Marketing plan Essay Example | Topics and Well Written Essays - 500 words - 12

Marketing plan - Essay Example The main design of the portable toilets is cube and wave products in Europe and US respectively. As a worker in the company, I would propose to the management to invest in portable bathrooms since they have the resources and the required technology and personnel. The bathrooms should be designed as the wave product but should be installed with showers and mirrors with a base that is not slippery. It should also have a good drainage in the essence just as the portable toilets have a tank that is then emptied. The water from the bathroom is then recycled and used in the toilets and by doing so the company will create a good image since it is eco-friendly. The roof of the portable bathroom should have a solar panel that will be used to heat the water. The bathroom lending or purchasing price should be equivalent or lower when introduced in the market as the portable toilets. The current global economic crisis is a negative factor for the company but if it export in countries that pay more in the foreign exchange market there will be more profits thus an opportunity to trade

South African Foreign Policy in the 1930's Essay

South African Foreign Policy in the 1930's - Essay Example The links between the Afrikaans and the German people extended through time and had been present since the first European settlements were made in South Africa. J.F.J. van Rensburg, who later became the Kommandant Generaal of the Ossewa Brandwag, wrote in his autobiography that he carefully, meticulously and gratefully learnt the German language since it was the language of a kindred people. Oswald Pirow, the Minister for Justice and later Defence Minister was a self confessed Germanophile. He visited Europe on several occasions, and made it a point to pay his respects to German and pro-German Leaders like Hitler, Goering, Mussolini, and Franco (Bunting, 1964). Mussolini himself employed racial discrimination as a factor in the foreign policies and government of his country much like South Africa (Robertson, 1998). Considering the example set by her father, Pirow’s daughter must have done her father proud when in 1939 she arrived in England and gave an interview on her way to a German Women’s camp while talking to a representative of the Daily Express to whom she said that even though she had never been to Germany, it felt like home. Her grandparents on both sides were German and her father spent his boyhood in Germany. This idea of taking Germany as home was present in many of the Afrikaner people of German descent since there was a natural affinity between them and the Germans (Bunting, 1964). It can hardly be expected that such sentiments could give the British much confidence in South African support at the eve of war.

Influences on Child Stages of Development

Influences on Child Stages of Development Samra Saleem Unit 2: Understanding and Promoting Children’s Development In this assessment I will be describing the expected pattern of children’s development. I will be analysing how personal and external factors can influence a child’s development, the reasons why children’s development may not follow the expected patter and why early intervention is important when delays in development are suspected. Children’s development will usually follow an expected pattern; however children will develop at their own rate and in their own time. Understanding the pattern of child development can help to identify children who may have delays in their development and require additional support. I will be looking at child development and will be looking into Physical Development Cognitive Development Communication Development Social and Emotional Development Moral Development Physical development: physical development looks at how children attain physical movements. Physical movements are split into three different skills. Gross Motor Skills is the movement of larger limbs, for example using your arms or legs. Fine Motor Skills is when smaller movements are obtained such as using your hands to hold things and Locomotive Skill is when there are full body movements such as walking or running which requires the whole body to move. The following the expected stages of development in physical development for children: 0-6 months: at this stage babies are able to lift and turn their heads and growth and height from their time of birth. Baby’s weight may drop after birth will be gained quickly. 12-18 months: during this stage most children will develop strength in their legs and will begin to stand up without the help of another person and start walking. 3-5 years: at this stage children will be able to co-ordinate their movements. They are also gaining more control of their fine manipulative skills and are more competent in using material and scissors. 7-9 years: at this age children’s fine and gross motor skills are now well developed and they are continuing to grow in height. You will begin to notice that the child is able to write better and neater and have the ability of stability in their hands. 11-13 years: at this stage children will most likely go through puberty. This is when the child’s body will go through different stages of sexual maturation. Cognitive Development: this area of development looks at a child’s intellectual development, the way in which the brain processes information. Cognitive skills include memory, problem solving and imagination. 0-6 months: at this stage babies can recognise the sounds and smells of their mother and will be aware of their surroundings. 12-18 months: at this stage babies are becoming more aware of their routine for the day. At this age babies are able to play with more complex toys. 3-5 years: at this stage children’s concentration is growing in activities they enjoy and show a like into the activities which they would prefer. 7-9 years: at this stage children’s academic skills are developing and writing and reading become easier. At this age children will be able to take tasks such as problems solving and putting their skills into practice. 11-13 years: children are able to reason more and can solve more complex problems. Communication Development: this area of development looks at the way that children learn to communicate. Communication development includes reading and writing, verbal communication and non-verbal communication, such as gestures and body language. Even before children can say their first words, they are already capable of understanding a great deal of language. 0-6 months: at this stage new born babies communicate their needs by crying. Babies will start getting your attention when needed my makes sounds and acknowledge others by smiling. Babies at this age will also be able to differentiate between their parents and others voices. 12-18 months: by this age babies will be able to replace their blabbering with some simple vocabulary. 3-5 years: at this stage children’s vocabulary is continuing to increase and their speech will now be recognisable to most adult’s. at this age you will find that children are much more aware of their surroundings and how things happen, therefore they will start asking questions regarding incidents. 7-9 years: by this age children are able to communicate properly and hold full conversations and also the skills of writing and reading has also extended by this age. 11-13 years: at this stage children now have developed good reading and writing skills, with grammar becoming more accurate in written communication; therefore they will have the ability to write out sentences in the right structure. Social and Emotional Development: this area of development looks at children’s development of feelings and self-identity as well as the formation of relationships. This area of development also covers behaviour a child understanding what behaviour is acceptable and social skills such as feeding themselves. From when a baby is born and to their early childhood there are many changes which they undergo. 0-6 months: at these early years the babies will be able to establish a close relationship with their main carer and will settle in for feeding and for comfort from that individual. As the baby gets a little older he/she will begin to smile and show enjoyment in activities 12-18 months: at this stage the babies are likely to experience anxiety when separated from their carer and have fear of any strangers. Children in this age group start showing significant amount of interest in other children. 3-5 years: at this age children will begin to take more interest in other children around them and also engage themselves into play activities with them. 7-9 years: by this age children are going through the stage of making good friends which is a very important factor in a child’s life stage. 11-13 years: there will be a lot more changes in a child’s life at this stage as they are getting ready to move to high school. This could be a tough time for a child as they may need to leave old friends whom they may have a good relationship with and the thought of going into a new environment may stress them out as they will need to make new friends. Moral Development: this area of development is strongly linked to social an emotional development and covers the choices and decisions that children and young people make. The development of morality also covers how children react and behave towards other people and the principles and attitudes they adopt. 3-5 years: at this stage of development children are most likely to have difficulty in understanding what is considered as right and wrong choices and actions. 7-9 years: by this stage children will appreciate if they are given duties and responsibilities as by now they know what is expected of them. 11-13 years: at this age children will have an expanded understanding about the importance of why rules and boundaries are set and how to effectively follow them. A child’s development is shaped by both personal and external factors. The following are some of the factors which influence a child’s development. Personal factors Problems during pregnancy and birth: a child’s development occurs as soon as conception is taken place as soon as the egg and sperm meet. This is when the generic information for that child is determined. A well-known condition known as down syndrome is a condition caused when there is an extra chromosome present. This condition causes delays in a child’s development through learning difficulties and heart problems. babies can also be effected by their mother behaviour and attitude during pregnancy. For mothers who smoke, take drugs and consume alcohol during their pregnancy can have a high risk and harm their baby. Birth experiences can also have an influence on a child’s development. Babies who are born prematurely may have delays in their development process as well as babies who do not breathe instantly at birth could suffer from lack of oxygen to their brain and body. Health: a child’s health can also be determined by their generic factors. Factors su ch as poor health can effect a child’s development and strain physical strength. Disabilities: generic factors at birth could also lead to babies having disabilities and health conditions which they are born with. These disabilities and health issues will affect their development process. External factors Poverty: there is increasing numbers of children who are experiencing poverty. 1 in 4 children is experiencing poverty in the UK and is said to be increasing my 2020. This number relates to the relative poverty than the absolute poverty. Relative poverty is a comparison of income compared to the average income off households. These are requirements needed to live a daily life from the materialistic things and the personal possessions. Absolute poverty is a lack of basic human needs including food, shelter, warmth, sanitation, health care and education. A balanced diet in a child’s growth is very crucial for their development. Families who may not be able to afford much may end up buying cheap food which contains harmful substances for a child’s diet. These foods are often full of saturated fats, salt and sugar and consuming large amounts of these foods can lead obesity and malnutrition in children. Consumptions of such foods can result in the children being hyperactive and lethargic. Those who live in poor housing conditions may suffer from conditions such as asthma due to cold and damp housing conditions. Family backgrounds and ethics have a really important part in a child’s development as children will watch and learn from their parents and other family’s members whom they are around. As children grow older they will find themselves in situations where they will need to make decisions on their own. Negative pressure from friends could lead to a negative decision and action taken by the child. Emotional influences: children will succeed when their emotional needs are met and when they feel happy and secure. Physical reasons: a child’s physical growth can affect its overall development. If a child is suffering from difficulties in their growth this could lead to their physical development being affected too. Environmental factors: external influences such as their family structure and the education which they receive could also have an impact on a child’s development. Cultural reasons: all cultures hold different beliefs and values about their children’s upbringing. The difference in being treated due to your sex could play a part on a child’s development negatively. Social influences: family structures and lifestyle has been seen to influence a lot on a child’s development. For those children who see their parents going through a separation or divorce may be effected negatively and undergo stress. Disability: there are many disabilities a nd conditions that a child can be born with or develop. Each of these will affect a child in a different way and will impact to changing levels on their learning and development. Early intervention If a child has been suspected of having a delay in their development, at this stage it is very important to identify exactly what support is needed and receive appropriate help and support for the overall development of the child. Identifying these delays early enables the child to overcome the difficulties and develop in the area where support is needed. If conditions and development factors are identified within a child then there is an opportunity to get receiving support from the Early years childcare settings. Children attending these settings will be assigned to a key worker who is responsible for that child. The child will closely be observed and any areas of concern will be highlighted.

The anecdotes A Good Man is Hard to Find and The Comforts of Home will

The anecdotes A Good Man is Hard to Find and The Comforts of Home will be examined with respect to color Flannery O’Conner – Color Connotations The anecdotes A Good Man is Hard to Find and The Comforts of Home will be examined with respect to color connotation and imagery. This essay will discuss how colors affect the reader’s abstract senses and emotions. Colors are also used to suggest the nature of the piece and characters within. Various cultures perceive colors differently which could change a reader’s perspective. A Good Man is Hard to Find is told from the grandmother’s point of view. The first significant color is describing her son’s wife. â€Å"†¦ a young woman is slacks, whose face was as broad and innocent as a cabbage and was tied around with a green head-kerchief that had two points on top like rabbit’s ears.† The use of this color is ambiguous. It could be construed as either positive or negative. The positive is that it may be suggesting the woman’s youth, fertility and vigor. The negative connotation is the grandmother’s jealousy and envy towards her youthfulness. There is apparent animosity between the two. When the grandmother suggests visiting Tennessee â€Å"The children’s mother didn’t seem to hear her†¦Ã¢â‚¬  The grandmother never speaks directly to the mother. She repeatedly refers to the woman’s attire with a definite manner of superiority. â€Å"[The next day] the children’s mother still had on slacks and still had her head tied up in a green kerchief, but the grandmother had on a navy blue straw sailor hat with a bunch of white violets on the brim and a navy blue dress with small white dots in the print. Her collars and cuffs with white organdy trimmed with lace and at her neckline she had... ...the color yellow appears. â€Å"[The dog] opened one yellow eye, took him in, and closed it again.† This indicates and Thomas’s cowardice and avarice. He is greedy because he wants his house and mother’s attention. Violence shortly ensues. Black is related to Sarah twice; although there is only one reference to black regarding Thomas. Thrice were both characters correlated with red, demonstrating they mutually played a role in the death of the mother. Colors are in effect word-pictures which work by a method of association. Images and emotions are created when readers make connotations of colors within the text. In United States of America, white is a representation of purity, peace, cleanliness, innocence and marriage; however, in China, white is symbolic of mourning and death. Universally, blue has the fewest negative connotations across various cultures.

Black Leaders Essay

Booker T. Washington and William Edward Burghardt Du Bois were influential black leaders. Their leadership strengthened the minds of the black race. During the decades of Reconstruction following the Civil War, African Americans struggled to be assimilated into the new American society. To do this African Americans required social and economic equality. Two great Negro leaders that emerged for this cause were Booker T. Washington and W. E. B. Du Bois. With these two strong-headed men, another problem arose. They both sharply disagreed upon the strategies needed to gain these equalities. Washington preferred a gradual, submissive, and economically based plan. On the other hand, Du Bois relied upon a more agitating and politically aggressive plan. They worked for the advancement of African-Americans in American society, but their methods of achieving this goal and their leadership style differed greatly from one another. It is hard to fathom that two men, who helped to strive for the great goal of racial fairness, could have been such opposites, but it is true. Booker T. Washington, a former slave and the founder of the Tuskegee Institute in Alabama, believed that African Americans needed to accept segregation and discrimination for the time being and concentrate on elevating themselves through hard work and material prosperity. The eventual acquisition of wealth and culture by African Americans would gradually win for them the respect and acceptance of the white community. This would break down the divisions between the two races and lead to equal citizenship for African Americans in the end. Also he urged blacks to accept discrimination for the time being and concentrate on elevating themselves through hard work and material prosperity. He believed in education in the crafts, industrial and farming skills and the cultivation of the virtues of patience, enterprise and thrift. This, he said, would win the respect of whites and lead to African Americans being fully accepted as citizens and included into all strata of society. Washington wanted blacks in the south to respect and value the need for industrial education both from a vantage of American and African experience. Booker T. Washington was born a slave on April 5, 1856 in Franklin County, Virginia. Once the slaves were emancipated, his family moved to West Virginia. There, his family was poor, and he had to work in a salt furnace and then a coal mine. In school he named himself Booker Washington. Only later did he find out his name was Booker Taliaferro. So he combined both names to form his now famous name, Booker T. Washington. He went to school at the Hampton Institute, which was an industrial school for blacks. Later on, he based his educational theories on his time at Hampton. He founded the Tuskegee Institute, which was a Negro school, which eventually became known for its hardworking, reliable graduates. William Edward Burghardt Du Bois was born into an affluent family on February 23, 1868 in Great Barrington, Massachusetts. Bois took college preparatory classes while in high school. He was also a column writer of a newspaper, the New York Globe. While still young he attended town meetings to listen to people discuss concerns of the town. He spoke about Wendell Phillips at his high school graduation. Du Bois’s mother unexpectedly died in 1884. After high school, he attended Fisk University in Nashville, Tennessee. He was the first black person to obtain a Ph. D. from Harvard. He taught at Atlanta University. At Fisk he took part in public speaking and debates. He edited the Fisk Herald, the school’s paper. At Fisk he realized that his goal was not for his own happiness, but for the advancement of the black race. He graduated from Fisk in 1886 with an A. B. degree. After Fisk he was accepted into Harvard. In 1895 Du Bois became the first African American to get a Ph. D. from Harvard. Even with a Ph. D. from Harvard he did not feel he was ready to deal with the problems that African Americans faced. He then spent two years at Berlin University. This gave him an extended outlook on the race problem. In the south, African Americans received segregated and unequal education established by white Americans. Du Bois was confident that he could get white Americans to give up discrimination. Du Bois was motivated to lead African Americans out of the disadvantaged position they seemed to be in. He believed the key to their advancement was in education. Near the end of the 1800’s African Americans occupied unskilled jobs in southern cities. Their economic situation was not good. Du Bois felt compelled to work to improve this situation. He initially wanted to dedicate his life to education. In 1909 he contributed to the development of the National Association for the Advancement of Colored People (NAACP). According to Gerald Hynes, Du Bois was not pleased with the group, due in part by it being under the leadership of whites. He agreed to work with them and became the editor of â€Å"The Crisis† (1909-1934), a publication from the NAACP. He also led the Niagara Movement. The Niagara Movement was an organization founded by black Americans to racial discrimination. The movement placed most of the blame for America’s racial problems on whites. It opposed the view of Booker T. Washington. He later became a Marxist and a Communist. Washington and Du Bois were alike in few ways. They were both black leaders. They were both teachers and authors. They were also both subject to discrimination from whites. They were both spokesmen for their separate ideologies. Du Bois and Washington were polar opposites of each other in every aspect except for the reasons previously stated. They were so much so that Du Bois published a book named The Souls of Black Folk, which contained many essays criticizing Washington’s views. Du Bois went on to write many other essays and speeches opposing the viewpoints of supposed â€Å"Uncle Tom’s. † The author believes that Booker T. Washington developed a leadership style based on the model of the old plantation house servant. He used humility, politeness, flattery, and restraint as a wedge with which he hoped to split the wall of racial discrimination. His conciliatory approach won the enthusiastic support of the solid South as well as that of influential Northern politicians and industrialists; their backing gained him a national reputation and provided him with easy access to the press. Members of his own community were filled with pride to see one of their own treated with such respect by wealthy and influential leaders of white America. Du Bois assigned Washington of giving the black race the â€Å"distinct status of civil inferiority. † Washington was for surrendering basic human rights and dignity for economic advancement. Du Bois thought that was detrimental to the black race. Washington thought that a vocational education was far more important to blacks than higher education. Du Bois thought that the really important things in life laid in the realm of the mind. The term â€Å"The Talented Tenth† was the trademark of his educational philosophy. To him, this was, â€Å"The Talented Tenth of the Negro race must be made leaders of thought and missionaries of culture among their people. No others can do this work and Negro colleges must train men for it. The Negro race, like all other races, is going to be saved by its exceptional men. † In the author’s opinion, there’s any question that Booker T. Washington did accept segregation. Booker T. Washington was an accommodationist. And his program was to accommodate the social and political situation of the South. â€Å"Du Bois was not in complete disagreement with Booker T. Washington. Du Bois referred to Booker T. Washington as the greatest black leader since Frederick Douglass. And also referred to Washington as the most distinguished man, black or white, to come out of the South since the Civil War. So it wasn’t as though Du Bois disagreed with Washington’s program, but Du Bois felt that there was room for more than one solution to the problem. And just as Washington advocated vocational education for the majority of African Americans in the South, Du Bois felt yes, there were African Americans in the South, perhaps the majority who at that point in their historical development were better off with vocational education. But there were others among the race who needed to be the individuals who were at the top, the individuals who did the training, the individuals who were the intelligentsia. And that you needed this group of people. And I think that was the basis of their disagreement. Not that Du Bois felt that Washington was completely wrong, but that Washington needed to have more than just one way of approaching the problem. And then of course the other issue on which they disagreed was Du Bois did not feel that you could accommodate injustice. And he felt that Washington was placing upon his shoulders an extremely heavy responsibility by advocating that African Americans accommodate the social and political system in the South. Washington stated that blacks should work hard and become economically prosperous before they should ask for racial equality from the whites. Du Bois thought that this was absolutely preposterous. Blacks shouldn’t have to ask for equality from whites, it is God’s gift to them and every human being deserved it. Du Bois believed that the whites were responsible for keeping the black men down and that the black man should cry out and declare his independence. Washington wanted to please the whites, because he thought that was the only way anything good could happen. Even when he was a child, he made his name Washington, whom was a well-known white historical figure of prominence. Du Bois was more radical, whereas Washington was very moderate. Washington was a realist, Du Bois was a romantic. Du Bois wanted to stir men’s hearts, Washington wanted to stir men’s minds. Washington was loyal to his country, Du Bois was loyal to his race. Washington was possessed humility, and could relate to the common man, Du Bois was arrogant, egotistical, and imperious. Since he could not believe that the average Southern white man had any desire to help the Negro, Du Bois could see no future in the South for the ambitious young people of his race. Directly contradicting Washington’s counsel, Du Bois urged them to go North for freedom and advancement. He encouraged urban migration at every turn, believing that the â€Å"country represented oppression and serfdom,† while the â€Å"city represented opportunity. † It is very clear to see that their experiences were different and this is very important in understanding how they saw the future of the race. But it’s also important to keep in mind that for both of them, race uplift was the central key. Despite all of Du Bois attacks on him, Washington still managed to be more popular at the time, and more famous today.

Formula 1 Constructor – Choose a Team – Ferrari

The resources, capabilities and attributes that are required for the success in Formula One (F1) can be looked on a number of dimensions taking into consideration the unique and fast paced context of Formula One. F1 is a highly competitive industry and based in a rapidly changing environment, which has been defined by Porter’s five forces (Appendix One). Key resources within F1 are both tangible and intangible and can be considered under the following broad categories: Physical Resources: The car and its components such as engines and chassis are vital resources but the technological advancement determines its ability to win races.Test Tracks are also vital physical resources both in the competitive context and in the ability to test cars, the location of such tracks may also be an important factor. Own testing and development equipment is also important for technological advancement and knowledge gain. Factories are also an important physical resource for constructors. Financ ial Resources: High start up costs and continued running costs involved with the sport, result in the need for high capital investment, for example a medium sized constructor needs ? 30-? 50 million capital investment as a basis for being competitive.The majority of team finance is generated through sponsorship – a lucrative sponsorship deal can help improve a team’s level of performance through cash injection alone. Fans are a huge resource for the sport as they act as a huge funding society for Formula One. At present tickets cost upwards of ? 330 per race and for VIP access ? 1700. Revenue is also provided by prize money from winning championship points and through shareholders within each constructor. Human Resources: Team Principles are an important aspect to every constructor.Initially, teams were managed by the founders themselves, but as time has moved on the emphasis has shifted to managers and their ability to run the team in a business manner. The intangible resource of their skills and knowledge is incredibly important in F1 due to the highly competitive environment. For success a team needs a certain level of experience and expertise, either built up over time or recruited from elsewhere. To gather this expertise is expensive and requires investment in personnel as well as technology. Such gains are provided by the knowledge from other important employees including designers, engineers and drivers. Another crucial factor is the motivation to carry-through the bright idea into detailed implementation† (Cross and Clayburn Cross). Drivers are a key human resource; important attributes of a driver include the ability to drive fast, think strategically while racing on the track, good communication skills, and motivational skills. Intellectual Capital: Although patents are not allowed in F1, other intellectual capital includes the constructors brand and reputation – largely used to gain finances. A key brand in F1 is the Maran ello Red used by Ferrari.Complex business systems are required by F1 teams for managing the large amount of data that flows in the organisation. These resources will not reach their potential purely from existence, the way in which they are managed, used or deployed is essential in understanding strategic capability. See Appendix Two for example of resources and the competencies gained. To be on the F1 grid and compete in the market, capabilities gained through the above resources must reach the threshold level. The F1 constructors generally function at the peak of resource utilisation and, therefore, manage resources very efficiently.Hence, almost every resource that becomes a capability for competitive advantage is converted into a competency for competitive advantage. Internal strategic capability allows for successful strategy and is required for survival and success (Johnson et al, 1998). To gain competitive advantage involves adjustment of capabilities, for example acquiring m ajor improvements and advancements in attributes such as technology and from the creation of new opportunities. Stretching and exploiting capabilities in such a way that competitors cannot imitate, results in them becoming a rarity and providing competitive advantage.Though such advantageous technological strategic capabilities have been required by constructors for competitive advantage, they have also become been a pivotal factor for the introduction of increased legislation designed to reduce uncertainty and increase competition, such as the introduction of generic tyres. The factors responsible for the success of the teams in their respective periods of dominance can be considered through analysis of the organisations core competencies, a form of competitive advantage which s usually a result of â€Å"collective learning processes† and are manifested in business and activities and processes. The core competencies are those unique capabilities, which usually span over mult iple products or markets. † (Hafeez 2002). Ferrari’s dominance in the mid 1970’s Much of Ferrari’s success during the period of the mid-1970’s can be attributed to the ability to build their race cars at the Maranello site without the need to outsource for component parts.This created centralisation of knowledge and expertise, thus the ability to transfer knowledge between departments without leakage. When Ferrari sold 40% of the company to Fiat, in 1969, providing huge cash injection thus acquiring the Fiorano test track allowing them to test the change in any aspect of the car on the track and observe real time results. This gave a competitive advantage through testing technology and making changes faster than their opponents. This led to the creation of a team dedicated to engine design and development.A much needed management discipline was also imposed upon the organisation with the appointment of Luca di Montezemolo as team principal in 1974. Luca restructured the management, added focus to the organisation, and enabled the team to reach its collective potential. Montezemolo defined strict areas of responsibility in order to reduce the amount of interference and internal politics. In 1973, along with the arrival of Mauro Forghieri as the technical director, Niki Lauda was recruited. He provided the team with driving skills and racing experience. McLaren’s domination in the late-1980sMcLaren’s domination can be attributed largely to the culture created under Ron Dennis’ leadership and the recruitment of personnel matching this culture. Dennis’ obsessive attention to detail coupled with John Barnard’s ‘technical excellence’ created an atmosphere where new ideas and innovations in technology could thrive. Consequently, McLaren differentiated themselves from other Formula One teams by taking bold steps into unchartered territories both in their strategy and their design of cars , for example by using carbon fibre instead of metal for the chassis of their successful MP4 car.Prahalad and Hamel (1989: Page 64) argue that gaining leadership in any given industry requires a ‘strategic intent’ to guide operational direction and its resource allocations. For example, when Canon sought to ‘beat Xerox’ in the photocopier industry, it was able to do so over a period of years by incrementally attacking all of Xerox’s ‘loose bricks’, the criteria left unfulfilled by its competitors. Similarly, Ron Dennis built an ‘intent’ of having the ‘smartest and the best presented car’ in Formula One despite the risks of failing in its races.This attitude evidently became entrenched in the whole organisation as the element of fear was removed, helping McLaren achieve success even after Barnard’s departure. Although many strategists argue that a company’s core competence cannot be derived from a s ingle person, Tampoe (1994: Page 69) argues that a leader with a personal core competence such as a ‘strong vision and enormous energy to expand’ can help an organisation sustain competitive advantage. Ron Dennis, with his perfectionism and ‘legendary’ marketing and management abilities, was considered by many the best manager in sports.McLaren’s core competence, therefore, appears to have been Ron Dennis’ vision and his skills through which McLaren won 15 out of 16 races in 1988. Tampoe’s (1994) model for ‘Market Survival Strategy’, shown below in Figure 1, explains how companies competing with their core competencies can gain higher competitive advantage. Figure 1: Tampoe (1994): Market Survival Strategy Patents Low High Profit Low Competitive Advantage High Competitor Response Hard Easy New Product Know How Sources of Market StrengthPrice Place Core Competence Tampoe (1994) shows that competing on the basis of lower cost s and technical know-how is easier for competitors to imitate. As patents are not allowed in F1, teams need to compete on the basis of their core competencies to sustain their competitive advantage. Dennis’ abilities could not be imitated or substituted by McLaren’s competitors as he achieved success by synthesising McLaren’s budget, designers, engine, drivers, and sponsors to create a perfect ‘overall package’.McLaren achieved success on the race track through an overall strategy that was invisible to its competitors. This included long term partnerships with sponsors such as Marlboro and TAG, a design team led by John Barnard, and possibly the best management in sports. These core competences are evident as Dennis applied them successfully in other areas including a marketing consultancy operation to help smaller teams find sponsors, while also launching the McLaren F1, the world’s most expensive and fastest road going car.McLaren’s sponsorship partnership with Marlboro cigarettes, lasting 22 years, was particularly helpful as Marlboro were responsible for Ron Dennis’ recruitment when McLaren were struggling against their competitors. Furthermore, McLaren’s relationship with Honda was a key reason for success as the engine makers had recently split from rival constructor Williams and had some of the most talented engineers and expertise. This relationship produced the MP4, Honda powered car which became the most reliable and fastest car on the track in 1988.William’s success in the mid-1990s Perhaps the most important factor in the success of Williams during this period was the relationship between Frank Williams, the founder and owner, and Patrick Head, the designer. The partnership provided the combination of â€Å"entrepreneurial energy and technical excellence needed to succeed in F1†. Williams’ autocratic and frugal approach, paired with Head’s ability to develop g ood ideas, led to the team becoming leader of the â€Å"technical revolution† during the 1990’s.This long standing relationship is unique to a sport where personnel changes frequently, and gave stability to the organisation leading the team to gain its competitive edge. Another key partnership leading to Williams’ success during this period was with the engine supplier Renault, lasting 10 years. Its success led to the development of the Williams FW15 and FW16 cars powered by the Renault V10 engine, still widely regarded to be the most technologically advanced car of the time. It assisted in the team winning 56% of their races between 1992 and 1994, as well as winning the constructors title in 3 consecutive years.Ferrari’s return to winning ways from 1999-2003 Since Ferrari’s success in the mid 1970’s, much change led to a move towards revamping the management, technical department and design development. Appointing British technical director John Barnard led to a change in attitude of the organisation as they were now prepared to imitate the British constructors with a base in Britain. Luca Di Montezemolo, team manager of Ferrari during their dominance in the mid 1970’s, returned as CEO in 1993 to restore Ferrari’s dominance. Jean Todt was appointed to handle the overall management of the team.After Barnard left in 1996 the role left was split up between Rory Bryne and Ross Brawn, and between them they built a new design department based in Italy. Ferrari entered into a commercial partnership in 1996 with tobacco company Marlboro. Phillip Morris, in charge of the Marlboro brand, agreed to pay for the team driver’s, Michael Schumacher’s, salary. They also made a contribution to Ferrari’s annual operating budget. In Schumacher, Ferrari had one of the best drivers in the business, who was able to lead them to success.Schumacher was not only a talented driver, but also a motivator with th e ability to communicate effectively with the team, demonstrated by learning Japanese to communicate with an engine technician recruited from Honda. The change in Ferrari as a constructor is evident. Jeremy Clarkson, a well know auto-journalist, documented this fact: ‘In the olden days they (Ferrari) used to build their cars with a lot of passion and enthusiasm. And then, on lap 3, as often as not, they would explode in a passionate and enthusiastic fireball.But a few years ago they started building their racing cars with science and math and since then, as we know, they’ve been top of the tree’. Reasons for failure Ferrari Ferrari, unlike other competitors in F1, made all parts of their car, including the engine, themselves. Although, this resulted in huge success during the mid 1970s, Ferrari’s uniqueness was also the reason behind their failure. Ferrari’s failure due to technological negligence can be explained using the Quantum Hypothesis: 1. Th e pursuit of efficiency increases internal consistency and cohesion. Ferrari had developed a unique engine-gearbox combination using their ‘flat-12’ engine and a transverse gearbox and applied it in their 312T series of F1 cars. Ferrari chose to develop this combination further and with this revolutionary configuration they were able to stay ahead of the competition from 1975 to 1979, winning the constructor’s title in 1975–1977 and 1979. 2. Overtime, configurations ‘change to adapt’ OR alternatively, match poorly with the environment as it changes (the overtly cohesive ones). * In 1980, new innovations in the aerodynamics brought the ‘ground effect’ revolution.This was developed by Lotus and quickly adopted by Williams and Brabham, but Ferrari was not able to adopt this new technology as their engine design was different. 3. Overtly cohesive configurations resist change for as long as possible. * When the ‘ground effectâ₠¬â„¢ technology was developed, Ferrari knew that their cars would not be competent enough to keep up. Instead of finding a way of incorporating the new technology in their current cars, they chose to concentrate on a longer term project of developing a V6 turbocharged engine.In essence, Ferrari made a crucial trade-off between the current and the future plans. 4. When such configurations change it tends to be sudden and relatively rapid (and often painful). * Although the change for Ferrari was neither sudden nor rapid, it was quite painful. When Ferrari did eventually come out with their new car sporting a V6 turbocharged engine and employing the ‘ground effect’ technology, it was perhaps too late. Ferrari was not able to win a single driver’s championship between 1980-1999, and didn’t win a constructor’s championship between 1984-1998.In Ferrari’s case, the flow of the stages of the Quantum Hypothesis can be easily seen. Ferrari was overtly cohesive and resisted change in 1978 when the ‘ground effect’ technology was developed. Enzo Ferrari’s autocratic leadership style lead to a political environment, causing rivalry and confusion. Good management is of paramount importance in any industrial context and this was proved by the turnaround in Ferrari’s fortunes achieved by Luca di Montezemolo’s restructuring. Furthermore, in 1977, Niki Lauda ended his partnership with Ferrari.This was a major blow for the team as Lauda had the ability to translate what he wanted in the car to the technical team. Reasons for failure McLaren McLaren’s main reason for failure came when Honda pulled out of F1 racing in 1992. Ron Dennis failed to respond to widespread speculation that Honda would be leaving. Due to such failure, Ayrton Senna left McLaren for Williams, taking with him his great ability to motivate designers with valuable feedback. McLaren seemed to have lost their focus on their carâ₠¬â„¢s design, evident in 1995 as both their drivers failed to fit in the new ? 0 million MP4/10, ultimately leading to Nigel Mansell’s departure. Other reasons for failure include the departure of John Barnard, whose presence was seen by many as the reason behind their developing dominance. Despite their poor relationship, the partnership between Dennis and Barnard had been highly successful and held potential for even greater success had it been sustained for a longer period. Another relationship problem leading to failure was the fierce rivalry between two highly competitive drivers, Prost and Senna.This could be attributed to the fact that, rather than applying the usual team ethics of having primary and secondary drivers to support each other, McLaren recruited two top drivers and did not give either driver ‘first’ priority. This left both drivers competing for top position, causing friction within the team even when it had the best car in the sport, the Hond a MP4. Notably, McLaren were able to sustain their success by substituting John Barnard with Gordon Murray, and McLaren’s success was not greatly affected by Prost and Senna’s conflict.Therefore arguable the only factor that led to their complete failure was the lack of a contingency plan for the departure of Honda. Reason for failure Williams The Williams team’s failures, like McLaren’s, show the bargaining power of engine suppliers and drivers, as well as talented designers in the F1 industry, proving to some extent that Ferrari had a degree of advantage by producing their own engines, despite the technical issues. In 1988, Honda’s departure from Williams, like their departure from McLaren left the team reliant on off-the-shelf engines, leading to the departure of their main driver, Nigel Mansell.The importance of a good driver was signified during the early 1990’s as Williams went from winning only two races in 1990 to dominating the race s in 1992 after the return of Nigel Mansell. However, the Williams team remained steadfast in their belief that the driver was not as important as the car’s design process, despite the valuable contributions a good driver can make towards this process. Placing a lack of importance on the driver, as well as the ‘masculine’ approach of Frank Williams led to many successful drivers leaving the team.Due to their technologically competitive car, Williams retained their constructor’s title in 1994 despite Ayrton Senna’s death. With only a more advanced car, Williams’ competitors were soon able to catch up as Benetton used the expertise of Ross Brawn, formerly a junior designer at Williams, to design a car replicating the innovations from Williams. There have been instances in Williams of their knowledge being transferred to competitors as their employees left to join other teams.This shows a fracture in the culture of the team with little sense of belonging. Furthermore, Renault, ambitious in becoming a top engine supplier in F1, had decided to supply Benetton with engines as well, and therefore, by pairing a similar car with a better driver in the form of Michael Schumacher, Benetton were able to break Williams’ three year domination period in the sport by leaving them with no unique competitive advantages. Proposed strategies for maintenance of dominance of each constructor Ferrari: The Crescendo Model of RejuvenationFerrari was a team driven by the ambitions of one man – Enzo Ferrari, when Luca di Montezemolo was appointed the opportunity to rejuvenate should have been taken due to several important signals: * Even after the considerable cash injection by Fiat, the team had not been able to perform very well. * Enzo considered the most important part of the car to be the engine almost neglecting the importance of other parts. * Enzo’s autocratic style of ‘divide and rule’ had created much confusion and rivalry within the team. There was a huge supply of talent at Ferrari and it had not always reached its collective potential, mainly due to Enzo’s management style. There was clearly the need to start a fresh and Montezemolo had this opportunity when he joined the team along with technical director, Mauro Forghieri, and a new team driver, Niki Lauda. Baden-Fuller and Stopford (1994) argue that the obvious thing to do at the start of a rejuvenation process is to establish measures that heighten the sense of urgency to deal with emergent problems before they become serious.Luca could see the problem, which is why he made some managerial changes in the way the departments interact, but was not able to make the problem evident on a broader scale. It can be argued that if Montezemolo had realised the team needed an organisational turn-around and would have started a rejuvenation process, using the Crescendo Model, the team could have started the 1974 season with an a lternative strategy and would have been able to sustain its period of dominance by adopting the ‘ground-effect’ technology in 1978.This process had to be initiated by Montezemolo as â€Å"Rejuvenating a mature organisation is impossible without commitment from the top† (Baden-Fuller & Stopford, 1994). This eventually took place, but at a much later stage in 1992 when Montezemolo was called back to Ferrari as a CEO, to take Ferrari to the top again. SECI – Strategic Knowledge Creation Recent work by Chou and Te (2004) sought to empirically test the roles of knowledge assets in the promotion of SECI outcomes, finding some support for hypotheses which asserts the presence of knowledge assets.For example organisational routines which can have a strong impact on certain SECI outcomes. Such a model can be transferable to Ferrari. In 1978, after the launch of the revolutionary ‘ground-effect’, Ferrari should have started a SECI (Strategic Knowledge C reation) within different departments, particularly in the engine development department. Discussion of the possible solutions to overcome the threat posed by the new ‘ground effect’ technology and the ways of quick implementation, without disrupting undergoing future developments was essential.The managerial implications of such knowledge in a new climate of learning and innovation required collaborative learning and task sharing. Vital questions such as: How great a threat does the new technology pose? should we adopt it? , and if so, in what context? needed to be considered. Ferrari should scrutinize their own motive force mechanism on the basis of defining its objectives, not only considering the intended results but also setting up colony incentive mechanisms to strengthen corporate cohesion. It must be realised that unlike competitive environment within the team, all members should strive towards the same goal, to win the races. Ferrari’s success is gained through their ‘team’ culture and therefore such knowledge transfer may be deemed easier to extract in this environment. The authors of this assignment argue that the transfer of SECI principals to Ferrari are suitable to not only change the team dynamics but also create knowledge that may be turned into suitable technology (Wei, 2007). Introduction of a Project OrientationFollowing the knowledge creation process, knowledge development is needed; it would benefit Ferrari to assign a small team of engineers to the same task – more like a project. The main advantage of adopting a project orientation in this matter is that with this method no major changes need to be introduced in the management of the team. If a separate team is assigned for this aim, then the current developments are not disrupted. This newly assigned project would come under the category of an ERD project (Exploratory R&D project) as the main objective would be to find a way to improve the current technology at Ferrari to remain competitive.The only possible conflict could be the common resources, solved by giving the project team a clear preference in the need to regain competitive edge, and the project team is dedicated solely to accomplish that objective. It is important to note the need for SECI and Logical Incrementalism within the project team as well. Quinn (1978) argues that ‘Logical Incrementalism allows organisational actors to modify the idea behind the reorganisation as more is learned’, hence, giving the option of developing a flexible platform for the project team to work on. McLaren:McLaren’s core competences, as mentioned earlier, lay in Ron Dennis’ management abilities as a leader and his success in fulfilling all necessary criteria to create a perfect ‘overall package’. McLaren had all the components, such as good designers, drivers, and sponsors required to sustain competitive advantage. According to Mintzberg (1978) , organisations need to have a ‘peripheral vision’ to achieve strategic learning not only from their competitors’ successes but also their failures. McLaren’s failure resulted from absence of a contingency plan and lack of strategic learning rom the Williams team, who suffered similar experiences with Honda’s departure. The Deliberate-Emergent Pendulum Due to Honda’s departure, McLaren’s intended strategy to compete in partnership with Honda as an engine supplier was unrealized in 1992. Although an emergent strategy did come about in a successful partnership with Mercedes, it was three years too late. McLaren had lost not only their dominance in F1 but also their main driver, Senna. Dennis could have sustained McLaren’s domination by planning prior to Honda’s departure, creating an emergent strategy involving a different engine supplier.This is demonstrated in Figure 2. Figure 2 Intended-realised strategies by Mintzberg ( 1978) Unrealized Strategy Emergent Strategy Realised Strategy Intended Strategy Deliberate Strategy McLaren’s partnership with Mercedes has been highly successful but could have been achieved earlier, avoiding the organisational inertia following Honda’s departure. Mercedes has made a substantial investment in McLaren, acquiring 40% equity, tying them into the alliance, showing that McLaren learnt from their experience with Honda by negotiating a more secure alliance.An approach that may have better managed McLaren’s success was the relationship between Barnard and Dennis which, despite its success, was not maintained. Ikujiro Nonaka (1998) writes about the concept of ‘Ba’, a shared place for emerging relationships. The space is described as being physical or mental or any combination of the two. The most important differentiator of ‘Ba’ from ordinary human interaction is the platform provided to enhance both individual and collective k nowledge.The relationship between team principle Ron Dennis and John Barnard provided an environment that would lend itself well to the creation and sharing of tacit knowledge. Williams: According to Voelpel et al. (2005) the Red Queen effect, as coined from Lewis Carroll’s Alice in Wonderland, is essentially: â€Å"a comfort trap† where â€Å"running harder is easier to do, it is of an analytic-benchmark nature, it shows short-term success and is less risky in the near horizon, but ultimately holds long term downfall. † The Red Queen effect illustrates that in Williams’ case the organisation walked into a dead-end which moved them faster to failure.They just worked harder to improve traditional industry and organisation success factors rather than looking outside their core competencies. The need for management at a strategic level was to be creative and come up with new strategies to challenge their core competencies. According to Voelpel et al. (2005) â€Å"reinventing old ways, will provide a wide range of options to choose from in dealing with the uncertainty of the environment. † Whilst the industry is a closed environment in terms of technological revolutions, continuous development will push industry boundaries and help keep the organisation on top.Had Williams analysed their business model, they could potentially have moved away from being design led (their core competency) to focus on areas of the organisation in need of improvement and development, whilst still making the technological advancements and improvements that led their dominance initially. Voelpel et al. (2005) provide a practical sense-testing tool for developing and adapting new business models to avoid the traps of the Red Queen principle. According to the theory, a comprehensive and cohesive understanding of a business model and its key elements can provide an important source of sustainable competitive advantage.Figure 2 shows that there are four se nse testing dimensions displayed as: business System infrastructure, technology, customers, and economics/profitability. By analysing the different components of their business model from the four elements, management can determine the feasible business models that possess acceptable success probabilities. Applying this tool would have helped to sustain Williams’ advantage by encouraging development of the organisation outside of their core competencies.Figure 3: Business Model Reinvention by Voelpel, S. (2005) With regards to a business model, a clear understanding of the nature of the business and its core competencies creates a situation where change and development can take place. The sense-testing tool helps companies grasp the concept of adapting and creating business models for strategic inflection, enabling managers to discern where competitive advantage could be achieved and eventually leading to the constructor prolonging their period of dominance.Williams’ c ompetitors imitated aspects of their race car design realising the advantages that a Renault powered engine had in gaining a competitive advantage. Barney (1991) suggests that a firm should aim to have â€Å"causal ambiguity when the link between the resources controlled by a firm and a firm’s sustained competitive advantage is not understood or understood only very imperfectly. † The competition should, in an ideal situation, find it difficult to duplicate a successful firm’s strategies through imitation of its resources, it should be impossible to know which resource is giving a constructor the advantage.According to Barney (1991), Williams’ competitive advantage was not sustained because their methods could be duplicated due to their competitors realising the link between the resource and its advantages enabling them to acquire the same resources taking away Williams’ competitive advantage. Knowledge Management When talking about Knowledge Manag ement (KM) Satyadas at al. (2001) argue that there are challenges in the â€Å"people† aspect of KM outlining several factors that make up these challenges. In the case of Williams, the most disruptive element of knowledge retention is the affinity and sense of attachment felt towards the organisation.A lot of talent departed Williams, which shows the lack of affinity towards the organisation held among the employees. â€Å"Concerns around intellectual capital in a highly competitive environment need to be balanced with social capital benefits. † (Satyadas et al. 2001). Perhaps Williams was not able to provide these social capital benefits which ties in with Maslow’s hierarchy of needs (Appendix Three), Williams might not have been able to satisfy the higher level needs and therefore, their employees tried to fulfil these needs with other teams.The suggested solution for Williams would be to modernise their management style and steer away from the current autocr atic style. There is a need for a more democratic management style – where the manager allows the employees to take part in decision-making: therefore everything is agreed by the majority, making the employees feel more valued and bringing a sense of belonging to the team. The Future Ferrari won 5 consecutive championships from 1999 – 2004. Schumacher played an important role towards Ferrari’s success.Hence he has been brought back as Jean Todt’s assistant linking to knowledge retention. In 2007, Ferrari returned to top form by winning both the drivers and constructors championship. McLaren has evolved as a business by applying their core competences in marketing and technical excellence successfully. They have gained finances from Abu Dhabi and Bahrain governments, along with sponsorship from Vodafone among others. McLaren has also developed an Electronic Control Unit that has been deemed mandatory by the FIA to be used by all other constructors for the 2008 season.Recent news speculates the retirement of Ron Dennis with Martin Whitmarsh, current CEO of McLaren, as his replacement (Appendix Four). It will be interesting to see if McLaren retain the successful culture created by Ron Dennis. In 2005, Williams had to rely on off-the-shelf engines once again, when BMW, their engine suppliers, created their own team. This shows that Williams failed to learn from their experiences with Honda and Renault, repeating the same mistake for the third time. This can be attributed to a lack of managerial focus and the inertia to change.While other teams are being managed by professionals, Williams has stuck with its orthodox ways, a major factor for Williams’ poor performance. In 2007, Williams ranked 4th in the constructor’s championship, no longer being a threat to McLaren and Ferrari. References Journals Baden-Fuller & Stopford (1994) The Crescendo Model of Rejuvenation from rejuventing the Mature Business. Harvard Business Scho ol Press [In MLQG: pp. 189] Barney, J. (1991) Firm resources and sustained competitive advantage, Journal of management, Volume 17. Constantinides, E. 2006) From strategy to e-strategy: Lessons from two success stories, handbook of business strategy, Emerald Group publishing limited. Cross, N. Clayburn Cross, A. (1996) Winning by design: the methods of Gordon Murray, racing car design, Design Studies, Volume 17, number 1. Hafeez, K. Zhang, Y. Malak, N. (2002) Core competence for sustainable competitive advantage: A structures methodology for identifying core competence. IEEE transactions on engineering management, Volume 49, Number 1. Hamel G and Prahalad C K, Strategic Intent, Harvard Business Review, Vol 67, No 3, 1989, pp 63-78.Heracleous, L. (2002) The contribution of a discursive view of understanding and managing organisational change, Strategic change, John Wiley and Sons Limited. Jenkins, M. And Floyd, S. (2001) Trajectories in the Evolution of Technology: A Multi-Level Stud y of Competition in Formula 1 Racing, Organization Studies, 22 (6) pp. 945-969 Lampel, J. , and Jha, P. P. (2004) Models of Project Orientation in multi-project organisations, The Wiley Project Management Resource Book, (eds: Pinto, J. K. and Morris, P. W. G. ) New York: Wiley. Nonaka, I. , & Konno, N. 1998) The Concept of Ba: Building a Foundation for Knowledge Creation, California Management Review (Spring) 40(3): 40-47. Quinn, B. (1980) Strategies for Change: Logical Incrementalism, Irwin, Homewood Ill. [In MLQG pp 10: Ch 1 and 5] Quinn, J. B. (1978) Strategic Change: Logical Incrementalism, Sloan Management Review, pp. 1-21 [In MLQG: pp. 183 ] Rice, J. & Rice, B. (2004) The Applicability of the SECI Model to Multi-Organisational Endeavors: An Integrative Review, International Journal of Organisational Behaviour, Vol. 9, Issue 8. Stalk, G. Evans, P. Shulman, L. E. 1990) Competing on capabilities: the new rules of corporate strategy, Harvard Business Review, 1992. Tampoe, M. (1994 ) Exploiting the core competences of your organisation, Long Range Planning, Vol. 27 No. 4, pp. 66-77. Voelpel, S. (2005) Escaping the Red Queen Effect in competitive strategy- how managers can change industry rules by sense-testing their business models, European Management Journal, Volume 23, Issue 1, P. 37-49. Wie, L. (2007) Reflection upon Present Competition-orientated Corporate Culture: in Knowledge Management Perspective, Wireless communications, Networking and Mobile Computing BooksIkujiro, N. & Hirotaka Takeuchi,(1995), The Knowledge-Creating Company; How Japanese Companies Create the Dynamics of Innovation, Oxford University Press, New York Johnson, G. , Scholes, K. , Whittington, R. (1998), Exploring Corporate Strategy, 7th Edition, Pearson Education Limited, Essex Mintzberg H, Lampel J, Quinn J B and Ghoshal S, The Strategy Process, Concepts Contexts Cases, Fourth Edition, Prentice Hall, 2003. Appendix Appendix One: Porter’s five forces Threat of New Entrants: A n ew entrant to the Formula one industry faces many barriers. * High start up cost Excessive running cost (The total spending of all 11 teams in 2006 was estimated at $ 2. 9 billion) * High level of resources required, also act as a barrier for potential new entrants to the industry. * Certain level of experience and expertise is necessary which requires investment in personnel and technology * Sponsorships and a lucrative sponsorship deal can help improve a teams level of performance * The rules and regulation that exist regarding the design and construction of the car Bargaining Power of Buyers: The buyers in F1 enjoy high power.They play a vital role in the popularity of the sport as well as a considerable contribution to the funds for various teams. * Fans * Media * Sponsors Competitive Rivalry within the Industry: Formula One is, like any other sport, a highly competitive industry. Each constructor places emphasis in different capacities on a number of variables. * Engineers * Dr ivers * Management * Sponsorships * Designers * Technology Bargaining Power of Suppliers: The primary suppliers of F1 constructors have a lot of power. So much so that in a few instances, suppliers have been the cause of the end of the period of dominance of some constructors. Drivers * Engine manufacturers * Designers * Technical team Threat of Substitutes: All the other popular racing and sporting events can be considered to be a threat for F1 as they may take away resources such as money, drivers, sponsors, popularity, etc. from the F1 industry. * Soccer * Cricket * Olympics * Le Mans * BTCC * WRC * Moto GP Appendix Two: Resources and competencies gained Appendix Three: Maslow’s hierarchy of needs Appendix Four: Speculation of Ron Dennis Leaving the McLaren Team Source: The Guardian, Monday March 3 2008, pp. 15 Appendix Five: MinutesMinutes were taken at every meeting since October, meetings took place either weekly or fortnightly depending on work load and no meetings wer e held over the Christmas vacation. Meeting 1- Pret a Manger Minutes 15th October 2007 * Introductions to the group * Confirmation of group members * Vanessa Barnes * Laura Bentley * Ankur Dawar * Aashir Agarwal * Saqib Munir * Joe Abernethy * 2 people were assigned (or chose depending on personal preferences) which company they would like to be responsible for initially researching. * Ankur and Aashir: Ferrari * Laura and Vanessa: Mclaren Joe and Saqib: Williams * Arranged a set time and day for the meetings: Tuesdays 11-1 * The task for the next meeting: * Each read the article * Print off background information about our particular company (from the website) * All think about how the questions could be answered Next meeting: Tuesday 16th October in the Library Meeting 2- Library Minutes 16th October 2007 * Group discussion of how the essay should be structured * Each member of the group gave feedback about their company and interpreted the competitive strategies adopted by each c ompany. * Question oneAttempt to answer it using the model of porters 5 forces to firstly analyse the general industry of formula one * On a large piece of paper- we mapped out all the key issues that need to be considered in each aspect of porters 5 forces model and related them to Ferrari, Williams and Mclaren. Tasks for next meeting * Each member has been assigned one of porters 5 forces discussed and the individual has to relate the discussion to the three companies and bring a copy of the written up notes for the next meeting. * Find any relevant information to your ‘force’ e. g. e-journals etcNext meeting: 23rd October 2007 in Library Meeting 3: Library Minutes 23rd October 2007 * Feedback to the group our individual pieces of work from last week and make key points for improvement * From the case study made a list of all the apparent resources, capabilities and attributes of formula one * Linked all of the information to the strategies of each constructor Resourc es * Capital Investment * Money * Manager * The car * Sponsorship * Research facilities * Raw materials Capabilities * Skills * Extensive driver training * Engineering * Design * Performance * Racing tactics Different strategies for every track Attributes * Technology * Corporate Identity * Design * Tactics * Strategy * Track knowledge * Constructors have different strategies for different tracks therefore the design of the car changes with the track Discussion of case study: Amazon * Read the article and picked out key points Things to do for next meeting * In our constructor groups, identify the resources capabilities and attributes of Ferrair, Mclaren and Williams Next meeting: 6th November: Bistro Study Area Meeting 4: Library Minutes: 6th November 2007 * Main emphasis of the meeting was on question 2 Divided the work up between the team: Ankur and Aashir: Ferarri success in the mid 1970’s Joe and Saqib: Mclaren and Honda 1980’s Vanessa and Laura: Williams 1990â₠¬â„¢s * Decided on the word counts for each section * Set deadlines for each section Next meeting: 20th November in Bistro Study Area Meeting 5- Bistro study area Minutes 20th November 2007 * Incorporate the crescendo model into the assignment, particularly in questions 2 and 3. Link this to logical incrementalism and how was it implemented? * The next task is to focus on question 3 and look at each F1 constructor and find their reasons for failure.Some of the problems were then discussed in the meeting: * Breakdown in relationships * Unreliability of technology * Alliances pulling out * Drivers leaving * Discuss the possible reasons for each of the above factors and then in our teams, produce a document which states the reasons for the failure of each F1 team. * Ferrari: Ankur and Aashir * Williams: Joe and Saqib * Mclaren: Vanessa and Laura * It is also important to consider why and how Ferrari have sustained success!! Tasks for next meeting * Each team member should be responsibl e for finding e-journals and bring at least one journal on competitive strategy to the meeting. Competitive advantage * Competitive Strategy * Formula One * Is it possible to get hold of any financial statements for any of the companies? * Conduct a PEST(LE) analysis of your particular team to go into the appendix of the assignment. Next meeting: Tuesday 4th December at 12pm in Bistro Study area. Meeting 6 in Library Minutes 4/12/2007 Tasks for after Christmas * Look at the reading list and pick an item each * Got through the lecture notes so far and highlight what needs to be included in the assignment. * Find 2/3 journals each on our selected topics: read, highlight and make notes. Highlight the reasons for failure for each constructor and type up (300 words) * Do a PEST analysis for each constructor E-journals to look at: Vanessa and Laura Porters 5 forces and the value chain Critique of Porters five forces Saqib and Joe Emergent, intended and realised strategies Ankur Resources and capabilities Aashir Focus differentiation Cresendo model Constructors to look at reasons for failure: Vanessa and Laura Mclaren Joe and Saqib Williams Ankur and Aashir Ferrari Next meeting: After Christmas meet 6th Feb due to exams Meeting 7 in library Minutes 6th Feb 2008 Discussion of previous work that has been done over Christmas * Identified the need for theory to now be integrated into the questions * Discussion of peer assessment- decided to give each other equal marks * Discussion of question 4 and the theory that needs to be built into it * Discussion of the basic strategies for each constructor Theory for question 4 * Growth strategies: Alliances Alliances with suppliers and sponsors To gain sponsors and get more money the company needs to pitch a strategy if they are not already achieving success. * Imposed strategiesThe constructor doesn’t want to do it but the environment imposes change: e. g. legislation * It is difficult to innovate due to the imposed limit ations on the industry * Quantum Hypothesis * Cresendo Model * Logical Incrementalism Used generally throughout Formula one, small changes being made all the time * Red queen principle After Ankur and Aashir have sent the first draft of question 4 to the group- we all need to go through it before the next meeting and have some improvements on it and things that we need to add to it. Tasks to be done for 8th Feb * Format question 1: Laura Type up the minutes: Laura * Put question 2 together from everyone’s answers for each constructor: Joe * Put question 3 together from the reasons for failure for each constructor: Saqib * Do a first draft of question 4 taking into account the notes and discussion that was produced today: Aashir and Ankur. * Send all questions to Vanessa, she will format the questions and make them into ‘one voice’. * All look at previous lecture notes and the review of semester 1 to see what else we need to include in the questions What needs to be in the Appendix? * Porters five forces model * Minutes Maslow’s Hierarchy of needs * Resources and the competencies gained Discussion of the unipart and Sony Case studies Next meeting: 22nd Feb Meeting 8 in Library Minutes 22/02/08 * Cutting down the word count from 7000- 5000 * Checking all theories used and adding any relevant material * Reading the Guardian news article and discussing it’s relevance Tasks to be done * Front cover of assignment: Aashir * Word count- cutting words out: Vanessa, Laura, Saqib, Joe, Aashir * Formatting: Laura * References: Laura * Proof reading: Laura * Printing: Aashir * Compile appendix: Aashir, Laura, Vanessa

Swot Analysis of Bisleri Essays

Swot Analysis of Bisleri Essays Swot Analysis of Bisleri Essay Swot Analysis of Bisleri Essay SWOT Analysis of Bisleri 1. Strength:- The strength of Bisleri are as follows:- a. Pioneer of packaged drinking water:- Bisleri is the pioneer of the packaged drinking water segment, so whenever one refers to the packaged drinking water the first name that comes is mind is of Bisleri. So popularity of Bisleri in packaged drinking water segment is very high as it is the pioneer of the packaged drinking water. Eg:- whenever a customer wants to buy an packaged drinking water the first name that comes to his mind is of Bisleri , bisleri has became an generic name for packaged drinking water. b. Innovation of the PET bottles:- Bisleri company was the first to launch the PET water which has better water transparency and the sparkling clear water was made visible to the customers via this bottles, the sales of Bisleri boost after they innovated the PET bottles. c. Main Focus on Mineral water segment:- After the company sold its coldrinks brands to Coca-Cola in 1993 for 400 crores the entire focus of the company was only on the packaged drinking water segment , as a result the number of new products were launched by the company in packaged drinking water segment that boost up its sales. . Bisleri have high water quality standard:- About 6 steps are involved in the complete purification of the mineral water at the Bisleri, so the quality standard of the Bisleri water is very high. e. Building of trust among the people regarding bisleri due to its high quality:- Bisleri was the pioneer of the packaged drinking water segment, they have been able to sustain for such long time in th e market only because of the trust they have been able to build in the minds of the customer by providing high quality water. . Vast Distribution System:- Bisleri have an vast distribution system through which they have been able to provide bisleri bottles in each and every corner of India. Bisleri have been able to reach rural areas of India also where the purity of water is the main problem among the peoples of rural areas. g. Better Understanding of the Customer needs:- Bisleri have launch wide range of products like 500ml bottle, 1. 2 litre bottle, 20 litre water cans by studying the various different needs of the customers. They have launch small bottles that is helpful for the travelling peoples, large cans for household purposes. Better understanding of the customer needs is very important for any company to sustain in the market, and is also helps the company to increase its sales. h. Increasing popularity of Bisleri in mineral water segment:- As bisleri was the pioneer of the packaged drinking water so it is the most popular in that segment and it is on every customer tongue whenever mineral water segment is been considered. The popularity of bisleri is increasing day by day and so are its profit margins. Small pack along with its bulk packs are most popular in the packaged drinking water segment. i. Unique Design to stop piracy:- Bisleri have launched unique break away seal bottle caps that are unique in it kinds and cannot be imitated. By launching such caps the company has been able to control the piracy of the bisleri bottles. 2. Weaknesses:- Weaknesses of Bisleri are as follows:- a. Faulty Reuse of the packaged drinking bottles:- After the mineral water bottle is consumed by the customer , the used bottles are been used by other peoples that fill it with water of low quality and sell it again in the market. b. Lack of Proper strategy for the use of used bottles:- Bisleri lacks an good strategy that will help them in proper use of the used bottles by the customer i. e Recycling. Proper recycling strategy will help them to cut down the cost of production of the PET bottles and will also help them to control the piracy done through used bottles. c. Low profit margin to the dealers:- In order to sustain in the growing competitive market of the packaged drinking water segment , Bisleri is trying to provide its bottle at comparative lower rate that reduces its profit which ultimately reduced the dealer margins, so many dealers are not keeping bisleri in many areas due to low profit margins. d. Faulty Packaging Accident in 2000:- BIS cancels Bisleri’s license of a water bottling in Delhi since some of the bottles did not carry ISI label, that affected the reputation of the company. e. Fault in Production:- The most hiped production fault of bisleri occurred in 2002 when an insect was found in one of the Bisleri Bottles, that accident affected the trust of bisleri among the customers . f. Unable to meet the demands:- As the distribution policy of Bisleri is not up to the mark , it is unable to meet the demands in particular areas of the country like south nd eastern part of India. 3. Opportunities:- Opportunities in front of Bisleri are as follows:- 1. Growing market in the packaged drinking water segment:- The market of the packaged drinking water is increasing at higher rate as the packaged water is able to provide purified water which is portable and is available in all parts of the country. Market for the packaged drinking water is increasing every year that is at tracting many more companies towards this segment. 2. Bisleri can utilize its brand name for increasing sales:- As bisleri has pioneered the packaged drinking water segment , it has became an generic term for mineral water. Bisleri can make use of its popularity to increase its sales in such an growing market of the packaged drinking water segment. 3. Expansion in Europe and America:- Bisleri have made plans to venture out in Europe and America to sell bottled water, this will help bisleri to create an international brand image. 4. Launch of New products depending on its brand name:- Bisleri can launch new products depending on its established brand name in the market, like launching high price premium bottles with different packaging that will give tough competition to established players in premium packaged water segment. 4. Threat:- 1. Attraction of other companies in the packaged drinking water segment:- As the market of packaged drinking water is increasing year by year, this is attracting various other players to enter in the market of packaged drinking water. If more players enter in this market the profit margin of bisleri will definitely be affected. 2. Availability of cheap water purifiers in the market:- The water purifiers are now made available to the customers at lower prices which is now attracting the customers of the bulk segment of Bisleri. 3. Piracy:- Despite of the launch of tamper-proof and tamper-evident seal the company is not able to control the piracy of the bottles which is taking place through the used bottles of bisleri. Due to improper recycling strategy the used bottles of bisleri are pirated at an higher rate by the local manufactures. 4. Competition from establishes players like Pepsi and Coca-Cola:- Bisleri biggest threat are the established players like Pepsi and Coca-Cola which have vast distribution network as compared to Bisleri. Due to distribution problems bisleri is not able to meet the demands in particular areas of the country which is diverting the minds of the customer to various other brands which have stronger distribution networks and the local manufactures. . Decreasing Ground Water level:- The ground water level is decreasing year by year due to extensive drilling done , as bisleri requires approx 3 litres of ground water to produce 1 litre of its mineral water. Decreasing water level is also one of the major threat to the packaged drinking water company. New Product that should be launched by Bisleri:- According to me Bisleri should launch its products in the energy drink segmen t. There are not many players of energy drink in India, the major energy drink player in Indian is XXX energy drink. As Bisleri is the most popular packaged drinking water brand , it should utilize its brand name in launching the energy drink which contains mainly glucose and should have and Indian touch for the Indian market like the â€Å"Nimbu-paani† flavor. Brand name along with the Indian touch and high amount of Glucose are the factors that will help Bisleri to achieve high sales and profit in this sector of energy drink. As there are not many players in the energy drink market it is simple for Bisleri to utilize its brand name to establish its position in the energy drink market.

The Making of an Unequal Society

The Making of an Unequal Society Joseph Stiglitz believed that inequality in America was the result of a conspiracy between the rich and powerful. He also added that the U.S. government assisted them. He placed blame on their shoulders and he was angry because of his convictions.Advertising We will write a custom essay sample on The Making of an Unequal Society specifically for you for only $16.05 $11/page Learn More Stiglitz acknowledged that there are other forces at work but conceded that the major reason for the inequality is due to the actions of the wealthy, the corrupt and the opportunists. Stiglitz labeled the ability of the rich and powerful to steal from the weak as the art of rent seeking. Stiglitz observation must be considered in order to build an egalitarian society. Stiglitz traced the root-cause of inequality and said that it can be traced back to the acquisition of military power in ancient times. He said that the rich and powerful seized power in order to extract resources from the people that they have dominated. An overview of feudal systems and empires can easily confirm this assertion. Kings, landlords, warlords, emperors and pharaohs demonstrated the immutable fact that those who had the military and economic power to subdue people can force others to pay tribute. They also earned the capability to allocate resources in their favor. The author said that the ultimate goal of corrupt leaders and businessman is not to create wealth but to transfer wealth. He added that the rich and powerful had perfected various schemes that compeled others to pay tribute even if they did not work for it. The author said that this phenomenon is called rent seeking. Stiglitz cited examples such as: 1) hidden and open transfers and subsidies from government; 2) laws that make the marketplace less competitive; 3) lax enforcement of existing competition laws; and 4) statutes that allow corporations to take advantage of others or pass costs on to the rest of society (St iglitz, p.39). Stiglitz condemned rent seeking and used strong terms to denounce the evil created by corrupt members of society and he wrote:Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More To put it baldly, there are two ways to become wealthy: to create wealth or take wealth away from others. The former adds to society. The latter typically subtracts from it, for in the process of taking it away, wealth gets destroyed (Stiglitz, p.32). One can just imagine the wasted opportunities when wealth was destroyed through corruption. At the same time one can just imagine the ripple effect of a single act of benevolence. A businessman that created a high-quality product and sold it at the right price contributed in the creation of a better society. But a greedy businessman with inferior products and overpriced goods sold will create inefficiency in society. Stiglitz also condemned predat ory lending practices and expressed his displeasure when he stated that the government’s inability to curb credit card woes was an outrageous form of social injustice. He added that the government must intervene and that policymakers should establish rules and regulations that will protect the poor from unscrupulous businessmen. Stiglitz argued that the solution to inequality is effective income distribution. He said that it is the byproduct of both political and economic processes. Therefore, the government must exert political will in order to shape and control the economic process so that it does not only favor the powerful and the rich. For example, a company’s failure can be traced to the hefty bonuses given to the CEO. The outrageous sums of money given to corporate heads led to the downfall of certain companies because the CEOs were forced to manipulate financial data in order to show that the company is profitable and therefore strengthen their hold on their po sition of authority as well as their large pay bonuses. The government can end this problem by enforcing laws against different forms of fraudulent business practices. Aside from creating effective laws and enforcing them, there is another way that the government can help in the process of income distribution and this is through a more practical and effective method of raising revenue through taxes. The problem of taxation becomes evident when it comes to the amount of money collected through the extraction of natural resources. Stiglitz said that most of the time, the government fails to collect the correct amount that has to be paid after mining firms had extracted minerals from government lands. Stiglitz therefore concluded that in effect this is comparable to giving money away to the rich and powerful.Advertising We will write a custom essay sample on The Making of an Unequal Society specifically for you for only $16.05 $11/page Learn More If the govern ment develops a better system to ensure effectvie collection of taxes and fees, then, there are more funds that can be used to help poor families. Furthermore, there will be more funds that can be used to create opportunities for those who wanted to break the power of poverty over their lives. If Stiglitz can prove his claim that the government failed to collect the correct amount of taxes from mining firms and other companies, then, there are hundreds of millions of dollars that remained in the hands of the rich and powerful. The same resources should have been re-distributed in favor of the less fortunate. One can just imagine the impact of an additional $1 billion in taxes that can expand the scope of public service. Consider for instance the impact of an additional $2 billion injected into the public school system. Consider the impact if the government has enough money to finance the education of 1,000 college students. Conclusion Stiglitz was correct when he said that rent seek ing could destroy an economy. The financial crisis of 2008 was a powerful reminder of what can happen if power is concentrated in the hands of a few people. Stiglitz pointed out that since the beginning of time the rich and powerful will do everything to maintain the status quo. Stiglitz also highlighted an important fact and he said that rent seeking required a sophisticated and concerted effort. It is difficult to dismantle the apparatus that created rent seeking. It is difficult to eradicate rent seeking because one can only dismantle the said apparatus with the help of the government. Rent seeking can be destroyed through the ratification of particular laws that will create checks and balances in the system. The government plays a vital role in the eradication of rent seeking because it will require political will to go after white-collar crimes. However, the regulatory agencies that were established to monitor industries and enforce laws are manned by people from the private se ctor. For example the energy regulatory agency is under the supervision of people that used to work in oil companies. Stiglitz said that these people who were appointed to a government post will never do anything to jeopardize their standing in the said industry. They knew that their present job in the government will not last long. In some cases their position is dependent on the next presidential election. Therefore, they will do everything in their power to appease the CEOs so that they will be assured of a comfortable and profitable job when they go back to the private sector.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Stiglitz, Joseph. The Price of Inequality.New York: W.W. Norton, 2012. Print.

Classic Chemical Volcano - Ammonium Dichromate

Classic Chemical Volcano - Ammonium Dichromate Vesuvius Fire Introduction The eruption of an ammonium dichromate [(NH4)2Cr2O7] volcano is a classic chemistry demonstration. The ammonium dichromate glows and emits sparks as it decomposes and produces copious amounts of green chromium (III) oxide ash. This demonstration is simple to prepare and perform. The decomposition of ammonium dichromate commences at 180Â °C, becoming self-sustaining at ~225Â °C. The oxidant (Cr6) and the reductant (N3-) are present in the same molecule. (NH4)2Cr2O7 → Cr2O3 4 H2O N2 The procedure works well in both a lighted or darkened room. Materials ~20 grams of ammonium dichromatesand tray or ceramic tile, for use in ventilation hood OR5-liter round bottom flask and porcelain filtering funnelgas burner (e.g., Bunsen) ORbutane lighter or match, for use with flammable liquid (e.g., ethanol, acetone) Procedure If you are using a hood: Make a pile (volcanic cone) or ammonium dichromate on a tile or tray of sand.Use a gas burner to heat the tip of the pile until the reaction begins or dampen the tip of the cone with a flammable liquid and light it with a lighter or match. If you are not using a ventilation hood: Pour the ammonium dichromate into a large flask.Cap the flask with a filtration funnel, which will prevent the majority of the chromium (III) oxide from escaping.Apply heat to the bottom of the flask until the reaction begins. Notes Chromium III and chromium VI, as well at its compounds, including ammonium dichromate, are known carcinogens. Chromium will irritate the mucous membranes. Therefore, take care to perform this demonstration in a well-ventilated area (preferably a ventilation hood) and avoid skin contact or inhalation of the materials. Wear gloves and safety goggles when handling ammonium dichromate. References B.Z. Shakhashiri, Chemical Demonstrations: A Handbook for Teachers of Chemistry, Vol. 1, University of Wisconsin Press, 1986, pp. 81-82. mistry.about.com/library/weekly/mpreviss.htmMore Chemistry Articles

Criminology Essay Example | Topics and Well Written Essays - 1000 words - 1

Criminology - Essay Example The critical criminologists believe that the marginalization and criminalization are highly integrated with each other. This may affect the mental state of the individuals under marginalization and some of them may indulge in any criminal activities. The marginalization may occur at individual level or at group or community level. The people with physical or mental disabilities are subjected to marginalization at individual level. This is against the basic principles of human rights and several nations have made their legislature to reduce or avoid this practice. The employers or organizations may consider the inclusion of disabled people as a stumbling block to the productivity. In this process, they indulge in marginalization which is unfair. Moreover, the companies must work with principle of equality and corporate social responsibility. Therefore, marginalization must be eradicated by the employers. The marginalization may also be found in community or group level in the form of women and aboriginal groups. When the people are subjected to colonialism, they will have to leave their place of residence and will be settling in new areas and during this process, they are marginalized to participate in any social functioning. Similarly, the women are subjected to marginalization as far as the employment in some organizations is concerned. Criminalization means a process of imposing a criminal penalty for the illegal act committed by any person. According to critical criminologists, it is a social process in which individual may undergo a transformation of their behavior to crime or violent act (Mc Laughlin et al., 2002). The origin of criminal behavior may be in the form of discrimination or victimization (Walklate, 1989). Criminalization may disrupt the social order, and hence the society requires legal order that controls the crime rate. Some times, the criminalization may be originated from lack of health safety measures due to which other persons in the soci ety get potential harm. For example, the defendant was sentenced to two year imprisonment under criminal law for being responsible for the transmission of Hepatitis B in UK (Mohanty, 2009). As mentioned earlier, critical criminologists argue that the criminalization may be originated due to distorted mental behavior when a person is subjected to marginalization in the society and having historical link with criminalization may be considered as a cause for marginalization (Walklate, 2003). Hence the criminalization and marginalization are correlated with each other. For example, the criminal history of the Black youth, the black cultural spaces were excluded from new playgrounds of the night time economy in UK (Talbot and Bose, 2007). Hence, in the control of crime rate in the society, the steps for reducing the marginalization would be of immense help. The thorough analysis of causes or factors of victimology would certainly help in reducing the menace of criminalization in the soci ety (Fattah, 1992). References Fattah, EA. 1992, The Need for a Critical Victimology, In Towards A Critical Victimology. Ezzat A. Fattah (ed.). New York: Palgrave Macmillan Publication, pp.  14–23. ISBN : 0-312-07551-0. Mc Laughlin, E., Muncie, J & Hughes, G. 2002, Criminological Perspectives: Essential Readings (Published in association with The Open University), Sage Publication, pp: 612, ISBN-10: 0761941444. Mohanty, K. 2009, â€Å"

Retailing Industry Essay Example | Topics and Well Written Essays - 3000 words

Retailing Industry - Essay Example The aim of the paper is to present findings of previous researchers in a structured form, which will to draw further conclusion or will make it able to predict a general trend. New outcomes of the paper come from the analysis of those findings and result in the connection between the emergence of born global companies and the extensive use of IT strategies by small companies. Additionally the situation with SMEs' integration into e-business presents interest for the development of national economies: the paper indicates weaknesses in the current IT development of SMEs. The development of information technologies (IT) has stretched the horizons for almost every business. Small companies have got the opportunity to open themselves to the world, large companies have used their chance to strengthen their competitive advantage through the use of increasing their internal effectiveness with the help of IT solutions. The paper is set in the context of retailing industry, which implies a small buyer power, fierce competition, and most importantly the urgent need for diversification. Due to the fact that retail companies have developed in similar ways during the past century, they offer the same services to customers. The only way to get a company out of this dullness is to diversify itself. Diversification is extremely important for both large and small companies in retailing industry. Previous researches of Miller (2000), Rossi and Tuunainen (2002), and Evaristo and Kaarst-Brown (2004) have observed the changes made by IT in large and small retailers' strategies and infrastructure (Section 3 and 2 correspondingly), while the framework of Brown, Seltsikas, and Tailor (2003) devotes much attention to issues of outsourcing (Section 5). Rapid internationalization of small-to-medium enterprise (SME) also presents academic interest: papers of Malhotra (2000), and Abbot and Stone (2003) concentrate on the difference of development of large and small firms in the context of IT implementation (Section 4). Differences in the use of large and small businesses are seen most vividly in the infrastructure and strategy of companies. Smaller companies seek for strategies and IT tools that will help them to seize new business opportunities (Miller, 2000), while large retailers use IT solutions to enhance their internal effectiveness (Rossi, Tuunainen, 2002). The next section starts with a detailed comparison of the internal infrastructure of large and small retailers. 2. DIFFERENCES IN INFRASTRUCTURE 2.1 Differences in the internal infrastructure Internal infrastructure ensures the flow of information inside the company (e.g. from one department to another). It is the most 'invisible' part of companies' operations from the customer's perspective, and at the same time internal effectiveness is vital for both large and small businesses. That is why the implementation of IT in the internal infrastructure is a common practice in retail businesses regardless of their size. Even the smallest companies, which do not make the Internet their first priority, use information systems (IS) for quick and easy access to prices, inventory and delivery times to follow through with customers' requirement (Miller, 2000). IS can enhance the internal infr