Starbucks Analysis

Financial matters of Starbucks CONTENTS A. Presentation B. Investigation financial aspects of Starbucks 1. Nature of item/administration 2. Market patterns 3. Creation/gracefully procedure and costs 4. Structure of the business/advertise 5. Government job 6. Business condition 7. Firm/Industry Location 8. Business and evaluating methodologies 9. Enterprising capacity of administrators C. Decision D. References Introduction Starbucks, what began in Seattle in 1971s by three companions: erry Baldwin, Zev Siegl, and Gordon Bowker. They opened a little shop and started selling new and cold coffee.Starbucks has consistently been where you can discover world’s best espresso. In 1970s, Starbucks open its first espresso café and its name originates from a traditional American epic (Starbucks, 2013). Through 1980s, Howard Schultz came into Starbucks, after an excursion for work to Italy and dazzled by espresso culture, his recognition is that how to make it materialize in U. S, he tes ted from Seattle. In 1990s, Starbucks has extended their creation line past Seattle. Venturing cross the rest satiates of U. S just as worldwide market.At a similar time, Starbucks discharged its uncommon alternative that offer investment opportunity to representatives, which made Starbucks become an open exchanged organization. From 2000s, Starbucks proceeded with its great wonder, its activity far reaching more than 15,000 areas more than 40 nations. Old style Starbuck’s espresso drink has been all around perceived by loads of clients. These days, Starbucks isn't just an effective espresso retailer; it is an espresso culture and spot that individuals make the most of their lifetime. The nine primary territories will give out a clarification what Starbucks looks like like.Key word: Nature of item; Market Trends; Production/Supply Process and Cost; Structure of the Industry; Government Role; Business Environment; Firm/Industry Location; Business and Pricing Strategies and Ent repreneurial Ability of Manager. Investigation of the Economics of Starbucks Nature of Product Existing items: clearly, as an espresso related retailer, Starbucks fundamentally center around espresso enhance selling. The fundamental sorts of Starbucks espresso are latte, coffee, frappuccino just as some sweet bread kitchen, frozen yogurt thus on.By the way, as indicated by the possibility of Starbucks itself, what they likely do that make an inviting beverages environment as opposed to just sell some espresso. As a matter of fact, clients truly making the most of their espresso time in Starbucks store on account of social condition. Furthermore, Starbucks likewise give espresso beans, espresso pot and espresso mug and different items. In the Chinese market confinement of item structure, and some tea kind, drink even has a specific season deals of Starbucks moon cakes, etc.Role of innovation: Starbucks consistently attempt their best to improve very much simmered espresso beans, grou nd flawlessly and afterward fermented to individual taste. The CEO discharged an explanation that the organization goes through 20 years idealizing a top-mystery innovation that at last outcomes in some espresso made with by means of, that is unclear from Starbuck's run of the mill blended espresso (CNN cash, 2009). In 2008, Starbucks bought new espresso hardware that is called â€Å"clover†. The Clover utilizes exact innovation and a determined calculation to blend espresso inside one degree Fahrenheit of its optimal temperature and produce the perfect flavor (Chron, 2013).It likewise gives a control to collaboration among water and grounds. What is greater headway, it could interface by Starbucks arrange so as to more impact the board every unit. Item life cycle: by and large, item life cycle is isolated into four sections, present, development, develop and decrease. Each creation needs to stroll through these four sections. As indicated by Starbucks, with various espresso propelled dependent on seasons, it is as yet situated into development period yet near develop step.Starbucks assume its job in espresso industry comparative like what monopolist do, its creation involved practically entire piece of the overall industry that should coordinated to develop stage, yet new creation intermittent propelled hold Starbucks to build its business volume. Value flexibility: The value versatility of Starbucks isn't extremely high. On one hand, espresso is vital in every day life. Then again, Starbucks’ altruism has been perceived among espresso fans, it isn't matters of cost. Substitutes and reciprocal items: coffee’s substitutes will be water, tea, mike or other natural product juice.When you step into Starbucks store, client care is unaltered in the event that you get squeezes even a container of water. Market Trends Consumer conduct: Starbucks hold around 33 level of piece of the overall industry in U. S. nonetheless, half of this enormous numb er accounted by folks who matured at 25-40(Chorn, 2013). Clearly, essential objective crowd of Starbucks is this gathered individuals. The quality of them is generally high pay, proficient professions and an attention on social government assistance. Inspiration of devouring of these folks to Starbucks positively for amusement, appreciate life and quest for style and communication.The sub target clients is youthful grown-ups who matured at 18-24, Starbucks position itself as a spot understudy can hang out, considering, composing paper and meeting. The rest clients of Starbucks are children and adolescents who arrive by their folks. Apathy bends: Indifference bend implies items, which have distinctive consolidate contrastingly to fulfill clients. A basic aloofness bend is appeared in figure 1 For the espresso, simultaneously, condition and music can fulfill clients. Espresso can fulfill customers’ taste sense, while condition can fulfill customers’ spirits.Starbucks can build up their own mug, espresso beans to improve proficiency. Moves popular and gracefully bends: With six elements impact request bend: shoppers' pay, taste and inclinations, customer desires, related item value, the administration conduct and guidelines and the quantity of buyers. Once more, six elements impact flexibly, number of providers, costs of assets, innovation, gracefully expected, cost everything being equal and government activities. Especially, Starbucks hold 33 level of U. S espresso piece of the pie, request of Starbucks will expanded, so request will move toward right side.Also, a large number of hundreds area set up would fulfill these interest, flexibly bend move right side. Creation/flexibly Process& cost Input: what Starbucks need do on the off chance that it needs changes quality espresso is contributing espresso bean, water, some capital speculation just as work. Creation work and Cost work: creation work identifies with the greatest amount of yield that can be delivered from given measures of information. A chart appeared beneath about Starbucks creation work. Figure 2: Retrieved from: http://workforce. washington. edu/ezivot/econ301/labor_demand. tm Apparently, as an ever increasing number of works putted into working room, deals of Starbucks espresso expanded. In any case, when expanding work past amount most extreme, there is no expansion on amount. Peripheral examination: negligible investigation is one of the most significant administrative devices. It expresses that ideal administrative choice include contrasting the minimal advantages of a choice with the minor expense. Variable costs won't influence the yield of the change in Starbucks. Espresso industry didn't have a fixed mode. Espresso is the flavor of the food administration industry relies upon client. Structure of the Industry/MarketNature of industry: Starbucks as worldwide popular espresso retailer had manufacture one of world’s generally ground-breaking and conspicuous brands of excellent espresso and the one of a kind â€Å"Starbucks Experience. † It originally reformed espresso making industry by making â€Å"third place† among work environment and home that is a perfect, benevolent condition where clients would get away from tumult from day by day life (Wikinvest, 2013). In this way, entire espresso industry has been winded by Starbucks style that making unwind and agreeable spot for remaining by quality espresso overhauling. The remainder of different contenders is attempting advance condition as well.Industry fixation: it likewise another significant part influence minor choice. As we referenced above, right around 33% espresso creation devoured by clients got from Starbucks, espresso industry generally dispersed by this enormous organization, unquestionably, other little organization or nearby espresso store additionally represent entire espresso industry. Rivalry: clearly, Starbucks hold an overwhelm position in e spresso industry and has no unmistakably contention in this segment. The National Coffee Association assesses that the US espresso market will reach $29 billion in 2011(Wikinest, 2013).However, the three beasts in espresso industry focus on their distinctive market. Starbucks give their best to hold a shot fantastic piece of the pie with some difference in value procedure. Though, even McDonald's bigger retail impression may cover more with Starbucks' center markets, however their unmistakable contrasts as stores are intelligent of the general contrasts between their center clients. The Dunkin doughnuts positioned in the third, its clients experience is more like â€Å"coffee-to-go† instead of spot to appreciate lifetime. Thusly, market of espresso to go will be a furious competition.Oligopoly Models: an oligopoly is a market that overwhelmed by hardly any contenders, Starbucks controlled at the very least 30% espresso piece of the overall industry and made a significant job whole market. While, McDonald’s, Dunkin Donuts, and Caribou Coffee influence espresso industry couldn't be overlooked. Government Role Government job should be viewed as indistinguishable segment as running business any place household or worldwide. What is uplifting news for fruitful applying government job that it marked an agreement with a region in China dependent on Chinese government role.That is certain on input acquisition of Starbucks in Chinese market. There is a marked arrangement that Starbucks help out area of Yunnan to set up its first-since forever espresso bean ranch on the planet to oblige a ra

The IndoCaribbean Women's Experience of Indenture Essay

The IndoCaribbean Women's Experience of Indenture - Essay Example The rare sorts of people who set out to revolt or contradict unavoidably confronted the results of their activities. They were derided, embarrassed, exposed to the impulses of their British bosses, now and again explicitly abused, and set back in their proper places for it was anything but a criminal demonstration according to the law for the British nationals to misuse their laborers. Society at that point was not as liberal as it is today. It was viewed as good by the specialists to murder individuals at the smallest incitement. Indian ladies were slaughtered and there was very little enquiry into the episode in the event that it was felt that she had passed on as the consequence of her better half's doubt about her character. Somewhere in the range of 1838 and 1917 during the arrangement time frame, Indians lived in poor clean conditions. They needed to do everything true to form of them. Indian ladies were not permitted maternity benefits during pregnancy. Ladies worked conveying their infants in the field until they could leave their children home under the consideration of a more established kid (Janet A. Naidu). The situation of the Indian lady in the Caribbean has recognizably changed at this point. In any case, the change can barely be relied upon to be on the lines of an individual living in a free nation. It is more than ninety years now since the agreement ended in 1917. Be that as it may, social and social bunches keep on shackling the Indian lady living in the Caribbean. There were barely any Brahmins in the Caribbe... Nonetheless, social and social bunches keep on chaining the Indian lady living in the Caribbean. There were scarcely any Brahmins in the Caribbean during the arrangement time frame. They were looked for on strict and promising events. Indians generally contained the rural rank or low position. Since the quantity of Indian ladies was not many, it got hard for the Brahmins to look for young ladies from higher standings making them defenseless against wed young ladies from the lower echelons. Change of sexual orientation relations The Indian ladies living in the Caribbean would now be able to thank their stars that they didn't see the abuses of their partners from the get-go in the twentieth century or during the more noteworthy time of the nineteenth century. I intentionally utilize the term 'abuse' since that is the thing that she more likely than not felt in an outsider land. The male female proportion didn't cross the midway imprint for the male since the time the main Indian arrived in the Caribbean. The best that happened was 50 females for each 100 guys around then. This was in 1860. The figure slipped back to 41 females for each 100 guys in 1890. The Indian male fared no better with his British ace in light of the fact that the working and attitudinal conditions constrained on them by the colonizers were servitude and belittling. The Indians came to take a shot at a 5-year contract as 'obligated workers'. Up to 1862, they were without given travel back home after the finishing of the 5-year time frame. From 1862, they needed to take care of themselves to the Caribbean or, more than likely work 10-years to recover a free outing home (Janet A. Naidu). The Indians contributed altogether to the economy of the Caribbean. Their populace despite the fact that as minority was very noteworthy. Be that as it may, they didn't appreciate equivalent portrayal in

Major Strategy Frameworks

Major Strategy Frameworks WHAT IS  VALUE CHAINThe Value Chain is easily identifiable in the production industry, where a company takes raw material and turns it into a useable product that it sells to customers. It is more difficult to recognize the value chain in other industries. Nevertheless, companies in any industry that wish to find ways to optimize their processes while creating an advantage in the marketplace must study the Value Chain. The Value Chain is used to find potential competitive advantages.The goal of the strategy is to identify the most valuable activities to the company and take action on the activities which can be improved upon to add competitive advantage. There are two advantages within the value chain: differentiation and cost. A differentiation advantage indicates that a company performs the activities of the business better than the competitors. A cost advantage demonstrates that the company performs business activities for a lower cost, leading to greater profits.There is a direct relationship: the higher the competitive advantage, the more likely people are to purchase the product or service. Further, the more they buy increases the likelihood of them continuing to purchase from the company. A close scrutiny of a company’s processes can lead to superior products, higher profits and a greater market share through the use of the value chain.An Introduction To Value Chains[slideshare id=8698270doc=valuechainsintro140711-110726211033-phpapp02]WHEN IS THE VALUE CHAIN STRATEGY USEFUL?The value chain is useful for any industry that sells products or services to consumers. For the company that wishes to remain competitive in the new global economy, a value chain analysis should be considered mandatory. It can be beneficial to any company that wants to identify areas to reduce costs while adding value or for the company that is seeking to distinguish itself from a sea of competitors. The process of evaluating a value chain can be lengthy. This can be discouraging to a business owner who wants to ‘fix’ whatever is wrong, or who is looking to maximize profits. However, the process will be worth the additional time it requires.COMPONENTS OF THE VALUE CHAIN STRATEGYThere are  two main components of the value chain: primary activities and support activities. Within the two categories are additional processes that help to narrow down the specific areas within a company that adds value.Primary Activities within Value ChainThe primary value activities are directly tied to the creation, sale, support and maintenance of the product or service. These primary activities will vary depending on the industry or business, but a general look at each one can identify areas that any company encompasses. Primary value activities add value directly to the product.Inbound Logistics:  The Inbound Logistics component focuses on all of the methods used to bring raw materials, or company inputs, into the business. This can include retrieving, storing and distribu ting material internally.Operations:  As the raw material makes it way though the company, Operations adds value by transforming the material into a useable product. This is the stage of the value chain that produces a product for customers.Outbound Logistics:  Once the product has been completed, the process of moving it from the company to the consumers is called Outbound Logistics. Collecting, storing and distributing products, as well as preparing the company for additional growth is part of this stage of the value chain.Marketing and Sales:  The methods used to convince consumers to purchase products or services over another’s business are called  marketing  and sales. Value can be found by the addition of benefits and the success of communicating those benefits to customers.Service:  After the completion of a sale, the Service component in a value chain considers the value in maintaining their product.Support Activities within Value ChainIn addition to the primary value acti vities, the value chain also considers support activities. Support activities are the behind the scenes aspect of a company that indirectly add value to products or services. There are four major components within support activities.Firm Infrastructure:  This includes the control systems, culture of the company and the overall structure of the organization. Within this component are the company’s accounting systems, administrative organization and other structures that allow the company to operate.Human Resource Management:  Concerned with the human element of the corporation, this section of the value chain accounts for employee interactions. It encompasses hiring, firing, training and compensation, and is one of the largest components in the value chain.Technology Development:  An important feature of the value chain, the technology development component regulates technology costs, managing information and maintaining current technology standards.Procurement:  This component stu dies how the company acquires the needed resources to operate. It includes vendor and supplier negotiations.CREATING THE VALUE CHAIN STRATEGYTo create a value chain strategy, it requires careful analysis of the activities that the company engages in to generate revenue. This analysis should be a step-by-step look at the processes that are used during the course of business and will include not only the primary value activities but the support activities as well.The process of conducting a value chain audit can be performed by a top-level manager, department head or other high-level executive who is looking to increase profits. In addition, it can be handled by a team or advisory committee. Generally speaking, having several people who would be willing to participate in the exercises will provide a more comprehensive look at the company and the opportunities to strategically improve. Once the decision of who will participate in the exercises has been made, the process can begin.It ca n be helpful to ‘follow’ a product from the moment the raw materials enter the process until they are purchased by a consumer. Along the way, note the areas where the process can be improved or value can be added. Be sure to include how staffing is recruited and compensated, the use of technologies and customer feedback. It can be helpful to list the items on a chart paper or spreadsheet.For the listed activities, generate a list of value factors. Value factors are developed from the customer point of view and identify what a customer would consider important. Next to the value factors, detail the methods the company can use to improve in each area. These action steps â€" the Value Analysis â€" can be used to formulate a strategy for improving company profits.USING THE VALUE CHAIN STRATEGYThe Value Chain is a worthless exercise if it is not followed by an  analysis and planning of action steps. Depending on the type of advantage the company desires to focus on, the resulting ana lysis and action plan will have different strategies.Differentiation StrategyThe advantage of a differentiation strategy is found in the production of better products, availability of more features and meeting customer demands. To accomplish this advantage, it may require a higher cost structure, but can ultimately pay off in higher profits if managed correctly. To create an action plan based on differentiation, the Value Chain Analysis is completed with a slightly different approach. The Value Chain Analysis should focus primarily on identifying and optimizing the activities in the process chain that create the most customer value. In addition, the company should focus on adding additional features to their products, while maximizing the customer service experience and increase the potential for customization. The ultimate goal of the value chain strategy for the company desiring differentiation is to generate opportunities for sustainable differentiation.Cost StrategyA company tha t wishes to compete in the marketplace on cost must evaluate the value chain data from a different perspective.An exhaustive study of the primary and support activities of the company must be done â€" detailing how the work is completed at each step of the process.Attached to each part of the process must be the cost of the activity. This allows for inefficiently performed activities or large sources of cost to be recognized and evaluated.Evaluation of the cost drivers must be performed for each step of the process as well. Determining what drives the costs allows the company to develop ways of reducing costs at each stage of the production.Identification of the connections between the parts of the process can assist the company in the understanding of how cost changes in one part of the process may affect a different part.Reduction of cost through the identified areas will generate opportunity for a successful value chain.After completing a  Value Chain Analysis, it can be tempting (and overwhelming) to consider the dozens of areas that can improve value as imperative. Select several easy-to-implement opportunities and put them into motion immediately. This creates excitement and buy-in by the employees who will be enthused with the quick amount of success that can be had. Screen the list of action steps and prioritize them according to feasibility, cost of implementing and necessity. Begin to implement changes according to the strategy type desired. As the marketplace changes, additional evaluation of the value chain may be necessary to maintain a competitive edge.EXAMPLE OF VALUE CHAIN STRATEGY: STARBUCKS As a company strives to create strategies that will increase revenue, they study the processes that affect their production. Deciphering the ways that a company adds value â€" transforming business inputs into outputs by optimizing the value chain is a fundamental strategy to increase profits. One method used by companies is the Porters Generic Value Chain. Knowing how a company can optimize the processes within its value chain, as well as understanding how to increase the efficiency of the production process overall is essential in developing a competitive strategy. © pixabay | PublicDomainPicturesIn this article we look at 1) what is Value Chain, 2) when is the  Value Chain strategy useful, 3) components of  Value Chain strategy, 4) creating the  Value Chain strategy, 5) using  Value Chain strategy, and 6) example of  Value Chain strategy: Starbucks.WHAT IS  VALUE CHAINThe Value Chain is easily identifiable in the production industry, where a company takes raw material and turns it into a useable product that it sells to customers. It is more difficult to recognize the value chain in other industries. Nevertheless, companies in any industry that wish to find ways to optimize their processes while creating an advantage in the marketplace must study the Value Chain. The Value Chain is used to find potential competitive advantages.The goal of the strategy is to identify the most valuable activities to the company and take action on the activities which can be improved upon to add competitive advantage. There are two advantages within the value ch ain: differentiation and cost. A differentiation advantage indicates that a company performs the activities of the business better than the competitors. A cost advantage demonstrates that the company performs business activities for a lower cost, leading to greater profits.There is a direct relationship: the higher the competitive advantage, the more likely people are to purchase the product or service. Further, the more they buy increases the likelihood of them continuing to purchase from the company. A close scrutiny of a company’s processes can lead to superior products, higher profits and a greater market share through the use of the value chain.An Introduction To Value Chains[slideshare id=8698270doc=valuechainsintro140711-110726211033-phpapp02]WHEN IS THE VALUE CHAIN STRATEGY USEFUL?The value chain is useful for any industry that sells products or services to consumers. For the company that wishes to remain competitive in the new global economy, a value chain analysis should be considered mandatory. It can be beneficial to any company that wants to identify areas to reduce costs while adding value or for the company that is seeking to distinguish itself from a sea of competitors. The process of evaluating a value chain can be lengthy. This can be discouraging to a business owner who wants to ‘fix’ whatever is wrong, or who is looking to maximize profits. However, the process will be worth the additional time it requires.COMPONENTS OF THE VALUE CHAIN STRATEGYThere are  two main components of the value chain: primary activities and support activities. Within the two categories are additional processes that help to narrow down the specific areas within a company that adds value.Primary Activities within Value ChainThe primary value activities are directly tied to the creation, sale, support and maintenance of the product or service. These primary activities will vary depending on the industry or business, but a general look at each one can identify ar eas that any company encompasses. Primary value activities add value directly to the product.Inbound Logistics:  The Inbound Logistics component focuses on all of the methods used to bring raw materials, or company inputs, into the business. This can include retrieving, storing and distributing material internally.Operations:  As the raw material makes it way though the company, Operations adds value by transforming the material into a useable product. This is the stage of the value chain that produces a product for customers.Outbound Logistics:  Once the product has been completed, the process of moving it from the company to the consumers is called Outbound Logistics. Collecting, storing and distributing products, as well as preparing the company for additional growth is part of this stage of the value chain.Marketing and Sales:  The methods used to convince consumers to purchase products or services over another’s business are called  marketing  and sales. Value can be found by the addition of benefits and the success of communicating those benefits to customers.Service:  After the completion of a sale, the Service component in a value chain considers the value in maintaining their product.Support Activities within Value ChainIn addition to the primary value activities, the value chain also considers support activities. Support activities are the behind the scenes aspect of a company that indirectly add value to products or services. There are four major components within support activities.Firm Infrastructure:  This includes the control systems, culture of the company and the overall structure of the organization. Within this component are the company’s accounting systems, administrative organization and other structures that allow the company to operate.Human Resource Management:  Concerned with the human element of the corporation, this section of the value chain accounts for employee interactions. It encompasses hiring, firing, training and compensa tion, and is one of the largest components in the value chain.Technology Development:  An important feature of the value chain, the technology development component regulates technology costs, managing information and maintaining current technology standards.Procurement:  This component studies how the company acquires the needed resources to operate. It includes vendor and supplier negotiations.CREATING THE VALUE CHAIN STRATEGYTo create a value chain strategy, it requires careful analysis of the activities that the company engages in to generate revenue. This analysis should be a step-by-step look at the processes that are used during the course of business and will include not only the primary value activities but the support activities as well.The process of conducting a value chain audit can be performed by a top-level manager, department head or other high-level executive who is looking to increase profits. In addition, it can be handled by a team or advisory committee. General ly speaking, having several people who would be willing to participate in the exercises will provide a more comprehensive look at the company and the opportunities to strategically improve. Once the decision of who will participate in the exercises has been made, the process can begin.It can be helpful to ‘follow’ a product from the moment the raw materials enter the process until they are purchased by a consumer. Along the way, note the areas where the process can be improved or value can be added. Be sure to include how staffing is recruited and compensated, the use of technologies and customer feedback. It can be helpful to list the items on a chart paper or spreadsheet.For the listed activities, generate a list of value factors. Value factors are developed from the customer point of view and identify what a customer would consider important. Next to the value factors, detail the methods the company can use to improve in each area. These action steps â€" the Value Analysis †" can be used to formulate a strategy for improving company profits.USING THE VALUE CHAIN STRATEGYThe Value Chain is a worthless exercise if it is not followed by an  analysis and planning of action steps. Depending on the type of advantage the company desires to focus on, the resulting analysis and action plan will have different strategies.Differentiation StrategyThe advantage of a differentiation strategy is found in the production of better products, availability of more features and meeting customer demands. To accomplish this advantage, it may require a higher cost structure, but can ultimately pay off in higher profits if managed correctly. To create an action plan based on differentiation, the Value Chain Analysis is completed with a slightly different approach. The Value Chain Analysis should focus primarily on identifying and optimizing the activities in the process chain that create the most customer value. In addition, the company should focus on adding additional featur es to their products, while maximizing the customer service experience and increase the potential for customization. The ultimate goal of the value chain strategy for the company desiring differentiation is to generate opportunities for sustainable differentiation.Cost StrategyA company that wishes to compete in the marketplace on cost must evaluate the value chain data from a different perspective.An exhaustive study of the primary and support activities of the company must be done â€" detailing how the work is completed at each step of the process.Attached to each part of the process must be the cost of the activity. This allows for inefficiently performed activities or large sources of cost to be recognized and evaluated.Evaluation of the cost drivers must be performed for each step of the process as well. Determining what drives the costs allows the company to develop ways of reducing costs at each stage of the production.Identification of the connections between the parts of th e process can assist the company in the understanding of how cost changes in one part of the process may affect a different part.Reduction of cost through the identified areas will generate opportunity for a successful value chain.After completing a  Value Chain Analysis, it can be tempting (and overwhelming) to consider the dozens of areas that can improve value as imperative. Select several easy-to-implement opportunities and put them into motion immediately. This creates excitement and buy-in by the employees who will be enthused with the quick amount of success that can be had. Screen the list of action steps and prioritize them according to feasibility, cost of implementing and necessity. Begin to implement changes according to the strategy type desired. As the marketplace changes, additional evaluation of the value chain may be necessary to maintain a competitive edge.EXAMPLE OF VALUE CHAIN STRATEGY: STARBUCKSUnderstanding the process of a value chain can provide a company wit h real-time information that can be used to generate increased revenue or gain an advantage over the competition and determine where profit-pitfalls may lurk within the corporate structure.As an example of a value chain strategy, consider the global coffee supplier, Starbucks.Primary ActivitiesInbound Logistics:  As Starbucks’ primary source of revenue, the inbound logistics of their coffee beans is imperative. This requires a high quality of beans, a steady supply chain and a continuous relationship with suppliers in the global market.Operations:  This aspect of Starbucks’ corporation is handled through direct operations and licensing agreements. The company is almost evenly split between the two, with nearly as many corporate stores as there are franchises. In addition, Starbucks offers its products in retail locations such as grocery and specialty stores.Outbound Logistics:  Distribution to the company and franchise stores, as well as the retail/grocery stores is the main foc us of the outbound logistics.Marketing and Sales:  With a strong and loyal customer base, Starbucks is able to maximize their marketing efforts through customer loyalty programs, member only incentives and other methods. In addition, they rely heavily on  word of mouth advertising  and product samples to generate additional sales.Service:  Customer service at Starbucks is considered to be the pinnacle of the coffee-buying experience. Employees are encouraged to go out of their way to provide exceptional customer service.Support ActivitiesInfrastructure: The infrastructure at Starbucks includes their accounting, legal support and other governmental regulations for establishing locations around the world.Human Resources:  Considered the largest and most valuable resource Starbucks has, their workforce is highly trained, well compensated and motivated through staff training, competitions and incentives.Technology Department:  The use of technology within the Starbucks Corporation is es sential to the daily operations of the company as well as the long-term effect on the day. Using the latest in technological advances to roast coffee, enhance the customer experience and maximize cost saving is paramount for the company.Procurement:  Ensuring a steady stream of coffee beans as well as other raw food materials for the local shops is essential to the success of the company. In addition, the development of additional locations, materials and equipment necessary to open those locations will be important. Finally, the development of the materials used in retail locations requires additional materials and supplies that must be obtained.A value chain is a thorough investigation into a company’s processes, and provides corporate officials the information and tools needed to remain competitive in a changing economy.Image credit:  pixabay | PublicDomainPictures under Public Domain Dedication. Major Strategy Frameworks Developed in the late 1950’s by Harry Markowitz, Modern Portfolio Theory was introduced as a means of managing an investor’s financial portfolio. According to Markowitz, an investment portfolio cannot be made up of assets (or investments) that are chosen individually. Before selecting companies to invest in, there needs to be a consideration of how the portfolio as a whole unit will change in price.As with any investment, there is an understood amount of risk involved. By its vary design, then, there is a direct correlation between risk and reward. Typically, investments that are riskier will bring a higher element of return. Portfolio Theory establishes two possible ways of handling risk and return: If the desired amount of risk is known, then the Portfolio Theory will guide the asset selection process to choose investments with a high level of expected return. If the desired expected return is known, the Portfolio Theory explains the steps in selecting investments that offer th e lowest risk.Similar to a financial investor, while investing in several assets an entrepreneur has usually to optimize his  portfolio of products / projects. Hence, Portfolio Theory can be applied in selection of products / projects with either higher returns given the level of risk or with lower risk given the level of return.Portfolio Theory, then, is a system of diversification. Using precise mathematical equations that determine risk and reward, along with a set of assumptions about investors and the financial markets, the Portfolio Theory provides a process of developing an optimal strategy for diversification. © Shutterstock.com | Syaheir AzizanIn this article, we will look at 1) what is Portfolio Theory, 2) when is the Portfolio Theory useful, 3) components of the Portfolio Theory, 4) creating the Portfolio Theory strategy, 5) using the Portfolio Theory strategy, 6) examples of Portfolio Theory strategy â€" General Electric.WHAT IS THE PORTFOLIO THEORY STRATEGYTo understand Portfolio Theory, it is helpful to consider an example: a company that has an oil refinery business. This oil company has several oil fields in its portfolio and tries now to select the oil fields with the highest return given the same level of risk. The returns for oil company are the revenues from oil projects devived from its volume of oil production, the oil price, operating costs to maintain the oil refinery, as well as the initial investment in the starting the oil refinery. On the other side, the risk for oil company contains in the ultimate volumes of oil reserves, the change in the oil price and operating cos ts, as well as unpredicted additional amount of investment for getting the oil field start producing oil. Using the principles of the Portfolio Theory, the company can let its portfolio  of oil refinery be diversified, but optimize it by comparing the oil projects based on return and risk profiles. In this example, oil company can for example define the level of risk, which it can handle and select then the oil fields with the highers returns given this level of risk. In doing so, the company can generate a diversified and optimized portfolio of oil projects. It has then minimized their risk, and maximized their return. © Wikimedia commons | ShuBraqueWhile the nuances of the Portfolio Theory are difficult to grasp, the basic ideas are clear: diversification and risk/return optimization leads to a stronger portfolio.WHEN IS THE PORTFOLIO THEORY STRATEGY USEFUL?Investors have used the Portfolio Theory strategy to compile an investment portfolio for years. As an investor, it is useful to diversify and to optimize investment holdings that will generate returns. The Portfolio Theory is beneficial to a company or an investor who wishes to have a deeper understanding of the risk and reward relationship. By looking closely at the amount of acceptable risk, an investor gets an idea of the type of investments they should select. Many investors consider themselves as ‘risk-takers’ but when confronted with actual data about the risk involved, prefer to take a safer, more traditional route. Other investors consider themselves as conservative but would be comfortable with a higher level of risk. Evaluating t he level of risk that can be tolerated gives an understanding of an investor’s risk tolerance.In corporate applications, the Portfolio Theory is useful to establish a strategy for increasing and optimizing a corporate portfolio. Again, it gives an indication of risk tolerance, but it also provides opportunity for discovering methods of diversifying a company’s holdings and offerings. Developing areas that can increase rewards, while balancing the risks is essential in stable companies.Finding the perfect balance of risk versus reward is the fundamental basis for the Portfolio Strategy â€" making it extremely useful for the company that wishes to minimize their risk.COMPONENTS OF THE PORTFOLIO THEORY STRATEGYThere are four main components in the Portfolio Theory: risk, return, efficient frontier, and diversification.RiskThe Portfolio Theory assumes that when given a portfolio of investments with equal returns, the investor will select the one with the lower level of risk. Accordi ng to the assumptions of the theory, an investor will only take on additional risk if there is an expected level of higher reward. The relationship between risk and return is affected by the number of assets in the portfolio.ReturnWith the framework of the Portfolio Theory, an investor who wants to generate a higher level of reward, or return, must be willing to have a higher level of risk. The implication, then, is that an investor will choose to invest in a portfolio that offers a lower level of risk with the highest level of return.DiversificationMarkowitz’s theory demonstrates that an investor who wishes to reduce risk can do so by establishing a diverse portfolio. Using mathematical principles and formulas, the return variance of the portfolio can be established. Simply put, the sum of the assets, over the square of the fraction of assets is multiplied by the asset’s return variance. When the assets are completely uncorrelated, the portfolio is diversified and the investor can experience a higher level of reward.Efficient FrontierAlso known as the Markowitz bullet, the Efficient Frontier is the graphical representation of the Portfolio Theory. By plotting the possible combinations of assets to risk, the risk-free area is clearly identified on a hyperbola graph. Moving along the risk-free rate line, an investor can begin to identify what level of risk is comfortable based on the expected level of return.CREATING THE PORTFOLIO THEORY STRATEGYThe basis for the Portfolio Theory is mathematical. A long, complex formula for investing is used to determine the risk/reward ratio and establish a diversified and optimized portfolio. Typical entrepreneur might not have the desire or know-how to establish a mathematical formula to determine investments in products and projects within her/his business, however, and the statistical data for the strategy is lost on many.Creating a true Portfolio Theory strategy for a company, then, requires the assistance of financia l planners and potentially fund managers who have access to tools and data streams to provide information. The concepts of the strategy, however, can be clearly understood and used by even the most novice investor or entrepreneur in her/his business.Investors can establish their portfolio two ways. Identifying the acceptable level of risk gives an idea of the expected level of returns. Conversely, identifying the desired returns will identify the amount of risk necessary. Applying diversification will spread the risk over a number of assets, lessening the individual risk but increasing the overall return.USING THE PORTFOLIO THEORY STRATEGYThe Portfolio Theory has a wide range of applications outside the world of finance. Modern users of the theory have applied it to scientific processes, charting the possible outcomes of experiments. It has been used to find relationships in the workplace with studies of variability and economic growth in the labor force. Social psychology has adapt ed the theory to develop a model of self-concept. According to psychologists, an individual’s self-esteem is stable when their self-concept is more diverse.The same principles can be applied in a business setting, where the fundamentals of Portfolio Theory can be applied to corporate strategy. For companies that have multiple divisions, offer a line of products or services, using the Portfolio Theory can lead to a more stable and consistent revenue stream. In addition, it can offer a company clearer vision of how to increase their market share, while minimizing risk.A company that wishes to increase their reward (or, put another way, to generate more revenue) can institute the Portfolio Theory. Adding a diversified set of assets will lessen the risk of diminishing returns. In the oil refinery company example used above, the company selected diversity of oil fields based on their risk/return profiles. It reduced the risk on the portfolio level (by selecting lower level risk oil fie lds), added diversity (by selecting several oil projects), and increased revenue (by selecting higher revenues for defined level of risk). Finding ways for adding diverse projects with optimized risk / return profile can help a company grow and profit.Finding ways to apply the Portfolio Theory to a business’ strategy will increase their stability within the marketplace. Looking at a company’s portfolio of products / projects overall will help drive decisions about adding or reducing the number of products / projects, in direct correlation to the amount of return desired. If one department or division is not performing well, it will not be as detrimental when other divisions can offset the deficit. The company can then make decisions regarding the addition of a new asset to replace the poorly performing section or to develop methods to increase that division’s revenues.EXAMPLES OF PORTFOLIO THEORY STRATEGY â€" GENERAL ELECTRICIt is helpful to evaluate the corporate application of the Portfolio Theory by examining a company that uses the strategy to determine their growth. One of the largest companies around, General Electric (GE) has a long history of diversification and product portfolio optimization. Within the last few years, however, they have streamlined their corporate structure into six main areas: banking, transportation, appliances and lighting, aviation, energy and health care. © General ElectricTo apply the Portfolio Theory, consider each industry as an asset. Limiting their assets to six, they have optimized their risk/reward formula. By selecting industries that operate independently of each other, they have a range of diversification without high elements of risk. The reward component of the formula can be seen in the potential for double-digit growth in earnings for 2014. With a focus on developing within the industries they have chosen, they are increasing their organic revenue in an environment that allows for low reward in one area balanced by the higher rewards in another.Over the last several years, the largest growth revenues have come through GE’s banking industries. The smallest revenues have been through their transportation division. Based on the Portfolio Theory, they can still achieve high levels of reward, due to the relationship between their risk factors. In an effort to further stabilize their revenues, GE has been putting their effo rts into bolstering their transportation division, while pulling back from their banking industry. As the recession has receded, demand for GE’s locomotive has increased with the recovering railway industry.By achieving industrial growth that is sustainable, GE has managed to remain a stable force in the marketplace. Examining the relationship between the different industries that GE offers, it is clear to see how the Portfolio Theory can be applied to a corporation with success. Considering the overall portfolio of GE shows a company that has a high level of revenue, with an overall low level of risk, making GE a strong investment opportunity.The Portfolio Theory as a strategy for business can demonstrate the elements of acceptable risk and reward helping companies to diversify and to optimize their portfolio of products and services, as well as to establish a strong market presence. While critics of the theory have held that the idea is based in an unreal world of perfect condit ions, the principles of the strategy have clearly worked. Variations of the Portfolio Theory have developed since its inception and it still continues to be a much-used method of investing and business planning today. By taking this investment strategy and applying it to other areas of business, the long heralded method is still as effective as it was over thirty years ago. Image credit:  Wikimedia commons | ShuBraque under Attribution-ShareAlike 3.0 Unported. Major Strategy Frameworks No matter the size of the company, it is essential to the growth and success of the business to periodically evaluate the direction it is moving. This process can be done in a variety of ways, but finding a method that is cost effective, reliable and useful often intimidates business executives. For the company that is new to the idea of strategic planning or who wants a simple, quick method of finding direction the SWOT strategy is ideal. Aptly named for its features, the SWOT is an analysis of the Strength, Weakness, Opportunity and Threats that a company experiences. © Shutterstock.com | TheGigerRangerIn this article, we will look at 1) what is SWOT, 2) when is SWOT useful, 3) components of SWOT, 4) creating SWOT, 5) using SWOT, and 6) example of SWOT.WHAT IS SWOTThe SWOT strategy focuses on two areas: internal factors and external factors. When considering the internal factors, the company must focus on the areas within the company that they can control. The internal inspection will be centered on the strengths and weaknesses of the business. Before starting any campaign to expand the company or trying to advance in the marketplace, it is vital to take inventory of the current company standing.Beginning with an investigation that looks inward, it is possible to establish a realistic picture of the state of the company. To begin, the business must evaluate the factors of the company that are strengths, or advantages in the marketplace. These items may include staffing, assets, position in the industry â€" any features that set the company apart from the competition in a positive way. In addition to the strengths of the company, a similar examination of the internal weaknesses of the business must be conducted. Weaknesses may be processes that aren’t fully functioning, limited use of technology, access to shipping lines â€" the hurdles that the company faces in order to do business.Conversely, a thorough understanding of the external factors that the company faces must also be established. This is done through the last two features of the SWOT: opportunities and threats. In a business environment, these items are aspects of business that a company cannot control. In many applications, external factors deal primarily with what is considered ‘the competition’, but for a successful SWOT analysis, it must include factors beyond that. Opportunities for the company include market awareness and growth, public perception and economic trends. Threats may be the most difficult to establish, but should be carefully considered. T hreats can include funding delays, opposition to new processes or products or timing issues.WHEN IS SWOT USEFULThe SWOT analysis can be beneficial to a company in a variety of scenarios. Most scenarios can be categorized into either developing new business or evaluating existing business. Companies that wish to develop a strategic plan for the expansion of their business would be well served by performing a SWOT analysis before engaging in action. The SWOT can be used when a company is beginning to implement an expansion into a new market area, when considering a new product line or when developing new policies. Evaluating the new venture in light of the existing company structure can provide guidance into the feasibility of adding new products or ideas.In addition, SWOT strategies can be implemented when considering a change in the focus of the company. The possibility of transitioning from a local market to a global scale, for example, could be evaluated using a SWOT analysis. Ano ther consideration for a SWOT analysis is when a taking on new business that could largely impact both productivity and scope of the company.For new businesses, using a SWOT analysis strategy can help guide the company through the early stages of development. Establishing a clear and definitive course of action will be beneficial as a company identity is being formed. By clarifying the unique aspects of the company, employees have a better understanding of the focus of the company and are better equipped to make the company successful.COMPONENTS OF SWOTThe four components of SWOT: strengths, weakness, opportunity, and threat must be individually evaluated. © Flickr | jean-louis ZimmermannInternal factors: StrengthsThe features of the company that are benefits and can be both tangible and intangible are the strengths of the business. These positive features are within the control of the company. Strengths may include: resources (both human and otherwise), advantages over competition, facilities and more. To determine strengths, a company may consider the following questions:What does the company do better than any other company in the industry?What are the advantages that the company has?What are the resources that the company has that others don’t have?What human resource advantages does the company have?What positive features does the company have that gives an edge over the competition?Internal factors: WeaknessesIt may seem counter-productive to focus on the negative internal aspects of a business, but to truly achieve success, the weaknesses must be addressed. Being realistic and honest provides a true picture of the company and prevents complications and issues later. Some of the areas to consider weaknesses will be discovered by using questions such as:What are the areas that the company can improve?What causes the company to lose business?What areas are lacking in the business?Are the resources available to the company limited?Does the location of the business hinder success?What continuous training efforts are in place for employees?Considering the external aspects of the SWOT are equally as important. These issues that are beyond the control of the company must be included in a strategic plan for success. Externally, there are Opportunities and Threats. By maximizing the opportunities and minimizing the threats, the successful company will be able to move beyond their current position in the marketplace.External factors: OpportunitiesThese positive features outside the company are reasons that the company will be successful. By taking advantage of the opportunities the company faces, the company can r each their potential for growth, expansion and success. Opportunities can be evaluated through discussion of some of these questions:What opportunity for growth exists in the current market?What legislation or funding opportunities have been created that can benefit the company?What timeline exists for these opportunities?How does the physical location of the company affect the future?What changes in demographics can increase sale opportunity?What changes in technology can the company take advantage of?External factors: ThreatsThese external factors put a company at risk. The threats to the business include competition, legislation, or other factors that are beyond the control of the company. While it is impossible to plan for every contingency, it is helpful to be aware of the threats and have an established plan in place for dealing with them.Who are the direct competitors in the industry?What changes can affect marketing strategies?What shifts in consumer habits could affect sale s?Are changing legislations putting the company at risk?Does new technology or products make current products or offerings obsolete?These questions are by no means an exhaustive list of items to consider in the creation of a strategic plan. By beginning an investigation of each component of the SWOT, it will help create a clear outline of direction.CREATING SWOTThe creation of a SWOT can be a short, simple process or it can be a more complex process that involves a wider range of people and time. The only limitation to the size and scope of the SWOT analysis is the intent and desire of the company developing the strategy.Creating a SWOT analysis can be completed by the head of a department, the CEO of the company, or the chairman of the strategic development committee. For maximum effectiveness, however, the analysis should be completed by a group of people from various segments of the company. By selecting people in different areas of the business, they will have different inputs i nto the positive and negative aspects of the company which will be essential in creating a true picture of the company. Additional insight can be gleaned from the inclusion of customers in the process. One reason the SWOT strategy is so effective is the simplified process for creation. A basic SWOT can be created during a staff meeting, a company retreat or spread out over the course of several weeks. Depending on the desired use of the SWOT, it can be helpful to schedule a planning session that will span several hours specifically to conduct the analysis.Establishing a casual, relaxed environment and inviting key people to the SWOT strategy session will help generate an opportunity for employees to collaborate while sharing their knowledge and insight for the betterment of the company.Appoint a discussion facilitator to move the group through the exercise. Progress, in order, through the S-W-O-T categories of the strategy. Ask for group feedback regarding each area, using the suppl ied questions, along with any others that may be relevant. Allow for discussion within each category, making notes of comments and ideas. Encourage answers that may be contrary to the overall perception of the company â€" a range of ideas and comments will provide the means for honest discussion about the business. Once the lists of each category have been compiled, identify the top 5 â€" 10 items in each section based on the group discussion. After the analysis has been completed, assemble the results into a chart that lists the results in an easy to see format. Distribute the results to the members of the group to allow for final consideration.SWOT Analysis: How To Perform One For Your Organization USING SWOTAfter completing the SWOT analysis, compiling the reports into useable results is the next step. The analysis identified and prioritized the biggest internal and external factors of the company. The SWOT analysis may have identified issues or problems that need to be addressed . It may have reaffirmed goals and strategies already in place. In addition, it brought attention to factors that can generate growth. In order to successfully use the SWOT, those factors must be turned into short and long term strategies.One of the primary benefits of the SWOT analysis is the ability to focus on maximizing strengths while minimizing weakness. This can be done through a careful consideration of the areas highlighted in the analysis. Look for ways to use the company strengths identified to capitalize on the opportunities assessed. In the same way, develop solutions to minimize the threats that are present by using the existing strengths of the company.By focusing on the positive aspects of the company, the negative factors can be minimized and negated while creating opportunity for growth. Use the list of opportunities developed to establish strategies that will reduce weaknesses. Further, focus on minimizing weakness to avoid potential threats in the marketplace.Gen eralities are the enemy of a successful SWOT strategy. Use only verifiable and precise claims when identifying strengths and weaknesses. Prioritize the list of factors, ensuring that the most important areas are dealt with first. Revisit the SWOT analysis and subsequent strategy plan frequently to ensure that the company direction is still in accordance with the expected strategies.EXAMPLE OF SWOTGenerating a SWOT for a famous company will give an idea of the potential uses for this type of strategic planning. Consider the possible SWOT analysis of IKEA, the retailer famous for home furnishings. The global company has taken Scandinavian style to the forefront of the furniture retailing industry and has utilized the SWOT philosophy to generate direction and planning.A potential SWOT analysis for IKEA may include the following features:StrengthsLow priced, functional products in a wide range of stylesVision for giving people a better lifeConsistent global quality and brandWeaknessesQu ality control in manufacturing countriesBalance between low costs and quality productsCommunication between consumers and shareholdersOpportunitiesIncreased market demand for environmentally conscious productsMarket increase for low carbon footprint corporationsEconomic downturn forcing consumers to consider lower cost productsThreatsMarket slowdown of first-time homebuyersCompetition entering the low price marketDisposable income shrinking due to economic downturnBy maximizing the opportunities for growth, IKEA can continue to dominate the home furnishings market. Fitting in with their vision to create a better life for people, they can focus on the environmentally conscious aspects of their company by using sustainable, renewable resources. Consistent use of their existing global network will help to reduce their carbon footprint through creative packaging and shipping.The use of the SWOT analysis and strategy can be an essential part of a company’s development. Critics claim th e limited scope of the process make it ineffective in truly determining future growth, but used as part of a larger strategic plan it can be a powerful tool. By using the plan to develop a framework for success, the company will be able to minimize weakness while maximizing the potential for the future. Image credit:  Flickr | jean-louis Zimmermann under Attribution 2.0 Generic. Major Strategy Frameworks Consider planning a trip that will require several nights’ stay in a hotel. There are three to choose from in the town: Hotel A has no amenities beyond the basics. A bed, a bathroom and a tiny pool in the back are all that is offered at the low cost accommodations. Hotel B is a pricey resort, loaded with options; has a free breakfast buffet, an on-site spa, several pools and a well-apportioned room with a view of a nature preserve. Hotel C is a smaller hotel that caters to business travelers in the state. They offer business services, studio rooms with full kitchen facilities, catered business dinners and late check-out options to allow for longer meetings. Travelers choose one of these three hotels based on their personal needs and preferences. Each hotel, however, is an example of a particular type of Generic Competitive Strategy that businesses use to set themselves apart from the competition.Hotel A is betting on the premise that cost is one of the primary decision making facto rs when choosing a hotel. They don’t offer fancy extras, but the rooms are clean and cheap. Hotel B draws clients who want to be pampered and who will wear the hotel’s monogrammed bathrobe proudly on their way down to breakfast. The rooms are expensive, but are larger than some of the homes people live in. Hotel C has narrowed their attention to the weary business traveler and has mastered the art, while maintaining prices that are middle of the road. © Shutterstock.com | Sira AnamwongIn this article, we look at 1) what is generic competitive strategy, 2) when is the generic competitive strategy useful, 3) components of the generic competitive strategy, 4) creating the generic competitive strategy, 5) using the generic competitive strategy, 6) examples of generic competitive strategy.WHAT IS GENERIC COMPETITIVE STRATEGYHarvard professor Michael Porter coined the phrase “generic competitive strategy” in his book, Competitive Advantage: Creating and Sustaining Superior Performance. Since the writing of his book, the phrase has become known in business circles as one of the primary methods of business planning and strategizing for businesses across all industries. The Generic Competitive Strategy (GCS) is a methodology designed to provide companies with a strategic plan to compete and gain an advantage within the marketplace.According to Porter, a company can leverage its strengths to position itself within the competition. When classifying the strengths of a company, they can either be placed under the heading of cost advantage or differentiation. Within those two strength categories, the scope of the company is either broad or narrow. As a result, there are three strategies that can be applied to any business or industry at the business level (explained later in the post).WHEN IS THE GENERIC COMPETITIVE STRATEGY USEFUL?The GCS is useful when a company is looking to gain an advantage over a competitor. If a company wants to ‘win’ the advantage over other businesses, it does so by winning sales and taking customers away from competitors. An advantage in business, though, does not come easily. It must be developed and established firmly within the framework of a company. Using a business strategy is not a one-off or a weekend exercise; it must become the driving force of the company.In order to do this successfully, a company must implement a Generic Competitive Strategy. Not confined to a specific indu stry or company, the methodology can be used in for-profit companies of any kind, as well as not for profit organizations. No matter what type of business, the principles behind the GCS are universal and can be applied to any company.The primary benefit using a GCS is to establish a methodology of doing business that will drive the company in a certain direction. Rather than simply maintaining the status quo, a GCS gives a company a blueprint to follow that will create the structure of the company.Critics of Generic Competitive Strategy denounce the idea that a company must choose one strategy and use it exclusively. Today’s global economy and workforce is a far from the environment that brought Generic Competitive Strategies to the forefront. There is still a use for the GCS plan in today’s business marketplace, however.COMPONENTS OF THE GENERIC COMPETITIVE STRATEGYGCS is based on three generic strategies: cost leadership, differentiation, and focus. Each strategy has a differe nt mechanism for reaching success. Companies within the same industry may not choose the same strategy â€" it is a choice that must be made with the company’s management, based on the desired outcome for success and the company’s strengths. Each strategy has unique components that shape the company. © Entrepreneurial InsightsCost LeadershipA business that wants to achieve an edge through cost leadership will become an expert in lowering costs while maintaining prices. The goal should always be to reduce the costs associated with doing business, while continuing to charge the same price as its competitors. This gives the company a greater profit, without having any extra expenses. Another method of maximizing the Cost Leadership position is by lowering the selling point. Because the costs associated with the products are already low, the company is still making a healthy profit. This allows the company to under bid the competitors while still preserving profits.DifferentiationThe differentiation strategy seeks to set a company apart by creating products that are different than a competitor’s. The specific ways that a company differentiates itself from the competition will depend on the industry of the company, but may include features, support and functionality. The uniqueness of the company â€" the differentiation â€" must only be a feature that a customer is willing to pay a premium price for. A company that focuses on differentiation may be disappointed to realize that their market share is continually changing and comes with a set of risks.FocusThe company that uses the Focus strategy is selecting a niche market, and then determining the scope of the focus. Within the Focus strategy is the option to use either cost leadership or differentiation. It may be confusing to keep in mind that the Focus strategy is dealing with a specific, niche market. Focus does not mean a smaller market simply because the company is small â€" it means that the company has chosen to add value to their products and offer them to a select number of customers. Because the company who chooses a Focus strategy deals exclusively with their client base, they develop a loyal relationship which can generate sales and profits for the future.CREATING THE GENERIC COMPETITIVE STRATEGYB efore creating a Generic Competitive Strategy, a company must decide which strategy to employ. Taking into account the strengths of the company may give an indication of the best strategy to choose, but should not be rushed simply to move to the next item.To determine the best strategy for the company, follow a few simple steps:Create a Strengths, Weakness, Opportunities, Threats (SWOT) chart for each of the three strategies. Once that is completed, it may be clear that a strategy would not be appropriate. If that is the case, eliminate that strategy, and continue to the next step.Conduct an analysis of the industry the business is in. Finding out specifics about the business industry can lead to an increased understanding of the market and how to best position the company.Compare the SWOT analysis to the business industry results. Select the most viable options from the SWOT analysis and compare to the business industry analysis.From the comparisons, a company can begin to answer q uestions such as:How does this strategy help manage supplier power?How does this strategy help reduce the threat of substitution?How does this strategy help reduce customer power?As the company begins to answer the comparison questions, a clear choice should emerge. To decide on the correct strategy, choose the strategy that provides the company with the best set of options for the future.There is an implied danger in not selecting a strategy. Porter referred to the company that had not chosen a definitive strategy as being ‘stuck in the middle’. A firm that doesn’t make a clear choice of strategy may become a company that has little to no profitability, has no competitive advantage and may become a target for companies that chose to differentiate. However, recent studies have indicated that there may be benefit of using a hybrid method that combines more than one strategy. Regardless of what strategy is used, one thing is clear: a company must have a directional strategy to m ove forward.USING THE GENERIC COMPETITIVE STRATEGYPrioritizing the company’s activities based on the chosen strategy will help maximize the success of the plan. The Generic Competitive Strategy will affect the daily decisions of a company, and the industry forces that a company has to deal with may change the way the company operates. The five industry forces (entry barriers, buyer power, supplier power, threat of substitutes, rivalry) would all be affected differently based on the GCS chosen.Using the Cost Leadership strategy requires an aggressive stance towards cost in every aspect of the company’s operations. With low-cost as the defining quality, the company’s management must be ruthless in the pursuit of lower costs.The Differentiation strategy, on the other hand, leads to profits but does not lead to a large market share. By focusing on specific traits of a product or service, a portion of the marketplace is automatically disregarded. This leads to a smaller number of p otential customers, but may generate more profits due to their loyalty and willingness to spend more.Establishing a Focus strategy means the company is choosing to prioritize their activities for a specific market segment. That segment may respond in kind by conducting their business exclusively with the company, thus providing higher profit levels. The company will not be successful, however, if they fail to provide their niche market with differences from what the rest of the consumers receive.Porters Generic Competitive Strategies[slideshare id=9666693doc=portersgenericcompetitivestrategies-111012204625-phpapp01w=640h=330]EXAMPLES OF GENERIC COMPETITIVE STRATEGYWal-Mart is perhaps one of the most well-known companies that use Cost Leadership as their business strategy. With efficient distribution methods, huge volume discounts from suppliers, and their control of manufacturing and inventory, they are able to offer low prices. They have minimized costs and are able to pass the sav ings on to customers, resulting in higher number of customers who spend an average amount of money in their stores. By specializing in low costs, they appeal to a wide number of customers who flock to the store in search of a bargain.Once a fledgling computer company, Apple has set itself apart through their Differentiation strategy. They developed an operating platform (iOS) and then designed products that use that system. The hardware for their products is designed by Apple engineers and designers and their products are compatible and top-notch. Apple not only set itself apart from the competition, it has created a subculture of loyal customers who flock to be the first to receive new devices and products. By designing every component that is used in their products, they have set themselves completely apart from the rest of the industry â€" leaving competitors far behind.For drivers, there are a few choices: car, truck, motorcycle. The market for motorcycles is relatively small an d the market for luxury motorcycles is even smaller. Harley Davidson has established itself as an industry leader in the niche market of motorcycle riders. They use Differentiation Focus as a competitive strategy, and they do it well. Harley riders expect a certain standard from their bikes, along with responsive customer service. This niche market has evolved almost to the point of being a ‘club’ where members find their common ground in the machines they drive. Harley has set itself apart, and established itself as the standard for the true bike rider.Porter began a movement that is still active in today’s business world when he introduced the Generic Competitive Strategy idea. Establishing a company without considering the advantage it wishes to pursue is effectively setting the company up to fail. Careful consideration of the different advantages will give even the most novice entrepreneur an idea of which direction the company should be moving. A correctly implemented str ategy will help keep the company on target, while ensuring that they maintain a competitive edge within the industry.

Why Teachers Should Have Guns - 798 Words

There was a fire in the science class room today. Luckily the teacher had fire extinguishers in the class room which, stoped the fire in a few minutes. Should the school call the fire department and do nothing causing people to get hurt? Or should the teacher stop the fire? Of course the teacher should of stop the fire with a fire extinguisher. By stopping the fire it did not get bigger worse and no one got hurt. There was a kid brought a gun into school today and, pulled out during class. Luckily the teacher had a gun in the class room which stopped the kid in a few minutes. Should the school call the police department and, do nothing causing people to get hurt? Or should the teacher of stop the shooter? Of course the teacher should of stop the shooter. By stopping the shooter it did not get worse and no one got hurt. Teachers should have guns in school to protect the students. Part of the reason why teachers should have guns is what causes school shootings. What is the cause scho ol shootings? Who is to blame? Is it the broken homes, the lack of god or, the fact that there is to many guns? â€Å"Should we blame the government or blame society or should we blame the images on TV?† The thing to blame is fear. Everyday America lives in fear of each other and everything. They fear each other because of their skin, religion and where they live. A foot ball player from Missouris said â€Å"I mean, people were looking at us like we were aliens.† They were looking at him because theyShow MoreRelatedShould School Guns A Weapon Of Self Defense?1000 Words   |  4 PagesThe debate of whether or not teachers should be allowed to carry guns in school is very heated and continues to dilemma the minds of many. However, both the supportive and opposing parties have good grounds that can be used to choose. Recently in the year 2012, 26 people in elementary school in Texas were shot dead triggering public demand that teachers should be armed with guns in ord er to protect our students. A local resident of the area around the elementary school opened fire on 20 studentsRead MoreShould School Guns Be Banned?1638 Words   |  7 PagesProtecting Our Future The debate of whether or not teachers should be allowed to carry guns in school is very heated and continues to dilemma the minds of many. However, both the supportive and opposing parties have good grounds that can be used to choose. Recently in the year 2012, 26 people in elementary school in Texas were shot dead triggering public demand that teachers should be armed with guns in order to protect our students. A local resident of the area around the elementary school openedRead MoreI Want Key Card Locks And Metal Detectors881 Words   |  4 Pagesin every entrance. The reason why I want key card locks is because only faculty and students would have special key cards that would let them into the building and people without the key cards could not enter the building. This prevents any unauthorized personal to enter the building and endanger the faculty and students. The reason why schools need metal sectors is to make sure faculty or students are not carrying a dangerous weapon with them.   Also, the schools should bring in a Police Officer soRead MoreEssay on Teachers Should Be Allowed to Carry Weapons956 Words   |  4 PagesIn this speech, I will talk to you about how allowing teachers to carry concealed weapons will be a good idea. I will talk about the advantages of allowing teachers to carry a concealed weapon, how allowing teachers to carry concealed weapons is helping other countries, and why Gun-Free zones aren’t working. Let’s start with the advantages of allowing teachers to carry a concealed weapon. There are three main advantages for allowing teachers to carry a concealed weapon. The three advantages areRead MoreThe Teacher s Responsibility That Should Be Carry Firearms, And Be Capable Of Combating920 Words   |  4 Pageschildren scramble to their seats as the teacher begins class as usual, stating, â€Å"good morning class take out your notebooks and begin your do now that is placed on the board.† Within seconds every student grabs for their notebooks and begin doodling as the teacher walks around the room to ensure everyone participates and checking attendance. *Boom* the door slams and everyone looks up in shock. Eyes grow big and children begin to scream as a young man holds a hand gun toward the class crying and angryRead MoreEssay on Better Education Will Reduce Americas Crime Rate593 Words   |  3 Pagesthe use of various weapons there is little to no crime in the country. According to the Swiss Federal Police Office there were 2,687 crimes committed in Switze rland in 1997. Of those only 637 involved guns (Halbrook, 1999). The best way to deal with crime is to educate people on weaponry, create more gun control laws, and harsher sentences for criminals caught in possession of a weapon. Education is a key to dealing with the crime rate in America. The more young men and women trained in the use ofRead MoreDefense Of Self, Home And Family1195 Words   |  5 Pageswas written during a time when a gun was required by law to be in every household for the protection of the residents. Don B. Kates, a civil rights attorney and criminologist, writes in â€Å"Is Gun Ownership a Right† that almost all civilian males of military age had to appear with their own guns when called for militia training or service (13). In those days traveling a long distance was met with many perils, highway men, and dangerous animals to name but a few, a gun was needed to insure ones safetyRead MoreEssay on Should Teachers Carry a Gun to School?1236 Words   |  5 PagesHow People’s Opinions of Teacher’s Carrying Guns During School Can Be Grouped By Age, Gender, and Race Do you believe that people have a unique personal opinion that nobody else has? Well, research has shown that personal opinion can be grouped by age, gender and race, but some of this research does not show through in the highly debated topic, should teachers carry guns during school hours. Age Groups One of the ways people’s opinions can be grouped together is by age. According to â€Å"FactorsRead MoreThe Issue Of Guns On Campus953 Words   |  4 PagesGuns on Campus Crime seems to be at an all-time high in current times. I feel that this is due to so many people carrying guns. The safety of all people should be the focus of our society now. One area we really need to not allow firearms on campuses. This is only one area to focus on. There are several reason why allowing guns on colleges campuses and universities could be dangerous to people. First, gun violence seems to lead to an escalation of violent crime. The percentage of students thatRead MoreBanning Guns On Campuses And Universities846 Words   |  4 Pagesso many people carrying guns. The safety of all people should be the focus of our society now. One area we really need to not allow firearms on campuses. This is only one area to focus on. There are several reason why allowing guns on colleges campuses and universities could be dangerous to people. First, gun violence seems to lead to an escalation of violent crime. The percentage of students that could be robbed on their way to class increases . Campuses that do not have metal detectors to screen

Female Sensuality and Rebellion in Dracula - Free Essay Example

Sample details Pages: 6 Words: 1802 Downloads: 3 Date added: 2019/05/15 Category Literature Essay Level High school Tags: Dracula Essay Did you like this example? In his novel Dracula, Bram Stoker seeks to highlight the importance of following gender roles in the late 19th century. Throughout the story, many women rebel against societal gender norms and embrace their sexuality. In this novel, Bram Stoker suggests that women should follow their traditional Victorian roles and that female sensuality and rebellion will result in the destruction of a woman and her character. Literary critic John Ruskin describes Victorian gender roles: The mans power is active, progressive, defensive while women must be enduringly, incorruptibly, good (59). This statement proves that men of this time period had many more freedoms than and were generally superior to women, and Bram Stoker analyzes this social construct in Dracula. Mans control over woman in this novel is shown in Draculas character. Dracula is the only male vampire in the novel as well as the implied leader of the rest of the vampires. It is Dracula who is responsible for exerting control on women such as Lucy and Mina by turning them into vampires. His male dominance is clear after Dracula is attacked by the band of men and he exclaims, My revenge is just begun! Your girls that you all love are mine already; and through them you and others shall yet be mine my creatures, to do my bidding and to be my jackals when I want to feed (Stoker 325). Dracula says this with no regard to the women at all; he treat s them as objects, taking advantage of their passivity and exerting his power over them as was typical of men in this time period. Don’t waste time! Our writers will create an original "Female Sensuality and Rebellion in Dracula" essay for you Create order In this novel, female sexuality is presented in a negative light as aggressive and violent. This is shown in various places throughout the story, most notably with the three vampire women. In the first scene of the novel when Jonathan is in Draculas mansion, the three women try to seduce him against his will. Upon seeing the women, Jonathan states, There was something about them that made me uneasy, some longing and at the same time some deadly fear (Stoker 43). Jonathan goes on describing the dark sensuality of the women, referring to them as the three terrible women licking their lips (57). Jonathan repeatedly uses the word voluptuous to describe the three vampires, writing that they have voluptuous lips and a deliberate voluptuousness in their approach to him (46). This word choice emphasizes the womens overt sexuality, which Stoker associates with aggressiveness and cruelty towards children. Harker writes in his journal about the vampiresses, stating that one pointed to the bag w hich moved as though there were some living thing within it There was a gasp and a low wail, as of a half-smothered child. The women closed round, whilst I was aghast with horror, but as I looked they disappeared, and with them the dreadful bag (45). The womens brutality in their treatment of the child leads Jonathan to conclude that these creatures are hardly women at all, basing this judgment off of the traditional women with whom he is familiar, such as Mina. The three vampiresses lack of maternal feelings serves to emphasize that a womans ideal role in this novel is as an innocent mother-figure, and that any woman who strays from that role is evil. These voluptuous women are shown as monsters, their sexuality as animalistic and murderous. The three vampire women violate Stokers ideas about womanhood and femininity, and it is because of this that their characters are destroyed by the end of the novel. Throughout the novel, the more concealed sensual side of Lucy Westenra also becomes evident. Lucy is constantly torn between the need to conform and the desire to rebel; she is dissatisfied with the female social tendency towards compliance and obedience (Senf 42). One example of Lucys inherently rebellious nature is shown at the beginning of the novel, when she writes to Mina, Why cant they let a girl marry three men, or as many as want her, and save all this trouble? (Stoker 66). Lucy always has this natural wild side to her, yet she is never really portrayed as a physically sexual being until she is transformed into a vampire. In his analytical essay Sex and Sexuality in Dracula Mitchell R. Lewis considers that The contrasting of angelic purity and monstrous sexuality is evident in the portrayal of Lucy Lucy vacillates between monstrosity and purity until she is completely transformed into a sexual vampire (1). Lucy is portrayed as a sexualized being after she is turned into a vampire who seeks to inspire an intimate response in the men around her. Upon meeting the men in the graveyard, Dr. Seward writes that Lucy said in a soft, voluptuous voice Arthur! Kiss me! (Stoker 167). Lucys dark, villainous seductiveness is evident here, and it is clear that she wants to enkindle sensual passion in Arthur in order to turn him into a vampire. When Seward sees the undead Lucy outside of her tomb later in the novel, he says, we recognized the features of Lucy Westenra but yet how changed. The sweetness was turned to cruelty, and the purity to voluptuous wantonness (226). Throughout the next four paragraphs of this section, Seward describes Lucy with eyes unclean and full of hell-fire and a voluptuous smile stating that she speaks with a languorous, voluptuous grace. Again, there is a noticeable repetition of the word voluptuous as there was in the scene with the three vampire women at the beginning of the novel. Parallels can be drawn between these two sections of the story. Lucy, like the three vampire women, has an excessive sensuality about her that is hostile. After Lucy dies she is turned back from a monstrous sexual being with an unspiritual appearance to Lucy with her face of unequalled sweetness and purity (232). It is clear that Lucy as an erotic being was deeply evil to the point of being demonic, yet the moment that she is transformed from that sinful, sexualized being, she is again characterized as pure (Stevenson 145). In the scene of Lucys death, Bram Stoker insinuates that it is because of her rebelliousness and sensuality that she meets a tragic end where she is killed, beheaded, and her mouth filled with garlic. On the other hand, Mina, with her compassion and sexual innocence, is characterized as the quintessential woman throughout Dracula. Mina is the ideal wife of this time period, considering herself submissive to her husband and invariably putting his needs before her own. For instance, Mina writes to Lucy early in the novel, I have been working very hard lately, because I want to keep up with Jonathans studies When we are married I shall be able to be useful to Jonathan (Stoker 61). Comments like these show Minas determination to be the perfect wife and assist her husband when he might need it. Furthermore, Mina adheres to traditional gender roles throughout her marriage to Jonathan, as she never once gives voice to any sexual desire. Also, contrary to Lucy and the three vampire women, Mina is portrayed as a true mother-figure. She considers herself lucky to have so many strong men watching out for her well-being, and in turn is always willing to offer them emotional support as a moth er would with their child. For example, following Lucys death, Mina allows Lord Godalming to cry to her, remarking that We women have something of the mother in us that makes us rise above smaller matters when the mother-spirit is invoked; I felt this big, sorrowing mans head resting on me, as though it were that of the baby that some day may lie on my bosom, and I stroked his hair as though he were my own child (246). When Quincey Morris enters the room directly after this incident, he says to Mina that No one but a woman can help a man when he is in trouble of the heart (247), implying that she has fulfilled her roles as a woman. Mina is described as angelic and kind-hearted in many parts of the novel; she is portrayed as the depiction of moral purity as was expected of an ideal Victorian woman. Minas perfection as a woman is further emphasized as the story progresses. As literary critic Carol Senf states, the second half of Dracula shifts from the presentation of women as vampires to focus on a woman who is the antithesis of these destructive creatures (34). Even after Mina is turned into a vampire, she continues to fulfill her established roles as a woman and act in ways that will benefit the men around her. For instance, Mina allows Van Helsing to hypnotize her as much as he might need in order to obtain information about the ringleader of the vampires. She also tells the men not to discuss their plans in front of her in fear of them getting back to Dracula, as much as it pains her to not know what the men are doing. Mina even goes as far as to make the men promise to kill her before she can betray them (Stevenson 139). As a model of domestic propriety, Mina rejects openness and the pursuit of her own desires, preferring instead to be dutiful and deferential towards the b and of men (Senf 36). Although her physical body is tainted and scarred both from Draculas bites and the Host touching her forehead, Minas soul remains pure. It is this that sets her apart from the other vampire women. Because of her embodiment of the perfect woman of the time, Mina escapes the fate of the other women and even is able to take part in the destruction of Dracula. At the time Dracula was written, women were expected to follow their traditional Victorian gender roles, and Bram Stoker shows that straying from societal gender roles results in the destruction of a womans character. The three vampire women and Lucy become sexual, rebellious, and in turn evil creatures, and consequently they have all been destroyed by the end of the novel. Mina, on the other hand, adheres to conventional gender roles of the time period, and because of this she ends the novel alive and well. Evidently, not following traditional societal gender roles leads to the destruction of womens characters in this novel. Works Cited Craft, Christopher. Kiss me with Those Red Lips: Gender and Inversion in Bram Stokers Dracula. Representations, vol. 8, 1984, pp. 107-133. Lewis, Mitchell R. Sex and Sexuality in Dracula. Encyclopedia of Themes in Literature, 3-Volume Set, Facts On File, 2010. Blooms Literature, online.infobase.com/Auth/Index?aid=100992itemid=WE54articleId=39509. Senf, Carol A. Dracula: Stokers Response to the New Woman. Victorian Studies, vol. 26, no. 1, 1982, pp. 33-49. JSTOR, www.jstor.org/stable/3827492. Stevenson, John Allen. A Vampire in the Mirror: The Sexuality of Dracula. PMLA, vol. 103, no. 2, 1988, pp. 139-149. JSTOR, www.jstor.org/stable/462430. Stoker, Bram. Dracula. Barnes Noble Classics, 2004.

3 Categories of Organisms Free Essays

Week 2: Week Two – Class Discussion Class Discussion Graded Activity: Class Discussion (25 points) Instructional Objectives for this activity: Identify the three ecosystem trophic categories of organisms. In Chapter 5, the different trophic categories in an ecosystem are discussed and the importance of each of the trophic categories is described in detail. For this week’s class discussion, please review the materials assigned in chapter 5, and answer all the prompts below. We will write a custom essay sample on 3 Categories of Organisms or any similar topic only for you Order Now What are the three ecosystem trophic categories? Give 2 examples of each trophic category that can be found in your town, city or county. What trophic category do you think is the most important in the ecosystem and why? What is biodiversity? Is it important? Relate biodiversity to the trophic categories. What would happen to the rest of the trophic categories if one them was wiped out? The minimum expectation for class discussions is to respond directly to each part of the discussion prompt and to respond to at least two other posts, either by a student or instructor, by the end of the week: Submit one main post responding directly to each part of the discussion prompt. This should be a substantive response to the topic(s) in your own words, referencing what you have discovered in your required reading and other learning activities. You may use resources in addition to your textbook that support your post(s); however, you must mention the source(s) that you used in your post(s). Reply to at least two posts. Responses can be made to students or to your instructor. Responses to other individuals’ posts should: Expand on their ideas Discuss the differences between your thoughts and theirs Explain why you agree or disagree. For citation guidelines, please refer to the table in the APA Style section of the syllabus. How to cite 3 Categories of Organisms, Papers

Technical Plan and Implementation New Charter Housing Trust Group

Question: Case study of New Charter organization. Answer: Introduction The task includes primary requirements on designing Virtual Private Network over a case study of New Charter organization. At first, the assignment addressees the essential design of the VPN network along with security and business objectives ("Social Housing Program Protects Network Inside and Out", 2016). The business and security objectives are included as with showing the new network design configuration. The assumptions are attached for depicting entire security scope inclusion. The description is attached in this study for showing the network specifications and design components. The justification is assigned for showing the entire objectives based design of the network as well (Liao, WU Dai, 2016). The components are shown for further addressing of the network procedures; the implementation of the planned network is depicted to show the entire scenario of the design. Network Diagram for the Case Study Figure 1: VPN Network Design Security and Business Objectives in Case Study The security and business objectives are included as per the case study consideration. The organization New Charter Housing Trust Group required incorporating a low-cost yet scalable network connection architecture connecting more people in one grid (Liu et al., 2015). Their primary goal of business is to connect more people from lower income background with serving 20,000 citizens in UK. Their business initiatives are included as following: To provide low cost implementation of Virtual Private Network with serving more residents and corporate staffs To integrate the management units into the existing IT network with mitigating the difficulties To implement the network with legacy hardware and software without any discrepancies in interconnection To implement the network with including access controlling for proper policy and maintenance planning The security considerations are included as following in form of techniques for mitigating the risks and discrepancies. To include potential policies in the organization practices with including deployment of technology To recommend several security and privacy considerations under the network for mitigating the risk of packet transmission without exploit To incorporate the suitable security guidelines under the network connection for privacy maintenance To minimize the security and maintenance cost with increasing the performance later on with connecting the components in network architecture as well Assumptions in Network Design and Security Primary and essential consideration is that the users and personnel should consider entire process with care and sincerity. The organizations personnel and their staff should be included with suitable level of maintaining the secure and private network (Gharam, Salhi Boudriga, 2015). The assumptions in network design and security are included as following. These assumptions are attached for showing which parts are to be considered as the security concerns. The assumptions are important for determining whether the considerations are in the project scope or not. The assumptions are included herewith: The network will be incorporated with access controlling for the users under blocking access to unidentified users The network will be under some users, those who are identified in the grid The network is to be implemented with suitable structuring and configuration The IP addressing is necessary for setting the architecture at a certain packet passing rate Staff and users will be accounted with primary and essential knowledge of interconnection within the grid The staff and personnel will be aware about the network security policies and they would not be violating the rules of the security policy The security and privacy policy will be activated at the time of VPN implementation Description of Network Diagram The system is depicted with including the crucial prerequisites of segments associated in the network. The configuration is made do with considering effortlessness in design with stressing the availability procedure. The switches have RIP routing convention incorporated into the design for appropriate bulk of packet passing through the connected network architecture. The RIP convention is appended for particular bundle going in the system. The switch to switch passage is recognized as 10.0.0.0 and the change to switch portal is distinguished as 192.168.10.0 and 192.168.20.0 individually. The switch is incorporated into the system chart with passing the parcels all through two doors of 192.168.10.1 and 192.168.20.1 too. The switches are interconnected in the middle of the PCs and switches. The switch is possessed with quick Ethernet ports as fro 0/1 to 0/24; there are 24 quick Ethernet ports. The IP locations are in space of 192.168.10.0 and 192.168.20.0 individually. The association is kept up with adaptability as far as segmenting the two areas with two separate doors as 192.168.10.1 and 192.168.20.1 individually. The security encryption as "AES" is incorporated into the outline also. The verification is put as pre-offer mode. The verification is put through with sharing the key however the switch design alongside some IP address ranges. The key is pre-shared as to setting up the privacy in the middle of the frameworks for preparatory SA development. The system outline is dynamic with "isakmp" convention in the 10.0.0.0 entryways through the interfaces fa0/0 and fa0/1. The convention is incorporated into the outline for securing the encryption under the PCs in IP address scope of 192.168.10.2 to 192.168.10.255 and 192.168.20.2 to 192.168.20.255 separately. The computers are communicating with suitable packet passing as shown in the following figure. Figure 2: Ping test in between first and second PC The AES encryption is actualized with hash code "SHA" under the system engineering for fortifying the security and bundle passing component. The figure key is relegated as "toor" in the configuration, and the key is pre-shared under the IP ranges. The sharing imparts in the PCs without interpreting the message physically. As secure 'SHA 256' calculation is utilized alongside AES encryption for irregular hash-code era under a reasonable key task. The calculation is compelling inside Virtual Private Network, as it has no issues in decoding messages without a moment's delay. The security approach 10 is incorporated into the usage, as it is good with VPN arrangement with all parts of protection in bundle passing. The strategy is helpful inside the system for making the NAT conceivable under VPN setup too. Justification of Network Design The network design is justified as it is aligned with security and design initiatives as well. The necessary alignment with objectives is included along with suitable and essential design requirements. To provide low cost implementation of Virtual Private Network with serving more residents and corporate staffs; the VPN is implemented. It is feasible with low cost yet higher performance network architecture. To integrate the management units into the existing IT network with mitigating the difficulties; is implemented with dynamic IP configuration under the architecture as well. To implement the network with legacy hardware and software without any discrepancies in interconnection; as the VPN configuration does not require more important components in this aspect. To implement the network with including access controlling for proper policy and maintenance planning; the network is considered with access control lists in the process. The security considerations are included as followin g in form of techniques for mitigating the risks and discrepancies. To include potential policies in the organization practices with including deployment of technology; the security policy is included as isakmp. To recommend several security and privacy considerations under the network for mitigating the risk of packet transmission without exploit. To incorporate the suitable security guidelines under the network connection for privacy maintenance; the policy documents need to be distributed to the users and staff. To minimize the security and maintenance cost with increasing the performance later on with connecting the components in network architecture as well. Description of Major and Required Equipment The requirements of hardware and components are included as following with specifications in the network diagram. The design is managed with considering simplicity in architecture with emphasizing the connectivity process. The required hardware components are quite popular in market within limited cost as well. 2811 Router: The routers are general with two fast-Ethernet interfaces as 0/1 and 0/0. The routers have RIP routing protocol included in the configuration for suitable packet passing regardless of gateway. The RIP protocol is attached for specific packet passing in the network. The router to router gateway is identified as 10.0.0.0 and the switch to router gateway is identified as 192.168.10.0 and 192.168.20.0 respectively. 2950-24 Switch: The switch is included in the network diagram with passing the packets throughout two gateways of 192.168.10.1 and 192.168.20.1 as well. The switches are interconnected in between the computers and routers. The switch is occupied with fast-Ethernet ports as fro 0/1 to 0/24; there are 24 fast-Ethernet ports. General PC: The personal computers are generic with no extra requirements regarding the network connection. The IP addresses are in domain of 192.168.10.0 and 192.168.20.0 respectively. The connection is maintained with scalability in terms of sectioning the two domains with two separate gateways as 192.168.10.1 and 192.168.20.1 respectively. VPN Tunnelling and Encapsulation Requirements The VPN tunnelling and encapsulation requirements are included with including the security policy in the process. The security encryption as AES is included in the design as well. The authentication is placed as pre-share mode. The authentication is put through with sharing the key though the router configuration along with some IP address ranges. The encapsulation requirements are included as following: isakmp protocol: The protocol is assigned with mentioning a key as toor in the network architecture. The key is pre-shared as to establishing the confidentiality in between the systems for preliminary SA formation. The network design is active with isakmp protocol in the 10.0.0.0 gateways through the interfaces fa0/0 and fa0/1. ipsec protocol: The protocol is included in the design for securing the encryption under the computers in IP address range of 192.168.10.2 to 192.168.10.255 and 192.168.20.2 to 192.168.20.255 respectively. AES encryption: The AES encryption is implemented with hash code SHA under the network architecture for strengthening the security and packet passing mechanism. The cipher key is assigned as toor in the design, and the key is pre-shared under the IP ranges. The sharing helps to communicate in the PCs without deciphering the message manually. SHA 256 algorithm: As secure SHA 256 algorithm is used along with AES encryption for random hash-code generation under a suitable key assignment. The algorithm is effective within Virtual Private Network as it has no issues in decrypting messages at once. Security Policy: The security policy 10 is included in the implementation, as it is compatible with VPN configuration with all aspects of privacy in packet passing. The policy is beneficial within the network for making the NAT possible under VPN configuration as well. Implementation of Planned Network The implementation of the planned network is quite simple in this aspect. The routers are connected though the cross-over cables within the gateways as 10.0.0.1 and 10.0.0.2 within them. The switches are connected with computers and routers with straight cable wiring. The PC gateway is identified to be 192.168.10.1 and 192.168.20.1 as well. The computers are configured with 192.168.10.2 to 192.168.10.255 and 192.168.20.2 to 192.168.20.255 IP addressing. The routers are included with RIP packet routing procedures. The cryptography is assigned with security policy 10, along with pre-shared authentication of key. The encryption is implemented with AES security over packet passing. The hash code SHA is attached for showing the random key generation with mapping the access-list 101 in IP range of 192.168.10.0 to 0.0.0.255 and 192.168.20.0 to 0.0.0.255. Again, the second router is incorporated with access-list of 101 within similar ranges of IP addressing. The mapping is supported with CMA P and TSET compatibility for key matching of toor. Figure 3: isakmp Cryptography active in first router Figure 4: ipsec Encryption Shown in red outline Conclusion The assumptions in network design and security are included for managing the in-scope requirements only. The network design is justified as it is aligned with security and design initiatives as well. It is feasible with low cost yet higher performance network architecture. To implement the network with including access controlling for proper policy and maintenance planning; the network is considered with access control lists in the process. The RIP protocol is attached for specific packet passing in the network. The protocol is assigned with mentioning a key as toor in the network architecture. The cryptography is assigned with security policy 10, along with pre-shared authentication of key. The encryption is implemented with AES security over packet passing. Bibliography Ahmed, B. A., Saleem, Y., Waseem, S. (2015). AN IMPLEMENTATION OF MULTIPROTOCOL LABEL SWITCHING VIRTUAL PRIVATE NETWORKS AND INTERNET PROTOCOL SECURITY USING GRAPHICAL NETWORK SIMULATOR 3 AS AN EDUCATIONAL TOOL.Science International,27(3). Burke, C. (2015). Implementation and Evaluation of Virtual Network Functions Performance in the Home Environment. Chen, Y. L., Chen, P. W., Wang, C. H. (2015, October). Performance improvement for CMT-SCTP via load-balancing virtual connections. InComputing and Communication (IEMCON), 2015 International Conference and Workshop on(pp. 1-7). IEEE. Dumka, A., Mandoria, H. L., Dumka, K., Anand, A. (2015, March). MPLS VPN using IPv4 and IPv6 protocol. 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(2016).U.S. Patent No. 20,160,134,591. Washington, DC: U.S. Patent and Trademark Office. Liu, V., Tesfamicael, A. D., Caelli, W., Sahama, T. R. (2015). Network security and performance testing for health information system management. Lospoto, G., Rimondini, M., Vignoli, B. G., Di Battista, G. (2015, May). Making MPLS VPNs manageable through the adoption of SDN. InIntegrated Network Management (IM), 2015 IFIP/IEEE International Symposium on(pp. 1155-1156). IEEE. Priyanka, B. H., Prakash, R. (2015). A Critical Survey Of Privacy Infrastructures.arXiv preprint arXiv:1512.07207. Social Housing Program Protects Network Inside and Out. (2016). www.cisco.com. Retrieved 29 May 2016, from https://www.cisco.com/c/dam/en/us/products/collateral/security/new-charter-housing.pdf Zhou, L. (2015, January). Implementation of Linux VPN Gateway based on Netlink communication. InControl Engineering and Information Systems: Proceedings of the 2014 International Conference on Control Engineering and Information Systems (ICCEIS 2014, Yueyang, Hunan, China, 20-22 June 2014).(p. 399). CRC Press. Zhuang, S., Li, Z., Baohua, S. O. N. G. (2015).U.S. Pate.