Empowerment & Strategic Workforce Management Assignment

Empowerment & Strategic Workforce Management - Assignment Example An organization should make sure that the benefits that they accord to their employees are in line with their core values. For example an organization with environmental suitability as its core value should make sure that they give their employees benefits that are environmental suitability oriented. Employee reward plays a huge role in motivation of well performing employees. It makes them want to give more towards the achievement of the organization’s goals. Benefits are also very important in making the employees feel like they are appreciated by the organization and that they are part of it. As a result the organization will be in a position of improving the contribution of its employees to the achievement of the organization’s goals. Through employee development systems, an organization will have the capability of improving the performance ability of their employees. The skills and experience gained during the process would reflect in the overall productivity of an organization’s workforce. Cases when reward systems have failed to provide incentives include those that involved overspending financial resources on rewarding employee (Walker, 2002). Financial compensation is not the only form of reward that can be used in motivating employees. To avoid thi s, an organization might consider blending all the other forms of compensation and makes sure that all are in line with the organization’s goals and abilities. In a business organization, managers should make sure that they are able to strike a balance between their organization’s commitment to systems of control and to empowering employees. On way through which this can be possible is through making sure that various forms of empowerment have to be earned through employees’ performance (Oh, 2009). They can also keep the balance by making sure that they put in

Implementation of jit at dell

Implementation of jit at dell IMPLEMENTATION OF JIT AT DELL ASPECTS OF JIT By the 1980s the Japanese had achieved manufacturing greatness by practicing continuous improvement, in that a firm is constantly working to improve in every facet of its business functions. To do this, a firm must always increase quality and look for innovative ways to solve problems. All of these are cornerstones of a modern JIT system. Possibly the single piece of JIT most relevant to a study of supply chain management are the partnerships essential to making JIT truly work. A plant cannot implement a JIT system by itself; it must have the cooperation of its entire supply chain. The supply chain must include suppliers, customers, and every department within the company. The sheer amount of information needed for a JIT system to operate well demands that the information flow of the production control system (PCS) coupled with an up-to-date Order Entry and financial system stretches throughout the supply chain, almost to the point at which an entire supply chain operates as one entity. Lastly, gaining workforce commitment to a JIT lean manufacturing system is important. Without the dedication of the workforce, any endeavor is sure to fail. Workforce commitment can be achieved in several ways. A simple way is to cross train the workforce members outside of their normal business function and help increase an employees problem solving ability. In doing so, a firm is empowering its workforce to think about their function in a new way while looking for ways to improve and giving them an overall view of the entire firm, not just their single job. Only then will the proper inventory needs of the plant be truly capable of coming under control and part of a lean moneymaking enterprise. WEAKNESS OF JIT Just as JIT has many strong points, there are weaknesses as well. â€Å"In just-in-time, everything is very interdependent. Everyone relies on everybody else.† (Greenberg, 2002). Because of this strong interdependence with JIT, a weakness in the supply chain caused by a JIT weakness can be very costly to all linked in the chain. Communication is king in a JIT-rich supply chain. There is a risk involved with JIT when there is a communication breakdown and the company cannot generate the correct inventory needed to keep the just-in-time system running smoothly. CHALLENGE AT DELL Dell is known throughout the world as a leader in supply chain management and just-in-time (JIT) manufacturing. Relying heavily on a vendor managed inventory (VMI) model, Dell has nearly eliminated inventory cost while maintaining a JIT manufacturing strategy. Key to supporting this strategy is the ever changing and increasing number of suppliers needed to manage inventory for Dell. In 2002, Dell recognized that in order to continue scalable growth, significant process innovation would be required. After a thorough partner selection process, Dell issued a request for proposal to evaluate potential solutions to address this challenge. SWOT ANALYSIS Strengths: Direct Model: The Dell Direct model was the â€Å"engine of Dells success† (Rangan and Bell, 5). It gave it an advantage over its competitors as it was very hard to duplicate. The Dell direct model was about â€Å"low cost, direct customer relationships and virtual integration† (Rangan and Bell, 5). It was an efficient distribution system â€Å"characterized by build-to-order manufacturing, and products and services targeted at specific market segments† (Rangan and Bell, 5). Basically, this model allowed customers to call Dell directly and order exactly what they wanted in a PC (i.e., they could customize their PCs). It was only after the order was made that the PC was assembled and shipped to the customer in a relatively short amount of time. This Direct Model led to some other strengths Dell was known to have. Differentiated Products: Because of its Direct model, Dell was able to be described as having a differentiated product. Every PC assembled would be somewhat different from the previous based on customer order. This was an advantage for Dell since it enabled it to differentiate itself from its rivals and gain relatively more supplier power. Customer Service After sale customer service was another one of Dells strengths. A customer with a problem could reach a technical support staff through a â€Å"hotline that was manned 24 hours a day† (â€Å"Matching Dell,† 9). After receiving a call, support personnel would retrieve the file that contained details of the customers computer, and could help the customer solve their problem. In approximately 90% of the cases, the customer and support specialist could resolve the problem over the telephone using the â€Å"diagnostic software installed in the factory† (Matching Dell, 9). Customers were very satisfied with Dell and â€Å"rated Dells sales , products, and services highly relative to the competition† (Matching Dell, 9). JIT: Dells Direct Model allowed Dell to manufacture machines that were â€Å"tailored to customer needs† and based on Just-in-Time inventory (Matching Dell, 7). The company assembled computers based on customer orders and â€Å"held no finished goods inventory of standardized machines† (Matching Dell, 7). Holding no inventory allowed Dell to reduce its costs and have a competitive advantage over its rivals. Economies of scale: Dell is the greatest producer of laptops and therefore has economies of scale in the laptop business. In the United States, Dell had the highest market share in the laptop (and PC business overall) with a 24.8% market share, compared to 11.6% for IBM which was the second highest. Economies of scale allow Dell to have more entry barriers, and hence there was less of a threat of new entrants. Efficient Assembly Line: Dells assembly line was quick and efficient. The production process, from the day the order was made, to the shipping date, took only about a day and a half (Matching Dell, 8). This was an advantage for Dell because customers were satisfied with the amount it took for their product to be shipped to them. Weaknesses: Direct Model: Dells Direct Model could be seen as a weakness from another point of view. Dell assumes that its customers are educated, which is not the case for every customer. Dell does not provide a retail service which allows the customers to see their computers, and purchase them right away (advantage of retail is that it is time efficient from the consumer standpoint). Therefore, the model is limited because it cuts off a substantial part of the consumer market. Low market share in the International Market: Compared to its rivals, Dell had a low market share in the international market. In Western Europe, Dell only had less than a 10% market share, and in other parts of the world, Dell had a market share lower than 5% (Rangan and Bell, 23). This is a weakness because international diversification is very important. Since most of Dells revenues come from the US market, having a low market share in the international market is more risky today because of the effects of economic downturns. Limited laptop customization: Although Dell had an advantage in allowing customization within its PC industry, there was a limit to how much you could customize your laptop. Therefore, Dell was not much differentiated compared to its rivals within the laptop industry. Quality of Display: According to general customer opinion, Dells laptop has a weakness in its quality of display. The physical aspect of Dells laptops in general was not as great as Apple laptops for example, or even its rivals within the PC industry. Opportunities: European Market: Dell has an opportunity to increase its market share in the European market. Dell can increase its market share by providing simpler services to accompany its products. Dell now has approximately 10% of the market share in Europe, and could increase its share to between 20% and 25%. Indispensability of the Internet: The internet is becoming more and more of a necessity. This could be an opportunity for Dell to include wireless options on its laptops and could also consider incorporating Bluetooth. Mobility: Dell could consider focusing on producing more products that allow for mobility. As demand for mobility increases, Dell could take advantage of that to satisfy the customers demand. Growing Economy: Increasing growth in the economy is an opportunity for Dell to increase its market share and at the same time production as well. Since most of Dells revenues come from large businesses, a positive growth in the economy may increase demand for production. Threats: Increasing Demand for Innovation The threat with performance increasing each year is that there is a physical limit to how far you can go. People will soon be satisfied with the level of performance not to demand anything more, and are going to be more susceptible to other things such as prices, or quality of the product. If Dell only focuses on performance, this trend might be a threat in the future. Intensity of Rivalry: As performance increases, differentiation between brand names is going to decrease. Dells rivals are finding ways to increase their market share by replicating some of Dells advantages. For example, IBM recognized the advantages of direct distribution and launched initiatives to expand its own direct sales (Matching Dell, 10). Compaq saw the advantage of reducing inventory, and therefore took initiatives to do so. It â€Å"moved from a production system in which it built business PCs according to its own forecast to one in which it built according to forecasts made by channel members† (Matching Dell, 11). This change in production allowed Compaq to double its inventory turnover (Matching Dell, 11). Since its rivals are starting to â€Å"copy† its strategies, Dells strengths would no longer be advantages if this continues. Inability to innovate: Consumers are constantly looking for improvements in technology. If Dell fails to keep up with consumer demand, it can make great losses, and could lose a major part of its market segment. PDAs replacing laptops: Whether this is a threat or not is still unknown, but there is still a possibility that PDAs will soon replace laptops. Debates are made on whether or not PDAs are complimentary to or substitutes for laptops. If the case was that PDAs substitute laptops, it would be a threat to Dells laptop business. SOLUTION After a thorough evaluation, Dell selected World Wide Technology (WWT) for its ability to leverage key elements of previous supply chain experience, unique end-to-end systems offering and flexibility demonstrated by the proposed approach. Since 2003, WWT has been responsible for the procurement, inventory management and distribution of direct material classified as â€Å"Alpha† products integrated into Dells finished goods. Implementation of the WWT solution fundamentally changed how materials are delivered to Dell. Multiple supplier deliveries have been replaced by a single truck delivery containing all replenishment products arriving in 45 minute intervals. Using radio frequency (RF) devices, WWT Site Coordinators on the factory floor generate demand signals to the collocated distribution center initiating the pick, pack and delivery to the factory just prior to consumption. JIT AT DELL: People In the legacy environment, each supplier was required to provide an on-site resource to maintain inventory levels in the factory. Upon implementation of the WWT solution, WWT became the single partner providing resources on the factory floor, reducing the overall number of resources required to maintain continuity of supply. WWT also built a dedicated team of material planners, vendor managers and process consultants to ensure end-to end management and efficiency of the solution. Process WWT brought several process and technical innovations to the Dell team. First, WWT developed a suite of forecast, inventory and demand planning applications calibrated to fluctuations in Dells manufacturing process. Second, WWT opened distribution centers collocated with each Dell factory reducing lead times to 45 minutes or less. Finally, implementation of a RF based barcode scanning system used for product acceptance, replenishment requests and invoice reconciliation at the factory floor. These innovations while removing cost also provided much greater visibility and reliability relative to continuity of supply. Partners Key to the WWT solution was working with each of the legacy suppliers. Management of 40 suppliers with 40different processes and systems was a key challenge that the team faced. Leveraging technology, the WWT team was able to provide an integrated process for each supplier to receive orders, monitor forecast and reduce personnel cost. Also, by reducing entry barriers for suppliers wanting to work with Dell, WWT has been able to introduce a new level of free market competition further reducing SKU prices for individual components managed by WWT. RESULTS WWT successfully developed the needed systems, opened three initial facilities and put together a support team in just under three months. In addition, the project went live just prior to the holiday season, which is typically the most critical time of year for Dells business. A member of Dells supply chain management team noted, â€Å"Our new program with WWT has created new efficiencies and simplicity in our supply chain. Consolidating supply chain management with a single entity has eliminated a lot of waste.† Dell has been able to acknowledge savings across multiple business areas recognize overall SKU price reductions and experience a scalable process necessary to support Dells overall growth. Since the program began in 2003, WWT has added three additional distribution centers, added more than 50 suppliers, built a team of more than 100 people to support Dell and is expanding into Dells international manufacturing facilities. CONCLUSION: To conclude, in order for Dell to compete efficiently in the laptop industry in the future it needs to take advantage of all of the above opportunities. Consumers are becoming increasingly more demanding and price-sensitive. The next generation laptop must be consistent with the relevant trends affecting the industry today. If Dell succeeds in its attempt to make a product that fits the trends, it will probably still remain in its leading position in the future. REFERENCES: Article: Interview: Dell Pres: Phones, Computers to Stay Separate. The Wall Street Journal, February 18th, 2003.

Detective Fiction & Sir Arthur Conan Doyle Essay -- Literary Analysis

According to the English crime writer P.D. James (1920-) â€Å"for a book to be described as detective fiction there must be a central mystery and one that by the end of the book is solved satisfactorily and logically, not by good luck or intuition, but by intelligent deduction from clues honestly if deceptively presented.† (James. 2009: 16). This is traditionally conducted via a detective; a figure deployed within the narrative structure ‘whose occupation is to investigate crimes’ (Oxford. 2006: 202). Therefore detective fiction represents an enigma, a puzzle to be solved through an intriguing series of events and clues presented by the writer to its audience; that are taken on a journey through a process of reasoning, elimination and conclusion to solve a mystery. The narrative formula allows the audience to engage on an exploration of self-discovery as â€Å"the mystery’s solution supplies a temporary sense of self through which the reader is offer ed an apparatus for negotiating the boundaries that define identity.† (McCracken. 1998: 50). Detective fiction can be defined and situated into various different categories; â€Å"one is taxonomic†¦placing it in relation to other types of popular literature†¦Westerns, science fiction, spy tales and so on. John G. Cawelti’s (Adventure) has grouped these types into larger categories called ‘archetypes’ which are convenient for making an initial distinction between two major kinds of detective fiction, ‘Mystery’ and ‘Adventure.’ (Rzepka. 2005: 9). This raises the question of how detective fiction appeals to past and present audience’s and its position as part of a mass market publication in contemporary society. In order to answer this question it is important to briefly summarise the rise o... ...e for Policing and Crime. (2012) History of the Metropolitan Police. [On-line] Available from: http://www.met.police.uk/history/definition.htm. [Accessed 21st April 2012] Penguin Readers, (2008) A Scandal in Bohemia. [On-line] Available from: http://www.penguinreaders.com/pdf/downloads/pr/teachers-notes/9781405879347.pdf. [Accessed 21st April 2012] Project Gutenberg. (2011) Detective Fiction (Bookshelf). [On-line] Available from: http://www.gutenberg.org/wiki/Detective_Fiction_(Bookshelf). [Accessed 20th April 2012] Sir Arthur Conan Doyle Literary Estate. (2000) The Official Website of the Sir Arthur Conan Doyle Literary Estate. [On-line] Available from: http://www.sherlockholmesonline.org/. [Accessed 20th April 2012] The Sherlock Holmes Company, (2010). [On-line] Available from: http://www.sherlockholmes.com/. [Accessed 21st April 2012]

Mcbride Financial Services Marketing Plan Essay

The firm will specialize in conventional, FHA, and VA loans for home purchasing and refinancing. The company intends to expand its operations into Wyoming, Montana, North Dakota and South Dakota. † (McBride Financial Services website, 2003) According to their intranet site, McBride’s target market is: 1. Professionals purchasing either a primary or secondary residence. 2. Retirees purchasing a primary or secondary residence. 3. Families and/or individuals purchasing recreational properties. This document will review McBride Financial Services’ existing marketing approach and offer suggestions for focusing market research and what types of media to use. Additionally a review will be made of McBride’s target market and how the existing strategy relates to the marketing principles of the 4Ps and SIVA. Target Market McBride’s target market is professionals and retirees purchasing a primary of secondary residence as well as individuals or families looking to purchase recreational properties. They service the following states: Idaho, Wyoming, Montana and North and South Dakota. In addition, McBride is focusing on using state of the art technology in order to be able to offer their low cost mortgage services which means that the target market must also be willing and able to conduct are large portion of the mortgage application transaction using electronic means, i. e. Internet and email. Media types McBride’s current marketing plan, as listed on their intranet site, includes the use of the following media types: localized TV ads, newspapers, radio and realtors in addition to informational handouts available at airports and major tourist attractions. McBride’s annual advertising budget is $80,000. Given that McBride utilizes technology to reduce the cost of the mortgage application process, it is surprising that the existing marketing plan does not include an online advertising strategy. 4Ps The 4Ps are product, price, promotion and place. McBride’s product is low cost conventional, FHA and VA mortgages. The price for a credit report, the mortgage application, an inspection and appraisal is fixed at $1,500. Promotions are created through the above mentioned media types of TV, radio, newspapers and realtors and through informational handouts at the airports and at tourist attractions. The placement for the application process is via McBride’s website. Marketing Strategy The SIVA marketing methodology is defined as solution, information, value and access. According to Dev and Schultz (2005) this approach to marketing starts with understanding the market and the customers based on true and deep customer insights and then identify and clarify what customer’s value. Market research needs to be focused on identifying customer’s core wants and needs from a mortgage lender so that targeted value propositions can be created. McBride needs to adjust or change their services to align with the marketing research results. Additionally, McBride needs to focus on gaining insight from existing customers as to how to improve their services as well as potentially tapping that customer base for referral, perhaps by creating an incentive for existing customer’s to bring in new clients. Put another way, the market research should investigate McBride’s target market of professionals, retirees, individuals and families to create a solution (S) based on what those customer’s value. That solution can in turn be used to create multiple targeted value propositions (I) highlighting how McBride’s services address the needs and wants of their customers. McBride then delivers on the value proposition as determined by customer needs and wants gained in the research (V). The value is measured through both market research on potential customers and through feedback loops from existing customer’s so that solutions can continually evolve to better meet the needs of the target markets.

Proposed Market Entry Strategy Essay

1. Executive Summary The use of air conditioning is widespread since it does not only provide appropriate room temperature for electrical equipments that make internet and telecommunication works but also provide comfortable atmosphere for cooling rooms in a houses, trade centers, office buildings and many others. The situation reveals that air conditioning equipments have vital roles in society. However, the use of air conditioning devices is associated with high costs since they consume large power of electrical current. Under such circumstances, the development of efficient cooling and purifying devices become the next stage in the air cooling and purifying development. One of air purifying and cooling products available in the market is EnerVent ®, which developed by Northridge Enterprise. The company understands that to win customers’ hearts, there are four key features that EnerVent ® should possess; they are true Fresh air delivery, low costs and low heating air conditioning in compact design, high quality of air purifiers that are not merely circulating the same air in a room, and capability to eliminate harmful gases, mold, and germs. Concerning the issue, this paper has elaborated several issues concerning the market entry strategy for EnerVent ® including target markets, market potential, competitive market analysis, marketing objectives, marketing mix strategy (product, place, promotion, and place) 2. Introduction 2.1. Development of Air Conditioning and Purifying Products Nowadays, the discussion over the benefits of the sophisticated information technology including computers and telecommunications on business and communication is an endless topic in seminars or exhibitions. However, in order to work properly, such equipments need low-temperature in order to prevent overheating so that the use of high-power air conditioning is vast in the equipment rooms. In addition to the use of air conditioning devices for cooling rooms, they also provide comfortable atmosphere for cooling rooms in a houses, trade centers, office buildings and many others. The situation reveals that air conditioning equipments have vital roles in society. This makes sense since the use of air conditioning is widespread and easily found in almost every place that provide comfortable atmosphere. According to ARI CoolNet, air conditioning has several functional benefits as following: ï‚ § Providing personal comfort ï‚ § Improving productivity in the workplace where it relates to the comfortable place the air conditioning provides ï‚ § Increasing good medical and health services ï‚ § Helping vendors to preserve fresh and frozen foods like seafood, frozen potatoes, sausage an many others ï‚ § Protecting electrical equipment from excessive heating Since the use of air conditioning, previously called as manufactured air, is vital in day-to-day activities, it becomes a significant invention in human history. However, recent air conditioning or ventilation products do not end in the development of fancy casing or cooler temperature but also in several values added features. For example, the invention of Plasma cluster technology, which is capable of killing 99-percent bacterium and viruses including Aviation flue viruses, becomes the Sharps’ competitive advantage that generate revenue for the Japanese company’s air conditioning and cooling products including refrigerators, chillers, air conditioner, air purifiers, to name a few. However, the use of air conditioning products is associated with high costs since they consume large power of electrical current. Under such circumstances, the development of efficient cooling and purifying devices become the next stage in the air cooling and purifying development. 2.2. EnerVent ® Products EnerVent ® is manufactured to fulfill the need for efficient ventilation system that has several features including compact design (small) and lightweight compared to existing whole house and individual room air conditioning system. The EnerVent ® has favorable tagline that clearly target particular customers as following: There is nothing like fresh air from open windows on a Spring day. Yet high heating and air conditioning costs keep homes sealed tight to save money. Harmful odors, gases, mold, and germs stay in. Even quality air purifiers can only clean and circulate the same air. The EnerVent ® system offers the best of both worlds, bringing in and circulating out up to 12 true air exchanges daily without a significant energy penalty† The EnerVent ® jargon suggests that there are four features that the company concerns when developing EnerVent ®; they are Fresh air delivery, low costs and low heating air conditioning in compact design, high quality of air purifiers that are not merely circulating the same air in a room, and capability to eliminate harmful gases, mold, and germs. Concerning the size, Figure 1 shows example of several air conditioning designs that appear to be ‘usual’, large, and ‘compact’ design. (a) GMG (b) Delonghi Figure 1 Several Design of Existing Air Conditioning System Source: OK CHINA INDUSTRIAL LTD, 2007 In addition to size, competition in air conditioning system evolves into the provision of fresh air that circulate the true fresh air from the outside instead circulating the same air. This feature is significantly important since people have great concerns over the raising pollution because of industrial plants discard smoke, the forest fire, bad air-refreshing systems in a house, etc. Generally, air pollution in the U.S., to be precise, and other industrial countries is because acid rain in both the U.S. and Canada in which the US becomes a country that emits a large amount of carbon dioxide as the result of fossil fuels burning; limited resources of natural fresh water, water pollution due to pesticides and fertilizers (â€Å"Air pollution from other countries drifts into USA†, 2005). Concerning the capability of eliminating odor, EnerVent ® also present attractive features since the product is capable of eliminating harmful odors, gases, mold, and germs. In the market, this feature is best represented by Sharp’s Plasma cluster product as shown in the Figure 2. (a) Sharp FU40SEK (b) Sharp FU-S40TA Figure 2 Sharp Air Purifier with Plasma cluster technology Source: Callde, 2007; Pantipmarket, 2007 3. Target Markets Since EnerVent ® has particular characteristics that present the â€Å"true† fresh air to either â€Å"whole houses† and â€Å"individual room†, therefore, the target market for EnerVent ® is as following: ï‚ § Brand of Products : – True fresh air like one from open windows on a Spring day – Eliminate harmful odors, gases, mold, and germs stay in – Low energy consumption ï‚ § Customers’ Preferences : People who concern about the need for fresh air in a room that has capability to eliminate harmful materials at low operation costs ï‚ § Ages : above 25 (this is the age where people use their rational reasons when buying a product). This is important since home electronic industry are fulfilled with advertising that trick customers ï‚ § Income Levels : above $2,500 per month (considering that the price of air Purifying is above $100, see Figure 3) Figure 3 Air Purifier Source: Bizrate, 2007 4. Market Potential and Sales Forecast The market potential for air purifiers from EnerVent ® is people who concerns about the People who concern about the need for fresh air in a room that has capability to eliminate harmful materials at low operation costs. The description suggests that EnerVent ® target both high-end customers since they are more concern about complete features regardless the price and low-end customers since they concern about low-operational costs despite high ownership costs. For high end customers, they realize that air pollution is more influencing the children than adult. All of U.S. researchers open their study about finding the polluted air impact at the children. It is believed that air pollution make the children lung become smaller. This evidence assures that air pollution own the chronic impact. In addition, this impact will be permanent at all of the children until they become adult (â€Å"Air Pollution Might Affect Lung Development in Children, Study Finds†, 2004). Bad air quality give the negative impact to the environmental quality and the financial loss because of the air pollution is not small. Because financially, air pollution will improve the cost, which must be become the responsibility of society. It can be in the form of medical expense for pain suffered, decreasing of the work productivity as an effect of air pollution, and decreasing of the prosperity life. Due to the fact that air pollution may provide unfavorable condition for an entire family; therefore, Northridge Enterprise has wide market potential to sell EnerVent ®, the true air purifier. To be specific the market potential for EnerVent ® is as following: 4.1. Middle and High Class market, Offices and Buildings There are many considerations in the minds of consumers when they are buying air conditioning product. In most parts of the world, air conditioning is the consumption of middle and high-class families, buildings and offices. For these people, cost is not the prime factor of consideration. It is quality that concerns them the most. In the light of this consideration, the Enervent will only gain small portion of the market in this segment because there are many air conditioning products which have better features and higher capacity to regulate air in larger offices. The Enervent on the other hand, can only regulate air in a limited space because it does not have the capability of producing cool air as a regular air conditioning machine. There are however, mid and high class households and small offices that prefer to use air purifier because they like the natural atmosphere of their houses and offices. These are generally smaller establishments or places which have plenty, but small to medium-sized rooms. This represents an opportunity for Enervent to enter the medium and high class households, buildings and offices. The opportunity however, is very small compare to the entire market of air conditioning equipment in the medium and high class market. 4.2. Medium and Lower Income Families Air conditioning needs are not the sole demands of medium and high-class establishments. In the modern realm where people’s desire for quality has been considerably enhanced, the need for air conditioning spreads to the low income families and offices. This represents a better opportunity for Enervent to gain larger portion of the market. This is true because for low income families and low-budget offices, the cost of having a full fledged air conditioning system can be quite overwhelming. In previous times, they generally switch to air purifier products because they are cheaper and do not consume too much electricity. However, the presence of the Enervent creates new and better alternative. These people could gain better quality than average air purifiers and pay cheaper costs than the average air conditioner products (Ward, 2007). 4.3. The market for Air Regulator Machines The rapid development of economy in various regions of the world generated massive demands for air conditioning products. In some markets, the air conditioning products are displaying a rapid increase, like the Indian market and Saudi Arabian. They are potential markets because of their geographic conditions and their economic development. On the other hand, there are also markets that displayed declining tendencies in the air conditioning market development because of the over-crowded markets, like China. In Europe, United States and most of the Asian countries displayed stable or otherwise mild development in the air conditioning market (Wind of Change, 2006). The product is, on the other hand, a revolutionary product filling a niche between the high cost air conditioning equipment and the simple air purifier machine. In a sense it has similar but different markets than those of the air conditioner products. Because of the revolutionary nature of the industry, and the contributions from low income, middle and high class markets elaborated above, I believe that the product will take over approximately 5-10% of the air conditioning market in the end of the first year. Furthermore, being the sole producer of Enervent, then the sales number of the company will be similar to that percentage. For instance, if the US air conditioning market is worth US$ 1 billion annually, then Enervent will generate a sales number of US$ 50-100 million. 5. Competitive Market Analysis The air conditioning industry is a global industry. Most of the modern countries plus several of the developing countries witnessed rapid growth of their air national air conditioning industry. In Saudi Arabia for example, demands for air conditioners is the highest in the world. Analysts have stated that the Saudi Arabian market has become a unique investment opportunities for foreign investors. Although not exactly alike, similar rate of growth can be witnessed in India and other developing countries (Saudi Aircon, 2007). Despite the rapid growth of the industry, Enervent cannot expect to gain the full benefit of the market development. The direct competitor of Enervent is air conditioning itself. Despite their significantly higher prices, they have larger capacity of regulating temperature and the condition of large rooms. Modern air conditioning is also equipped with various features that do not exist in Enervent, like self cleaning device, etc. Furthermore, air conditioning has a better and more widespread reputation that Enervent, which is a new and unpopular product. The competitive advantages of Enervent against the direct competitor are price and efficiency. The product is considerably cheaper, lighter and more far more electricity efficient than the average air conditioning machine. Indirect competitor of Enervent is the cheaper and simpler air purifier. The low cost and electricity efficient device is also quite popular as alternative of air conditioners. They generate significantly less cost than the average air conditioner, but cannot act as a temperature regulator. Many considered that the air purifier and the air conditioner market is not the same. Nevertheless, they are the same. Air purifier is an indirect competitor of both the air conditioner market and Enervent. Enervent has the advantage of temperature control with similarly low cost and efficient electricity compare to the air purifier. In addition to the analysis above, there are also other factors in the air conditioner industry that generates opportunities for Enervent to grow, they are: †¢ The emerging new styles of offices In the modern world, people are not satisfied having the same offices as other companies. In order to facilitate such a need for creative office design. The trend toward more stylish offices generates more complicated buildings with less ventilation. Pursuing efficiency, more employees are stationed in smaller rooms. These conditions generated the need for larger capacities of air conditioning. This is logical because managers have realized that poor air quality in the workplace could result in lack of productivity and worse, sickness (Cunningham, 1986). The necessity for more air conditioning system generates more demands of air conditioning machines. However, because companies are constantly searching for ways to enhance efficiency, their attention turn toward products which can deliver similar performance in air conditioning with less prices and more electricity efficient performance. This leads to opportunities for the newly designed Enervent, an air conditioning machine which are significantly cheaper and much more electricity efficient (Piercy, 1982). †¢ New Competitors The highly competitive environment is created by various factors. For one, the amount of players within the industry also plays a great role in shaping the competitive atmosphere. In the air conditioning market, Far Eastern manufacturers have improved their manufacturing capabilities by cooperating with Japanese producers. The new entrants are expected to influence the European market aggressively by means of targeting an established distributor. These new entrants have significantly lower price structures, thus allowing them to deliver cheaper prices to consumers. This leads to harder and more competitive atmosphere in the industry of both air conditioning machines and air purifier machines. In a sense, this also influences Enerven as an alternative between the two products. 6. Marketing Objectives The hardest mission of a marketer in getting the product accepted and recognized within the local environment. The Enervent is a new product with revolutionary technology. Its first year in the market should be the year of promotion and market penetration. Therefore the marketing objectives should be: †¢ Establish presence in local environment There are various factors that could influence how a product will result revenues and profits within its market. Each local environment has different preferences of how products should be. It is important for Enervent to win the hearts of local society by collaborating with local culture and traditions. The failure to achieve that will create poor and undeveloped sales performance. Thus, one of the most important and early marketing objective should be how to generate connection with local markets (Korey, 1986). †¢ Discover new channel of distributions and marketing In the first year of marketing, new products should be brought throughout the markets using various channels and means of transportations. Getting to know the local infrastructure and how will it affect the business is very much important. Thus, discovering new channel of promotion and distribution is also an important objective (Koney, 1986) †¢ Create a distinction Establishing presence and discovering new channels are usually not enough to get the product running and generate revenues and profits. The product needs features or appearance that will differentiate it from other products. This activity is called brand designing (Keegan, 1989). 7. Marketing Mix In the following chapter I will use existing information to make an assessment of how Enervent should be sold. This assessment is important because it determines the shape of the business offering toward consumers. Re-designing the business offerings has been the core purpose of performing a marketing mix analysis. In terms of Enervent, the following is suggested: 7.1. Product Positioning Strategy Enervent should be well promoted to reflect capabilities of the new and revolutionary product. As implied in previous chapters, the product should be advertised as a brilliant alternative to air conditioning and air purifier. It is the combination of both worlds which brings the best of them. The product can also be advertised as the new revolution in air conditioning. The advertising campaign would have to generate the image that Enervent is the next generation of low cost, low energy air conditioning (Keegan, 1989). As mentioned in previous chapter, the product has different opportunities in different segments of the market. Therefore, there is a need to perform different emphasize on different segments of the market. In the medium to high-class households, buildings and offices, the company should focus on promoting the product as a smart replacement of the average air conditioning system because of its air temperature management capabilities and its low cost and energy efficient nature. This would attract those customers which prefer to maintain the naturality of their environments as mentioned before. On the other hand, in the low-income households and offices, the product should be promoted as the new generation of air conditioning. The product should be promoted as the new and brilliant evolution toward environmental friendliness and quality preservation. Because the company is forecasted to generate more sales in this segment, this characteristic of product positioning (as a revolutionary new generation of air conditioning) should be the main scenario of marketing. Other processes within the product positioning activities which require attention includes: paying attention to manufacturing specifications, labeling and packaging to represent the target market we are aiming and the position of our product. The product must also be tested first before it enters the market. Analysts also suggested that the product should be matched with its surrounding environment, whether in times of sale or distribution. For instance, products that travel through the road should contain different specifications and equipments to products that travel through air (Keegan, 1989). 7.2. Pricing Strategy In marketing mix, price is considered as one of the factor that contributes to the total value of product offering. Despite the high quality of the product, if the pricing strategy does no reflect value (which means the value gained from the purchase is greater than the value of money sacrificed for the purchase), then customers would not be appealed to the product. Price has been the most important consideration in buying air conditioner machines for years. Because of the highly advanced technology and the power needed to perform the task of regulating air throughout the surrounding environment, the average air conditioners cost quite a fortune. In terms of Enervent, I propose a new set of pricing considerations which emphasis on acknowledgement of the segments in which the product will be marketed. In other words, the pricing strategy should reflect discounts, bonuses, price competitiveness, etc. Nevertheless, managers cannot ignore the importance of having a valuable product. The psycography of customers sometimes generates new understanding over the behavior of consumers. For one, consumer often mistaken quality with price. Often we find that if we charge higher, people would buy the product more. Managers in charge of the pricing strategy must have considerable sensitiveness toward the behavior of his/her customers. 7.3. Distribution strategy Distribution is also a factor in marketing and selling products. Companies must have provided their officers with sufficient funding in order to prevent lack of funding in the delivery process. Often, the assignment on distribution is in line with order processing stages. In a sense, distribution is an inseparable part of order processing and the process is not over until the products are delivered successfully to customers. In terms of exporting the Enervent, managers of the distribution process should prepare all the necessary export preparation and documentation. Often shipments failed because of the lack of diligence in preparing the required documentation (Basche, 1971). Distribution management includes managing the cost of distribution. In we are to export Enervent as a part of our central operations, than it is important for us to assign the distribution cost to the recipient instead of to our own cost structure. Forwarding freight is crucial in distribution management. Managers of distribution process must also pay attention to other supporting issues like insurance and arbitration. The lack consideration of these small factors could generate problems in later days. In distributing the Enervent, we must also consider the fact that inventory support is crucial for distribution process. Inventory management and warehousing strategies must be accounted to the nature of the product to prevent losses or diminished product quality. 7.4. Promotional activities In terms of advertising and promotion, we have discussed the need to represent Enervent in different ways for different market segments. On the other hand, if reality forces us to choose, we must choose to represent the largest demands on the market. In the Enevernet case, this means promoting the product as the new generation of air conditioning. Promotions can be performed through ‘indirect forms’, like literature, direct mail, etc. There are also a more direct form of promotion which includes exhibitions and trade shows. Often, the presence of a good sales force is also influential to promotional activities. In marketing Enervent, managerial abilities to motivate sales forces are important to promotional activities. This is important considering the product is new in the market. Another way of motivating the promotional activities is by using agents. External agents who receive commissions are generally more motivated to do their job because of the compensation strategy. Reference †Air Pollution Might Affect Lung Development in Children, Study Finds.† 2004. 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