...Definition of Terms……………………………………………………………………12 II. REVIEW OF THE LITERATURE…………………………………………………15 III. DESIGN OF THE STUDY…………………………………………………………...26 IV. FINDINGS……………………………………………………………………………..27 V. SUMMARY OF RESULTS…………………………………………………………...33 VI. CONCLUSION AND RECOMMENDATIONS……………………………………..34 Bibliography…………………………………………………………………………….37 INTRODUCTION Why do some businesses succeed when others fail? While it may seem to be a matter of luck, in reality there are common mistakes that kill many small businesses before they ever get off the ground. When a business owner starts a new business, the last thing you want to focus on is failure. But if you address the common reasons for failure up front, you'll be much less likely to fall victim to them yourself. This is a far cry from the previous long-held belief that 50 percent of businesses fail in the first year and 95 percent fail within five years. Many people start out with the intention of setting up a business to make it a success. There are a variety of reasons for starting a new business, making some money might be one, but there are other reasons as well such as the challenge, the desire to take responsibility and control of your own future. It is widely agreed that the growth of...
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...works for Sports Illustrated and Matthews is an accountant for an e-commerce firm) who happen to love comic books and their latest incarnation, graphic novels. Their love for comics in all forms—along with the desire to start their own business—led them to found Secret Acres, a comic book and graphic novel publisher based in New York City. In addition to publishing several works from upand-coming authors (they have eight books on their list so far), the Secret Acres duo sells books from independent distributors. Often asked whether they think Secret Acres will succeed or fail in the next few years, Avelino quips, “People think we’re too small to fail anyway.” He laughs but then adds, “That pisses me off. I think we can totally fail.” But Avelino and Matthews have no intention of failing. Acknowledging that Secret Acres faces many economic challenges if it’s going to hang on and eventually succeed, Matthews observes, “Every decision we make, we know what the outcome is going to be because it’s all small and it’s very close to us.” Right now, Secret Acres can use its small size to build relationships with its customers. “We are able, because we’re small, to produce a very specific kind of comic book, a specific kind of graphicvery specific kind of comic book, a specific kind of graphic novel, that appeals to a specific audience,” explains Matthews. “I love that. We have a lot of control over what we do and we’re not doing anything specifically to turn a buck.” That said, the accountant...
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...A. Case 2.1: To recruit the CEO from the inside seems to work well for Intel. Do you believe this is a sound policy? Why? I have to say I do agree with Intel’s philosophy to grow and groom its own CEOs and leaders. This way there is continuity with projects that are being developed. This philosophy also permits for the person being groomed to have a better understanding of many levels and job tasks within the organization. By allowing the future CEO to observe and perform tasks with the current CEO will facilitate a smooth transition when the time comes for the change. On the other hand, by recruiting an external candidate for the CEO position, an accommodation period is inevitable. As much as you try to find the right candidate with the desirable traits for the position of a CEO, this candidate has not lived the culture and you run the risk of this candidate never fitting in. How can a non-technically oriented leader like Paul Otellini succeed as CEO in a technical company such as Intel? Although Mr. Otellini did not have the technical background that most of his predecessors had, he obviously possessed the business acumen, not easily taught, required to succeed as a CEO of this company. Besides, because of Intel’s philosophy of grooming its own candidates, Mr. Otellini had the chance to acquire the necessary technical knowledge for such position. Why do some firms fail to plan effectively for executive succession? Evidently not every company has the same culture...
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...Chapter 2: Economics: The Framework for Business 1. How does economics relate to business? Can an understanding of economics help business people succeed? If so how? Economics relates to business because it teaches business people how to make choices that can get their business the most revenue with the least amount of cost. The understanding of economics can help business people succeed, economics can teach you things like marginal cost and revenues and this is essential to an type of business. Economics can teach you statistics that if used properly can provide you with an upper hand against competition. 2. Compare and contrast microeconomics and macroeconomics. How do the 2 approaches interrelate? Use a specific example to explain. Macroeconomics and Microeconomics are both dealing with economics but indifferent levels, Macroeconomics is the study of a country's overall economic issues and Microeconomics deals with economics on an individual consumer,families and individual businesses. They can affect how much you can purchase for your family and what is available for you to purchase for your family. 3. What are the fundamental elements of the free market economic system? How can businesses thrive within this system? 1. The rights to own a business and keep after-tax profits 2. The right to private property 3. The right to free choice 4. The right to fair competition Free Market economies allows businesses to thrive...
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...survey for 504 enterprises that was conducted by Business Week magazine. Outline of this book Leading Change was named the top management book of the year by Management General. There are three major sections in this book. The first section is ¡§the change of problem and its solution¡¨ ; which discusses why firms fail. The second one is ¡§the eight-stage process¡¨ that deals with methods of performing changes. Lastly, ¡§implications for the twenty-first century¡¨ is discussed as the conclusion. The eight stages of process are as followed: (1) Establishing a sense of urgency. (2) Creating the guiding coalition. (3) Developing a vision and a strategy. (4) Communicating the change of vision. (5) Empowering employees for broad-based action. (6) Generating short-term wins. (7) Consolidating gains and producing more changes. (8) Anchoring new approaches in the culture. Perspective on this book This book carries great discussions and uplifts our perspectives regarding business management in various ways. Frequent and common mistakes that were encountered by the managers was a key element for the ¡§eight mistakes of managing changes.¡§ Many follow others¡¦ common mistakes and fail from changing while reforming their organization. The possibility of failure is that they perceive the methods from those whom were...
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...online businesses are built on top of other online businesses, and third-party sellers that rely on platforms, evolve? Identify a firm that you know something about, for example a media company, a retailer, or manufacturing firm, with some involvement in the online economy. Which, if any, of the big four firms does it currently rely on? Might that reliance change? How might that firm hedge the risks it will face if there is a transition to one of the others? What skills will be under-supplied in the future of the digital economy that you en visage? 1. 2. 3. Assess Starbucks’ strategy for India. Does it have the right vision? Can it replicate the success in China? What are CCD’s most important competitive advantages? Biggest competitive challenges? How should Siddhartha and Madhav respond? 1) Slight course correction? 2) Bigger, bolder, aggressive reaction? 1. 2. 3. 4. 5. Evaluate Kodak’s strategy in traditional photography. Why has the company been so successful throughout the history of the industry? Compare traditional photography to digital imaging. What are the main structural differences? Will digital imaging replace traditional imaging? How have value creation and value appropriation changed in digital photography relative to traditional photography? Evaluate Kodak’s response to Sony’s introduction of the Mavica in 1981. Was it appropriate? How would you assess Fisher’s attempt to transform Kodak? Why did...
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...organization is going and taking the initiative to help it get there. Even though organizations try to implement change more fail at it then succeed. To be able to succeed in implementing change in an organization a manager needs to be able to communicate with staff, know how to project a clear vision, mistakes that can cause failure and solutions to promote success. It is hard to find a manager that is not involved in planning or implementing a change process of some kind. No matter how big or small the change may be it will cause questions and concerns, present operational challenges, and impose demands on time and resources. Sometimes efforts to make change will stagger or fail altogether because managers fail to identify and address challenges that may arise among those involved, questions that will be raised and extra resources it will generate. (Bevan, 2011). Manager’s today have a growing margin of error when trying to implement and manage change. One of the difficulties with managing change is that employees who work together are often on different continents and are many time zones away from one another. Every time a new initiative fails employee’s reaction to the next challenge will be a harder sell. With each missed opportunity there is wasted time and resources. (Maurer, 2011). Some leaders know that change is needed but just do not have the knowledge and ability to effectively manage putting the changes into action. Effective management requires leaders...
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...Boeing, the pre-eminent aircraft manufacturer, makes little more than cockpits and wing bits (Quinn, 1995, p. 1). Abstract Strategic alliances can be effective ways to diffuse new technologies rapidly, to enter a new market, to bypass governmental restrictions expeditiously, and to learn quickly from the leading firms in a given field. However, strategic alliances are not simple or easy to create, develop, and support. Strategic alliances projects often fail because of tactical errors made by management. By using a well managed strategic alliances agreement, companies can gain in markets that would otherwise be uneconomical. Considerable time and energy must be put forth by all involved in order to create a successful alliance. It is essential that corporations enter into strategic alliances arrangements with a comprehensive plan outlining detailed expectations, requirements, and expected benefits. ``How can this be?'' you ask. These companies, like many other companies these days, have entered into strategic alliances with their suppliers to do much of their actual production and manufacturing for them. A strategic alliance is ``an agreement between firms to do business together in ways that go beyond normal company-tocompany dealings, but fall short of a merger or a full partnership'' (Wheelen and Hungar, 2000, p. 125). These alliances...
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...discovered the game cartridges were too expensive for him to buying. Therefore, he found the computers did not require the cartridges to play. He learned the computer games could be transferred. When he was 12, Wooten became so immersed the computer world. He parents banned him using computer. However, he became an athletic when his high school career but Wooten never lost interest in the computer. Both of his parents become self-employed when Wooten was a teenager. The income of his family was depending on the success of his parent own business but it was just small business. He moved to transfer to different school systems but eight times. Transitioning is hard for him. However, he quickly solved this problem. He want his life can be succeed. Wooten and his group members used the computers to crack anticopying features enabling electronic games to be duplicated. Wooten had become well known as part of competitive and cream of the crop computer underworld. He started his interest which is his love of video games. He became obsessed with acquiring more and more games quickly. The group was a team. They developed the software was distributed to pirates around the world. The group spurred by the love of competition which was latest software and they were became the real elites in the computer underworld. When Wooten was in college years, he had well known basketball players and architectural programs. Also, when he got the best scholarship, he decided to develop the Catonsville...
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...Strategic Choice and Evaluation Paper STR/581 March 18, 2013 Dr. Robert Rowlett Choosing a sustainable business strategy is not an easy choice but there are companies who have done it and continue to do so. One such company is Amazon.com who first opened their virtual doors in 1994 and “emerged from the dot-com bubble one of the few winners and continued to blaze a trail of impressive growth (from about $4 billion in 2002 to nearly $20 billion in 2008),” (Johnson, 2010.) Companies like Amazon.com survive and thrive because of sound business decisions based upon sound business models. Their business model is based in strong management strategy. In this paper we will explore alternative Generic strategies, value disciplines, and grand strategies for Amazon.com based upon past performance focused on continued success. Generic Strategies “A long-term, or grand strategy must be based on a core idea about how the firm can best compete in the market place. The popular term for this core idea is generic strategy, from a scheme developed by Michael Porter,” (Pearce & Robinson, 2011). Porter believed that the generic strategy should be directly tied to the company’s performance in the marketplace in this way a firm could leverage its strengths and become stronger. Porter suggests that companies will subscribe to one or more of three types of generic strategies: Low-Cost Leadership, Differentiation, and Focus. Amazon.com has enjoyed the success of a focus strategy in the past. This...
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...Boeing, the pre-eminent aircraft manufacturer, makes little more than cockpits and wing bits (Quinn, 1995, p. 1). Abstract Strategic alliances can be effective ways to diffuse new technologies rapidly, to enter a new market, to bypass governmental restrictions expeditiously, and to learn quickly from the leading firms in a given field. However, strategic alliances are not simple or easy to create, develop, and support. Strategic alliances projects often fail because of tactical errors made by management. By using a well managed strategic alliances agreement, companies can gain in markets that would otherwise be uneconomical. Considerable time and energy must be put forth by all involved in order to create a successful alliance. It is essential that corporations enter into strategic alliances arrangements with a comprehensive plan outlining detailed expectations, requirements, and expected benefits. ``How can this be?'' you ask. These companies, like many other companies these days, have entered into strategic alliances with their suppliers to do much of their actual production and manufacturing for them. A strategic alliance is ``an agreement between firms to do business together in ways that go beyond normal company-tocompany dealings, but fall short of a merger or a full partnership'' (Wheelen and Hungar, 2000, p. 125). These alliances...
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...look at scenario analysis more generally. We will move on to examine the use of decision trees, a more complete approach to dealing with discrete risk. We will close the chapter by evaluating Monte Carlo simulations, the most complete approach of assessing risk across the spectrum. Scenario Analysis The expected cash flows that we use to value risky assets can be estimated in one or two ways. They can represent a probability-weighted average of cash flows under all possible scenarios or they can be the cash flows under the most likely scenario. While the former is the more precise measure, it is seldom used simply because it requires far more information to compile. In both cases, there are other scenarios where the cash flows will be different from expectations; higher than expected in some and lower than...
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...acquisition (M&A) varies from country to country. Some countries have laws regulating M&A while others don’t. M&A basically is a combination of two or more businesses into one new business. What defines the merger or acquisition is how the combination is brought about. Mergers are usually negotiated between parties before the combination occurs while acquisition does not necessarily have to go through negotiations between parties. Mergers and Acquisition can succeed or fail base on a number of factors. This paper will examine the concept of mergers and acquisition, why M&A fail and possible recommendations Input Businesses sometimes merge or acquire to improve on their competitiveness and to meet their strategic objectives. Mergers and acquisition can come about because of stiff competition in the market or to create economies of scale or to enter new markets, or to diversify or a combination of many factors as mentioned in this sentence. Sometimes the only reason an acquire may purchase a business is for speculative profits, in that the sole purpose is to purchase with the intention to split them into smaller pieces and selling them or parts thereof for a price which is much higher than the acquiring price. Mergers and acquisition can also come about because of management failures. This situation can come about because management was unable to move the company in a positive direction which would have maximize shareholders wealth. Some of the issues which can lead to management...
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...Innovation: Product innovation is the creation and subsequent introduction of a good or service that is either new, or improved on previous goods or services. Product innovation is defined as: the development of new products, changes in design of established products, or use of new materials or components in the manufacture of established products[1] Thus product innovation can be divided into two categories of innovation: development of new products, and improvement of existing products. Systemmatic Innovation of Products includes: * Technology strategy * Design thinking skills * Customer needs analysis * Systematic creativity methods * Market and pricing strategy * Design for environmental sustainability * Design of services * Capturing value from innovation * Development process design * Product and service leadership * R&D organization and teams * Managing complex technical projects * The future of design process and culture The development and market introduction of a new, redesigned or substantially improved good or service. might include a new product's invention; technical specification and quality improvements made to a product; or the inclusion of newcomponents, materials or desirable functions into an existing product. Meaning of New Product Development: Product development is a broad field of endeavor dealing with the design, creation, and marketing of new products. Sometimes referred to as new product...
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...First, by being of Jewish descent, Flom’s parents produced meaningful work from working hard in the garments industry and eventually establishing their own shops, fostering an entrepreneurial spirit within their children. Second, by being born in 1935, Flom was a child during a period where many families stopped having kids due to effects from the Great Depression. Therefore, he was able to attend schools with professors qualified to teach previous larger generations. Third, by being rejected from many law firms due to his non-Christian faith, Flom was able to independently take on cases rejected by larger law firms, slowly developing himself into a successful lawyer. These three lessons provide explanation for Joe Flom’s success: his family background and his Jewish culture. Chapter six traces the family feuds between several towns in Kentucky. These conflicts are explained by the origin of the towns’ inhabitants: Scottish-Irish herders. They value honor greatly which causes them to defend their land and their animals. This shows that a person’s culture of origin affects them more than they may...
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