Price and Ikea Essay Example

Price and Ikea Essay IKEA Dr. Okan Geray 1. Explain, in detail, the aspects of Ikea strategy that make it a Hybrid strategy. COST LEADERSHIP IKEA’s strategy is based on selling high-quality, Swedish designed, self-assembly furniture products at low price. The IKEA business idea is: ‘We shall offer a wide range of well-designed, functional home furnishing products at prices so low  that as many people as possible will  be able to afford them. ’ IKEA targets price-conscious young couples and families who are willing and able to  transport and assemble furniture kits. The low-price strategy, seeks to achieve a  lower price than competitors while maintaining similar perceived product or service benefits to  those offered by competitors, price is not appealing unless, it represents good value for money. This is where IKEA is able to make a real difference. IKEA is  committed to having a good relationship with their suppliers  and so they are able to  purchase good quality, economically produced designs that are bought in bulk to keep costs down. By making all their furniture’s flat packed they cut down on  transportation and assembly costs as well. Achieve cost leadership through multi-level competitive advantage on supply side with low cost logistics and large retail units in suburban areas allow them to sell products 20 to 40% cheaper than other competitors. The company is able to achieve a competitive advantage by delivering value to customers based on both product features and low price. We will write a custom essay sample on Price and Ikea specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Price and Ikea specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Price and Ikea specifically for you FOR ONLY $16.38 $13.9/page Hire Writer DIFFERENCIATION * Marketing, IKEA is  focused on segmentation of its target: the middle-class population of all age groups Product range * Logistics , Furniture is flat back * Product range. 2. WHY IS THIS STRATEGY DIFFICULT FOR COMPETITORS TO IMITATE? 3. What are the dangers of a hybrid strategy and how can Ikea managers guard against them? A hybrid strategy seeks simultaneously to achieve differentiation and low price  relative to competitors. The success of this strategy depends on the  ability to deliver enhanced benefits to customers together with low prices whilst achieving sufficient margins for reinvestment to maintain and develop bases of differentiation. IKEA has looked towards emerging markets e. g. China for growth. Further  adaptation to products has been necessary including pricing strategy. Income levels of consumers are lower and stores needed to be located within the cities as car ownership is  lower. IKEA has experienced greater competition from national brands.

E-Commerce Strategies for Airasia Essays

E-Commerce Strategies for Airasia Essays E-Commerce Strategies for Airasia Essay E-Commerce Strategies for Airasia Essay AIR ASIA E-COMMERCE STRATEGIES Low cost per average seat kilometer AirAsia focused on ensuring a competitive cost structure as its main business strategy. It has been able to achieve a cost per average seat kilometer (ASK) of 2. 5 cents, half that of Malaysia Airlines and Ryanair and a third that of EasyJet. AirAsia can lease the B737-300s aircraft at a very competitive market rates due to the harsh global market conditions for the second-hand aircrafts because of the September 11th event in 2001. Low distribution cost AirAsia focus on Internet bookings and ticketless travel allowed it to lower the distribution cost. Attractive ticket price With the average fare being 40-60% lower than its full-service competitor, AirAsia has been able to achieve strong market stimulation in the domestic Malaysia air market (Thomas 2003). For instance, the fare for the trip from Kuala Lumpur to Penang on AirAsia starts from 39 ringgit. Comparing to trip by bus charge 40 ringgit and 80 ringgit by car. The effect of attractive low fare is more travelers switching from bus to air, similar case as Ryanair in Europe. Good Management Team AirAsia value proposition is more sophisticated than Ryanair placing equal emphasis on brand reputation and customer service/people management, by a senior advisor to AirAsia’s top management team. AirAsia pursue a Ryanair operational strategy, Southwest people strategy and an EsyJet branding stategy. AirAsia is the best organizations among others s because of their :- Xpress Boarding AirAsia practices a free seating policy. This policy has enabled them to consistently achieve a turnaround time of 25 minutes for all of their flights. They now offer, as an option, the choice of seats through Xpress Boarding. Xpress boarding allows guests to board on aircraft first, and choose a seat of their liking-be it a window seat, asle seat, front of aircraft or next to the lavatory. This service has proven to be exceptionally popular for time hungry business people, corporate employees on business trips, and families travelling together. Web Check-in For a seamless, quick and convenient check-in, We B Check-in was introduced to enable those travelling without luggage. Guess may simply check-in via thewebpage from the comfort of their homes of office, print out their boarding pass and proceed to the airport at their leisure. Self Check-in Kiosk Self Check-in also available. Their fiery red kiosks are located at the LCC Terminal, KLIA to enable a self check-in with a touch of the screen. E-Gift Voucher The E-Gift Voucher is an innovative gift for all occasions as well as being a much-appreciated to corporate gift for its high-perceived value. Since its launch, the E-Gift Voucher has proven itself to be a popular choice for those who want to present imaginative gifts. MALAYSIA AIRLINES E-COMMERCE STRATEGIES E-Freight Program The e-Freight Partnership Program of MASkargo is a strategic e-commerce framework that aims to develop a paperless environment that will enable collaboration among various key players of the logistic industry to adopt electronic channels as the way of transacting business processes with each other. MASkargo Pioneers the Use of the FPX System MASkargo was recently recognized as one of the early adopters for Malaysias first real time online inter-bank Internet payment gateway, Financial Process Exchange (FPX). FPX, a national project, facilitates online payments for e-commerce transactions in particular B2B and B2C (business to business and business to consumer) transactions on a secure and multi-bank platform. E-Commerce E-Commerce encompasses all business operations and transactions based on communication via the electronic media. The major activity includes e-Bookings e-Tracking e-Schedules e-Air Waybill Stock Distribution -Air Waybill Submission e-Invoicing Payment Malaysia Airlines’ needs Malaysia Airlines, having a clear idea about what it wanted  to achieve with the P SS programmed, divided the workload into five streams: Reservations -Anew, more efficient and functionally rich system, to meet todays industry standard sand requirements. E-Commerce-Allowing  Malaysia Airlines to reduce  distribution cos ts by providing a  convenient, easy to use Internet Booking  Engine. E-Ticketing and DCS-Moving from traditional paper toe-tickets by May 2008, in line with IA TAs requirements. This included an upgraded Departure Control System so that  Malaysia Airlines could offer new  self-service options to passengers, including kiosk and web check-in. Revenue Integrity-To authenticate every booking ensuring it produces an actual passenger upon departure, avoiding the revenue leakage which occurred in the past. Fares Management-To enable Malaysia Airlines  to distribute fares more efficiently around the world and to improve pr  icing decisions. A critical success  factor was the ability to integrate all five  work streams with other existing systems in place throughout Malaysia Airlines. SITA’s solution in a first for the  region, and with a contract worth more than US$80million over a ten-year  period, SITA has been undertaking a comprehensive overhaul of Malaysia Airlines existing passenger applications and services, covering the five work streams -reservations, e-commerce, ticketing and departure control, revenue integrity and fares management. To date, SITA has met the needs of Malaysia Airlines  by implementing several Horizon solution components including: Implementing SITA Ticketing and DCS around existing passenger applications, saving  Malaysia Airlines  millions of dollars. Re-engineering  Malaysia Airlines fares strategy, including fares workflow, competitive monitoring, and effective distribution, which has been critical  to the outstanding success achieved with e-commerce. Implementing revenue integrity and revenue protection, enabling Malaysia  Airlines to prevent the waste of over 120,000  segments in a single quarter  at the beginning of 2008-equating to improved inventory management with significant cost savings and revenue upside. FIREFLY E-COMMERCE STRATEGIES In buying up Firefly Network, Microsoft did more than feather its nest with a set of bleeding-edge consumer privacy technologies. It also struck a critical blow to arch rival Netscape by effectively sinking that companys online e-commerce strategy. Firefly has been developing a privacy plug-in that would have injected Communicator 5 with the necessary technology to support the Platform for Privacy Preferences (P3P) specification. While DesAutels said that Netscape had been relying on the Firefly plug-in, other sources, both at Netscape and within the P3P working group. The Firefly acquisition is cool for the industry as long as Microsoft doesnt step in the way and make it hard for them to work with Firefly this is an area where people will see some cooperation between Microsoft and Netscape. P3P and a related technology, Open Profiling Specification, provide a means for Web sites and consumers to seamlessly exchange preferences about what personal information such as age and ZIP code is exchanged over the Internet. The  P3P specification  is expected to be declared a standard by the World Wide Web Consortium by next month, and is poised to become an essential aspect of all Web transactions, including shopping. But the latest Microsoft deal has sent Netscape back to square one. Thats because P3P is very difficult to implement in a browser, and Firefly engineers were clearly leading the industry in that regard. They have creating a technology that is extremely difficult to implement. [The Netscape-Firefly plug-in] would have put Netscape back on par with the industry for privacy and e-commerce, and data exchange. Firefly has a collaborative filtering engine that can suggest products based on a users likes and dislikes. But Microsoft already owns a similar filtering engine, in the form of the Personalization Services features built into the companys Sidewalk city guides. What attracted Microsoft to Firefly was the technology Firefly had been developing for both Netscape and Explorer a dynamic content engine that would make the proposed P3P standard interoperable with Web sites. The acquisition was made by Microsofts Web Essentials group, which includes Microsoft Network, Sidewalk, Expedia, Hotmail, and the forthcoming Start portal service which mimics the Web gateway strategy adopted by many search-engine companies and Redmonds plans for P3P extend well beyond its Explorer browser. In March, Netscape told Wired News that the P3P/OPS technology was critical to its e-commerce plans, especially given growing pressure from the Federal Trade Commission for the Web-commerce industry to regulate itself with technological rather than legislative solutions to protect consumers. While DesAutels suggested that few other vendors were developing P3P solutions, an active member of the P3P working group said that Netscape would likely not be adversely affected by the Firefly acquisition. The Firefly acquisition gives Microsoft a greater stake in  Information and Content Exchange  (ICE), a proposed protocol for the automatic, controlled exchange and management of online assets between business partners. ICE is an embryonic technology being developed by Adobe, Firefly, JavaSoft, Microsoft, National Semiconductor, and Vignette, and a number of content publishers. A key technology under development at Firefly and destined for a W3C standards track, ICE will help establish standards for Web sites to communicate with each other, paving the way for online superstores and new reseller channels. Now, with a heavy stake in ICE, Microsoft has a leg up over Netscape in future e-commerce development. Netscapes whole e-commerce strategy, a large portion was now they have a client that speaks ICE, uses certificates for identity, includes an OPS/P3P client for exchanging info.

House Value Estimation Research Paper Example | Topics and Well Written Essays - 2000 words

House Value Estimation - Research Paper Example The assessment of the price of a house is generally assessed through the few apparent factors like the construction value, design, and location of the house. The rough estimation usually does not encompass the related factors that are important to decide the value of a house and have a significant impact on the assessment process. The study of the factors other than the common factors is important to identify their role in the determination of the price or value of a home. Generally, a realtor’s claim would always be that the location is the most important factor when it comes to determining the value of a house or home. The formulation of a model in this regard is attempted through ‘regression’. For concrete assessment of this claim, some elaborated factors are included in this exercise. A home or a house can generally be viewed in terms of the properties it holds internally and the characteristics of the environment outside that home. The null hypothesis here wo uld be the realtor’s claim i.e. the location is the most important factor in assessing the house value whereas the alternate hypothesis refutes by stating that this is not the only factor but there are other significantly effective factors that are needed to be taken into account. There are a number of processes that can be used to predict house values. These include various probabilistic methods. Multivariate Spatial Method, Time Series analysis, FootyForecast Forecasting methods( a method that is similar to simple sequence method).

International business law Assignment Example | Topics and Well Written Essays - 3000 words - 1

International business law - Assignment Example Every citizen of a state has certain duties towards the state and in the interest of the society as a whole, the state prescribes certain norms of conduct that bind all members of the state upon which it has a jurisdiction to punish a person who transgresses against these (Kleyn & Viljoen 2002). A good example of a criminal offence is theft which is unlawful taking of something that does not belong to you. The sole purpose of theft law in this case is to prevent interference with property rights. As far as criminal law is concerned, the state is part of the proceedings against the accused person. Criminal law is seen as an effective way of dealing with certain conducts which are deemed wrongful and violate the prescribed norms in society. In the case of the United States Court of Appeals Tenth Circuit (2007), the defendant Juan Carlos Elizade has been convicted as an â€Å"aggravated felony† for joyriding and was subsequently sentenced to a one year suspended sentence. Thus, cases with the intent of temporarily depriving the owner of his property rights constitute a criminal offense. On the other hand, civil law is different from criminal law in that it constitutes private law which specifically deals with legal relationships between subjects (Kleyn & Viljoen 2002). The subjects in civil proceedings are relatively on the same footing with each other and the state only acts as an arbiter. Civil cases often involve family law, tort or contract laws. In a civil case, it is the plaintiff versus the defendant while in a criminal case it is the state versus the accused. The parties to a civil case decide whether they want to initiate proceedings while in a criminal case, the state initiates prosecution. The definite difference between a criminal and civil case is that the aim of criminal law is to punish the subjects threatening order and harmony in society while in contrast, the aim

A View from the Bridge Essay Example | Topics and Well Written Essays - 1750 words

A View from the Bridge - Essay Example The time setting, which is between 1940 and 1960, may not appeal to the interest of the present-day audience. But analytically speaking, the story contains more substance than many stories written by most contemporary writers. It connotes the favorability as well as the dangers one must experience and endure when living in a foreign land. [It] is a play largely concerned with discovery. As [Italian-American lawyer] Alfieri warns, no one can ever know what will be discovered. There are two secrets in the play: Eddie's incestuous desires for his niece and the two illegal immigrants hiding in the Carbone home, Marco and Rodolpho. [qtd. in Sparknotes, 18] The play, which is set to happen in an Italian-American community known as Red Hook, situated in the waterfront in Brooklyn, New York City, tells the story of Eddie Carbone, a longshoreman who feels something toward his niece other than filial love and how his life ends tragically because of it. Eddie Carbone - the center of the story - is a character who was created as an ordinary man; the type of person whom everyone will learn to love. However, Miller did not create a totally perfect character, but rather gave him flaws and weaknesses; his weakness is mainly concentrated in his love for his niece, Catherine. [] a suitable subject for a modern tragedy because the potential for self-destruction, which is in all of us, in Eddie's case has destroyed him. And apart from this improper love, Eddie is a good man; and this love has its origin in the quite proper love of father for child, and Eddie's sense of duty to his family and community. [A View from the Bridge] In a review of the play, another critic commented: Eddie sets in motion against one person rains a whole avalanche of destruction. Like many classic tragic figure (including Shakespeare's Hamlet), Eddie's effort to get rid of the one man he perceives as his enemy, cannot control fate's ripple effect on Marco, Marco's family and the hapless additional underground border - and, as importantly, his own standing in the tight-knit community. [Sommer] Despite Eddie's efforts to hide his feelings toward his niece, he is not able to do so, as shown in his actions. Although his wife Beatrice is aware of the fact of Eddie's non-paternal feelings toward her niece, she tries to ignore it and pretends that everything is just normal. Eddie's relationship with his wife and niece becomes more complex when he takes into the shelter of their home the two illegal immigrants, Marco and his brother Rodolpho, cousins of Eddie's wife Beatrice. Eddie's problem starts when one of the brothers, Rodolpho becomes romantically involved with his niece Catherine to whom Eddie harbors special feelings. Eddie tries everything in order to stop Rodolpho and Catherine from getting married, including seeking lawyer Alfieri's advice, making Catherine see Rodolpho's flaws and finally reporting the two brothers to the Immigration Bureau, an act which destroys Eddie's good reputation in the community. Eddie, however, is not able to stop the marriage from taking place. Embittered by hatred for Rodolpho and probably also driven by frustration, he refuses to reconcile with the younger man. In the end, Rodolpho becomes and American

The Definition Of Health Management Essay

The Definition Of Health Management Essay This assignment is actually will describe about the contradictory demand of cost reduction program and the need to invest to enhance the standard of health, safety and environment (HSE) in the industry. This assignment consist of the definition of Health, the definition of Safety, the definition of environment, Professional Organization in Malaysia, Cost Reduction, Profit, Discussion and also the Conclusion of this assignment. 2.0 THE DEFINITION OF HEALTH Health is the level of functional or metabolic efficiency of a living being. In humans, it is the general condition of a persons mind and body, usually meaning to be free from  illness,  injury  or  pain  (as in good health or healthy). The  World Health Organization  (WHO) defined health in its broader sense in 1946 as a state of complete physical, mental, and social well-being and not merely the absence of disease or infirmity. Systematic activities to prevent or cure health problems and promote good health in humans are undertaken by  health care providers. Applications with regard to animal health are covered by the veterinary sciences. The term healthy is also widely used in the context of many types of non-living organizations and their impacts for the benefit of humans, such as in the sense of  healthy communities,  healthy cities  or  healthy environments. In addition to health care interventions and a persons surroundings, a number of other factors ar e known to influence the health status of individuals, including their background, lifestyle, and economic and social conditions, these are referred to as determinants of health. Generally, the context in which an individual lives is of great importance for his health status and quality of life. It is increasingly recognized that health is maintained and improved not only through the advancement and application of  health science, but also through the efforts and intelligent  lifestyle  choices of the individual and society. According to the  World Health Organization, the main determinants of health include the social and economic environment, the physical environment, and the persons individual characteristics and behaviours. 3.0 THE DEFINITION OF SAFETY Safety  is the state of being safe, the condition of being protected against physical, social, spiritual, financial, political, emotional, occupational, psychological, educational or other types or consequences of failure, damage,  error,  accidents,  harm  or any other event which could be considered non-desirable. Safety can also be defined to be the control of recognized hazards to achieve an acceptable level of risk. This can take the form of being protected from the event or from exposure to something that causes health or economical losses. It can include protection of people or of possessions. There are two slightly different meanings of  safety. For example,  home safety  may indicate a buildings ability to protect against external harm events (such as weather, home invasion, etc.), or may indicate that its internal installations (such as appliances, stairs, etc.) are safe (not dangerous or harmful) for its inhabitants. Safety is the condition of a steady state of an organization or place doing what it is supposed to do. What it is supposed to do is defined in terms of public codes and standards, associated architectural and engineering designs, corporate vision and mission statements, and operational plans and personnel policies. For any organization, place, or function, large or small, safety is a normative concept. It complies with situation-specific definitions of what is expected and acceptable. Security is the process or means, physical or human, of delaying, preventing, and otherwise protecting against external or internal, defects, dangers, loss, criminals, and other individuals or actions that threaten, hinder or destroy an organizations steady state, and deprive it of its intended purpose for being. Safety can be limited in relation to some  guarantee  or a standard of  insurance  to the quality and unharmful function of an object or organization. It is used in order to ensure that the object or organization will do only what it is meant to do. It is important to realize that safety is relative. Eliminating all  risk, if even possible, would be extremely difficult and very expensive. A safe situation is one where risks of injury or property damage are low and manageable. 4.0 THE DEFINITION OF ENVIRONMENT 4.1 Environment system In  science  and  engineering, a  system  is the part of the  universe  that is being studied, while the  environment  is the remainder of the universe that lies outside the boundaries of the system. It is also known as the  surroundings, and in  thermodynamics, as the  reservoir. In some disciplines, such as  information theory,  information  may also be exchanged. The environment is ignored in analysis of the system, except in regards to these interactions. The Environmental systems are vital to the human race and to all living organisms. Without the systems in place and working, we would all cease to exist. Rivers and streams are an example, if the system of this were to not work, then the whole system would collapse. 4.2 Environmental Health Environmental health  is a branch of  public health  concerned with all aspects of the  natural  and  built environment  that may affect human  health. Other phrases that concern or refer to the discipline of environmental health include  environmental public health  and  environmental health and protection. The field of environmental health differs from  environmental science  in that environmental health is concerned with environmental factors affecting human health whereas environmental science is concerned with the environment as it affects ecosystems. Environmental health addresses all the physical, chemical, and biological factors external to a person, and all the related factors impacting behaviours. It encompasses the assessment and control of those environmental factors that can potentially affect health. It is targeted towards preventing disease and creating health-supportive environments. This definition excludes behaviour not related to environme nt, as well as behaviour related to the social and cultural environment, and genetics. Environmental health is defined by the  World Health Organization. Those aspects of the human health and disease that are determined by factors in the environment. It also refers to the theory and practice of assessing and controlling factors in the environment that can potentially affect health. Environmental health as used by the WHO Regional Office for Europe, includes both the direct pathological effects of chemicals, radiation and some biological agents, and the effects (often indirect) on health and well being of the broad physical, psychological, social and cultural environment, which includes housing, urban development, land use and transport. 4.3 Environmental Health Profession Environmental health practitioners may be known as  sanitarians,  public health inspectors, environmental health specialists,  environmental health officers  or environmental health practitioners. In many European countries, physicians and veterinarians are involved in environmental health. In the United Kingdom, practitioners must have a graduate degree in environmental health and be certified and registered with the Chartered Institute of Environmental Health. In Canada, practitioners in environmental health are required to obtain an approved bachelors degree in environmental health along with the national professional certificate the Certificate in Public Health Inspection (Canada). Many states in the  United States  also require that individuals have a bachelors degree and professional  licenses  in order to practice environmental health. 4.4 Disciplines of Environmental Health Three basic disciplines generally contribute to the field of environmental health. The three disciplines of Environmental Health is environmental epidemiology, toxicology, and exposure science. Each of these disciplines contributes different information to describe problems in environmental health, but there is some overlap among them. Environmental epidemiology  studies the relationship between environmental exposures (including exposure to chemicals, radiation, microbiological agents, etc.) and human health. Observational studies, which simply observe exposures that people have already experienced, are common in environmental epidemiology because humans cannot ethically be exposed to agents that are known or suspected to cause disease. While the inability to use experimental study designs is a limitation of environmental epidemiology, this discipline directly observes effects on human health rather than estimating effects from animal studies. Toxicology  studies how environmental exposures lead to specific health outcomes, generally in animals, as a means to understand possible health outcomes in humans. Toxicology has the advantage of being able to conduct randomized controlled trials and other experimental studies because they can use animal subjects. However there are many differences in animal and human biology, and there can be a lot of uncertainty when interpreting the results of  animal studies  for their implications for human health. Exposure science  studies human exposure to environmental contaminants by both identifying and quantifying exposures. Exposure science can be used to support environmental epidemiology by better describing environmental exposures that may lead to a particular health outcome, identify common exposures whose health outcomes may be better understood through a toxicology study, or can be used in a risk assessment to determine whether current levels of exposure might exceed recommended levels. Exposure science has the advantage of being able to very accurately quantify exposures to specific chemicals, but it does not generate any information about health outcomes like environmental epidemiology or toxicology. Information from these three disciplines can be combined to conduct a  risk assessment  for specific chemicals or mixtures of chemicals to determine whether an exposure poses significant risk to human health. 5.0 PROFESSIONAL ORGANIZATION IN MALAYSIA 1. Occupational Safety and Health Agency (OSHA) Occupational Safety and Health Agency OSHA is comprised of a diverse team of safety and quality professionals whose expertise is focused on what the company does best. With technical expertise as diverse and complex as the sites and facilities of its clients, OSHA is strategically positioned to help the regulated community manage a wide range of technical and regulatory issues related to past, present and future operations. OSHA is distinguished by the range and variety of professional disciplines it provides; the advanced technical expertise of OSHA staff; and professional contributions that OSHA has made to industry as well as the local community through participation in a number of projects and events that have helped to raise public awareness related to safety, and quality concerns. OSHA has established long term-valued relationships with our clients, providing customized approaches to occupational injury and illness prevention.   The OSHA organization work closely and discretely with clients to identify hazards and provide perspective on risk. OSHA can then correct deficiencies and improve performance within an existing organizational framework. 2. National Institute of Occupational Safety and Health (NIOSH) National Institute of Occupational Safety and Health (NIOSH) Malaysia is a company limited by guarantee owned by the Government of Malaysia. In the words of the Minister of Human Resources, Malaysia, NIOSH would be a critical catalyst in the promotion of occupational safety and health that would also serve as the backbone to create a self-regulating occupational safety and health culture in Malaysia. NIOSH is committed to ensure a safe and healthy working environment to all employees and others involved in or affected by its operation taking into account statutory requirement and relevant national and international standards and codes of practices.   Implementation and effectiveness of this policy is a line management responsibility together with the participation and involvement of all employees and NIOSH will ensure that adequate resources, training and time are made available.   Safety and Health management systems and programmes will be regularly reviewed to ensure continuous improvement. Humanistic approach will be adopted by NIOSH to promote a safe and healthy work culture which employer and employees share the common responsibility of creating a better work environment for all. This policy will be monitored to ensure achievement of our objectives and reviewed in light of legislative or organizational changes. 6.0 COST REDUCTION Cost reduction  is the process used by companies to reduce their  costs  and increase their  profits. Depending on a companys  services  or  product, the strategies can vary. However, it is important to remember that every decision in the product development process affects  cost. Companies typically launch a new product without focusing too much on cost. Cost becomes more important when competition increases and price becomes a differentiator in the market. There are several types of main cost reduction strategies:- Supplier consolidation Component consolidation Re-source to low cost countries Request For Quotations Supplier cost breakdown analysis Function analysis / Value analysis / Value engineering Design For Manufacture / Design For Assembly Reverse costing Cost driver analysis Should cost Product benchmarking Design to cost Design workshops with suppliers Competitor benchmarking There are right  cost reduction  techniques and there are wrong ones. Using the right strategies will result in a more efficient company spending. Using the wrong techniques will create a reduction of expenses required to maintain product quality and company value. It is a fine line sometimes, but a systematic approach can help managers avoid making serious mistakes in the rush to cut expenses. Cost management strategies should be utilized as components of a larger objective to maintain maximum profitability. As such, cutting expenses will be just one part of a plan that focuses also on maximizing revenue. Effective techniques will begin with the setting of goals and objectives. There can be many reasons why a company might need to cut costs. To create additional cash reserves To reduce price of product or service To bring expenses in line with revenues To eliminate unnecessary expenses or wasteful spending To increase company value To increase competitive advantage To move costs between departments Identifying the goal of the expense reduction exercise will assist with implementation of an effective plan. In other words, if you dont know why you are cutting costs, how are you going to know where to cut costs? The purpose of expense reduction is to help the company towards long term survival. Purposes of expense reduction include: Create cash for reinvest in research and development Reduce manufacturing costs to stay competitive Reduce costs as a non profit so able to serve more people Lower costs of service in order to provide additional services To become more efficient To prevent employee lay-offs To prevent reduction in employee benefits Cost reduction techniques should also be evaluated in terms of impact on the organization. Prioritizing the goals of the cost cutting program will insure that the strategies are implemented appropriately. There are many different ways a company can institute a plan to reduce expenses. Across the board reductions Prioritized reductions Departmental reductions Reductions based on professional assessment Cost reduction techniques can be an important strategy for another reason. They can teach a company to be economical, by forcing a regular review of spending at every level of the organization. It can keep a company vital and streamlined. The Alternate Considered Cost Reduction Ideas When seeking to reduce its expenditures on goods and services, the first thought in many organizations is Lets find cheaper suppliers. But in many cases, sourcing for new suppliers are either not practical or its a suboptimal alternative.  Fortunately, there are several ideas for achieving cost reductions without switching suppliers. Ask You May Receive   Ask your suppliers if they have cost savings ideas. You never know when the answer may surprise you.   Aggregation   According to Patton, Aggregation is any effort that makes the buyers requirements more attractive to the seller by bundling those requirements with the volume of other buyers. This can be internal across business units or geographies or external with other companies. For external bundling, you can build your own consortium or join an existing group purchasing organization. Spec Rationalization   Spec Rationalization involves looking at the goods and services you buy and determining smarter ways to specify them. Patton shares an example from previous employment: We discovered that we had between 80 and 100 different specifications across the company worldwide for water. No reasonable person in Purchasing or Engineering is gonna say that we really need that many specs for water.   Leveraging The Supply Chain   In this technique, youre looking at suppliers suppliers, one or two steps back in the supply chain, Patton explains. Sometimes, the biggest cost component in the equation is really out of your own immediate suppliers direct control. Patton recommends working to identify situations where several of your suppliers buy the same material towards what they make for you and then leveraging that combined demand to drive cost reductions from lower tier suppliers. 7.0 PROFIT A financial benefit that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs and taxes needed to sustain the activity. Any profit that is gained goes to the businesss owners, who may or may not decide to spend it on the business. Calculated as: Profit = Total Revenue Total Expenses Profit is the money a business makes after accounting for all the expenses. Regardless of whether the business is a couple of kids running a lemonade stand or a publicly traded multinational company, consistently earning profit is every companys goal. 7.1 Economic Profit In neoclassical  microeconomic  theory, the term  profit  has two related but distinct meanings.  Normal profit  represents the total  opportunity costs  of a venture to an investor, whereas  economic profit  is, at least in the  neoclassical microeconomic theory  which dominates modern economics, the difference between a  firms total  revenue  and all costs (including normal profit).   A related concept, sometimes considered synonymous in certain contexts, is that of  economic rent. Other types of profit have been referenced, including  social profit  (related to  externalities). It is not to be confused with  profit in finance and accounting, which is equal to revenue minus only explicit costs and  super profit. Profit is not synonymous with the concepts of profitability and the  profit motive. 7.2 Normal Profit Normal  profit is a component of (implicit) costs and so not a component of business profit at all. It represents the opportunity cost for enterprise, since the time that the owner spends running the firm could be spent on running another firm. The enterprise component of normal profit is thus the profit that a business owner considers necessary to make running the business worth his while for example it is comparable to the next best amount the entrepreneur could earn doing another job. Particularly if enterprise is not included as a  factor of production, it can also be viewed a return to capital for investors including the entrepreneur, equivalent to the return the capital owner could have expected (in a safe investment), plus compensation for risk.   In other words, the cost of normal profit varies both within and across industries; it is commensurate with the riskiness associated with each type of investment, as per the risk-return spectrum. Only normal profits arise in ci rcumstances of  perfect competition  when long run  economic equilibrium  is reached; there is no incentive for firms to either enter or leave the industry. 8.0 DISCUSSION 1. Cost Reduction  by Design How to Reduce Product Cost by Design: Practice  Concurrent Engineering  with early and active participation of manufacturing, purchasing, vendors, etc. Implement  Design for Manufacturability  ( DFM ),  Design for Lean, and  Design for Quality For dramatic cost reduction   half cost to order-of-magnitude  Ã‚  optimize the concept/architecture phase To convert ideas, research or prototypes into viable products, use commercialization techniques to ensure success Activities Supportive to Low Cost Product Development: Co-locating Engineering with Manufacturing  ensures the best teamwork; avoid distant  off shoring If outsourcing, choose local vendors which ensures early and active vendor participation in product development teams Pre-select Vendor/Partners  who will help develop products, avoid low-bidding so that vendors will help with design Implement  standardization  and good product portfolio planning for the best focus Total cost measurements  to quantify all costs affected by design Correcting  Counterproductive Policies.  Ã‚  New ventures and start-ups will be able to implement these principles right away. Established companies may have to first correct  counterproductive policies, by prioritizing portfolio planning, scrutinizing high-overhead sales, emphasizing thorough up-front work, quantifying all costs, and avoiding time-draining attempts to  reduce cost after design, going for the  low-bidder, or  moving production offshore. See full  article on counterproductive policies. 2.  Lean Production  Cost Reduction How to Reduce Manufacturing Cost: Implement Lean Production Activities Supportive to Lean Production: Design product families for lean production Concurrently Engineer flexible processes Implement  standardization to enable  dock-to-line distribution Rationalize products to eliminate the most unusual products with the most unusual parts and processes Total cost measurements to quantify all costs related to manufacturing Keep control of manufacturing in house or with vendor/partners. 3.  Overhead  Cost Reduction How to Reduce Overhead Cost: Implement  Build-to-Order  and  Mass Customization  to build products on-demand without forecasts or inventory Activities Supportive to Build-to-Order Mass Customization: Implement  lean production Rationalize products Total cost measurements  to quantify overhead costs 4.  Standardization  Cost Reduction How to Reduce Cost with Standardization: Implement Standardization  with a practical procedure has been developed to standardize part and materials for new designs Activities Supportive to Standardization: Rationalize products  to eliminate or outsource the most unusual products that have the most unusual parts and materials Total cost measurements  to justify standardization efforts and encourage picking standard parts 5.  Product Line Rationalization  Cost Reduction How to Reduce Cost with Product Line Rationalization: Implement Product Line Rationalization  to eliminate or outsource low-profit products that have high overhead demands and are not compatible with cost reduction strategies Activities Supportive to Product Line Rationalization: Product Portfolio Planning focuses new product development Total cost measurements  to identify opportunities and supports rationalization decisions 6.  Supply Chain Management  Cost Reduction How to Reduce Cost in Supply Chain Management: Design products around standard parts  to simplify Supply Chain Management Standardize parts  to focus Supply Chain Management on high-volume, easy to get parts Rationalize away the most unusual products  which have the most usual, hardest-to-get parts Establish Vendor/Partnerships, which saves more money than  low-bidding Activities Supportive to Supply Chain Cost Reduction: Total cost measurements  to encourage and justify standardization and rationalization Dont merge acquired products into the same plant or build others products 7.  Quality Cost  Reduction How to Reduce the Cost of Quality: Eliminating quality costs starts with  designing in quality Rationalizing away unusual products  raises net factory quality and avoids wasting quality resources on inherently lower quality products Activities Supportive to Quality Cost Reduction: Total cost measurements to quantify the Cost of Quality 8.  Total Cost  Measurement to Support All Cost Reduction Activities How to Reduce Cost with Total Cost Measurements: Implement total cost measurement  with the easy-to-implement  cost driver  approach Activities Supportive to Total Cost Measurements: Until total cost can be quantified, everyone must make decisions based on  total cost thinking Senior management understands the importance of quantifying total cost, implements total cost measurements, and encourages all cost decisions to be made on basis of total cost 9.0 CONCLUSION As conclusion we can said that, the objectives of this assignment have been achieved which is to understand how to be cost effective but yet meeting the ever increasing HSE requirement. The conclusion is made due to what I have done about this assignment, describe properly about the problem required in this assignment. Cost becomes more important when competition increases and price becomes a differentiator in the market. Identifying the goal of the expense reduction exercise will assist with implementation of an effective plan. The purpose of expense reduction is to help the company towards long term survival. 10.0 REFERENCES [1] http://mydiposh.wordpress.com/tag/niosh-malaysia/ [2] http://www.niosh.com.my/en/ [3] http://www.pwc.com/gx/en/cost-reduction/index.jhtml [4] http://www.the-cost-reduction-consultant.com/CostReduction.html [5] http://www.nextlevelpurchasing.com/articles/cost-reduction-ideas.html?gclid [6] http://www.halfcostproducts.com/

Queen Isabella I Essay -- Biography

She was born into a family of a long line of royal decedents. She became Queen at the age of twenty four. She was the first women to be on an US commutative coin. Who is this very accomplished person? Queen Isabella. Bold and daring, Queen Isabella accomplished many things in her thirty years of rein as Queen of Castile and Aragon. Queen Isabella was born on April 22, 1451 in Madrigal, Old Castile. Her mother was Isabella of Portugal and her dad was John the II of Castile. Her mom and dad were King and Queen of Castile. She had two brothers, Alfonzo and Henry (â€Å"Isabella of Castile† par13). At the age of three Isabella’s father died. After his death He4nry became King of Castile. A few years after he was crowned King he sent Alfonzo and Isabella to Segovia to be safe (â€Å"Isabella of Castile† par13). While they were in Segovia Henry got married twice, and finally had a baby. After the baby was born the people of Castile believed they needed a new king, so they summoned Isabella and Alfonzo back. The people of Castile decided that Alfonzo will be the heir to the throne. But while there was a war going on in Castile Alfonzo was killed. Now Isabella was the heir to the throne (â€Å"Isabella of Castile† par16). Henry believed that Isabella should get married if she wanted the crown. With that in mind he thought she should marry Don Carlos Prince of Vienna. But Isabella had other thoughts in mind. She wished to marry Ferdinand Prince of Aragon. Her brother would not fight with her so he allowed her to marry him. But she would have to wait until she got back from her trip. Isabella did not listen and married him during her trip. Therefore they got married in 1469 in Juan de Vivero (â€Å"Queen Isabella I† par3-5). When they ... ...w country of Spain. She mostly impacted religions. When she was alive she always taught people that everyone in this world is equal (â€Å"Isabella of Castile† par 5). She made huge sacrifices when she was young. She even turned down an offer to be Queen. She believed that unless both her brothers died it was not her right to be Queen (â€Å"Queen Isabella’ par 4). Being an educated Catholic girl, Isabella was mostly influenced by god. Her parents taught her to always follow the word of god (â€Å"Isabella of Castile† par43). Isabella wanted to be remembered as someone to look up to. Today she has accomplished that. Many people in Spain wish to make Isabella a Saint. But fro right now she is called a servant of god (â€Å"Isabella of Castile† par 39). â€Å"The distance is great beyond firm belief to the realization from concrete experiences.† Queen Isabella.