania organization Structure Appendix iii. 1. Licenced Telecommunication Operators Years200020012002200320042005200620072008June 09 Number of Voice Mobile Operators5665556666 Number of ISP/Data Operators11172022232325346062 2. Voice Subscriptions Year200020012002200320042005200620072008June 09

Number of Fixed Network Subscriptions173,591177,802161,590147,006148,360154,420151,644163,269123,809179,849 Number of Mobile Network Subscriptions126,646275,560606,8591,295,0001,942,0003,389,7875,614,9228,322,85713,006,79314,723,175 Total Number of Subscriptions300,237453,362768,4491,442,0062,090,3603,544,2075,766,5668,486,12613,130,60214,903,024 Teledensity (Penetrations)1%1%2%4%6%10%15%21%32%36% Appendix iv. Subscription Per Operator YEARBENSONCELTELTIGOTTCL FixedTTCL MOBILEVODACOMZANTEL MOBILEZANTEL FIXEDTOTAL 2000–56,511173,591-50,0004,007-284,109 001–89,056177,802-180,0006,501-453,359 2002-120,089160,000161,590-300,00026,770-768,449 2003-320,000210,000147,006-700,00068,000-1,445,006 2004-504,000303,000148,360-1,050,00085,000-2,090,360 2005-882,693422,500154,420-1,562,43596,109-3,118,157 2006-1,516,832760,874150,8976,390 2,975,580355,246747 5,766,566 2007 3,300 2,505,546 1,191,678 157,816 72,729 3,870,843 678,761 5,453 8,486,126 2008 3,000 3,862,3712,569,527 116,265 105,804 5,408,439 1,057,652 7,544 13,130,602 June 20093,500 4,435,4623,264,565 166,379 111,7135,921,265 986,670 13,470 14,903,024 Source: Operators Monthly Subscriber base Report) Subscriber Shares June 2009Trends of Voice Operators’ Subscriptions REFERENCES: Arthur A. Thompson, Jr. , John E. Gamble and A. J. Stickland (2004), Strategy: Winning in the Market Place, International Edition, McGraw-Hill Inc. , New York. D. N. Dwivedi (2008), Managerial Economics, Seventh Edition, Vikas Publishing House PVT LTD, New Delhi. Philip Kottler(2002), Marketing Management, 10th Edition. The Millennium Edition), Prentice-Hall of India, New Delhi. Philip R. Cateora, John L. Graham and Prashant Salwan (2008), International Marketing, Thirteenth Edition, McGraw-Hill, New York. Tanzania Communications Regulatory Authority (TCRA), Telecommunications Statistics from 2000 to June 2009 Thomas J. Webster (2003), Managerial Economics: Theory and Practice, Academic Press, California, USA. Zain Website: www. zain. com

Cosco

Business strategy and IT strategy of COSCO As the president of COSCO once said, “container shipping industry is traditionally low-margin, highly competitive and risky market. ” Actually, this is the case. At the dawn of COSCO, with only a small fleet, it is destined that the only way to survive is to grow as large as possible to avoid being acquired by its peers. And now we have to admit that COSCO basically did a really good job when it comes to its way of growing.

This is resulted from its state-owned business background, the external economic environment and the business strategies it employed. The first two factors allows COSCO to gain more competitive advantages domestically by acquiring some privileges before China’s joining WTO, such as financial support from the government and entry to some industries which were not accessible by the foreign capitals. All these help COSCO to grow rapidly under the shelter of the government. But basically, COSCO’s success lies more in its business strategy, especially after China’s entering WTO.

Without those privileges, COSCO had to compete based on its own competency. Actually, we tried to find out the stages according to the times dimension and finally we get the point of year 2002 when COSCO established COSCO LOGISTICS, which indicated a critical change in COSCO’s business strategy. At the meantime, the top management also gave out the vision stating that “COSCO hoped to be known as a shipping-based logistics company by 2010”. COSCO managed to transfer its original image of a shipping enterprise to a brand new one as a global logistics company.

This strategic-level change established the basis for COSCO’s near future engagement in the global competition with major shipping enterprises like Maersk-Sealand. Actually, this is the mega-trend for almost all the major shipping companies throughout the world. Focusing on shipping business only will absolutely lead to the limited growth-rate of an enterprise, just because the profit for the shipping industry is rather low and dramatically fluctuated under the pressure of oil price, severe competition and changeable global economic environment.

The joint force of these factors finally made some companies struggled to find another way to gain steadier and greater profit. And naturally, they figured out the method of vertical integration. That is, in addition to shipping business, investing in logistics and gain more sections of the whole value chain. Instead of rely on the logistics agent to feed them, they established their own logistics companies to take the place of these agent. Compared with shipping business, logistics itself is of higher added value, which is desired by the shipping enterprises.

As for COSCO, vertical integration is also a good method to employ when facing the global competition. Stage1: DIVERSIFICATION This stage refers to the time before the establishment of COSCO LOGISTICS 2002. Like other shipping enterprises, COSCO used to play a role of shipper in the whole value chain of this container shipping industry, which means COSCO mainly focused on its port to port transport and paid no attention to set up its own logistics systems. This is actually the early days for COSCO.

But actually, in running the business, COSCO found that it was quite difficult to gain enough cash flow to guarantee the investment in various kinds of projects, which was natural for this industry. And the solution worked out by COSCO was diversification. And COSCO really did a very good job. Figure talks. By 1993, COSCO’s inland business, such as construction, finance, etc, composed of 24% of the total income of the group. And the figure rose to 39% in 1994.

By the year of 1996, the total revenue made from these businesses has exceeded 40% of the total. From these figures, we could reach the conclusion that COSCO’s inland business created a both solid and supportive basis for its main business. This actually established basis for the competitive advantages to COSCO. Besides the low margin, container shipping was also a highly-competitive market, in which all the companies involved, no matter big or small, spared no effort to enlarge the market share.

In the late 1990s, there was a wave of business merger. Well-known were the merger of Denmark-based Maersk Line and US-based Sea-Land’s container business into Maersk-Sealand in 1999 in the wake of the mergers of P&O with Nedlloyd in 1996 and NOL with APL in 1997. In this way, independent shippers such as COSCO confronted big threats. At that time, the goal for COSCO was to become one of world’s best ocean shippers. As has been mentioned, COSCO achieved this through its diversification strategy, which was to diversify its composition of assets.

So far, in four decades of development and reforms, COSCO had formed its shipping business as the main structure and some inland business matching the pattern of diversification. IT strategy at this stage: Attempt in applying IT to reduce cost First step in EDI (electronic data interchange) COSCO Group was mainly engaged in ocean shipping. In dealing with the departments including banking, customs, ports, terminals, commodity inspection etc, the transmission of information played an important role. Paper-based interchange of data would make the job unexpectedly heavy.

Therefore, in the early 1980s, COSCO started the EDI research, which had been commonly used in China as a standard. After several years’ attempt, COSCO set up its EDI center and EDI global network, which covered the network of its shipping agents, realized the EDI messaged exchanges with port terminals and customs, as well as connected its Chinese and foreign offices. Independent computing centers Early in 1988, Guangzhou Ocean Shipping (General Cargo) put forward the idea of adopting new financial software and soon became the general system for all the five subsidiaries.

But there was a lack in information transmission between different companies as well as the connection between financial system and other functional systems. However, with the decade’s development of scale, real asset, new business etc, a large number of new subsidiaries were established, which used their own preferable financial software. Hence, the disunity of format and statistical method made the headquarters an information “solitary island”. Stage2: VERTICAL INTEGRATION and FOCUS

This refers to the time after the establishment of COSCO LOGISTICS 2002. According to COSCO’s slogan, “to establish a shipping-based logistics company by 2010”, the key words lie in “shipping-based” and “logistics company”, which has been discussed at the beginning of this section. We sensed that COSCO could achieve its business advantage in the following ways. ?Strengthening the shipping business ?Modernizing the logistics capacity ?Optimizing the inland businesses ?Improving the network