...Make vs. Buy Revisited Reassessing your company’s manufacturing strategy M ake or buy? The classic manufacturing question still has no easy answer. Amid signs of demand recovery, but with capital still limited and resources thinned by restructuring, top executives today are revisiting the issue. To come to the right make-or-buy decision, leading companies resist the temptation to “feed the beast.” Instead of focusing only on short-term gains, these leaders keep their long-term strategy and corresponding core competencies in mind. They adopt a clearly defined manufacturing strategy, and then adopt the right tactics that can lead to smart decisions and a competitive advantage. The trade-offs between making a product inhouse and buying it externally are well known to most senior executives. The “buy” approach— a manufacturer purchasing a necessary part from an outside source—frees up resources, reduces capital demands, increases flexibility and improves returns on capital employed, but in a tough market companies may seek to avoid potential quality concerns and supply risks. On the other hand, a “make” approach—developing and building that same necessary part internally—enables the company to utilize available internal capacity, absorb fixed costs and protect intellectual property, but it can lead to unnecessary complexity and divert time and attention away from highervalue activities. Choosing “make” simply because the capacity already exists, or “buy”...
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...(Schiffman & Kanuk, 2010). Consumers are influenced by different factors on what, when, where, how and why they buy a product or service. Some aspects influencing consumer traits, behaviors and how messages are received are psychological, social and culture process. Aspects as personalities, age, interest, believe, cultural background, social classes, among others are important elements to keep in mind when developing a marketing communication plan to reach the desired segment more effectively and motive decision making on customers. Consumer behavior focuses on how individual consumers and families or households make decisions to spend their time, money, and effort on consumption-related items. How they evaluate a product or service after the purchase, the impact of such evaluations on future purchases, and how they dispose of them (Schiffman & Kanuk, 2010). There are different motivations for what consumers make their purchasing decisions on and these are basically based on their innate and acquired needs. These needs stimulate people’s feelings and actions toward a product or service. We will be then identifying psychological and social processes that may influence consumer behavior, explaining the importance of understanding the influence of psychological and social processes on marketing communication, and explaining the relationship between consumer traits and behaviors; analyzing how social and cultural settings influence consumer behavior and help examine the reasons why...
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...households that buy goods and services for personal consumption. All of these final consumers combine to make up the consumer market. Consumers around the world vary tremendously in age, income, education level and tastes. They also buy an incredible variety of goods and services making both simple and complex purchase decisions every day. The Cultural, Social, Personal and Psychological factors that affect consumer behaviour are discussed in detail. The consumer decision process which consists of Need Recognition, Information Search, Evaluation of Alternatives, Purchase Decision and Post Purchase Behaviour are then studied. A Consumer Analysis follows where questions like “Who buys and uses the product?”, “What consumers buy and how they use it?” and “Why consumers prefer a product?” are answered. A brief conclusion wraps up the report which states how Marketers study consumer behaviour to find answer to most questions that help them design marketing strategies to reach consumers more effectively and build long lasting relationships. Table of Contents Introduction | | 1 | Factors influencing Consumer Behaviour | | 1 | | Cultural factors | 1 | | Social factors | 1 | | Personal factorsPsychological factors | 22 | Consumer Decision Process | | 3 | | Need Recognition | 3 | | Information Search | 3 | | Evaluation of AlternativesPurchase DecisionPost Purchase Behaviour | 334 | Consumer Analysis | | 4 | | Who buys and uses the product...
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... Abstract Businesses today are working more towards predicting the future, how employees will connect with customers, any way or trend the business can find to improve sales and profit. Business Intelligence is used in the market all around the world in many different areas. Businesses are benefitted from the different types of BI methods all the time. Two of the BI methods that are beneficial are called the Market Basket Analysis (MBA) and the Decision Tree Analysis. These two BI methods are used throughout businesses in areas such as marketing, financing, Real estate, and accounting. Both of these methods help business similarly, but in their own different ways. They are two different types of methods that both help businesses make the best decisions to benefit their company. There are many methods or theories that people come up with to help with a business but these are the few that will be examined in this paper. The goal of the modeling technique market basket analysis is to find different relationships of activities that have been recorded with data through the performance of people. This method can be used on any situation where information can be recorded and identified (Pillai, 2011). The way to improve methods for discovering company patterns to increase business utility of an enterprise is by recognizing how the community reacts to certain sales or purchases (Pillai, 2011). One of the first steps in using the Market basket...
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...Decision making process can be simply described as the act of making an individual's choice as regards a certain field of study. Decision making is based on stages and steps which are to first be followed before reaching any conclusion. It is required for making not only simple but also tough decisions at stake. For instance making a decision about what you will have for breakfast, making a decision to solve a tight problem at your work place among others. Decisions are not made straight, there are several approaches that are to be considered before taking this step. Every organization and department use its own style of approach. Thus it can be concluded that every style has its own strength and weakness. Decision making process ranging from first recognizing a problem or decision to be made, on through framing the problem or decision, identifying and evaluating alternatives, choosing among the alternatives, implementing the chosen alternative, and stabilizing the action plus learning from the experience. 1. Recognition of The Problem Or Decision The first process for the product is the need recognition. What is need recognition? It refers to the first stage of the buyer decision process; in which the consumer recognizes a problem or need. Setting objectives is important for it encourages the chapter to follow good management practices, motivate staff to achieve their sets of objectives and provides a common direction for the members . At this stage...
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...Supply Chain Management: Make-Or-Buy Decision Making Stefan Helber Technical University of Clausthal Julius-Albert-Str. 2 D-38678 Clausthal-Zellerfeld Germany Tel. ++49 5323 953610 Fax. ++49 5323 953699 stefan.helber@tu-clausthal.de Abstract: This paper discusses some of the mechanisms that determine make-or-buy decisions. The short- and the long-term perspective are treated separately. In the short term, cost or profit comparisons can be used to determine what to “make” and what to “buy.” More important, however, is the long-term question of who should make the often specific investments required for production, transportation, and inventory processes. According to Coase and Williamson, the boundaries of the firm should be determined such that the costs of coordinating economic activities are minimized. They depend on the nature of the required assets as well as on the importance, frequency, and uncertainty of the economic transactions along the supply chain. Based on transaction cost theory, some rules of thumb can be derived of what to make and what to buy. Keywords: Make-or-buy decisions, vertical integration, transaction cost theory, Supply Chain Management Supply Chain Management: Just another buzzword? What is Supply Chain Management? It appears to deal with the coordination of tasks required to make products and to get them to the customers. In Figure 1, this includes production, storage, and transportation activities. These...
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...A New House - Decision XECO/212 May 15, 2011 Don MacLean Axia College of University of Phoenix Much thought should be given and taken into account on whether to purchase a home. The decision to buy a home is a very big and important step that should be entered into very carefully. A new home purchase is one of the most significant decisions people will make in their lifetime. There are many factors that can affect one’s overall decision to buy a home. When people consider making the jump from renting to owning, sometimes they mistakenly consider only the cost of the rent versus the cost of the mortgage payment. Unfortunately, some people make the decision to buy a home without considering these factors. In order to determine how much housing I can afford, I must factor in many things such as location suitable for raising a child, savings, other debts, personal preference, and income. Therefore, I have decided to purchase a home and will apply some of the ten principles of economics to ensure I’m making the right decisions along the way. Utilizing some of the ten principles of economics such as people face trade-offs, the cost of something is what you give up to get it, and people respond to incentives will help shape my decision so the home buying experience can be a thought out process altogether. Other essential factors that must be included are the marginal benefits and marginal costs associated with buying a home. Purchasing...
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... Roibin The Marketplace to Buy and Sell your Study Material Buy and sell all your summaries, notes, theses, essays, papers, cases, manuals, researches, and many more.. www.stuvia.com Stuvia.com - The Marketplace to Buy and Sell your Study Material Management and Organization Chapter 9 – Managerial Decision-Making Managers are often referred to as decision-makers, and every organization grows, prospers, or fails as a result of decisions by its managers. Many manager decisions are strategic, such as whether to build a new factory, move into a new line of business or sell of a division. Yet managers also make decisions about every other aspect of an organization, including structure, control systems, responses to the environment and human resources. Decision A choice made from available alternatives Decision-making The process of identifying problems and opportunities and then resolving them. Programmed decision A decision made in response to a situation that has occurred often enough to enable decision rules to be developed and applied in the future. For example the decision to reorder office supplies when inventories drop low. Non-programmed decision A decision made in response to a situation that is unique, is poorly defined and largely unstructured, and has important consequences for the organization. For example the decision to build a new factory or move headquarters to another location. Stuvia.com - The Marketplace to Buy and Sell your Study Material ...
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...How People Make Economic Decisions Paper ECO/212 Ralph Eric A. Banci April 30, 2012 Professor Charles Meyer How People Make Economic Decisions People, business managers, and government officials make decisions daily affecting their budget or scarce resources that they have. They decide on what and how much they want to buy or purchase some goods or services and at what price they are willing to pay. In addition, we make different decisions based on our lifestyles. Principles of Decision Making People take into account four principles when making decisions; people make trade-offs, people are rational, people respond to incentives, and cost of opportunity decisions. Trade-off is done because of the scarcity of resources, we make a decision to buy a certain good or service taken into consideration that we will not be able to buy another good or service. People are rational in a sense that they make decisions only after weighing the cost and benefits and take the action or decision only if the benefits outweigh the costs. People respond to incentives when making a decision to purchase goods or service. This is the reason also why companies advertised heavily and promote incentives to consumers. The cost of opportunity decision are caused by a variety of motivating factors including: reward, punishment, religious beliefs, envy, compassion. The scarce resources that people have means that people can never have everything that they want, choices have...
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...(Enis., 1974) Consumer buying behaviour has numerous factors as a part of it which are believed to have some level of effect on the purchasing decisions of the customers. Article (Wrighter, Friday, April 13, 2012) There are people who prefer shoes that are comfortable rather than being fashionable. Today's footwear market offers a large selection of styles that comfortable as well as being stylish which is good news for people who have foot problems. Shoe designers have provided all the latest variety in footwear that can be found online or your favorite local store. The latest trends in footwear are often seen on famous celebrities or athletes. Fashion magazines feature the latest styles as well. If you know the brand name, you can search the internet to find what is currently available for you to purchase. The shopping has become much easier for the consumer. There are thousands of stores present online to take bundle of orders at the same time. You can order any type of shoes with any brand or model you like, they will provide you the orders with your recommendation and your convenience. In the footwear industry, there has become a global chain. Online stores offer great prices as well as current styles. It is very easy to place an order. If you are unsure of sizes, you can include the measurements. The online stores make it very convenient...
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...A New House Decision James Wilkerson XECO/212 Prof. Paul March 11, 2012 A New House Decision Buying a house is a decision that can have major consequences for someone if they buy at the wrong time. Purchasing a home is one of the biggest financial decisions that any one person can make. The strength of the economy can give you good information as to when to buy and when not to buy. Timing can be very beneficial for a buyer and understanding how to make the decision when to buy can have long term financial consequences for the buyer. In this case the buyer is me. When making a decision to buy a new house I will look at the principles people face tradeoffs, the price of something is what you give up to get it, rational people think at the margin, and people respond to incentives. While I want to buy a new house there are several different areas that I will look at before making the purchase. How much each home costs plays a role in my decision. It is important for me to live within my means of money so making the right choice will benefit me the most. Looking at new homes there may be two that are different in space, number of bedrooms, and price. I personally am looking for the most amount of space for the price that I can afford. I currently own the house that I have now and in order for me to buy it will have to be beneficial for me to give up what I have at the moment. I face tradeoffs of buying a new house verses...
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...How do consumers respond to various marketing efforts the company might use? “Consumer behavior is the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society." Consumers make many buying decisions every day. Most large company’s research consumer buying decisions in great detail to answer questions about what consumers buy where they buy, how and how much they buy, when they buy, and why they buy. Marketers can study actual consumer purchases to find out what they buy, where, and how much. But learning about the whys of consumer buying behavior is not so easy—the answers are often locked deep within the consumer's head. The company that really understands how consumers will respond to different product features, prices, and advertising appeals has a great advantage over its competitors. The starting point is the stimulus-response model of buyer behavior. Marketers must figure out what is in the buyer's black box. Marketing stimuli consist of the four Ps: product, price, place, and promotion. Other stimuli include major forces and events in the buyer's environment: economic, technological, political, and cultural. All these inputs enter the buyer's black box, where they are turned into a set of observable buyer responses: product choice, brand choice, dealer choice, purchase timing, and...
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... this also does not change a single thing about people's choices and does not allow any other votes. The soda ban is a bad idea because, it does not help anyone just the cost. This is shown in the text “sugary drink ban” pg 1 by Gross paragraph 1 saying “New york city health board heard hours of testimony… and bottle sizes at food services be no larger than 16 oz. This shows that this makes you spend money at 2 places so then you have to spend more money just to eat. “Might aim to discourage people from purchasing something by making it cost a bit more” Klein pg 288. What this shows is by making things cost a bit more takes people’s interest from buying it at all, this shows that they want to just increase the cost not knowing if people will buy it or not. All in all this shows that this soda ban is completely useless to anyone,...
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...Current Marketing Practices in Consumer Durables in Rural India Contents Introduction ........................................................................................................... 3 Indian Rural Market: ........................................................................................... 3 Recent shift in attention from urban to rural market:......................................... 3 Special Features of rural markets: ...................................................................... 4 Methodology ......................................................................................................... 6 Questionnaire ........................................................................................................ 7 Responses .............................................................................................................. 8 Respondent 1...................................................................................................... 8 Respondent 2...................................................................................................... 9 Respondent 3.................................................................................................... 11 Learnings from the Project................................................................................... 14 Awareness ........................................................................................................ 14 Acceptability .......................
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...Melanie Penaloza Dr. Nathan Himelstein BUS 211 Consumer Behavior at Scholfield Honda The top influences impacting a consumer’s decision to buy a car from Scholfield Honda is social influence and family influence. In the United State, where we drive pretty much everywhere, your car is the first contact of the world. When you look at someone’s car, you might get an idea of their politics, bank account, occupation, education, musical taste, and favorite weekend activity and that is how social influence works. Group membership influence an individual consumer’s purchase and behavior. Every group establishes certain norms of behavior which are the values, attitudes, and behaviors a group deems appropriate for its members. Also difference in group status and roles can affect the buying behavior. In social influences we also study the reference group and the social classes which has an influence impact in a consumer’s decision to buy a care but the most and principal influences to go and buy a car from Scholfield Honda is the family influence. Vinnie Koc, a sales consultant at Scholfield Honda, relies more on his experience than the data to sell cars. “The vehicle pretty much sells itself,” says Vinnie. “Most of my customers are previous owners or someone in the family owns a Honda that wants them to buy a Honda”. If I am going to purchase a car, I will see the sizes of the car, the color, the benefit that the car has, an inexpensive car, one that can satisfy my needs and...
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