Organizational behavior Article critique Essay Example | Topics and Well Written Essays - 1750 words - 1

Organizational behavior Article critique - Essay Example on of organizational behavior, â€Å"as the study of human behavior in organizations; a multidisciplinary field devoted to understanding individual and group behavior, interpersonal processes, and organizational dynamics† (Schermerhorn, Hunt, and Osborn 3) Azman et al underscore the value and merit of studying the influence of relationships in organizations. This essay will critique how the writers developed their methodology, approach, and some of the results of the study. The critique will weigh whether the results presented in the article substantiated their claims adding worth to the continuous growing body of work on human relationships and their affect on organizational behavior. In addition to the article’s composition, grammatical and organizational structure, it readability and comprehensibility will be examined as well. Finally by reviewing the article determining if the information documented was presented in such a way as to increase the understa nding of the complexity of human relationships in organizations. Azman et al started by stating their purpose in writing the article, outlining the objectives of the paper, and discussed their method of approach for the study. They identify three main objectives 1) examine the relationship between transformational leadership and empowerment; 2) examine the relationship between transformational leadership and organizational commitment; and 3) examine the mediating effect of empowerment in the relationship between transformational leadership and organizational commitment (92) . The objective of demonstrating the connection between healthy relationships within an organizational culture and performance remained the focal point throughout the article. The article was written in a way that each section of information built upon the previous with each section returning to the initial purpose. The traditional and non-traditional views of leadership provided the foundation for their initial

Planning and Measuring Performance Essay Example for Free

Planning and Measuring Performance Essay Planning and Measuring Performance Planning and Measuring Performance This paper will discuss Hospital Corporation of America’s (HCA) goals of achieving industry-leading performance in clinical and satisfaction measures and recruiting and employing physicians to meet the need for high quality health services (University of Oregon Investment Group, 2011). This paper will also discuss which tools would be most effective in measuring the organization’s performance against the determined standards. The actual standards that HCA would use to measure the first goal of achieving industry-leading performance in clinical and satisfaction measures are set by The Joint Commission. According to Kicab Casta eda-Mendez (1999), achieving improved clinical performance and satisfaction measures requires performance measures in three areas: * To lead the entire organization in a particular direction. * To manage the resources needed to travel in this direction. * To operate the processes that make the organization work. According to Kicab Casta eda-Mendez (1999), these measures are: * Strategicto drive strategies into action and change the organizational culture. * Diagnosticto evaluate the effectiveness of these actions and the extent of change. * Operationalto improve continuously. The most effective tool to measure these improvements is benchmarking. Benchmarking against the top healthcare companies will determine if HCA is achieving industry-leading performance in clinical and satisfaction measures. Without benchmarking HCA could not determine if the company was leading the industry or if they were at the bottom of organizational ladder. HCA’s goal of hiring physicians to meet the need for high quality health services can be measured by determining the number of physicians need to accommodate the number of patients, determining the specialties/ sub-specialties the physicians are needed in, as well as measuring the retention rate of the physicians. The Balanced Scorecard would best fit this goal. The Balanced Scorecard allows the company to see the projected percentages and the actual percentages of the measurements. It also helps the company see what needs to be changed and gives direction for those changes. HCA can use benchmarking and the Balanced Scorecard to measure the different aspects of their goals. HCA will also be able to see the areas that need improvement and have some guidance into making these changes. With these tools HCA will be able to make an effective go at achieving their goals. References University of Oregon Investment Group (May 6, 2011). Hospital Corporation of America. Retrieved from http://uoinvestmentgroup. org/wp-content/uploads/2011/05/HCA. pdf Casta eda-Mendez (1999). Performance Measurement in Healthcare. Retrieved from http://www. qualitydigest. com/may99/html/body_health. html

A formula for parish practice Essays -- Legal Issues, Wengert

Wengert in his â€Å"A formula for parish practice† book, indicated the dispute over the relation between faith and works can be traced back to an attack on the Lutherans by John Eck prior to the Diet of Augsburg 1530 ( 63). Eck claimed that evangelicals ban good works from their teaching and preaching, later this phenomena grid Melanchthon to come up with the 20th article in the Augsburg confession. The reality that the leipzing Interim failed to use the phrase â€Å"faith lone† upset the Bishop of Naumburg , Von Amsdrof lead up to writing a tract against the Leipzing Interim. Later George major came up with Sermon that implies good works are necessary for salvation. George Major writings in favors of the absolute necessity of good work for salvation lead up to the emergence of Majortistic controversy. As Luther predicted what controversies will inevitably arise after his death; many reformers would compromise and sell out to the papacy. Luther prediction turned true and many controversies had arose from within and without, among these is the Majoristic controversy that named after George major who was the chief proponent of the idea that enunciate good work justifies. The Majoristic controversy was in fact started before the death of martin Luther and later intensified ( ). George major was a Lutheran theologian who lived from 1502-1574. He was one of the several theologians who joined Melanchthon in making concession to Rome. There is no way we can measure faith. However, good work can sometime be measured, in physics we can calculate work by multiplying the force applied to certain object by the distance traveled. Faith is not something we produce, reduce, earn or donate; generally we do not have control over faith. It is... ...ng of the Lord’s Supper should not be general but should be specific and personal; each recipient should understand why and how they should receive the true body and blood of Christ. The Lord’s Supper of the moment to proclaim the Word not time we assert announcement or preach to the public. The precious golden words â€Å"This is my body, given for you† and â€Å"This is my blood shed for you for the forgiveness of sins† are not the words to be sprayed to the public but rather to be injected in the system of each individual receive the true body and blood of Jesus Christ in the form proclamation to their soul. The Word â€Å"you† is by no means plural during administration of the Holy Supper it must refer to each receipt. Such specific proclamation â€Å"given for you† and â€Å"shed for you† destroy our heavy burdens and give rest through forgiveness of sins (Matthew 11:28).

Strategic Analysis of Pepsi :: Business Case Studies

The growing demand for more healthy goods has naturally delayed several sectors of the beverages industry. While consumers have turned to bottled water and juices rather than carbonated drinks in the soft drinks market, consumers concern over alcohol consumption has affected demand in the alcoholic drinks sector. This trend has affected the alcohol sector much more than the soft drinks sector with the exception of wine consumption because it is being proved by scientists that it may reduce the risk of heart disease with a moderate consumption. While there are only few new markets to expand into, the market for soft drinks is globally well exploited. There are few factors that suggest trivial forecast for growth. However, demand continues to grow. Before the end of the current decade, the soft drinks market is expected to surpass the alcoholic beverages market, which constantly has shown lower growth than the beverage industry market in general. While product innovation has stimulated some growth within the industry during the 1990s by introducing new plastic bottles, innovation is slowing within the soft drinks industry recently. Since1997, in terms of market value, the global beverages market grew by 1.7% in 2002 to reach a value of $1,060 billion, and an increase of 16.6% in the global beverages market is predicted by the year 2007 to reach a value of $1,236 billion. In terms of market volume, the global beverages market grew by 3.4% in 2002 to reach a volume of 551 billion liters, and an increase of 20.5% is forecasted by 2007 to reach a volume of 664 billion liters. Even though all sectors of the beverage market are generally dominated by big companies, the soft drinks market is quite different in terms of its competitive position. The soft drinks market is dominated by two global giants: Coca-Cola and PepsiCo. Even though innovation and brand extension strategies have played big role in the recent years within the soft drinks sector between major competitors, market leader Coca-Cola is still concentrating its efforts on the traditional carbonated drinks market with respectable success. It is absolutely difficult for new start-up companies to enter the soft drinks market because it requires a huge financial resources as well as logistical infrastructure that need to rely on. The most important asset for all of the top current players continues to be the brand, and this is where Coca Cola really have the edge.

Developed versus Underdeveloped Essay

In offering a response to this article it would be from a sociological perspective that the writer would advance the discussion. As it pertains to the theories of poverty the article simply identifies the faces of imperialism. These faces are mirrored through the economic institutions existent within the social structure. In this sense one can understand how third world countries’ economies are influenced by the world economic order. These countries are impotent in resolving any policy imposed by these super powers. Imperialism has shaped the world’s economic structures through Federal Reserve strategies, the World Bank and IMF put together. What has been offered as explanations for the situation in poor countries is a decorative painting projecting aesthetics of the real situation. The truth is that there will always be poverty in the world regardless of how well relationships between third world and developed countries are enhanced. Poverty was here, precisely, before any institutionalized economic order. It has existed at different levels under much cultural expression through out history. Therefore, to explain poverty in its true sense is to say that it coexists to provide social order. Conclusively, speaking from the sociological paradigm of functionalism, poverty is functional. What has been reflected in the disparity between rich people and poor ones in many countries of the world is the shadow which covers rich countries and poor ones as well. It is popular belief that the economic crisis will improve when there is a re writing of a world economic order which is fair to rich and poor alike. In essence poverty is the face of imperialism which dictates under structured inequality that there must always be economic disparity in the world among countries and people. REFERENCE Make Poverty History. Retrieved 3rd June 2010 http://www. essaywriters. net/sys/orders/view/421995

Starburst Galaxies

Starburst Galaxies The universe is filled with galaxies, which are themselves filled with stars. At some point in its life, each galaxy bristled with star formation in vast clouds of hydrogen gas. Even today, some galaxies seem to have more than the usual amount of star birth activity and astronomers want to know why. There were so many stars being born in some galaxies in earlier times that they probably looked like cosmic fireworks bursts. Astronomers refer to these hotbeds of star birth as starburst galaxies. Key Takeaways: Starburst Galaxies Starburst galaxies are galaxies where high rates of star formation has occurred very quickly.Nearly all types of galaxies can undergo starburst events if conditions are right.Astronomers know that starburst galaxies are often involved in mergers that mingle stars and gas. Shock waves push the gas, which sets off the starburst activity. Starburst galaxies have unusually high  rates of star formation, and those bursts last for a short time during the galaxys long life. Thats because star formation burns through the gas reserves of the galaxy very quickly. It is likely that the sudden burst of star birth is triggered by a specific event. In most cases, a galaxy merger does the trick. Thats when two or more galaxies mesh together in a long gravitational dance and eventually meld together. During the merger, the gases of all the galaxies involved are mixed together. The collision sends shock waves through those gas clouds, which compress the gases and set off bursts of star formation.   Properties of Starburst Galaxies Starburst galaxies are not a  new type of galaxy, but rather simply a galaxy (or mingled galaxies) in a particular phase of their evolution. Even so, there are some properties that show up in most starburst galaxies: a very rapid star formation rate. These galaxies will produce stars at rates well above the average rate of most regular galaxies; availability of gas and dust. Some galaxies may have higher than normal star-formation rates simply due to their high volumes of gas and dust. However, some starburst galaxies do not a have the reserves to justify why they would have such high rates of star formation, so mergers may not be the only explanation;star formation rate is inconsistent with the age of the galaxy. The main point is that the current rate of star formation could not have been constant since the formation of the galaxy given its age. An older galaxy simply wouldnt have enough gas left over to keep up starbirth action for billions of years. In some starburst galaxies astronomers see a sudden burst of star birth, and often the explanation is a merger or chance encounter with another galaxy. Astronomers sometimes also compare the rate of star formation in a galaxy relative to its rotational period. If, for example, the galaxy exhausts all of its available gas during one rotation of the galaxy (given the high star formation rate), then it can be considered a starburst galaxy. The Milky Way rotates once every 220 million years; some galaxies go much slower, others faster. Another widely accepted method to see if a galaxy is a starburst is to compare the star formation rate against the age of the universe. If the current rate would exhaust all of the available gas in less time than 13.7 billion years, then its possible that a given galaxy may be in a starburst state.   Annotated image showing dazzling eyelid-like features bursting with stars in galaxy IC 2163. A tsunami of stars and gas triggered by a glancing collision with galaxy NGC 2207 (a portion of its spiral arm is shown on right side of image). ALMA image of carbon monoxide (orange), which revealed motion of the gas in these features, is shown on top of Hubble image (blue) of the galaxy. M. Kaufman; B. Saxton (NRAO/AUI/NSF); ALMA (ESO/NAOJ/NRAO); NASA/ESA Hubble Space Telescope Types of Starburst Galaxies Starburst activity can occur in galaxies ranging from spirals to irregulars. Astronomers who study these objects classify them into sub-types that help describe their ages and other characteristics. Starburst galaxy types include: Wolf-Rayet galaxies:  defined by their ratio of bright stars that fall into the Wolf-Rayet classification. Galaxies of this type have regions of high stellar wind, driven by the Wolf-Rayet stars. Those stellar monsters are incredibly massive and luminous and have very high rates of mass loss. The winds that they produce can collide with regions of gas and drive rapid star formation.Blue compact galaxies:  low mass galaxies that were once thought to be young galaxies, just beginning to form stars. However, they usually contain populations of very old stars. That usually is a good clue that the galaxy is quite old. Astronomers now suspect that blue compact galaxies are actually the result of mergers between galaxies of varying ages. Once they collide, starburst activity ramps up and lights up the galaxies.Luminous infrared galaxies:  dim, hidden galaxies that are difficult to study because they contain high levels of dust that can obscure observation. Typically infrared radiation   detected by telescopes is used to penetrate the dust. That provides clues to increased star formation. Some of these objects have been found to contain multiple supermassive black holes, which can shut down star formation. The increase in star birth in such galaxies has to be the result of a recent galaxy merger. Cause of Increased Star Formation Although the merger of galaxies is pinpointed as the main cause of star birth in these galaxies, the exact processes are not well understood. Partially, this is due to the fact that starburst galaxies come in many shapes and sizes, so there may be more than one condition that leads to increased star formation. However, for a starburst galaxy to even form, there must be lots of gas available to generate the new stars. Also, something must disturb the gas, to begin the gravitational collapse process that leads to the creation of new objects. Those two requirements led astronomers to suspect galaxy mergers and shock waves as two processes that can lead to starburst galaxies.   Centaurus A galaxy has a massive black hole at its heart that is actively gobbling up material. The actions of such active galactic nuclei may play a role in starbursts in galaxies.   ESO/WFI (Optical); MPIfR/ESO/APEX/A.Weiss et al. (Submillimetre); NASA/CXC/CfA/R.Kraft et al. (X-ray) Two other possibilities for the cause of starburst galaxies include: Active Galactic Nuclei (AGN): Virtually all galaxies contain a supermassive black hole in their core. Some galaxies appear to be in a state of high activity, where the central black hole is ejecting massive amounts of energy.  There is a great deal of evidence to show that the presence of such a black hole can dampen star formation activity. However, in the case of these so-called active  galactic nuclei, they can also, under the right conditions, trigger rapid star formation as the accretion of matter in a disk and its eventual ejection away from the black hole can create shockwaves that could trigger star formation.High supernova rates: Supernovae are violent events. If the rate of explosions increases due to the presence of a very high number of aging stars in a compact area, the resulting shockwaves can begin a rapid increase in star formation. However, this such an event to occur the conditions would have to be ideal; more so than in the other possibilities listed here. A supernova can push clouds of nearby gas around spur limited amounts of starbirth. This supernova is shown in a Hubble Space Telescope view of the Crab Nebula supernova remnant. NASA/ESA/STScI Starburst galaxies remain an active area of investigation by astronomers. The more they find, the better scientists can describe the actual conditions that lead up to the bright bursts of star formation that populate these galaxies.   Edited and updated by Carolyn Collins Petersen.

Free Essays on Pros And Cons Of Capitol Punishment

The word "capital" in "capital punishment" refers to a person's head. In the past, people were often executed by severing their head from their body. As of 2000-OCT-19, during the last decade of the 20th century, 547 prisoners were executed in the United States one third of them in Texas. Another 3,500 wait on death rows. None have been executed in Canada; that country abolished the death punishment decades ago. The United States is one of the very few industrialized countries in the world which executes criminals. It is one of the few countries in the world which executes mentally ill persons, persons with very low IQ, and child murderers. When asked whether they prefer to keep or abolish the death penalty, about 60 to 80% of American adults say that they want to retain capital punishment. Numbers vary depending upon the precise wording of the question asked by the pollsters. When asked whether they would like to see executions continue or have them replaced with a system that guaranteed: Life imprisonment with no hope for parole, ever; That the inmate would work in the prison to earn money; That the money would be directed to helping the family of the person(s) that they killed, About 60% of Americans prefer the latter system. The American Civil Liberties Union noted that in the 1960's and 1970's only a bare majority of Americans favored capital punishment. They believe that "mounting fear of crime, and the cynical manipulation of the death penalty issue by many politicians for their own political gain, led to a shift upwards." The death penalty now has broad public support in both the United States and Canada. Surveys in the US and Canada regularly show that a sizable majority of adults are in favor of the death penalty for convicted murderers. Depending upon the exact question asked, 65 to 80% of adults are in favor of ... Free Essays on Pros And Cons Of Capitol Punishment Free Essays on Pros And Cons Of Capitol Punishment The word "capital" in "capital punishment" refers to a person's head. In the past, people were often executed by severing their head from their body. As of 2000-OCT-19, during the last decade of the 20th century, 547 prisoners were executed in the United States one third of them in Texas. Another 3,500 wait on death rows. None have been executed in Canada; that country abolished the death punishment decades ago. The United States is one of the very few industrialized countries in the world which executes criminals. It is one of the few countries in the world which executes mentally ill persons, persons with very low IQ, and child murderers. When asked whether they prefer to keep or abolish the death penalty, about 60 to 80% of American adults say that they want to retain capital punishment. Numbers vary depending upon the precise wording of the question asked by the pollsters. When asked whether they would like to see executions continue or have them replaced with a system that guaranteed: Life imprisonment with no hope for parole, ever; That the inmate would work in the prison to earn money; That the money would be directed to helping the family of the person(s) that they killed, About 60% of Americans prefer the latter system. The American Civil Liberties Union noted that in the 1960's and 1970's only a bare majority of Americans favored capital punishment. They believe that "mounting fear of crime, and the cynical manipulation of the death penalty issue by many politicians for their own political gain, led to a shift upwards." The death penalty now has broad public support in both the United States and Canada. Surveys in the US and Canada regularly show that a sizable majority of adults are in favor of the death penalty for convicted murderers. Depending upon the exact question asked, 65 to 80% of adults are in favor of ...

Definition of and Examples of Words With a Glottal Stop

Definition of and Examples of Words With a Glottal Stop In phonetics, a glottal stop is a stop sound made by rapidly closing the vocal cords. Arthur Hughes et al. describe the glottal stop as a form of plosive  in which the closure is made by bringing the vocal folds together, as when holding ones breath (the glottis is not a speech organ, but the space between the vocal folds) (English Accents and Dialects, 2013). The term is also called a  glottal plosive. In Authority in Language (2012), James and Lesley Milroy point out that the glottal stop appears in limited phonetic contexts. For example, in many  dialects of English it  can be heard as a variant of the /t/ sound between vowels and at the ends of words, such as  metal, Latin,  bought, and cut  (but not ten, take, stop, or left). The use of the glottal stop in place of another sound is called glottalling. The glottal stop is inside us all, says David Crystal, part of our phonetic ability as human beings, waiting to be put to use. We use one every time we cough. (The Stories of English, 2004) Glottal Stop Examples and Observations Glottal stops are made quite frequently in English, although we rarely notice them because they do not make a difference in the meaning of English words...English speakers usually insert a glottal stop before initial vowels, like in the words it, ate, and ouch. If you say these words naturally, you will probably feel a catch in your throat just as you [do] in the expression uh-oh.(T. L. Cleghorn and N. M. Rugg, Comprehensive Articulatory Phonetics: A Tool for Mastering the Worlds Languages, 2nd ed., 2011) Glottalization   Glottalization is a general term for any articulation involving a simultaneous constriction, especially a glottal stop. In English, glottal stops are often used in this way to reinforce a voiceless plosive at the end of a word, as in what?(David Crystal, A Dictionary of Linguistics and Phonetics, 1997) words: light, flight, put, take, make, trip, reportmultisyllabic words: stoplight, apartment, backseat, assortment, workload, upbeatphrases: right now, talk back, cook the books, hate mail, fax machine, back-breaking Uhs We often make this stop- its the sound we make when we say uh-oh. In some languages, this is a separate consonant sound, but in English, we often use it with d, t, k, g, b or p when one of those sounds happens at the end of a word or syllable...We close the vocal cords very sharply and make the air stop for just a moment. We dont let the air escape. This glottal stop is the last sound of these words: You also hear it in words and syllables that end in t a vowel n. We dont say the vowel at all, so we say the t n: button, cotton, kitten, Clinton, continent, forgotten, sentence.(Charlsie Childs, Improve Your American English Accent, 2004) Changing Pronunciations Nowadays younger speakers of many forms of British English have glottal stops at the ends of words such as cap, cat, and back. A generation or so ago speakers of BBC English would have regarded such a pronunciation as improper, almost as bad as producing a glottal stop between vowels in the London Cockney pronunciation of butter...In America, nearly everybody has a glottal stop in button and bitten.(Peter Ladefoged, Vowels and Consonants: An Introduction to the Sounds of Languages, Vol. 1, 2nd ed., 2005)

Using digital marketing and outdoor Ads for SMEs Essay

Using digital marketing and outdoor Ads for SMEs - Essay Example This makes marketing a key characteristic that may determine the success of Small and Medium Sized Enterprises (SMEs). This relationship between marketing and small businesses is a concern of many researchers. Mc Cartan-Quinn and Carson (2003) were perhaps pioneers in investigating this relationship. Much of their work (1995, 2003) focused on the role of digital marketing and traditional marketing (with one of this tools is outdoor advertising) for SMEs. Their studies, which were conducted in Ireland, concentrated on examining which issues impact upon marketing in the small businesses (Cartan-Quinn and Carson,2003: p202). However, according to Nahas (2009), marketing and information support and availability are the main obstacles confronted by small and medium enterprises. Many subsequent researchers (e.g., OShea 1998, Motwani, Jiang and Kumar 1998, and Evans and Moutinho 1999) were believed that small businesses tend to be far more creative and innovative than the larger organizatio ns. Moreover, according to (Zartmam, 1978 p29) the factor for SMEs success is the ability to take advantage of modern business techniques. In order to be successful, SMEs must attempt to use modern business techniques, procedures and efficient equipment where available (Kuratko & Hodgetts, 1995). When businesses use modern business techniques, they are virtually guarantees to remain competitive and efficient in their respective markets. This is particularly important for SMEs (Ghose & Yang, 2010 p18). As result, SMEs should consider at digital marketing and outdoor advertising as one of these techniques. It is, therefore, necessary to look for the features of marketing in SME, mainly the digital marketing and outdoor advertising management functions and capabilities with a view to assisting SMEs through the critical stages to permanence. The following is a research proposal with an aim of creating an outline to assist in preparation of final research project that will

Future of humanity Essay Example | Topics and Well Written Essays - 1250 words

Future of humanity - Essay Example (United States Conference of Catholic Bishop) As a result of the environmental crisis the entire human race is suffering today and the failure to act by the present generation will have an effect on the future generation as well. The poor and the powerless are that sections of the society who bears the most dreadful consequence of the current environmental carelessness. The land and neighborhood of these people are most polluted and host to the toxic dumps, the water they get are not safe to drink implying a health hazard for them. Trapped in the spiral of poverty the small farmers, the industrial workers, the lumberjacks, the watermen, the rubber tappers, bears most of the burden of the economic adjustments camouflaged in the form of environmental remedies taken up by the society. They undergo the worst consequence from the loss of fertility of soils, pollution of rivers, city streets and the deforestation and at the same time they are forced to overdo the soil, clear the forest or migrate to marginal lands due to the overcrowding and unequal distributions of land. Their labor to eke out a bare subsistence adds to the problem of environmental degradation. The diversity of life marks God’s glory. The divine beauty is being shared by every creature as the divine integrity cannot be represented by one being alone. So the human being should show respect and reverence for the Creator by preserving and protecting the natural environment and the endangered species. Human being should make an effort to be compatible with the local ecology by ensuring the just use of technology and by cautiously evaluating the technological innovations as they are being adopted. (United States Conference of Catholic Bishop; Hanks, 454) Change is the only constant thing in today’s world. In the age of globalization, the Internet is the phenomenon that is changing the lives of everyone today. Everything is moving in a breakneck speed now and its impact is not limited to the economic sphere but also in the social spheres of our life. It has brought in fear with itself as the school children are offered drugs at their playgrounds and they are growing up sexually at a great speed. The parents today are stressed and fighting day after day grind to earn a living, which will raise the family’s standard of living. It’s more of a rat race now where the ethics and values of the society are disappearing. In the present era the bonding and ties of family, locality and the country are under continuous pressure and threat. â€Å"The change is fast and fierce, replete with opportunities and dangers.† (Blair) But enduring this change humanity will flourish provided man can minimize the harmful effect of globalization and use it instead for the benefits of him. The emergence of internet has narrowed down the gaps between the countries implying an economic change which proves to be beneficial for the world economy. The internet has concised the wo rld in one‘s bedroom and the exchange of information and knowledge has led to the emergence of a knowledge hub. The interaction and communication with the rest of the world has encouraged intermarriage which will definitely blur the racial and ethnic distinction resulting in fewer wars and who knows that can really stop the world from witnessing another world war. (Intermarriage ) In this era of globalization the world’s growing interdependence cannot be denied. Hence the

Socioculture Paper Research Example | Topics and Well Written Essays - 1750 words

Socioculture - Research Paper Example During the â€Å"Trail of Tears† towards the end of the 1830s, many Native American Cherokees were forced to shift from their homes to Oklahoma; nearly 20% of their total population did not survive this migration. This coupled with the onset of diseases and the rise of colonization ensured that the number of Cherokees dwindled and today, only a fraction of their population remains. Although, with the recent modernization and modern policy implementations, their population has spread to many different areas of America from eastern America, which is where they had concentrated themselves as a result of the â€Å"Trail of Tears†. The southwestern part of America is one of the most fascinating places, geographically, of Cherokee settlement. This area is agriculturally intensive and houses Cherokees in small settlements which are characteristic of the area’s overall culture. Native Cherokee Indians from the Northwestern Coast were famous for making totem poles and oth er handicrafts. Many of the tribesmen and tribeswomen belonging to this area were employed in boat making, wood carving, lumbering and other similar activities. Initially, the Native Cherokee Indians held a lot of power and status in America. This was because, as a group they had the largest land holdings. But the status of the Native Cherokee Indians deteriorated once the white men set foot on their land and slowly started taking over; first they took their land and eventually the power that came with its possession. The negative effects of the white people taking over and assuming the power position have not faded from the face of the Cherokee nation; there still remains in their reservations a high level of unemployment and resultant poverty. Progress towards development is being made; however, the past of the Cherokee people will always have an imprint on their prospective future (Ballas, n.d). The Cherokees have very strong and vibrant religious beliefs and practices and related

Project Paper-Adult Development Issues Essay Example | Topics and Well Written Essays - 3500 words

Project Paper-Adult Development Issues - Essay Example What emerges from this study is the importance of physical and intellectual competence, an adaptive personality, financial security and a supportive family. A sustained, dramatic change in the demographic profile of American society has been observed and documented in recent years, brought about by a new high in life expectancy, which has increased to approximately 77 years, showing a difference between 73.6 years for men and 79.4 years for women. Statistical studies predict that, by 2050, the elderly (above 65 years of age) will constitute a significant 22.9% of the U.S. population (Schaie and Willis, 2002. Page 5). This trend can be attributed mainly to the migration of young adults, fertility rates over different periods and mortality. The marked rise in life expectancy is matched by a corresponding decline in mortality rates, chiefly due to vast strides in sanitation, nutrition and scientific advances in medical treatment. As we inevitably head towards a society with an increasingly aged population, with its’ attendant problems and implications, the study of gerontology takes on urgent significance. Gerontology is defined as â€Å"the study of the phenomena of the aging process from maturity into old age, as well as the study of the elderly as a special population† (Schaie and Willis, 2002. Page12). The word is derived from the Greek ‘geras,’ for old age. An approach that would contribute to a more complete understanding of elderly people’s capabilities and positions is one which does not rank them on the basis of chronological age alone, but differentiates between biological age, which is dependent on the physical condition of the body; social age, which reflects the position occupied by the individual in society; psychological age, which is indicative of behavior, attitude and skills. Another approach which

Marketing projectthe puzzle phone Essay Example | Topics and Well Written Essays - 1250 words

Marketing projectthe puzzle phone - Essay Example Although there are many other companies operating in the mobile phone industry but in terms of market share iPhone and Samsung are the leading brands. However for surviving in such a competitive market our company is offering some specific features that will help us create product differentiation. Puzz phone is a phone with distinctive, advanced and innovative features at affordable price. Our pricing strategies are very much different from our competitors as we are offering customized products at affordable price. Puzz is also trying to come up with new innovative technological features in order to compete with brands like Samsung. Puzz phone offers more variable features to its customers and that is what will help us to attract new customers. Our company also takes lesser time to assemble customers’ product. There are various factors that are considered to be the strength of Puzz Phone, however the important ones are its price and high customization. We offer variability in price so customers are allowed to choose according to their preferences. The price advantage provided by Rubik incorporation helps attracting a lot of customers. High customization helps customers selecting the features of their own choice. The demand of every customer is different from the other. Puzz phone helps people to express their own different character and personality through their phones. There are some features of the phone that do affect the brand image. These features are the low productivity and efficiency of the phone. The high customization being offered by the company does affect the productivity of the brand. The company however is trying to overcome the drawbacks in order to cater with the complaints of the customers and establish long term loyalty of the customer. Rubik incorporation is also trying to adopt useful marketing strategies for fulfill their mission and vision. The mobile phone industry is considered to be the

Project Paper-Adult Development Issues Essay Example | Topics and Well Written Essays - 3500 words

Project Paper-Adult Development Issues - Essay Example What emerges from this study is the importance of physical and intellectual competence, an adaptive personality, financial security and a supportive family. A sustained, dramatic change in the demographic profile of American society has been observed and documented in recent years, brought about by a new high in life expectancy, which has increased to approximately 77 years, showing a difference between 73.6 years for men and 79.4 years for women. Statistical studies predict that, by 2050, the elderly (above 65 years of age) will constitute a significant 22.9% of the U.S. population (Schaie and Willis, 2002. Page 5). This trend can be attributed mainly to the migration of young adults, fertility rates over different periods and mortality. The marked rise in life expectancy is matched by a corresponding decline in mortality rates, chiefly due to vast strides in sanitation, nutrition and scientific advances in medical treatment. As we inevitably head towards a society with an increasingly aged population, with its’ attendant problems and implications, the study of gerontology takes on urgent significance. Gerontology is defined as â€Å"the study of the phenomena of the aging process from maturity into old age, as well as the study of the elderly as a special population† (Schaie and Willis, 2002. Page12). The word is derived from the Greek ‘geras,’ for old age. An approach that would contribute to a more complete understanding of elderly people’s capabilities and positions is one which does not rank them on the basis of chronological age alone, but differentiates between biological age, which is dependent on the physical condition of the body; social age, which reflects the position occupied by the individual in society; psychological age, which is indicative of behavior, attitude and skills. Another approach which

Homelessness Essay Example | Topics and Well Written Essays - 500 words - 1

Homelessness - Essay Example His name is John Doe and I have seen him before near Wal-Mart about five blocks away. I have read somewhere that the homeless tend to shy away from public contact. So I was a bit hesitant to approach John. I was, hence, quite surprised and thankful that he was accommodating to my pleasantries. And so, after introducing myself and declaring my intentions, I immediately asked him about his attitudes about other people, if it’s true that they avoid contact or that if he asked for help. He replied that it was obvious: â€Å"You see us, yes? I am not exactly proud of my condition. Even if I am like this, I am ashamed to ask for help. Being homeless is bad enough but being refused help is worse. Dignity is all I have left.† He added that the other homeless he knows have experienced being driven out by relatives and friends while there are those who have simply lost contact with them or that some have simply died. â€Å"Just gone, and we’re alone. That’s the fact.† We chatted further and I found that he has a daughter living in San Diego. He was not keen on talking about her and from the most I could understand from bits of information he was willing to share was that she doesn’t know about his plight and he does not want to trouble her with the new family she’s starting. There was this faraway look in his eyes that perhaps again saw the past regrets. So I asked about more mundane things such as how they eat, sleep and socialize with other homeless people. He told me it depends. Since he is constantly on the move, there is no opportunity for friendship or socialization. â€Å"It is sad that most of the time the only relationship I have with them is driven by competition.† He was referring about food. Also, it appears that there is no social hierarchy among the homeless and that the closest to this would be the kind of territoriality that comes in foraging food and in asking for alms. The

Analysis of Strategy Formation Essay Example for Free

Analysis of Strategy Formation Essay Strategy is difficult to define. There are many popular and debated definitions available. One idea is that strategy is top management’s plan to attain outcomes consistent with the organization’s mission and goals (Mintzberg, Ahlstrand, Lambel, 1998). Another definition is that strategy is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage (Hitt, Ireland, Hoskisson 2013). Some argue that strategy cannot be defined at all because many professionals including researchers, practitioners, and theorists all have different thoughts on what strategy is, how it is formulated, and how it is implemented (Dewit Meyer, 2010). However, all of these ideas have something in common: a strategy is a roadmap for getting from here to there. It is important to understand that strategy is not a single concept, but rather a process made up of many pieces. For this paper, I will define strategy as a roadmap or blueprint for obtaining a competitive advantage. In this analysis of strategy formation I will examine the most important issues involved in strategy formation and explain why they are important, define how corporate-level strategies relate to business-level strategies and functional-area tactics and how these pieces support each other, and finally, I will outline the primary inputs to strategy formulation in a firm. But, before we answer these questions it is important to share a brief history of strategy. The word strategy originated from the Greek work strategos. Strategos was coined when Kleisthenis developed a fresh set of organizational structure in ancient Greece in order to promote a better army. The direct definition of the singular stratos means to lead (DeWit Meyer, 2010). Essentially the concept is derived directly from a need for a higher organizational structure, change and leadership development. Warfare was pas the point of simply winning a battle but instead was focused upon the coordination of units and tactical approaches to battle (DeWit Meyer, 2010). When we look at how strategy is formed today we also see a parallel in that firms must coordinate corporate-level, business-level and functional-level tactical issues in order to successful formulate a strategy. By coordinating the approach a strategy helps to gain a competitive advantage for firms just as it does for armies on the battlefield. Now that we understand the history behind strategy formation we will discuss the most important points of strategy formation and discuss what makes them important. Strategy formation can be arduous because planners love to plan out every single details of a plan and press everything into an orderly, mechanistic process (DeWit Meyer, 2010). It is critical for strategies to follow a mechanistic process with vision and end goal in mind while having a big picture mentality that takes change management and flexibility into account as the unknowns’ surface. Without a proper plan to learn and address needed adjustments the plan can become easily outdated and ineffective. Strategy formation is described as being a new way to understand old problems, however, strategic planning and formation can lead to analysis paralysis if overly complex and planned out (DeWit Meyer, 2010). Flexibility is an important piece of strategy formation and as strategists we must avoid being married to a specific set of ideas, but rather be open to learning, experimentation, balancing risks and rewards while working towards to vision that creates a competitive advantage. This pattern in a stream of decisions works to get a company to its strategic goal and vision (Dewit Meyer, 2010). A good approach to this is letting the strategies emerge in the process, rather than focusing on the strategy formation in the beginning. Outside of recognizing the importance of change and emergence there are many other important variables in strategy formation. For example, many organizations develop strategies based on rigid changes like their core competencies, resources, demographics, and market demand. But, there are also many other softer pieces can be equally important when formulating a strategy. According to DeWit and Meyer the most cited key issues in strategy formation are: 1) overall organization structure of its basic management style; 2) relationships with the government or other external interest groups; 3) acquisition, divestiture, or divisional control practices; 4) international posture and relationships; 5) innovative capabilities or personnel motivations as affected by growth; 6) worker and professional relationships reflecting changed social expectations and values nd 7) past or anticipated technological environments (DeWit and Meyer, 2010). These key components help give us a good framework for the most important parts of strategy formation, but they don’t make up everything. Many managers are comfortable with the planning piece of strategy formation, but lag when it comes to actually putting the plan into action (Hrebiniak, 2005). For many organizations putting the strategy in place is the easy part and creating a winning strategy doesn’t actually get you from here to there. A solid planned, documented and even inspiring plan of action doesn’t gain a competitive advantage in and of itself. It is the execution of that strategy that makes all the difference in the company achieving that completive advantage. Here are some key challenges that corporations face when executing on a strategy: 1) the culture of the organization and how it was not appropriate for the challenges ahead; 2) incentives and how people have been rewarded for seniority or â€Å"getting older† and not for performance or competitive achievement (the sacred cows); 3) the need to overcome problems with traditional functional â€Å"silos† in the organizational structure and 4) the challenges inherent in managing change as the division adapted to new competitive conditions (Hrebiniak, 2005). Actually getting the strategy to produce the desired results can clearly be more difficult that forming it in the first place. Execution is not the last important point of strategy formation to discuss; the stakeholders also play a fundamental role in the formation of a strategy. A stakeholder is any individuals, groups or organizations that can affect the firm’s vision and mission, are affected by the strategic outcomes achieved, and have enforceable claims on the firm’s performance (Hitt, Ireland, Hosskisson, 2010). These stakeholders can be divided into categories. Capital Market Stakeholders are the banking partner and suppliers of capital. Product Market Stakeholders are customers, suppliers, host communities, and union groups. Lastly, are the Organizations Stakeholders, which are comprised of employees, manager, and non-managers. These categories are divided from top to bottom in order of importance, which means that Capital Market Stakeholders have the highest level of influence and the Organizational stakeholders have the least. All takeholders are not created equal. The more critical and valued a stakeholder’s participation, the greater the firm’s dependency on it; greater dependence, in turn, gives the stakeholder more potential influence over a firm’s commitments, decisions, and actions (Ireland, Hoskisson and Hitt, 2008). A shift to more emergent characteristics in the strategy making process combining stakeholder considerations and strategic conversations during s trategy formation with select stakeholders is what makes the difference in a balanced strategy (Booth and Segon, 2008). The key point is the degree to which the stakeholder’s goals align with each other, and how those aligned elements are being addressed by the strategists in the organization. Strategic leaders are responsible and accountable for realizing the expectations of each of the many stakeholders. This accountability to the stakeholders plays an important part in developing the strategy. It can also impact the expectations of each of the stakeholders. For example, the vision and mission of the strategic leaders is shared with all of the stakeholders and their confidence or lack of confidence is a direct result of those strategic leaders. The expectations and composition of our stakeholders has a significant and direct affect in our organizations strategic formation. Of course, without security and surprise, a solid plan, execution strategy, flexibility, clear objectives, concentration, and coordinated and committed leadership, a strategy can still fail. Surprise strategy must make use of speed, secrecy and intelligence to attack unprepared opponents at unexpected time, while forcing the opponent to react to your company and not the other way around (Concept Paper #1). Security addresses keeping the core competencies, operations points and resource safe from the competition. For example, if our strategy is based on the talent of our human capital, we must work to keep the working conditions safe and happy so the competition doesn’t work to recruit our talent for their own strategy. We have outlined the most important points of strategy formation and discussed what makes them important, so now it is now time to define how corporate-level strategies relate to business-level strategies and functional-area tactics, and how these pieces support each other. Functional-area tactics are short-term activities each functional area within the firm undertakes to implement the grand strategy (Pierce Robinson, 2012). Pierce offers three characteristics that differentiate functional area tactics from business-level and corporate-level tactics: 1) time horizon, focus on immediate activities; 2) specificity, business strategies provide general direction, functional area tactics specify activities and how they are expected to be achieved and 3) participants, general managers are responsible for business strategies, operating managers establish short-term objectives and functional tactics that lead to business-level success (Pierce Robinson, 2012). These activities are put in place as a means of achieving a business-level strategy and so their relationship is one of vision versus direct action to achieve that vision. . A business level strategy is a carefully designed methodology that aids companies in implementing and carrying through with actions designed to meet the financial and other goals set by that business (wiseGEEK, 2013). Whether a firm has a competitive advantage or not, depends on the business system or business-level strategy that is has developed to relate itself to its business environment and if the configuration of resources (inputs), activities (throughput) and product/service offerings (output) intended to create value for its customers – it is the way a firm conducts its business (Dewit Meyer, 2010). Business strategy can be further understood as the decisions a firm makes about its alternatives when competing in a specific market and how those alternatives works to bring their core competencies to the surface through cost leadership, differentiation, focused cost leadership, focused differentiation, and integrated leadership/differentiation. According to Hitt et. l, the risks associated with cost leadership are 1) loss of competitive advantage to new technology; 2) failure to detect changing customer needs; 3) the ability of competitors to imitate the cost leader’s competitive advantage through their own distinct strategic actions (Hitt, Ireland, Hoskisson 2013). As also pointed out by Hitt et. al. , there are also differentiation strategy risks such as 1) a customer group’s decision that the differences between the differentiated product and the cost leader’s goods or services are no longer worth a premium price, 2) the inability of a differentiated product to reate the type of value for which customers are willing to pay a premium price, 3) the ability of competitors to provide customers with products that have features similar to those of the differentiated product, but at a lower cost, and 4) the threat of counterfeiting, whereby firms produce a cheap imitation of a differentiated good or service (Hitt, Ireland, Hoskisson, 2013). Previously, we have identified how business-level strategy impacts functional tactical strategy and now I will address corporate-level strategy and how it, respectively, relates to these levels. A corporate strategy is what makes the corporate whole add up to more than the sum of its parts and typically comprises four concepts: portfolio management, restructuring, transferring skills, and sharing activities (Porter, 2008). Portfolio management and diversification are central strategies for any medium or large business. Market analysis demonstrates that many organizations that are medium sized and larger are made up of multiple businesses and offer several product lines that can cross industries and regions. Organizations can have very different financial characteristics and face different strategic options depending on how they are placed in terms of growth and relative competitive position (Dewit and Meyer, 2010). A portfolio strategy requires firms to grow through investment in existing businesses, acquiring new businesses and withdrawing from failing ones. As porter points out another form of corporate strategy is philanthropic involvement. When it comes to philanthropy, executives increasingly see themselves as caught between critics demanding over higher levels of â€Å"corporate social responsibility† and investors applying pressure to maximize short-term profits (Porter, Kramer, 2002). It doesn’t end there though, another piece to corporate-level strategy is corporate governance. Corporate governance is concerned with identifying ways to ensure that decisions (especially strategic decisions) are made effectively and that they facilitate a firm’s efforts to achieve strategic competitiveness by maintaining a harmony between the top-level managers and the shareholder’s interests (Hitt, Ireland, Hoskisson, 2013). We must also point out that mergers and acquisitions play a significant role in corporate-level strategy. Corporate-level strategy is made up of many pieces, but overall it shares the same goals as the other levels, to increase value by creating a competitive advantage. We have discussed the various elements to corporate-level strategy and now we will discuss how it related to business and functional/tactical-level strategy. Since corporate-level strategy is the highest level of decision-making and encompasses the end objective of the organization, allocation of resources, stakeholder’s goals and acquisitions is it always value-oriented, whereas, business-level and functional-level strategy is more relevant to each individual business entity. Corporate strategy is not the sum total of business strategies of the corporation but it deals with different subject matter; while the corporation is concerned with and has impact on business strategy, the former is concerned with the shape and balancing of growth and renewal rather than in market execution (Bhasin, 2010). Although there are different levels to organizational strategy they all relate and impact one another from the top down. Now that we understand the various levels of decision-making we will now turn to the various inputs to strategy formation for a firm. Before we conclude this analysis, it is important to review the different schools on strategy and those schools perceive strategy formation. There are 7 main school of strategy starting with the Design School. In short, the design school looks to create a fit between capabilities and opportunities or possibilities; it resulted in the famous SWOT analysis. Second, the Planning School also uses a SWOT like the design school to take into account internal strengths and weaknesses and external opportunities and threats. Although the design school doesnt delineate the steps like the planning school does. It is this dividing into delineating steps that sets the planning school apart. The three phases of this school are: Objective Setting, Strategy Evaluating, and the Operationalization phase (Concept Paper #4). Third, in the Positioning School we see that the strategy formation is really driven by analyzing the market and deliberately implemented by those analytics. Forth, The entrepreneurial school is more of a singular vision of strategy from 1 person, namely the entrepreneur, rather than a collective approach as we have learned about in previous schools. Fifth, the Learning School of thought approaches strategy formulation in two separate models: 1) the grassroots model approaches strategy as emergent; 2) whereas, the hothouse model formulates strategy deliberately. Sixth, the Cognitive School states that in order to understand how strategies emerge from under other ircumstances we must look into the mind of the actual strategists. And finally, the last school is the Configuration School, as pointed out in Concept Paper #11, different dimensions of an organization cluster together under particular circumstances and conditions to define states, models or ideal types. It was important to review these various schools because when we look at the big picture of strategy formation and analyze how it is made up and why it is important we can glean i mportant points from each of the seven school. Yes, the overall goal of each school is the same as the goal of strategy formation as a whole, to gain competitive advantage and overall value for the corporation, but it is not always as easy as following one school of thought. For example, what might work in one situation won’t necessarily work in another so as strategists we must be able to take pieces from each school and put them in place where appropriate to achieve our desired outcome for that particular problem. Now that we have some big picture understanding of the different perspectives we will now discuss the primary inputs of strategy. As we discuss the inputs it is first important to point out that there is a difference between emergent and intended strategy. Organizations always have an intended strategy but sometimes the inputs move them towards a more emergent strategy. While strategy formulation is the process by which an intended strategy is created, emergent strategies often come out of following a specific pattern in decision making. (DeWit Meyer, 2010). The primary inputs are identifying, diagnosing, conceiving, and realizing; of course within this specific framework, there are more specific activities (DeWit Meyer, 2010). The first input of identifying is outlining a mission and agenda, this could also include a vision statement. Diagnosing is the internal an external assessments, such as the SWOT analysis. Next, conceiving is the brainstorming process by which the participants envision where there are trying to go and how they will get there. This is the key component an input of strategy formation, and for most groups it can be the most difficult because it requires creative out-of-the-box thinking. Lastly, but not least, is realizing and this is where the rubber meets the road. It is here where specific activities must be undertaken to achieve the strategic plan. We have identified the most important issues involved in strategy formation and defined why they are important, differentiated between corporate/business/functional-level strategies and how they impact one another, discussed the various schools of thought on strategy formation, and finally outlined the primary inputs to strategy formation in a firm. Now it is time to dig in a little deeper and attempt to bring it all together and analyze what it means as a whole. From a big picture mentality strategy formation must encompass the important items we outlined, while also taking into account the potential for change. Having a change management protocol for the organization as a whole, as well as, for each of the subsidiary organizations is critical in today’s global market economy. Outside of change, as strategists, we must also clearly understand our competitors, threats and regions. Things like technology can play a significant part in the ability to execute on strategy. Surprise and security are also equally important to strategy formation. What this all tells us is what we discussed early on: strategy is very difficult to define as an individual concept. Rather than a singular concept see that strategy is more of a way of big picture thinking that is critical to achieving success in virtually any endeavor, not just business. Yes, you can get lucky and find success without strategy, but we could also win the lottery it doesn’t mean it is going to happen. A strategic way of thinking is also not just thinking it is an executable and traceable tool that can adjust and emerge as needed. As a metaphor we can use going to the gym for physical fitness. Our strategic vision is losing weight, increasing heart health and gaining strength. But, how will we get from here (fat, high cholesterol and weak) to there (strong, heart healthy and thin)? We start by developing an action plan, outlining the inputs and potential threats (bad eating, etc), and we follow our plan daily and adjust as needed based on what emerges from the data we gather. This methodology can be applied to any goal, and large corporate business is no different. Unless we execute by actually going to the gym, following and adjusting our strategy for maximum performance we will never achieve our goals, even if we are lucky. You cannot win heart health in a contest. The same goes for business you can’t accidentally win customers and keep them for extended periods of time with successfully executing on your strategy. As we continue and find success in the gym, we may choose to diversify and bring our success to our friend and family or co-workers. This portfolio diversification also applies to large organizations. Additionally, our goals in the gym have stakeholders like our friends, family, employers, insurance companies, communities and any organizations to which we belong, not the mention, the world as a whole that benefits from our staying healthy. This philosophy our strategic way of thinking can be with us every second of everyday, and by thinking strategically in our lives and our roles in business we not only gain competitive advantage but maintain that advantage overtime. In closing, from the origins of the word strategy, and earlier, human beings have been strategizing. We strategized how to hunt and now we still strategize how to hunt only we are not hunting mammoths, but we are hunted mammoth size endeavors that require mammoth sized strategies. As we create and execute a plan for how to get from here to there towards achieving and maintaining a competitive advantage, as strategists, we are constantly analyzing how to optimize our approach while limiting risks. Strategy as a way of thinking can also be approved upon and as humans we have the power and control to accomplish truly amazing things for our corporations and our world.

Development and Future of the Apple iPod

Development and Future of the Apple iPod The iPod is perhaps the most talked about technological product in recent times. It has set sales records that have lave literally destroyed the predictions of all analysts by superseding everyone’s expectations. The interesting issues concerning this topic is how the iPod impacted not only the digital music electronics industry, but was also responsible for the turnaround of a company on the brink of bankruptcy. It is this very fact that makes the growth and life cycle of iPod an experience in itself and one that creates a sense of wonder at its success. But how did all this come about and just why did the iPod do so well? These are questions that we look to find answers towards whilst shedding light on the internal pressures faced by the parent company Apple. The paper takes the reader through the history of the parent company Apple and its declining fortunes until the introduction of the iPod. This revolutionary innovation then dictated the pace at which the organisation was able to turn itself around to become one of the more successful computer companies in the world today. The report also looks at how Apple as a company defines itself with the onset of the iPod boom – can it still call itself a computer company in the literal sense of the word or does it now see itself entering a diversified phase of business operations and hence, would need to re-think it’s overall business strategy and core competencies. The views of different writers expressed through the paper help in building an understanding of the pressures the company has undergone over the last decade and why it has taken the decisions that it has. The paper revolves around the growth of the iPod as the key driving force for all major business and technical decisions, it understand how it had to be re-modelled and adapted to the market needs and demands. The paper also paints the competitive landscape at different stages of the growth cycle and how this impacted or did not impact the iPod. Finally, the paper looks at the varying consumer tastes, the positives drawn from the product itself and what lies in store for the future of the product and the company. The methods used to create a deeper understanding of the iPod environment were through a variety of primary and secondary sources. Some of this is discussed in greater detail in different section of the paper. However, for the purpose of this report, the researcher took great care in trying to put together different pieces of work by various writers so as to be able to provide more holistic and all-encompassing view of the real scenario that surrounded the iPod boom. On a more generic note, most writers and experts within the industry agreed that the success of this product was unrivalled by others of its kind in recent times. Introduction Background Success stories always find their way to centre-stage. But what makes a journey even more interesting is when accompany that finds itself in some level of difficulty turns the tide and jump starts its engines to climb to the top of the success ladder. Apple’s is one such story. Whilst the problems that affect it lie in the background, the phenomenal success of its iPod has people fascinated. Marketing gurus swear by the growth of this innovative product that provided the perfect solution to a generation that was technologically familiar and defied competition to control every conceivable bit of the market that it entered – the digital music space, and made it its own. How and why is what we attempt to discover. History The history of the iPod dates back to the January of 2001. Apple had just introduced ‘iTunes’ – a programme that enabled Accusers to burn music off audio CD’s and convert them into music files on their computer systems as digital audio files. This provided users with the flexibility of creating libraries for their music files, clubbing favourite songs in order and in time to come, download them to portable devices. This natural extension saw the introduction of the iPod in the month of October 2001. Unlike other portable devices in the same range, the iPod was the first of its kind to store music files on a hard disk similar to a computer. Other devices used flash cards and detachable storage devices that could not hold as many bytes of data as the iPod did. Infect, the first few iPods had a 5GB storage space, which equated to the storage of approximately a 1000 songs. The question to be asked at this stage was if the software for writing music to the computer was developed keeping the iPod in mind? However, sources within the company maintain that the iPod was only conceptualised 6 months before its release date. Whatever the truth might be, the two scenarios complemented each other beautifully giving consumers the best of both worlds and a logical extension to the process of listening to music. In November 2001, the first iPods were shipped to waiting buyers and byte end of the year, 125,000 iPods had been sold for a price of $399.Within a year, other computer companies as well as large retailers were selling iPods as value-adds. Dell, Best Buy and Target were some of the more prominent names at this stage and had dedicated sites and sales teams pushing for iPod sales. By June 2003, Apple had managed to sell 1 million iPods, which could download music from both Macs as well as PCs. Interestingly, by the end of 2003, one of its largest resellers Dell; had decided not to sell anymore iPods and instead launch its own version of the iPod called the DJ(Digital Jukebox). In order to download songs from the Internet, Dell partnered with a company called Music Match that offered that service. By mid-2004, 6 months after it hit the 1 million mark, Apple crossed the 2 million mark in iPod sales but the peripheral market was just getting warmed up to the portable devices segment. In addition to thud by Dell, HP announced that it was repackaging the 4G iPod and selling it as a PC friendly device. Motorola launched its next generation phones that would be iTunes compatible. In one of the more recent statistics of the iPod wave collated in October 2004, there were some interesting findings. Apple held 82 per cent of the digital market across all music players and 92 per cent of all hard-disk based music players. The nearest competitor to the iPod was the device launched by Creative. They had a 3.7 per cent market share. In addition, 2 million iPods are being sold every 3 months. The music industry too has gained immensely through these sales. The total number of downloads have been clocked at a 150 million which equates to 4 million per week. The latest iPod has a mechanism that enables the storage of digital photographs as well as music. Today, Apple figures have registered total of 6 million iPod sales. That’s a fascinating growth path, which would make any marketing professional envious of replicating that kind of success. On careful consideration though, it took very long for iPod to really drive its sales figures to the kind that it was able to achieve in the years 2003 and 2004. Until then, the figures were good, but not something to write home about. The turning point for Apple came with the introduction of the third generation iPods. This is apparent since it took almost 2 years for iPod to register its first million in sales and soon after the launch of the 3G iPod in Tokyo less than 6months later; Apple was able to register its second million in iPod sales. Interestingly, the sales figures recorded over the 3-year period were averse to any form of competition from companies such as Creative, Dell, river etc. They sold cheaper products but not for a moment, did they encroach upon the market share that was and is still monopolised by iPod. Apple has also utilised an aggressive marketing strategy towrope in different age groups by using the draw of celebrities and song choices. For instance, in late October 2004, Apple unveiled what was called the U2 iPod. Apple conducted a promotion exercise in sync with the release of U2’s song – Vertigo. The new iPod was designed with black casing, a red wheel and a back cover that had the engravings ofU2 with the band signatures. It is little things such as these that have made the iPod such a role model for marketing strategists. The unique blend of having a great product and infusing the right level of awareness and visibility to sell it to the masses. In the chart below, the growth path of the iPod from its inception, to the end of 2004shows how sales surged in 2003 after the release of the 3G iPods as mentioned earlier. Not to mention, as the iPod sales soared, so did the number of downloads for music. Initially, the software iTunes needed tube bought in order to write songs from audio CD’s to the computer, following which they could be downloaded to the iPod. In 2003, Apple introduced an online music store that enabled iPod users to download music directly from the Internet. This worked in 2 ways – it provided users with an increase in choice of music that they would like to have downloaded as well as simplified the procurement of iTunes. No more dada user have to buy a software, install it onto the computer and then use it to burn music off a CD and finally onto the hard disk of the iPod. Simplifying this process for millions of users had its positives as can be seen from the graph above. The first big jump in sales was in October 2003 when the PC version of the music store went live. This enabled far more users to be able to download songs onto their computers and diluted the monopoly of Accusers. 2 months later, in December 2003, following a lot of media hype and attention being given to the iPod and a corresponding increase in Christmas sales, more and more people began downloading songs from iTunes. And in between July 2004 and October 2004, Apple registered growth of song sales from a 100 million to a 150 million. (http://www.ipodlounge.com/articles_more.php?id=4280_0_8_0_M) It must be noted that in many instances within the paper, the use of iPod and Apple is synonymous. After much deliberation, the researcher decided that it was important to approach the paper from the perspective of the parent company Apple. Any impact that the environment would have on Apple would be reflective in the iPod strategy. At the same time, in circumstances that would affect the company both positively and negatively, would subsequent effect the iPod and vice-versa. Aims and Objectives The aim of this paper is to understand the growth of the iPod through the years. It all began in the year 2001 and it has been a short journey to success. But how long will this be able to continue, what is the future for the product, how will it fend off competition and how will it impact Apple in the longer run. We all know that it has been apathy-breaking journey for Apple as it picks itself up from the doldrums of declining computer sales with its innovative invention that saw it spring back into the limelight. It is also the endeavour of this paper to highlight how important an impact the iPod has had on Apple alone and why can’t other company’s model the same success story. Literature Review The Success of the iPod According to Haddad, Charles (2002),the iPod is one of the most revolutionary products to hit the computer and electronics market place. He believes that the only way forward for Apple is to diversify its product range and move from being a niche computer manufacturer to providing technology that understands the gap between technology and entertainment. He quotes how the market share for Apple in 2002 had remained at 3 per cent for a number of years. In order to move it from there, it was imperative that they looked beyond the computer industry since it was reaching a saturation point in most developed markets and the level of competition from across the globe was making it extremely difficult for large computer manufacturers to survive. Digital handheld music players were a growing market in 2002. There were few players in the market place and industry experts such as ID Chad stated that demand would grow by 74 per cent over the next 3 years. In retrospect, they weren’t right – but only because the demand has recorded triple digit growth since 2002. In addition, the anticipated sales for 2002 were pegged at 12 million units of all kinds of portable digital music devices. Haddad brings up an important point about how the level of competition within the digital handheld music products industry was still at a minimalistic stage in comparison to other industries where companies such as Microsoft and Intel who had taken over the PC market. He believed that the next generation of buyers were more interested in a product that was different, satisfied their requirements and at the same time, was ‘cool’ and suave to have. Especially in the case of handheld devices where consumers would cart it around with them, this need for trendy and sophisticated gadgets was of the utmost importance. At the time of writing his article, Haddad had researched the iPod when music files were downloadable only from a Mac. The iPod sales were still consistent and looking positive during that stage but Apple had not introduced downloading files onto PC’s at that stage. Once that happened, iPod sales grew dramatically. The iPod was never intended to lift the flailing computer business of the parent company but overtime, Haddad statements would hold good, as the iPod would grow to become one of the most successful products ever launched by a computer company. (Haddad, Charles, iPod, You Pod, Will We All Pod? Business Week Online; 7/3/2002) Teething problems with Strategy? With the degree of success that the iPod has seen over the years, there have been few instances that writers have been able to find a chink in the armour of this hugely successful product. One such writer is Salk ever, Alex (2004). In the first of his articles – ‘Apple’s slow boat to China’, he discusses how the Chinese economy is one of the most lucrative investment decisions for businesses the world over and how Apple has failed to take advantage of this huge opportunity. He begins by using the views of consultants who have worked within the Chinese market place for decades now and seen it evolve over the years. He quotes Merrill Weingrod who works with a marketing consultancy – China Strategies. When Salk ever asks Weingrod how lucrative the Chinese market is for product such as the iPod, he answers saying that the market potential for men’s electric shavers is $300 million annually. Weingrod believed that the Chinese have the buying power to spend $200 to $250 on luxury shavers today which are not a necessity by any standing. This was just an indication of their mind-sets and how much they were willing to spend and for what. He reiterates this by stating that the Chinese population measures 300 million in terms of the number of cell phone subscribers across the country. They pay an average of $200 for their handsets and connectivity. In addition, the average Chinese employee earns far less than his / her American counterpart and yet, he / she is willing to pay larger proportion of their salary towards buying luxury goods. This equates to the buying potential and eagerness amongst the population and above all – a prospective consumer. One who is constantly on the lookout for the infusion of luxury goods into the market so that he /she can go ahead and purchase it, provided there is a need of course. In addition, the Chinese economy is the fastest growing economy in the world with its GDP growth rate pegged at 9 per cent annually. It has one of the largest middle-class societies in the world with disposable income that is growing as fast as their growth rate. With every factor in the book of marketing pointing towards the Chinese market, Salk ever is dismayed at Apple’s strategy to stay out of this market and not undertake an aggressive marketing strategy that would tap it’s he potential. The only real steps that Apple has taken towards entering this economy is to ensure that iTunes Music software is downloaded onto every Manufactured by China’s second largest computer manufacturer – Founder Technology. It is an ironical decision considering the consumer who would purchase the machine would have little access to the iPod on which he could have downloaded his / her music. Besides this decision with the Chinese industry, Apple hasn’t taken any more steps towards making any investment decisions in this region. There was one instance when they almost toyed with the idea of opening an iTunes Music Store but then retracted any steps made in that direction. The figures that Salk ever quotes are astounding to the reader. According to him, at least .3 present of the population of China has disposable income that equates to that of an individual in the US who would earn approximately $25000 to $30000 annually. That figure translates to approximately 60 million people today and will grow to 3to 4 times that number over the next decade. With the increasing middleclass and the ability to buy products that others around the world can afford, very soon the Chinese middle class would equal the entire population of the United States. So what do the Chinese see these new gadgets in the market place as? According to market analysts Bryan Mama company that tracks the buying of cell phones in Asia, but based in Singapore, the number of cell phones that are replaced are astounding. The Chinese people like to replace their cell phones 6 to 12 months earlier than consumers in North America and Western Europe. Gadgets are seen as a status symbol of sorts. Owning the latest models makes individuals feel like they are popular and wanted, according to the company. Chinese consumers also tend to go for gadgets that are sleek, suave and trendy. According to Salk ever those are the kinds of words that would define the iPod but they don’t find any place in the market. He tries to look at the picture from Apple’s perspective. As a company, Apple’s strategy is to consolidate and preserve its position in the markets that it is strong in. In the bargain, it would not look to invest in new markets such as China. In fact, Apple has a miniscule presence across the entire length and breadth of Asia. If Japan is taken out of the equation, Apple draws less than 10 per cent of total sales from this region. Naturally, it is not an area of too much interest for the moment. Whilst Apple takes a back seat to proceedings in this region, competition in the form of Sony, Motorola and Creative have made inroads into the Chinese market. As an example, Motorola entered the Chinese handset market early and in the first quarter of2004, it was proud to declare that it has achieved a market share of 40per cent. It had the first mover’s advantage introducing a technology that few others were brave enough to take into this country many years back and today it has paid off. The Chinese market is known for its penetration problems. The researcher agrees with the insights that Salk ever has provided into this untapped region and understand the problems that Apple faces in the future lest it not take steps in this direction. The level of investment required at a later date where the market is abuzz with competition would be significantly higher. It makes completes sense for companies to invest in C hina at this stage and there is no reason why Apple should not be one of them. (Salk ever, Alex, Business Week Online; 7/22/2004) In another article by Salk ever albeit on a different issue, he adopts similar stand on the problems that will plague Apple. In his article, ‘iPod: Leader, but Not Ruler’, he states that the sales figures by Apple are either over-exaggerated or are inaccurate since there isn’t enough evidence that the data being collated is validated. Apparently, data in countries in Latin America, India, South Korea, Eastern European Taiwan are difficult to validate and not easy to obtain. There are also other areas across Asia, including China where data retrieval and collation is not as accurate as it is made out to be. So when Apple boasts of global sales and achieving market shares across the world in excess of 50 per cent across the electronic market (MP3 players), they may very well be over the top. To evidence his findings, Salk ever looks at the various methods that companies use to collate market data that can be passed onto consumers and other business prospects. On one hand, they can utilise the services of US market research companies such as the NPD group that solely dedicates its efforts to the US retail economy. On the other hand, companies such as Apple can resort to asking OEM (Original Equipment Manufacturers) and component manufacturers how many pieces they are taking to the market place. Whatever may the case be, according to Salk ever, Apple doesn’t quite have accurate information omits global market share. He confirms that Apple is certainly a global leader but not dominant. This could have been a very interesting report but the only flaw with his research is that he fails to document enough evidence either through statistics or through credible sources that can allow him to judge with some level of certainty that Apple’s iPods are infect facing tough times ahead. To be fair to Salk ever though, he does introduce the subject of the growing competition of iPods outside the borders of the US from Asian electronics companies. In the coming years, cheaper labour costs of the Asian companies will allow them to create inexpensive models of the iPod and compete on price aggressively. In addition, Salk ever states that the Asian consumers who are growing to the largest consumers of entertainment products, prefer smaller sized iPods. This is not in sync with Apple’s strategy since they plan to introduce larger and heavier models of the iPod in the coming few months. And even if iPod does take the cue and invests in smaller models in time, it would have lost outing comparison to other digital music manufacturers. But Salk ever does summarise his studies by admitting the dominance of iPod within the digital market place, yet cautions against rising competition and price sensitive market in the near future. (Salk ever, Alex (2004) Business Week On line; 5/27/2004) Curzon (2005) has an equally interesting point of view. He believes that the iPod boom would not be able to sustain the success that it has experienced for much longer. His rationale is based around stock prices and other statistics that he discovers about Apple which point towards changing tide in the coming years. Curzon promotes the concept that Apple as a company is on the decline once again and encourages people to sell their shares now since they would lose money in the coming few months lest they hang onto them. He begins by mentioning the usual success stories of the company – the last 2 years have seen iPod sales rise more than twenty times from 219,000 units towards the end of 2002 to over 4 million units at the end of last year. In fact, Lehman Brothers had initially projected iPod sales to be approximately 3million units at the end of 2004. They had to revise their figures closer to the end of the year and pegged it again at 4 million units for the year 2004. Apple on the other hand clocked 4.5 million units for the year ending 2004, ahead of anybody’s expectations. Another indication of the progressive rate of success is how the number of downloads from the iTunes rose from 50 million to 200 million. Finally, the biggest turnaround statistic lies in how the company almost went bankrupt after the dotcom era a decade ago and last year, recorded sales figures in excess of $3 billion with no debt on their financial statements. What makes very interesting reading is how Ken Curzon describes the decline in the demand of iPods and correspondingly, with the parent company as well. He states that after the Christmas rush for buying iPods, in all probability consumers will not be willing to spend as much money on it. As he puts it – â€Å"Holiday shoppers are more enthusiastic about higher prices, but once the holiday season ends, they usually don’t like to spend money on products that are priced at a premium†. In keeping with the same, Curzon predicts that in the first few months of 2005, the rate at which consumers buy iPods would drop gradually at first and then, more drastically later in the year. Lehman Brothers too have declared that they expect a 14 per cent drop in sales figures over the course of the year. In another case, Curzon talks about how on one hand, the sales of iPods have certainly been increasing in conjunction with an increase in market share, but the parent company Apple has seen a decline in its market share from 2 per cent to 1.9 per cent. The ‘Apple Stores’ are an over-riding success because of the iPod and its driving consumers tithe stores. But although the number of footfalls across these stores has doubled, the number of consumers buying Apple PC’s has remained constant. Additionally, Apple’s revenue figures in comparison to other computer companies are very average. For a company that is on the biggest ride of its business life, it records a growth rate of 33 present in comparison to HP’s 29 per cent. And what makes this look more dismal according to Curzon is that the operating margins for the previous year were declared at 3.94 per cent. This was far lower in comparison to HP’s 5.2 per cent and Dell’s 8.56 per cent. (Curzon, Ken, Esquire; Mar 2005, Vol. 143 Issue 3, p112) Somehow, Curzon does shed light on certain statistics that project Apple’s performance in a questionable light but on closer observation, it appears that the facts have been manipulated to project a negative perspective to the progress of Apple. The researcher believes this tube the case since there are many individuals who constantly try and influence the market forces through published writing such as this to ultimately try and manipulate the performance of the stocks. For every negative statement that Curzon was able to highlight, there appears tube an equally positive explanation for the same. For instance, decline in market share by .1 per cent is not necessarily a negative impact on the company. It depends on the marketing strategy of the company – is it trying to move out of certain markets and invest in others. Additionally, in saturated market places such as the US, any form of product diversification would have an impact on the market share as well. So there are considerations that need to be taken before any conclusions can be made. At the same time, the researcher believed it important to include Curzon’s work since it was one of the most recent articles on the iPod that sounded warning bells and tries to get the reader to see the success story from a different perspective. So where exactly is Apple headed towards now? According to Murphy(2004), a significant contribution of Apple’s success can be attributed to the iPod and hence, any future success parameters would also be defined by the iPod. The competition amongst the computer industry is very intense with players such as Microsoft for software, Dell, HP undim for hardware and a host of other system integrators and competitive channel partners. Due to a diminishing market share as mentioned earlier of under 2 per cent, the total business worth of the company has fallen to half that of its sales revenue. The only light in this dark tunnel is the fact that the stock price at Apple has almost doubled over the past 2 years. But can the parent company depend on single product offering and expect to piggyback ride it all the way tithe bank? It’s not possible says Murphy. There will come a time in the near future when sales of iPods begin to decline, competitive forces take over with lower priced products and existing markets begin to get saturated. Some of these products would come from companies such as HP,Dell, Sony, Creative, Gateway and Rio, each offering a product that is significantly cheaper and has greater memory storage in comparison tithe iPod. For instance, Creative has launched a new product that also has a longer battery life and also has white earplugs similar to those of Apple, taking a leaf out of Apple’s trendy design. At the same time, it has been seen that consumers have complained about the lack of availability of iPods in the stores. And to make matters worse, Apple hasn’t been able to confirm a deadline by when they would be made available. Times will change gradually. As Murphy mentions – the pricing of the iPods over time will fall significantly and Apple would need to sell more and more iPods just to maintain the revenue figures. For instance, there is an assumption based on pricing that Apple would need to sell at least 20 per cent more iPods in the coming year to be able to sustain the same level of growth over the year. This should not be a problem currently considering growth is predicted to rise to 70 per cent but in time, this could certainly become an issue. If looked at differently, Murphy argues that falling prices of products are fine as long as business efficiencies were rising. 4 years ago, when the sales figures of Apple were 4 per cent higher than they are today, the operating profits of the company were at 9 per cent of total sales. Today, that figure has come down to 3 per cent. In addition, the number of employees added over the past 4 years has gone up by 32 per cent and the sale per employee has significantly decreased from $930,000 to$674,000. For apple to be able to sustain its growth and maintain a leading position in the market place, it cannot depend wholly on the iPod revolution. Its notebooks and desktop products account for 64 per cent of its current sales as a company. But except for the month of June that recorded a 14 per cent increase in revenues, the rest of the year remained much the same in terms of sales. This is worrying for Apple since it doesn’t have too many back up measures to fall on should they land in trouble. To tackle some of this problem, Apple had introduced a series of Apple stores across the US, UK and parts of Western Europe. These stores hosted the latest introductions by the company including all models of the iPod and its peripherals. The rationale lay in ensuring that consumers would walk into these stores with the excuse of looking at the iPods and at the same time, browse around and take look at the range of other Apple products as well. Unfortunately though, this move didn’t bring in the kind of sales that Apple management had predicted. When Apple was asked about this stagnancy that was creeping into their product lines, they said that 50 per cent of all buyers at their new stores that they have introduced are new consumers and they propose to build relationships through their product quality and peripherals and increase their market share of repeat buyers. Interestingly, Murphy is one of the only writers on this subject who believes that the main fault of Apple’s moderate performance lies with its CEO Steve Jobs. Over the course of its business history, Apple has always ensured that its software configures only with its hardware and no others. For instance, the Mac operating system can only be run on Mac computers. In comparison, the Windows Operating systems can be used on a variety of different hardware systems making it a more universally accepted operating system. The time for niche solutions in not the way forward. Apple must realise that the money lies in the numbers and they can in no way get to those numbers by limiting access to their software. It really is a Catch-22 situation for them. In much the same way, the iPod can only play music that has been downloaded from iTunes. What happens when the iTunes faces intense competition from other music download software companies in the near future? Are we saying that the iPod would only have limited access to music and perhaps, not the entire range of mus Development and Future of the Apple iPod Development and Future of the Apple iPod The iPod is perhaps the most talked about technological product in recent times. It has set sales records that have lave literally destroyed the predictions of all analysts by superseding everyone’s expectations. The interesting issues concerning this topic is how the iPod impacted not only the digital music electronics industry, but was also responsible for the turnaround of a company on the brink of bankruptcy. It is this very fact that makes the growth and life cycle of iPod an experience in itself and one that creates a sense of wonder at its success. But how did all this come about and just why did the iPod do so well? These are questions that we look to find answers towards whilst shedding light on the internal pressures faced by the parent company Apple. The paper takes the reader through the history of the parent company Apple and its declining fortunes until the introduction of the iPod. This revolutionary innovation then dictated the pace at which the organisation was able to turn itself around to become one of the more successful computer companies in the world today. The report also looks at how Apple as a company defines itself with the onset of the iPod boom – can it still call itself a computer company in the literal sense of the word or does it now see itself entering a diversified phase of business operations and hence, would need to re-think it’s overall business strategy and core competencies. The views of different writers expressed through the paper help in building an understanding of the pressures the company has undergone over the last decade and why it has taken the decisions that it has. The paper revolves around the growth of the iPod as the key driving force for all major business and technical decisions, it understand how it had to be re-modelled and adapted to the market needs and demands. The paper also paints the competitive landscape at different stages of the growth cycle and how this impacted or did not impact the iPod. Finally, the paper looks at the varying consumer tastes, the positives drawn from the product itself and what lies in store for the future of the product and the company. The methods used to create a deeper understanding of the iPod environment were through a variety of primary and secondary sources. Some of this is discussed in greater detail in different section of the paper. However, for the purpose of this report, the researcher took great care in trying to put together different pieces of work by various writers so as to be able to provide more holistic and all-encompassing view of the real scenario that surrounded the iPod boom. On a more generic note, most writers and experts within the industry agreed that the success of this product was unrivalled by others of its kind in recent times. Introduction Background Success stories always find their way to centre-stage. But what makes a journey even more interesting is when accompany that finds itself in some level of difficulty turns the tide and jump starts its engines to climb to the top of the success ladder. Apple’s is one such story. Whilst the problems that affect it lie in the background, the phenomenal success of its iPod has people fascinated. Marketing gurus swear by the growth of this innovative product that provided the perfect solution to a generation that was technologically familiar and defied competition to control every conceivable bit of the market that it entered – the digital music space, and made it its own. How and why is what we attempt to discover. History The history of the iPod dates back to the January of 2001. Apple had just introduced ‘iTunes’ – a programme that enabled Accusers to burn music off audio CD’s and convert them into music files on their computer systems as digital audio files. This provided users with the flexibility of creating libraries for their music files, clubbing favourite songs in order and in time to come, download them to portable devices. This natural extension saw the introduction of the iPod in the month of October 2001. Unlike other portable devices in the same range, the iPod was the first of its kind to store music files on a hard disk similar to a computer. Other devices used flash cards and detachable storage devices that could not hold as many bytes of data as the iPod did. Infect, the first few iPods had a 5GB storage space, which equated to the storage of approximately a 1000 songs. The question to be asked at this stage was if the software for writing music to the computer was developed keeping the iPod in mind? However, sources within the company maintain that the iPod was only conceptualised 6 months before its release date. Whatever the truth might be, the two scenarios complemented each other beautifully giving consumers the best of both worlds and a logical extension to the process of listening to music. In November 2001, the first iPods were shipped to waiting buyers and byte end of the year, 125,000 iPods had been sold for a price of $399.Within a year, other computer companies as well as large retailers were selling iPods as value-adds. Dell, Best Buy and Target were some of the more prominent names at this stage and had dedicated sites and sales teams pushing for iPod sales. By June 2003, Apple had managed to sell 1 million iPods, which could download music from both Macs as well as PCs. Interestingly, by the end of 2003, one of its largest resellers Dell; had decided not to sell anymore iPods and instead launch its own version of the iPod called the DJ(Digital Jukebox). In order to download songs from the Internet, Dell partnered with a company called Music Match that offered that service. By mid-2004, 6 months after it hit the 1 million mark, Apple crossed the 2 million mark in iPod sales but the peripheral market was just getting warmed up to the portable devices segment. In addition to thud by Dell, HP announced that it was repackaging the 4G iPod and selling it as a PC friendly device. Motorola launched its next generation phones that would be iTunes compatible. In one of the more recent statistics of the iPod wave collated in October 2004, there were some interesting findings. Apple held 82 per cent of the digital market across all music players and 92 per cent of all hard-disk based music players. The nearest competitor to the iPod was the device launched by Creative. They had a 3.7 per cent market share. In addition, 2 million iPods are being sold every 3 months. The music industry too has gained immensely through these sales. The total number of downloads have been clocked at a 150 million which equates to 4 million per week. The latest iPod has a mechanism that enables the storage of digital photographs as well as music. Today, Apple figures have registered total of 6 million iPod sales. That’s a fascinating growth path, which would make any marketing professional envious of replicating that kind of success. On careful consideration though, it took very long for iPod to really drive its sales figures to the kind that it was able to achieve in the years 2003 and 2004. Until then, the figures were good, but not something to write home about. The turning point for Apple came with the introduction of the third generation iPods. This is apparent since it took almost 2 years for iPod to register its first million in sales and soon after the launch of the 3G iPod in Tokyo less than 6months later; Apple was able to register its second million in iPod sales. Interestingly, the sales figures recorded over the 3-year period were averse to any form of competition from companies such as Creative, Dell, river etc. They sold cheaper products but not for a moment, did they encroach upon the market share that was and is still monopolised by iPod. Apple has also utilised an aggressive marketing strategy towrope in different age groups by using the draw of celebrities and song choices. For instance, in late October 2004, Apple unveiled what was called the U2 iPod. Apple conducted a promotion exercise in sync with the release of U2’s song – Vertigo. The new iPod was designed with black casing, a red wheel and a back cover that had the engravings ofU2 with the band signatures. It is little things such as these that have made the iPod such a role model for marketing strategists. The unique blend of having a great product and infusing the right level of awareness and visibility to sell it to the masses. In the chart below, the growth path of the iPod from its inception, to the end of 2004shows how sales surged in 2003 after the release of the 3G iPods as mentioned earlier. Not to mention, as the iPod sales soared, so did the number of downloads for music. Initially, the software iTunes needed tube bought in order to write songs from audio CD’s to the computer, following which they could be downloaded to the iPod. In 2003, Apple introduced an online music store that enabled iPod users to download music directly from the Internet. This worked in 2 ways – it provided users with an increase in choice of music that they would like to have downloaded as well as simplified the procurement of iTunes. No more dada user have to buy a software, install it onto the computer and then use it to burn music off a CD and finally onto the hard disk of the iPod. Simplifying this process for millions of users had its positives as can be seen from the graph above. The first big jump in sales was in October 2003 when the PC version of the music store went live. This enabled far more users to be able to download songs onto their computers and diluted the monopoly of Accusers. 2 months later, in December 2003, following a lot of media hype and attention being given to the iPod and a corresponding increase in Christmas sales, more and more people began downloading songs from iTunes. And in between July 2004 and October 2004, Apple registered growth of song sales from a 100 million to a 150 million. (http://www.ipodlounge.com/articles_more.php?id=4280_0_8_0_M) It must be noted that in many instances within the paper, the use of iPod and Apple is synonymous. After much deliberation, the researcher decided that it was important to approach the paper from the perspective of the parent company Apple. Any impact that the environment would have on Apple would be reflective in the iPod strategy. At the same time, in circumstances that would affect the company both positively and negatively, would subsequent effect the iPod and vice-versa. Aims and Objectives The aim of this paper is to understand the growth of the iPod through the years. It all began in the year 2001 and it has been a short journey to success. But how long will this be able to continue, what is the future for the product, how will it fend off competition and how will it impact Apple in the longer run. We all know that it has been apathy-breaking journey for Apple as it picks itself up from the doldrums of declining computer sales with its innovative invention that saw it spring back into the limelight. It is also the endeavour of this paper to highlight how important an impact the iPod has had on Apple alone and why can’t other company’s model the same success story. Literature Review The Success of the iPod According to Haddad, Charles (2002),the iPod is one of the most revolutionary products to hit the computer and electronics market place. He believes that the only way forward for Apple is to diversify its product range and move from being a niche computer manufacturer to providing technology that understands the gap between technology and entertainment. He quotes how the market share for Apple in 2002 had remained at 3 per cent for a number of years. In order to move it from there, it was imperative that they looked beyond the computer industry since it was reaching a saturation point in most developed markets and the level of competition from across the globe was making it extremely difficult for large computer manufacturers to survive. Digital handheld music players were a growing market in 2002. There were few players in the market place and industry experts such as ID Chad stated that demand would grow by 74 per cent over the next 3 years. In retrospect, they weren’t right – but only because the demand has recorded triple digit growth since 2002. In addition, the anticipated sales for 2002 were pegged at 12 million units of all kinds of portable digital music devices. Haddad brings up an important point about how the level of competition within the digital handheld music products industry was still at a minimalistic stage in comparison to other industries where companies such as Microsoft and Intel who had taken over the PC market. He believed that the next generation of buyers were more interested in a product that was different, satisfied their requirements and at the same time, was ‘cool’ and suave to have. Especially in the case of handheld devices where consumers would cart it around with them, this need for trendy and sophisticated gadgets was of the utmost importance. At the time of writing his article, Haddad had researched the iPod when music files were downloadable only from a Mac. The iPod sales were still consistent and looking positive during that stage but Apple had not introduced downloading files onto PC’s at that stage. Once that happened, iPod sales grew dramatically. The iPod was never intended to lift the flailing computer business of the parent company but overtime, Haddad statements would hold good, as the iPod would grow to become one of the most successful products ever launched by a computer company. (Haddad, Charles, iPod, You Pod, Will We All Pod? Business Week Online; 7/3/2002) Teething problems with Strategy? With the degree of success that the iPod has seen over the years, there have been few instances that writers have been able to find a chink in the armour of this hugely successful product. One such writer is Salk ever, Alex (2004). In the first of his articles – ‘Apple’s slow boat to China’, he discusses how the Chinese economy is one of the most lucrative investment decisions for businesses the world over and how Apple has failed to take advantage of this huge opportunity. He begins by using the views of consultants who have worked within the Chinese market place for decades now and seen it evolve over the years. He quotes Merrill Weingrod who works with a marketing consultancy – China Strategies. When Salk ever asks Weingrod how lucrative the Chinese market is for product such as the iPod, he answers saying that the market potential for men’s electric shavers is $300 million annually. Weingrod believed that the Chinese have the buying power to spend $200 to $250 on luxury shavers today which are not a necessity by any standing. This was just an indication of their mind-sets and how much they were willing to spend and for what. He reiterates this by stating that the Chinese population measures 300 million in terms of the number of cell phone subscribers across the country. They pay an average of $200 for their handsets and connectivity. In addition, the average Chinese employee earns far less than his / her American counterpart and yet, he / she is willing to pay larger proportion of their salary towards buying luxury goods. This equates to the buying potential and eagerness amongst the population and above all – a prospective consumer. One who is constantly on the lookout for the infusion of luxury goods into the market so that he /she can go ahead and purchase it, provided there is a need of course. In addition, the Chinese economy is the fastest growing economy in the world with its GDP growth rate pegged at 9 per cent annually. It has one of the largest middle-class societies in the world with disposable income that is growing as fast as their growth rate. With every factor in the book of marketing pointing towards the Chinese market, Salk ever is dismayed at Apple’s strategy to stay out of this market and not undertake an aggressive marketing strategy that would tap it’s he potential. The only real steps that Apple has taken towards entering this economy is to ensure that iTunes Music software is downloaded onto every Manufactured by China’s second largest computer manufacturer – Founder Technology. It is an ironical decision considering the consumer who would purchase the machine would have little access to the iPod on which he could have downloaded his / her music. Besides this decision with the Chinese industry, Apple hasn’t taken any more steps towards making any investment decisions in this region. There was one instance when they almost toyed with the idea of opening an iTunes Music Store but then retracted any steps made in that direction. The figures that Salk ever quotes are astounding to the reader. According to him, at least .3 present of the population of China has disposable income that equates to that of an individual in the US who would earn approximately $25000 to $30000 annually. That figure translates to approximately 60 million people today and will grow to 3to 4 times that number over the next decade. With the increasing middleclass and the ability to buy products that others around the world can afford, very soon the Chinese middle class would equal the entire population of the United States. So what do the Chinese see these new gadgets in the market place as? According to market analysts Bryan Mama company that tracks the buying of cell phones in Asia, but based in Singapore, the number of cell phones that are replaced are astounding. The Chinese people like to replace their cell phones 6 to 12 months earlier than consumers in North America and Western Europe. Gadgets are seen as a status symbol of sorts. Owning the latest models makes individuals feel like they are popular and wanted, according to the company. Chinese consumers also tend to go for gadgets that are sleek, suave and trendy. According to Salk ever those are the kinds of words that would define the iPod but they don’t find any place in the market. He tries to look at the picture from Apple’s perspective. As a company, Apple’s strategy is to consolidate and preserve its position in the markets that it is strong in. In the bargain, it would not look to invest in new markets such as China. In fact, Apple has a miniscule presence across the entire length and breadth of Asia. If Japan is taken out of the equation, Apple draws less than 10 per cent of total sales from this region. Naturally, it is not an area of too much interest for the moment. Whilst Apple takes a back seat to proceedings in this region, competition in the form of Sony, Motorola and Creative have made inroads into the Chinese market. As an example, Motorola entered the Chinese handset market early and in the first quarter of2004, it was proud to declare that it has achieved a market share of 40per cent. It had the first mover’s advantage introducing a technology that few others were brave enough to take into this country many years back and today it has paid off. The Chinese market is known for its penetration problems. The researcher agrees with the insights that Salk ever has provided into this untapped region and understand the problems that Apple faces in the future lest it not take steps in this direction. The level of investment required at a later date where the market is abuzz with competition would be significantly higher. It makes completes sense for companies to invest in C hina at this stage and there is no reason why Apple should not be one of them. (Salk ever, Alex, Business Week Online; 7/22/2004) In another article by Salk ever albeit on a different issue, he adopts similar stand on the problems that will plague Apple. In his article, ‘iPod: Leader, but Not Ruler’, he states that the sales figures by Apple are either over-exaggerated or are inaccurate since there isn’t enough evidence that the data being collated is validated. Apparently, data in countries in Latin America, India, South Korea, Eastern European Taiwan are difficult to validate and not easy to obtain. There are also other areas across Asia, including China where data retrieval and collation is not as accurate as it is made out to be. So when Apple boasts of global sales and achieving market shares across the world in excess of 50 per cent across the electronic market (MP3 players), they may very well be over the top. To evidence his findings, Salk ever looks at the various methods that companies use to collate market data that can be passed onto consumers and other business prospects. On one hand, they can utilise the services of US market research companies such as the NPD group that solely dedicates its efforts to the US retail economy. On the other hand, companies such as Apple can resort to asking OEM (Original Equipment Manufacturers) and component manufacturers how many pieces they are taking to the market place. Whatever may the case be, according to Salk ever, Apple doesn’t quite have accurate information omits global market share. He confirms that Apple is certainly a global leader but not dominant. This could have been a very interesting report but the only flaw with his research is that he fails to document enough evidence either through statistics or through credible sources that can allow him to judge with some level of certainty that Apple’s iPods are infect facing tough times ahead. To be fair to Salk ever though, he does introduce the subject of the growing competition of iPods outside the borders of the US from Asian electronics companies. In the coming years, cheaper labour costs of the Asian companies will allow them to create inexpensive models of the iPod and compete on price aggressively. In addition, Salk ever states that the Asian consumers who are growing to the largest consumers of entertainment products, prefer smaller sized iPods. This is not in sync with Apple’s strategy since they plan to introduce larger and heavier models of the iPod in the coming few months. And even if iPod does take the cue and invests in smaller models in time, it would have lost outing comparison to other digital music manufacturers. But Salk ever does summarise his studies by admitting the dominance of iPod within the digital market place, yet cautions against rising competition and price sensitive market in the near future. (Salk ever, Alex (2004) Business Week On line; 5/27/2004) Curzon (2005) has an equally interesting point of view. He believes that the iPod boom would not be able to sustain the success that it has experienced for much longer. His rationale is based around stock prices and other statistics that he discovers about Apple which point towards changing tide in the coming years. Curzon promotes the concept that Apple as a company is on the decline once again and encourages people to sell their shares now since they would lose money in the coming few months lest they hang onto them. He begins by mentioning the usual success stories of the company – the last 2 years have seen iPod sales rise more than twenty times from 219,000 units towards the end of 2002 to over 4 million units at the end of last year. In fact, Lehman Brothers had initially projected iPod sales to be approximately 3million units at the end of 2004. They had to revise their figures closer to the end of the year and pegged it again at 4 million units for the year 2004. Apple on the other hand clocked 4.5 million units for the year ending 2004, ahead of anybody’s expectations. Another indication of the progressive rate of success is how the number of downloads from the iTunes rose from 50 million to 200 million. Finally, the biggest turnaround statistic lies in how the company almost went bankrupt after the dotcom era a decade ago and last year, recorded sales figures in excess of $3 billion with no debt on their financial statements. What makes very interesting reading is how Ken Curzon describes the decline in the demand of iPods and correspondingly, with the parent company as well. He states that after the Christmas rush for buying iPods, in all probability consumers will not be willing to spend as much money on it. As he puts it – â€Å"Holiday shoppers are more enthusiastic about higher prices, but once the holiday season ends, they usually don’t like to spend money on products that are priced at a premium†. In keeping with the same, Curzon predicts that in the first few months of 2005, the rate at which consumers buy iPods would drop gradually at first and then, more drastically later in the year. Lehman Brothers too have declared that they expect a 14 per cent drop in sales figures over the course of the year. In another case, Curzon talks about how on one hand, the sales of iPods have certainly been increasing in conjunction with an increase in market share, but the parent company Apple has seen a decline in its market share from 2 per cent to 1.9 per cent. The ‘Apple Stores’ are an over-riding success because of the iPod and its driving consumers tithe stores. But although the number of footfalls across these stores has doubled, the number of consumers buying Apple PC’s has remained constant. Additionally, Apple’s revenue figures in comparison to other computer companies are very average. For a company that is on the biggest ride of its business life, it records a growth rate of 33 present in comparison to HP’s 29 per cent. And what makes this look more dismal according to Curzon is that the operating margins for the previous year were declared at 3.94 per cent. This was far lower in comparison to HP’s 5.2 per cent and Dell’s 8.56 per cent. (Curzon, Ken, Esquire; Mar 2005, Vol. 143 Issue 3, p112) Somehow, Curzon does shed light on certain statistics that project Apple’s performance in a questionable light but on closer observation, it appears that the facts have been manipulated to project a negative perspective to the progress of Apple. The researcher believes this tube the case since there are many individuals who constantly try and influence the market forces through published writing such as this to ultimately try and manipulate the performance of the stocks. For every negative statement that Curzon was able to highlight, there appears tube an equally positive explanation for the same. For instance, decline in market share by .1 per cent is not necessarily a negative impact on the company. It depends on the marketing strategy of the company – is it trying to move out of certain markets and invest in others. Additionally, in saturated market places such as the US, any form of product diversification would have an impact on the market share as well. So there are considerations that need to be taken before any conclusions can be made. At the same time, the researcher believed it important to include Curzon’s work since it was one of the most recent articles on the iPod that sounded warning bells and tries to get the reader to see the success story from a different perspective. So where exactly is Apple headed towards now? According to Murphy(2004), a significant contribution of Apple’s success can be attributed to the iPod and hence, any future success parameters would also be defined by the iPod. The competition amongst the computer industry is very intense with players such as Microsoft for software, Dell, HP undim for hardware and a host of other system integrators and competitive channel partners. Due to a diminishing market share as mentioned earlier of under 2 per cent, the total business worth of the company has fallen to half that of its sales revenue. The only light in this dark tunnel is the fact that the stock price at Apple has almost doubled over the past 2 years. But can the parent company depend on single product offering and expect to piggyback ride it all the way tithe bank? It’s not possible says Murphy. There will come a time in the near future when sales of iPods begin to decline, competitive forces take over with lower priced products and existing markets begin to get saturated. Some of these products would come from companies such as HP,Dell, Sony, Creative, Gateway and Rio, each offering a product that is significantly cheaper and has greater memory storage in comparison tithe iPod. For instance, Creative has launched a new product that also has a longer battery life and also has white earplugs similar to those of Apple, taking a leaf out of Apple’s trendy design. At the same time, it has been seen that consumers have complained about the lack of availability of iPods in the stores. And to make matters worse, Apple hasn’t been able to confirm a deadline by when they would be made available. Times will change gradually. As Murphy mentions – the pricing of the iPods over time will fall significantly and Apple would need to sell more and more iPods just to maintain the revenue figures. For instance, there is an assumption based on pricing that Apple would need to sell at least 20 per cent more iPods in the coming year to be able to sustain the same level of growth over the year. This should not be a problem currently considering growth is predicted to rise to 70 per cent but in time, this could certainly become an issue. If looked at differently, Murphy argues that falling prices of products are fine as long as business efficiencies were rising. 4 years ago, when the sales figures of Apple were 4 per cent higher than they are today, the operating profits of the company were at 9 per cent of total sales. Today, that figure has come down to 3 per cent. In addition, the number of employees added over the past 4 years has gone up by 32 per cent and the sale per employee has significantly decreased from $930,000 to$674,000. For apple to be able to sustain its growth and maintain a leading position in the market place, it cannot depend wholly on the iPod revolution. Its notebooks and desktop products account for 64 per cent of its current sales as a company. But except for the month of June that recorded a 14 per cent increase in revenues, the rest of the year remained much the same in terms of sales. This is worrying for Apple since it doesn’t have too many back up measures to fall on should they land in trouble. To tackle some of this problem, Apple had introduced a series of Apple stores across the US, UK and parts of Western Europe. These stores hosted the latest introductions by the company including all models of the iPod and its peripherals. The rationale lay in ensuring that consumers would walk into these stores with the excuse of looking at the iPods and at the same time, browse around and take look at the range of other Apple products as well. Unfortunately though, this move didn’t bring in the kind of sales that Apple management had predicted. When Apple was asked about this stagnancy that was creeping into their product lines, they said that 50 per cent of all buyers at their new stores that they have introduced are new consumers and they propose to build relationships through their product quality and peripherals and increase their market share of repeat buyers. Interestingly, Murphy is one of the only writers on this subject who believes that the main fault of Apple’s moderate performance lies with its CEO Steve Jobs. Over the course of its business history, Apple has always ensured that its software configures only with its hardware and no others. For instance, the Mac operating system can only be run on Mac computers. In comparison, the Windows Operating systems can be used on a variety of different hardware systems making it a more universally accepted operating system. The time for niche solutions in not the way forward. Apple must realise that the money lies in the numbers and they can in no way get to those numbers by limiting access to their software. It really is a Catch-22 situation for them. In much the same way, the iPod can only play music that has been downloaded from iTunes. What happens when the iTunes faces intense competition from other music download software companies in the near future? Are we saying that the iPod would only have limited access to music and perhaps, not the entire range of mus