Cwts Experience

Hard to believe that that was the last session for our tutorial. Everything will fall back to where they used to be. No more Saturday bondings in the jeep with my fellow blockmates, no more exhaustion due to the long smoke-full travels to the location, and sadly, no more one on one moments with our tutees. Time really is passing in a fast pace. During that particular session, we were assigned to give our tutees an assessment test to make a conclusive report with regard to the improvement of our tutees.I prepared a compressed exam for Ar-ar which was composed of three different subjects: Math, English, and Reading. Ar-ar is very much having a diifficulty when it comes to reading. Well, a grade four student is commonly expected to have the capability of reading a simple passage. However, in Ar-ar’s case, his reading ability is not well-suited to the grade he is in. I am very much worried that he will have a hard time as he advances in the learning process due to his incompetency in reading. Comprehension is also his waterloo.This comes after reading so Ar-ar has a difficulty in understanding the meaning of sentences because his vocabulary skills is insufficient to supply him the meaning of words. Reading and comprehension are two of the most basic things that one must master because they are basically the groundwork of education. Mathematical problems will require reading and comprehension skills as scientific concepts and principles also do. But I believe that with great determination, he will still be able to improve his reading and comprehension skills.It’s never too late. Next week will be a culminating activity that will serve as a farewell activity for all of us. Though it will be a relief for us to have free weekends, I’ll miss this Saturday sessions without a doubt. Not only did my tutee learn from me, but I also learned from him. I learned so much about teaching as well. Patience, determination and confidence are three of the most im portant ingredients in teaching. It does not only entail the effort of one person.Effort must come from both the student and the teacher in order for a successful learning to come in. I am so much anxious with the last exposure next week. It really is saddening that everything is to come to an end. I wish I could guide Ar-ar all throughout his venture in learning however that can’t be a forever case because he has to learn things on his own. My only hope is that he will always put in mind everything that I taught him and that he will continue to possess the same passion for learning.

Ikea Strategic Brand Management

When people talk about furnitures, the first brand which comes to mind is IKEA. Originating from Sweden, IKEA first open shop in 1958, then in Norway in 1963 and soon after, it spread throughout the whole of Europe and thus slowly making its way to the whole world. With their biggest market in Germany with 45 stores followed by United States with 35 stores, now IKEA have 313 stores in 30 countries. (Cult Branding, 2012). Known for its simplistic design which has maximum optimization, IKEA product ranges from not only furniture but also different furniture segments such as kitchen cabinets, build-in wardrobe and much other furniture.IKEA strategic brand management in making the brand such a craze among its customer and thus leading to a brand value which is important for IKEA’s entire product line making IKEA one of the most valuable brand in the furniture niche. A visit to IKEA for either shopping or leisure would reveal several factors on why customers come back over and over again for not only products from IKEA but also the shopping experience from IKEA. Comparing a visit to IKEA with any other furniture outlet is different as one gets the sense of belongingness as the layout of every IKEA store makes one feels homely.It is so that customers can visualize their homes when buying IKEA products. IKEA’s interior designing team designed the rooms or kitchens in a way that people could visualize how their homes will look like before purchasing the product from IKEA making a purchase from IKEA a worthwhile one. Adding to that, IKEA made things different as its furniture and home furnishing shopping is differentiated so well, consumers who wanted specific products from specific departments of the home. Another value added to IKEA’s brand is about the design of the products.Eventhough IKEA’s product design are minimalistic, the products presents itself in an innovative way in such that it does not take much space and yet still being able to function better or on par with what the particular product will do which still look pleasant to house owners or visitors instead of a sore eye. For instance, IKEA’s simple Lackside coffee table might look like a dull one in black and white, but throwing in the colours made it fun to look it although an old school design is used.In a sense, that the designs are modern and traditional with functionality. IKEA’s products always come with a set of instruction manuals that are not complicated and are straightforward making IKEA’s product being easily assemble without much of hassle which in turn keep their prices low and reasonable to the range of products being sold. Making products in such way added value to the brand IKEA as furnitures are often regarded as comes in one piece or do it yourselves which is very difficult to assemble.Having products in low and reasonable price range, it is no surprise that the brand IKEA appeals to most people, primarily to young urban couples or families which do not want to burn a deep hole in their pockets in their investment of their first house. However, this does not mean that people on the middle income or higher income do not buy products from IKEA. IKEA produces products in such it varies in prices depending on its differences. Therefore, the brand IKEA is made stronger by introducing a variety of product ranges with different product prices which caters and fulfill to any level of income consumer’s need in the market.Despite having products at such low prices, this does not show that products sold are not of quality as buyers are given a sense of value to their household items but satisfying the customers saying â€Å"less is more†. Not only that, every single year, IKEA’s product prices are cut down even further which made it favourable for consumers who could not afford to get it the following year, thus making the IKEA brand also a favourable one. Taking things a few steps b ack, most of IKEA’s product are made of wood which somehow does not go well with the word environment in various ways. Therefore, waste reduction is a crucial key in production.IKEA’s designers and engineers strive to reduce the amount of material used and wasted in production of its furnitures. Additionally, many waste products are then used to make new products, which in turn further reducing overall cost both to the pocketbook as well as to the environment. Adding on to this, the Recovery Department is responsible for sorting and recycling all recyclable materials, including packaging broken down in-sotre as well as materials collected from customers at recycling donation bins where available. In conclusion, IKEA’s strategic brand management involves its retail and alue to be seen by consumers all around the world. Using differentiation to its advantage, IKEA differentiates themselves with other big home furnishing and furnishing outlets available such as Big Brand, Darby and Vandrie through products which are innovative, quality and yet low in prices. And thus, living to its tagline â€Å"affordable solutions for better living† says it all. (IKEA 2012) References Cult Branding. (2012). The IKEA Cult Brand Profile. The Cult Branding Company. Retrieved from http://www. cult-branding. com/ikea-cult-brand-profile IKEA (2012). Welcome to IKEA. Retrieved from http://www. ikea. com/

Develop a Coherent Marketing Mix for a New Product or Service Essay

In this assignment, I am going to describe and explain how Apple uses the marketing mix for one of its latest product, a mini IPad. Marketing mix Marketing mix is commonly known as the 4Ps: product, price, place and promotion. These are controllable element and it importantly use when determined and adjusted until the right combination that serve the needs of the product’s consumers. Description of the product The product I have been chosen is one of the latest product of Apple which have been released during November 2012, the mini IPad. This new IPad is available in two models, one with Wi-Fi and another is Wi-Fi + cellular. The IPad mini has two colours which is black and white and the price range is from  £269 to  £529 Target market The target market that chosen for the mini IPad is male and female between the ages of 19 to 49, those that are currently in further education or in employment. Also, it is also targeting at Apple loyal customers. The reason for this market group is because, people between the ages of 19 to 49 are more likely to use high technology product. Especially with people who are in education and employment because they will need to use tablet for works purposes. Product life cycle When developing a product, Apple must consider factors such as, customers’ wants and needs, the physical appearance of the product, the quality and reliability of the product.  All products must go through a product life cycle which is an important concept in marketing. The product life cycle describes the stage that many products must go through. However, many products will not be able to reach to the final stages because of decrease in demand of product failure. The four stages of the product life cycle are; * Introduction – researching, developing and then launching the product * Growth – when sales are increasing at their fastest rate * Maturity – sales are near their highest, but the rate of growth is slowing down, e.g. new competitors in market or saturation * Decline – final stage of the cycle, when sales  begin to fall Reason for chosen product The reason that I have chosen the mini IPad is because; the mini IPad is one of the latest technologies available in the market at the moment. Moreover, it is also because, all the applications are available and easily to download from the Apple store that have been built in with the mini IPad. Plus, the mini IPad is light in weight and with the Wi-Fi and cellular connection available it is very easy to carry along. Therefore, this mini IPad has been designed to meet many of customers’ requirements of an ideal table which are; efficient, portable and easy to use. Another reason that made me to select out this product is because of its attractive appearance. Apple has designed this product to meet both genders as the mini IPad is available in two colours; black and white. Normally, the attractive classic black is an option for male while the stylist shinny white is for female. The appearance and packaging of the product is important because the consumers must look at the appearance first before knowing the quality of product. So, if the mini IPad is badly presented its may not be able to catch customers’ eyes. Moreover, one of another important reason for chosen the mini IPad is because, Apple is popular for developing quality and high performance product that can last for long time therefore, it is very likely that the mini IPad are also to have a high quality performance. Pricing Out of the 4Ps, price is the only element which creates sales revenue for Apple while all the others Ps are costs. . The price of an item is clearly an important determinant of the value of sales made. Researching consumers’ opinions about pricing is important as it indicates how they value what they are looking for as well as what they want to pay Pricing strategies is not an easy for business including Apple, to determine because the price must be reasonable and appeal to the target market. Within pricing strategies, there are three factors to its; cost based pricing, customer based pricing and competitor based pricing. Cost based pricing is when price is determined by adding a profit element on top of the cost of making the product. Customer based pricing is where prices are determined by what Apple believe customers will be prepared to pay. While competitor based pricing is where competitor prices are the main influence on the price set. Currently, the price range of the mini IPad is from  £269 to  £529. This price range is determined based on the combination of cost and customer based pricing. It is based on the cost based pricing because, people who are actually buying the mini IPad are not interested in the production cost of the product but instead, what they are interested in is the value which the mini IPad provides them. Moreover, it is also considered as customer based pricing because, the price range of the mini IPad is considered as a premium price for a tablet. However, demand for the mini IPad is still high because mini IPad are seen as quality product and people are obsessing about it so they are willing to pay at the high price, therefore the price for this product is seen as reasonable for the target market. Promotion Promotion is all about communication, the process where businesses tried to raise awareness of products to the customers. Therefore, the main aim of promotion is to ensure that customers are aware of the existence of the products and also, persuade and encourage customers to buy the products. Normally, business would use AIDA model for its promotion. AIDA stands for; * Attention : A process when Apple need to attract and grab the customers’ attention by having a standing out point. * Interest: A process where Apple need to create interest in the mini IPad by demonstrate its advantages * Desire: A process where Apple need to move from discussing benefits to specifically how those benefits will help that customer. * Action – A process of getting the customer to buy the mini IPad. Promotional mix Furthermore, there are many types of promotional mix which is promotional methods for Apple to choose from. Example of promotional mix are includes; advertising, personal selling, public relations, direct marketing and  special promotion. Not all businesses are using the same types of promotional mix so in term of Apple, because the mini IPad is a premium product, Apple is less likely to do a special promotion such as buy one get one free. But instead, promotional mix, that Apple would be using are like advertising. Because Apple is a large global business with high profits figures therefore, they are more likely to use expensive type of advertisement. For instance, a television adverts during a prime time slot, electronic billboard and whole page print advertisement on Guardian newspaper. Similarly, Apple are also likely to use direct marketing which is a channel agnostic form of advertising that allows Apple to communicate straight to customers via text message, website and email. As evidences, if people are to visit Apple webpage and sign up for newspaper, they will definitely find information about all new products of Apple including the mini IPad. Place Place in marketing is also known as distribution channel, a location or methods where customers can buy what the businesses is offered. So, the main objective of place in marketing mix is to make products available in the right place, at the right time. So for example, if there are no Apple stores in London, many consumers would not bother to go all the trouble to buy the mini IPad. Distribution channel can be direct transaction between Apple to consumers but, it is can also be from Apple to retailers like Tesco then to consumers. Moreover, there are many distribution methods that business can choose from and each one of the business choose a different way to approach it to their customers. For example, market stalls, online, and stores. When Apple are to consider to select their distribution channel, they are certain factors that they must aware of. The first factor is market segment, so a place that must be familiar with the target market. Second factor is changes during the product life cycle as different channels can exploited at the different point. The third factor is the amount of training and support the distributor requires. In term of Apple, because they are a global business so, they are currently having many channels to distribute its mini IPad. The most common channel is through the Apple store that available to visit across many cities. However,  because demand for Apple’s product is too high, many consumers now prefer to pre-order and buy the product online which is much quicker and efficient. Conclusion In conclusion, all of the 4Ps elements of the marketing are to have a major impact on the mini IPad, therefore it is recommend that Apple must always careful with it.

Analysis of the National Preparedness System Assignment

Analysis of the National Preparedness System - Assignment Example As a result, they are in a better position to prevent, protect, mitigate, respond to as well as recover from different hazards and threats.   In addition to providing the security to the citizens, the US government is focused at creating strong positive relationship among the federal, state, and local government as well as other bodies in order to ensure disasters are properly handled. One of the key themes that have been adopted in order to deal with the core capabilities as stipulated in the National Preparedness Goal is engaged partnership with the whole community (Jaffin, 2008). This theme indicates that culturally effective communication among all the agencies, international partners as well as the whole community is vital. Scalable, flexibility and adaptability is another theme that is adopted by the core capabilities in order to make them executable. The national prevention framework as one of the frameworks, overviews roles that the whole community should do upon discovery of a threat to the homeland security. Notably, the framework provides guidance to the practitioners as well as the leaders at all the levels of government on how to avoid or stop a threat. First, it aligns roles and responsibilities to create a prevention capability in conditions that are time sensitive. Secondly, it describes coordinating structures that ensure all the stakeholders work as a team. By creating a strong connection between the national-level coordinating structures, for example, the National Operations Center, Office of the Director of National Intelligence, with Field coordinating structures such as Field Intelligence Groups the country is able to handle  imminent acts of terrorism.  

Listening to Children and Young People Term Paper - 1

Listening to Children and Young People - Term Paper Example Professional listeners who will be able to understand the problems the children are having should be able to interact with the children and young persons who are under the care. This will not only help in diagnosing their problems but will also help these children to be able to overcome their issues as they are looking for a way to let out their frustrations. Most of the problems that these children have can be addressed by listening to them and giving them an opportunity to convey their emotions. As Richardson and Joughin (2000) say, there is, therefore, a need to know how the children and young persons with a psychiatric disorder can be helped to live their lives positively with their disorder while at the same time using their competencies and experiences to live normal lives. The local authorities work with designated teachers to be able to help look after children, especially those with mental problems (Golding, 2006). Looked after children usually are children who don’t have families or they may have families that are not adequate in the way they support these children. In this case, those who are mandated with looking after these children should offer the parental support that such children will require. Each year, the number of children under care increases, and this is increasing the social problems in every society. Looked after children are also part and parcel of the society and it is increasingly crucial to look at their issues so as to ensure the society has fewer people with social and mental problems. Schooling is not about going to school and acquiring academic and professional skills, but rather is also a process for building social and personal skills through making friends and creating personal relationships which will help the student to be a well-rounded person.  Ã‚  

Response to 4 students postings with 60 words and 2 references for Coursework - 2

Response to 4 students postings with 60 words and 2 references for each response - Coursework Example The writer presents his findings from an approach whereby he looks at how and why both validity and reliability can be determined by using basic tests and scales. Moreover, the combination of more than one scale at a time is highlighted (OConnor, 2011). This was an important aspect for the writer to have covered because clears researcher who may have some doubts with introducing new forms of scales with an existing scale they may be dealing with from their doubts (Gardener, 2009). An important perspective of the writer’s work has to do with the fact that he stated off by taking more about the advantages of using scales. In this, he explains that scales are used to â€Å"resolve the complexity inherent in people’s behavior† (Frankfort-Nachmias and Nachmias, 2008, pp.422-424). By this, researchers get a first hand information as to the need for them to settle for one form of scale or the other. The writer could however elaborate more on the weaknesses of using specific scales so that researchers can be on the lookout for these weaknesses and address them appropriately in their research processes (Gardener, 2009, p. 232). Much of the focus on the measurement of the validity with the use of scales was narrowed to the population that the researcher has to deal with. In this, the writer emphasized that the population is the accessible group of people that the researcher would have to be dealing with (Experiment Resource, 2011). By this, other researchers are offered an insight into how well to manipulate their populations to ensure that they achieve reliability and validity for each kind of scale that they choose (Gardener, 2009, p.

Language of art, 3D art, photography Essay Example | Topics and Well Written Essays - 250 words

Language of art, 3D art, photography - Essay Example This is exhibited by both photographs illustrating a scene that is drenched in death as the people within the scenes are consumed by fear and brutality. Both of these photos look like they could have come out of a Hollywood movie in that they are presented in black and white, and the photographer has frozen a moment of action where the viewer is left to wonder what happened next, or even to wonder what happened in the first place. I think that these two photos made such a big impression on me because of the fact that, although it shows such horror in them, I noticed that the photos were more interesting to me than horrifying. I think that this illustrates the desensitization to violence that occurs in America. Everyday, people are bombarded with violent imagery in television shows, books, movies, and advertisements. This has ended up causing a culture which is merely interested in violence rather than repulsed by it. It would be interesting to see how a person reacted to these photos when they were first published in comparison to a person in the 21st

The Influence Of High-Stakes Standardized Assessments On Pedagogical Essay

The Influence Of High-Stakes Standardized Assessments On Pedagogical Practices - Essay Example While evaluation has been a division of education for an extended time, Schoenfeld (2004) says that the existing augmented importance on consistency of curriculum and evaluation is exceptional. The author surveys changeable standpoints on evaluation considers the functional evaluation plays and then assess arguments on both sides of the discussion taking into consideration the present high-stakes testing surroundings which is fitting an essential constituent of education all around the world. As a final point, a debate of the suggestions of increased evaluation and chiefly that of high-stakes testing within the education prospectus discloses that noteworthy portions of imperative education conclusions are minimalized or unobserved because of the importance on standardized testing. Well on the system to apt a culture based on information, we are hearing progressively about the regeneration of education and confronts we face in changing the objectives and substance of the teaching/learning procedure (Wagner, 2005). The expression inventive is frequently used when we converse about fresh pedagogical methods and inventive educators who symbolize a divergence from conventional didactics. Efforts to begin modification in the classroom have got to now also add in the use of scientific resources that have enthused the beginning of the information society. Keeping swiftness with the progress of the age, AV equipment, computers and additional tools of communication have progressively established their place within the walls of enlightening institutions and the procedure of reorganization pedagogical practice. The manifestation of technological speculates and their exercise in the field of education, though, can not mechanically be looked upon as pedagogical innovation. Is it at all probable to describe the expression, and if so, how Education researchers are inquisitive about the response to this question when they evaluated the function of Information Technology in the ground-breaking pedagogical practice of different countries. Previous to assessing knowledge and opinions in association with ground-breaking pedagogical practice, it is worth investigative how the educational system of the culture is making the changeover to single based information. The altering roles of schools, students and parents in the course of education are vibrantly demonstrated by researchers in the following chart. Role Education in the developed Society (the conventionally significant paradigm) Education in the Information culture ( the promising paradigm) School out-of-the-way from society incorporated in society the majority information on the purpose of schools is not to be mentioned Information is candidly obtainable Teacher Initiates teaching Helps students find suitable pathway of teaching Teaches whole class Guides students' self-governing

Art work Essay Example | Topics and Well Written Essays - 250 words - 1

Art work - Essay Example It belongs to the Metropolitan museum of Art. The credit line to this piece of art belongs to George A. Hearn Fund, 1957. Judging from this piece, I get to realize that Jackson Pollock was a prime champion of his time.by standing before this abstract painting and many others that he has done, one can observe his level of fineness. One immediately realizes that he was the greatest painter America ever produced. My attraction and appreciation of this piece shows my love for abstract painting. My desire to produce such fine work is engraved to the feeling of desire to achieve the levels of success that Jackson did. It also shows my belief in expressing emotions efficiently through abstract painting. The metropolitan museum of art. Autumn Rhythm (Number 30) Jackson Pollock  (American, Cody, Wyoming 1912–1956 East Hampton, New York): retrieved from http://www.metmuseum.org/Collections/search-the-collections/210009206. Retrieved on

Financial Systems and Auditing Essay Example | Topics and Well Written Essays - 1500 words

Financial Systems and Auditing - Essay Example The auditor's responsibility is to form and express an opinion on the company's financial statements, while the entity's management is responsible for the preparation and presentation of financial statements. Audit in general may include the entire examination of the unit's organization, the system as well as the function including the evaluation if the audit complied with significant laws, its rules and regulations. The audit must also be in compliance to the applicable policies of University, there should be internal controls' adequacy and the operations' efficiency and its effectiveness. The focus of the audit is to determine the adequacy of procedures and the company's internal control. The adequacy in procedures is indeed a great help for the purpose of ensuring the system's objectives, the function of the company and to achieve the unit's effectiveness and efficiency. The adequacy of control is also preventing the outcome of occurrence and therefore unwanted. The available financial records in an audit are audit statements, bond issues, budget, the annual comprehensive financial reports and other financial reports. The audit statements should be selective in terms of the statement's type, not just only with the objects of specific schema where the company operates but the options must be broad in terms of the use of auditing and the consideration with the options of related actions. The audit statement must be for users' selection for the purpose of tracking several statements. Bond issues maybe through underwriting which is usually the common process. The underwriting of bonds includes one or more securities of firms and banks forming the syndicate buying the bonds' entire issue coming from the issuer then reselling to the investors. The bonds of government are said to be auctioned.Another record of the company that needs to be audited is the budget. Budget is the detailed plan, expressed in quantitative terms that specify how resources will be acquired and used during a specified period of time. Budget should be audited in order to find the most profitable direction which the operations can take and in order for the company to develop in detail the balanced and coordinated program in direction and to assist in controlling the operations in the execution of the said programs. Budget must have the complete support of top management and it must be realistic and the goals must also be attainable. The Financial Report is the statutory basis that must be prepared for audit purposes wherein this can be meeting the requirements of state finance law in order to present fairly the results for computing and certifying the Stabilization Fund' balance and the fund for Tax Reduction to report and disclose the aspects pertaining to the financial performance. The importance of other financial r

Custom Gear Inc Edited Essay Example for Free

Custom Gear Inc Edited Essay 1.1 INTRODUCTION AND COMPANY BACKGROUND Custom Gear Inc., in Philadelphia, Pa., is a manufacturer of custom made gears ranging in weight from a few ounces to over 50 pounds. The gears are made of different metals depending on the customer’s requirements. Over the past year 40 different types of steel and brass alloys have been used as raw materials. Custom Gear sells its products primarily to engineering research and development laboratories or very small manufacturers. Recently the president of Custom Gear decided to accept a few larger orders for more than 100 gears. Although lower prices were accepted on these orders, they helped pay the overhead. It was found that the large orders caused many of the small orders to wait for a long time before being processed. As a result some deliveries of small orders were late. This report will write on the major problems that arises from the Custom Gear operation, the potential solutions, theories that can be applied in the case study and lastly but not least the conclusion. 2.1 PROBLEMS The root cause lies within the company’s policy. The company allowed the customer to change their design even after the production process has already started. This has contributed to the delay of the production. Other than that, the operation layout was designed ineffectively and inefficiently leading to an increase in their lead-time. Several major problems are identified from the root cause such as lack of processing policy flow, lack of order policy, and ineffective and inefficient layout as well as increase rate of return due to defective product. 2.1 Lack of Processing Policy Flow Lack of processing policy become a burden to Custom Gear where it allow the customer to changes their design even after the production process started. When the customer change the whole blue print, the production of that product will have to stop and wait for new design and raw materials to be clarified and arrived which delay the whole production process. Figure 2.0: Operation Process Flow The process in Figure 2.0 started when a customer wishes to order a gear, the order is taken by sales manager and marketing vice president (James Lord). The customer will specifies the type of gear, quality and raw materials desired by submitting a blue print. Once the order are received, 1 copy is sent to the production supervisor (Joe Irvine), and 1 copy is sent to the controller (Sam Smith). The controller will purchase the order for the raw materials required. These materials often take from 1 to 2 weeks to arrive, depending on the supplier and the type of material ordered. After receiving the raw materials, the supervisor reviews the order received before the starting the milling machine. The raw material, a gear blank, is sent to the Milling Work Centre. In the Milling Work Centre the teeth are cut into the edge of the gear according to the customers specifications. After that, the gear blanks are sent to the Drilling Works Centre, where one or more holes may be drilled in the gear. Then the gear will sent to the Grinding Centre which the gear will do the finishing by put on the gear teeth and the surface of the gear. Next, the gear may be sent to Heat Treating if this operation is required by the customer. After the batch of gears is completed, they are inspected by the next available worker and shipped to the customer.

Erasmus, Praise of Folly Essay Example for Free

Erasmus, Praise of Folly Essay 1.) In Joe Sachs translation of, Aristotle’s on the soul and on Memory and Recollection, we are presented with the idea that our soul is broken up in to the contemplative and the practical forms of intellect. We use our contemplative and practical intellect to identify what is good for us, so that our desires reflect our needs. Although, they both work towards the same goal, both are separate and depend on ineffable forces for success. The contemplative intellect is fueled by our curiosity for knowledge. Aristotle was a major believer in contemplation because he believed that living a contemplative life is how humans should live. A contemplative life allows humans to lead a morally sound life. The more humans engage in contemplation, the closer they are to their gods and the happier they will be. The contemplative intellect is our capacity to determine the potentiality of the practical intellect. The practical intellect is our response to our contemplation. Contemplation can prolong political disasters and prevent us from using practicality. But, we have no choice but to contemplate because to understand we must contemplate and to act morally we must be able to understand. Being able to understand is being able to grasp the potentiality of something. Misunderstanding something’s potentiality is the reason leading a practical life is more difficult. It is human nature to contemplate. Distinguishing the two intellects is tricky because Aristotle stresses that we are one soul part of a larger one. However, if it is the same soul producing practical and contemplative intellect, how can life be divided into these two things? Our individuality controls our actions. So, our contemplative is what makes us what we are and our existence is the reason we act (practical). Practicality and contemplation are distinctions within our intellect. Contemplation is to be looked at as human nature, it helps us understand. Understanding gives way to the practical intellect. These two separate intellects not only involve different unknown forces, but they also utilize different types of motion. Practical is a physical motion, while contemplation is a motion in the sense that whenever we are thinking and contemplating, we/our minds are in motion. The soul seeks truth. Contemplation leads us towards the truth, while practicality is a truth. These intellects are virtues in different parts of the soul. To acquire happiness one must have moral virtue to choose correctly and practicality to choose ‘how.’ For example, one might attain the knowledge, facts, and actuality of how to ride a bike. But, knowing those facts does not determine your potential to ride the bike. Aristotle provides an affective example, â€Å"There is something that has knowledge in the way that we say any human being is a knower, because humanity is part of the class of what knows and has knowledge, but there is also a sense in which we mean by a knower the one who already has, say, grammatical skill; and each of these is in potency but not in the same way, but the former is because his kind and his material are of a certain sort, while the latter is because he is capable of contemplating when he wants to, if nothing outside him prevents it† (417a 23-30 Aristotle). Aristotle tells us the there are different types of potentiality and actuality here. This example demonstrates a ‘knower.’ A knower would be human, know grammar, and talking (exercising knowledge). This example is important in the distinction because it describes the process and the different roles of contemplation and practicality. The contemplative intellect, in this case, would be that the knower is human and has potential without actual knowledge. The knower, with grammatical knowledge, has this knowledge but is not thinking about it. The knower would be exercising knowledge through recognizing grammatical errors in conversation, readings, etc. In the two most previous instances the knower uses their practicality intellect because their actual knowledge of the grammar is their potentiality to think and perform actions. Contemplation allows us to do, think, and imagine anything we want within out minds/soul. â€Å"†¦The soul is a being-at-work-staying-itself in the way that knowledge is, for both sleep and waking are in what belongs to the soul, and waking is analogous to the act of contemplating but sleep to holding the capacity for contemplating while not putting it to work (practical).† (412b 26-30 Aristotle). Practicality can only utilize what is physical and in front of us. Aristotle The connection between these intellects demonstrates Aristotle’s belief that every body contains a soul and the soul is not separate matter. It is a capacity, it doesn’t have a capacity and is inseparable from the body. The soul has no identity. Aristotle believes we are all individual human beings, made up of different forms and matter. But, there is one soul that is in all of us, equally. No one persons soul is ‘better’ than another’s. This is important in the distinction because contemplation takes place in the soul and practicality is what we do with the connection between our soul and body. 2. ) In Erasmus’, Praise of Folly, the character Folly is used to express Erasmus’ philosophy. Folly states that the actions of different people are foolish and she is congratulating them, she calls wisdom foolish and the fools, wise. Throughout the book Folly, with sarcasm and satire, demonstrates the main forms of folly in order to show the importance of folly. Erasmus wanted to share three main forms of folly in his writing. The first form being, the fundamental form of folly, which is the force in our life that is indescribable. This form mainly refers to religion and faith, but also the folly in any belief of a higher/greater good. The second form is the human folly. In this form, Folly mocked those who deem or consider themselves wise or philosophers. She picked on mainly prominent people, anyone who thought they were better because they knew more about something. The third form is best described by egotistical, hypocritical, and greedy folly. This form depicts the folly of the self-centeredness of humans. Erasmus as Folly illustrates how the Christians appear foolish at first, yet actually possesses true wisdom. Folly quotes the Bible repeatedly to prove her point. She uses the passages to show how folly is good. Within these passages, Folly says that the bible, values fools more than the wise. For example, Adam and Everwere forbidden to eat from the Tree of Knowledge, but they disobeyed. Thus, knowledge destroyed their happiness. Folly describes the Christian fools as those who, â€Å"squander their possessions, ignore insults, submit to being cheated, make no distinction between friends and enemies, shun pleasure, sustain themselves on fasting, vigils, tears, toil, the humiliations, scorn life, and desire only death – in short, they seem to be dead to any normal feelings, as if their spirit dwelt elsewhere than in their body† (p. 128 Erasmus). Folly deems Christians slightly mad because of their view on life, and how they are so focused on the spiritual and eternal that they barely live. Erasmus contradicts Biblical truths when he is speaking as folly and expresses that life would be meaningless without folly. Our world, especially in the United States, relies on instant gratification, but the Bible clearly teaches that those kinds of things will pass away and are not important. Erasmus challenges Biblical truths when he praises ignorance, self-loveand flattery. This goes directly against the Bible, which speaks out against these kinds of things. He explains that the piousness of Christians is madness. In the second form, Folly takes the prominent professions of her time and shows their folly. She begins with merchants, who she describes as liars and thief’s yet they are still respectable citizens. Next she attacks a grammarian, â€Å"He supposes he’d be perfectly happy if he were allowed to live long enough to define precisely how the eight parts of speech should be distinguished, something in which no one writing in Greek or Latin has ever managed to be entirely successful. And then if anyone treats a conjunction as a word with the force of an adverb, it’s a thing to go to war about† (p. 80 Erasmus). Folly describes the schools as dirty and a waste of time. He believes the teachers teach useless information, but still feel important. He goes on to poets and rhetoricians and deems their professions purposeless. The narrator’s particular target is the church, â€Å"as they roll their rock of Sisyphus and string together six hundred laws in the same breath, no matter whether relevant or not†¦.However, their self-love keeps them happy, and three syllogisms arm them enough to go straight to battle on any subject and with any man† (p. 84 Erasmus). These foolish men explain the ‘mysteries’ of life and the Bible according to themselves. Even the monks exude folly. They take vows of poverty and claim to hate money, but still take part in other vices. This form of folly reminds us to not mask ourselves to make us look better. Just because a merchant is respectable profession, doesn’t make that specific merchant respectable. If a monk gives up his money, does that mean he has no other vices? â€Å"†¦why shouldn’t I rightly be recognized and named the ‘Alpha’ of all gods, when I dispense every benefit to all alike?† (p. 19 Erasmus). Folly allows life to continue because men must become silly fools to do it. Without her, she exclaims, couples would be married, and women would not repeat childbirth. Without the pleasure Folly gives to life, it would not be worth living. Folly accuses the stoics of attempting to keep all the pleasure for themselves while commanding others to avoid it. As an example, Folly uses childhood and old age. Everyone loves children because they are foolish and innocent. Age and life experiences only fade their beauty and charm. Thus, in old age Folly recognizes a second childhood, freeing us from the worries of life. With old age comes foolishness and senility, which allows them to be happy. These silly old people are much more fun to be around, then a wise old person. â€Å"’Folly is the one thing which can halt fleeting youth and ward off the relentless advance of old age’† (p. 25. Erasmus). Folly discovers that we use passion over reason, â€Å"he (Jupiter) confined reason to a cramped corner of the head and left all the rest of the body to the passions. Then he set up two raging tyrants in opposition to reason’s solitary power: anger, which holds sway in the breast and so controls the heart†¦Ã¢â‚¬  (p. 30 Erasmus). Folly is logical, when our human nature puts passion over reason. Folly concludes her praise of folly with a comparison to Plato’s, Allegory of the Cave. A man who lived in a cave by firelight his whole life, one day saw sunlight. But, the two men that remained in the cave, who would seem foolish, are equally as happy with what they believe is real. 3.) Aristotle makes a better case for his outlook on human life. It is important for humans to feel important and feel like they belong and have a purpose. Aristotle’s idea of the one soul, not only offers a sense of unity to the human race but also deepens the mystery of our existence. It is in contemplation that we find happiness, whether we contemplate our future, our past, or the present. Human happiness is rooted in human interaction and contemplation allows us to create commonality and it develops culture. Although the truth of folly is important in understanding human incentives, it is in our intellect that we can find harmony. Folly in itself is a folly. It pokes fun at the ignorance of human lives. Being foolish is innate in our nature. When do people have the best times? When they laugh and feel enjoyment from company. Our folly makes us human, it is necessary for our happiness. Erasmus presents folly as a much more bleak and pessimistic attribute. When Aristotle describes the soul it is much more pleasing. He stresses that sources/forces like God, are ineffable. These higher powers cannot be identified or described, but to believe in it reassures us that we are meant to be here. Without this mysterious force, who are we? Why are we here? It is our nature to feel wanted and have a purpose. We attempt to find this purpose through contemplation. This is a major aspect of human life. It forces us to look deeper and attempt to act morally. Humans are at their highest potential when they contemplate. Contemplation is a completely isolated process and helps us understand and perceive the world. This ability drives us and helps us advance. In personal experience, I find it is important to really think, ponder, and contemplate the things that make me happy. I can then decide if that is a practical thing to do or if I need to change what makes me happy. For example, drugs may make someone happy in their contemplation, but is that really what they want? Erasmus and Aristotle have contrasting outlooks on life. Erasmus is very realistic, sarcastic, and satirical. While Aristotle reaffirms that it is all right to contemplate the unknown. Aristotle brings us to higher level of thinking and helps us strive for a happier and morally active life.

A transaction cost analysis of the apparel industry

A transaction cost analysis of the apparel industry The gradual integration of global economic markets bears many challenges for companies which continuously attempt to adjust to changes in their business environment in providing value to customers. In many industries and in particular the apparel industry the supply chains through which firms operate have become increasingly dispersed and global (Gereffi, 1999). With post crisis consumer spending still unstable and cotton prices  [1]  having increased by more than 160% since March 2010 (see figure 2 in Appendix E) apparel retailers see their margins eroding. Simultaneously, short product life cycles, volatile consumer preferences and fierce competition on price and quality through an increased availability of low cost manufacturing  [2]  make it difficult for retailers to sustain a competitive advantage. Since the 1990s, many retailers have shifted the arena of competition to timing and know-how or simply put on supply chain management in trying to reduce the risk of mark downs, stock-outs and high inventory levels inherent in the supply chain (Hammond Kelly, 1991, p. 1; Richardson, 1996, pp. 400-401). It is a general opinion that it would be optimal in terms of cost and flexibility for retailers to source apparel from independent suppliers likely in low-cost countries. This seems to be valid for the mom-and-pop stores around the corner as well as for two of the worlds largest apparel retailers The Gap and HM. At the same time, we see Zara and Benetton who partially produce merchandise at company-owned factories located in Spain and Italy, Eastern Europe, Tunisia, India respectively. This is striking for two reasons: one, the production cost in Europe are higher than in most East Asian economies  [3]  towards where much of global apparel manufacturing has shifted (Gereffi, 1999). Second, vertical integration is perceived to be a burden in an environment that requires a high degree of operational flexibility (Richardson, 1996). So why is it that those firms break with the rule of contracting out all production (CNN.com, 2001) that has developed over the past decades? In this paper, I will analyze the motives and strategies that determine a retailers sourcing decision. Although the sourcing strategy defines both, the location and the organizational entity  [4]  , the focus of this composition is to explain why HM and Gap outsource production while Zara and Benetton are vertically integrated into apparel manufacturing. In explaining vertical integration economic theory has considered different aspects: the neoclassical theory turns to efforts of firms to mitigate inefficiencies caused by market power [] or enhance market power within the vertical chain (Joskow, 2006, p. 1). From an organizational perspective, the approach adopted here, transaction cost economics (TCE) ties production, coordination and motivation costs to the various forms of organizations economic agents attempt to minimize. I will explain the basic trade-off underlying the decision of vertical integration, review the origins of TCE and introduce a framework by Oliver Williamson. Williamsons framework focuses on measuring the risk of opportunistic behaviour The analysis of the apparel industry shows that the risk of expropriation is mainly driven by the Sourcing has become a central process in the context of coroporate functions (guericini) Fashion industry shows different approaches To be analyzed in terms of efficiency and transaction costs Is there an optimal governance structure How have they changed over time What are the implications and drawbacks to the theory How will this be in the future Using case studies Implications for validity of TC Is it a matter of choice or a matter of searching for the unique best way? Vertical integration and its determinants Vertical integration and the make or buy trade-off A vertically integrated firm performs subsequent steps along its vertical chain defined as the process that begins with the acquisition of raw materials and ends with a sale (Besanko, Dranove, Shanley, 2000, p. 109) internally. Those internally performed activities define the vertical boundary of a firm. The vertical chain in the apparel industry is illustrated in Figure 1 and described in more detail in Appendix D. Figure : The vertical chain in the apparel industry Source: self-made diagram, based on Besanko et al. (2000) and Milgrom Roberts (1992) In mapping a firms boundary a useful criterion is the degree of flexibility and authority of a firm to make investments, product-mix and employment decisions at the relevant stage (Richardson, 1996, p. 403). This is in line with Hart Grossmann (1986) who define a firm to consist of those assets that it owns or over which it has control. The choice of performing an activity inside the firm is often called a make or buy decision. At the extreme end of buying an input, parties use anonymous market contracting (Joskow P. J., 1988, p. 101) and may not engages in further transactions. Contrary, vertical integration substitutes the contractual exchange through an internal process. For further use the form of organizing a transaction is called governance structure. In determining the optimal governance structure organizational based theories help to link respective costs and benefits of organizing a transaction. According to TCE a firm must weigh technical, coordination and motivation cost in defining its vertical boundaries. A firm operates technically efficient if it is using a cost-minimizing production process. This can be achieved through making investments in technology and engineering or sourcing from external suppliers who are specialized on the production of that input. Organizational efficiency refers to the minimization of coordination, motivation costs and the risk of opportunistic behaviour (Besanko, Dranove, Shanley, 2000). Through vertical integration a firm benefits from the authority to settle conflicts, control over the production and information process as well as stronger team incentives. Potential costs of vertical integration arise from a lack of competitive pressure and thus a potential lack of innovation, lower economie s of scale in production, more bureaucracy, the risk of bad management decisions  [5]  leading to tied resources in possibly inefficient processes and coordination efforts to align interests among business divisions. The market has benefits from competitive pressure on the firms operating in the market, economies of scale facilitated by the possibility of demand pooling, technological efficiency since firms are specialists and the possibility of freely choosing a supplier. Costs of a market transaction are higher coordination efforts, misaligned incentives between trading parties and inefficiencies arising from opportunistic behaviour (Besanko, Dranove, Shanley, 2000; Perry, 1989; Milgrom Roberts, 1992: Joskow, 2006). According to Ronald Coase and Oliver Williamson considered to be the pioneers in the field of TCE the main determinant causing frictions between parties involved in a transaction is the risk of expropriation by trading parties. In the next section I will review their work in the field of TCE and introduce Williamsons framework which I will use in section 5 to analyze the apparel industry. Williamsons transaction cost framework The origin of transaction cost economics Ronald Coases motivation was to explain why firms would obtain a product from the market when it can produce the product itself. Coase saw the mechanisms for allocating resources as substitutes He criticized the view that resource allocation through the market works itself (Coase, 1937, p. 387) and the lacking concept for the existence of firms ince he saw the different resource allocation mechanisms as substitutes, not as complements. Coase focused on the exchange mechanism of a good, a transaction, which can either occur in the market or within a firm. His main contribution was the incorporation of costs linked to organizing a transaction into the analysis of vertical integration (Coase, 1988b, p. 17). The comparative costs of organizing a transaction would determine the optimal governance structure. First, when organizing a transaction in the market a firm has to bear search cost in looking for relevant suppliers and prices. Negotiating over the terms of exchange and writing contracts particularly when dealing with several suppliers and multiple transactions bear cost. These marketing costs eventually become larger than the costs of coordinating transactions internally (Coase, 1937, pp. 390-391). Second, Coase identified costs corresponding to diminishing returns to management (Coase, 1937, p. 395). With an increasing number of transaction organized within the firm, the entrepreneur struggles to allocate resources to projects with highest payoffs. Simply put, the internal organization bears the cost of bureaucracy that must be weighed against transaction costs. Consequently, a firm expands its vertical scope until the costs of using the market equal the cost of internal organiza tion. The framework Oliver Williamson, Oliver Hart and other economists used the insight that firms are economizing on the sum of production and transaction costs (Williamson O. , 1979, p. 245) and expanded this notion to a context where organizations adapt efficiently to the ever-changing circumstances of the moment (Hayek, 1945, p. 523). They focused on opportunistic behaviour and its effects on ex ante incentives and ex post performance as the main determinant for vertical integration whereas Coase saw ink costs (Klein Murphy, 1997, p. 419) arising from searching a price and writing a contract as the limiting force on the use of the market (Joskow P. J., 2006, pp. 2-3). In understanding opportunistic behaviour it helps to illustrate the definition of appropriable quasi rents by Klein, Crawford Alchian (1978): The quasi-rent value of the asset is the excess of its value over [] its value in its next best use to another renter: assume firm A owns a production asset and provides B with a service at a price of à ¢Ã¢â‚¬Å¡Ã‚ ¬ 5,000 (Bs maximum willingness to pay). Assume that a third firm C with a maximum willingness to pay of à ¢Ã¢â‚¬Å¡Ã‚ ¬ 3,500 is also interested in obtaining the service from A. Now, firm B would try to lower the price down to à ¢Ã¢â‚¬Å¡Ã‚ ¬ 3,500 by threatening to terminate the relationship with A. The price difference of à ¢Ã¢â‚¬Å¡Ã‚ ¬ 1,500 is the appropriable portion of the quasi rent that firm B will try to extract from A  [6]  (Klein, Crawford, Alchian, 1978, p. 298). This is a simplistic example for the hold-up risk that can arise in a market transaction. The presence of opportunistic behaviour relies on two behavioural assumptions. First, economic agents are simultaneously subject to bounded rationality  [7]  . Agents are incapable to consider and specify all contingencies that might arise after engaging in a contractual relationship. As a result, incomplete contracts are the first best results. At the same time, it might be too costly for the two parties to write a contract specifying all foreseeable contingencies since ex post alterations would be costly. The second assumption is that agents behave opportunistically and try to extract a maximum of rents from their trading partners (Williamson O. E., 1981, pp. 553-554) Williamson developed a framework which explains a firms governance structure based on variations in the importance of asset specificity, uncertainty, product complexity, and the constraints of repeat purchase activity (Joskow P. J., 1988, p. 101). These attributes measure the risk of opportunistic behaviour in a trading relationship. Asset specificity measures the difference between the value of an asset in its pre-specified use and in its next best use outside the trading relation. It basically indicates whether there are large fixed investments [that are] specialized to a particular transaction (Williamson O. E., 1981, p. 555). An asset which has been modified and designed for a particular transaction leads to a lower outside value of the asset, creates higher appropriable rents and hence leaves more room for ex post opportunism  [8]  . This is what Williamson called physical asset specificity. Site specificity deals with the mobility aspects of an asset. Once an asset has been positioned and installed there are costs of modification or removal. The trading partners try to economize on inventory and transportation expenses when successive stations are located in a cheek-by-jowl relation to each other (Williamson O. E., 1981, p. 555)  [9]  . Last, human asset specificity arises when workers develop knowledge which is idiosyncratic to a transaction. Williamson calls this training and learning-by-doing economies (Williamson O. , 1979, p. 240) . Thus, with an increasing degree of relationship-specific attributes of a transaction, it becomes more costly for trading parties to terminate their relationship such that they are locked-in to the transaction (Williamson O. E., 1981, p. 555). Hence a firm might want to protect itself from opportunistic behaviour by vertically integrating. Of the other transactional attributes, complexity and uncertainty work in the same direction as asset specificity whereas frequency puts a constraint on the degree of vertical integration that a firm might choose. A transaction might simply occur too seldom that the cost of setting up a governance structure is greater than the risk of using the market. To review, the transaction cost framework predicts that with an increasing asset specificity, complexity and uncertainty, the optimal governance structure will move from a spot market transaction, to an intermediate solution and finally to vertical integration  [10]  . (ZITATE Raus) Methodology, value, implications and limitations In this paper I am using TCE to analyse the trade-off between differing governance structures of four companies in apparel retailing by using a qualitative approach to measure the different dimensions of a transaction. I have dismissed the neoclassical theory in analyzing the apparel industry since it defines vertical integration as a strategic response to market imperfections  [11]  treating firms like a black box (Hart, 1988, p. 120). The empirics of the neoclassical theory are hence more concerned with the effects of vertical integration on consumer prices and welfare. In contrast, this paper is concerned with the motives and strategic concerns that determine the form of organizing manufacturing in the light of TAC. The value of this paper is the linking the TCE framework to four case studies Zara, HM, Gap, Inc. and the Benetton Group. It is useful to analyze a firms governance structure in terms of the control and authority borne by the two parties involved in the transaction at hand. The degree of vertical integration is reflected by the ownership and control of assets in successive stages (Richardson, 1996, p. 403). The sample has been designed to characterize the differing governance structures in apparel manufacturing. From the four companies studied in this paper Gap and HM source all garments from independent suppliers. Zara and Benetton on the other hand purchase semi-finished products and manufacturing services like cutting and sewing which are integrated with the firms manufacturing capabilities (they produce 40% and 60% of apparel internally). Given the fact that each of the four companies has been in business for more than 30 years, built a strong global presence and managed to gain substantial profits throughout many years  [12]  it is appropriate to say with confidence that they are managing their operations through an effective governance structure. Thus, the main question that arises is what factors determine the decision for each firms governance structure. By mapping the firms business with the sourcing strategy I will show that a proper TAC analysis must consider those interd ependencies in order to have valid implications. In gathering data on the apparel industry and the case studies articles from business press, annual reports and other publicly available information provided by the firms  [13]  , company reports from investment banks, business cases from Harvard Business Review and academic research papers have been used as primary sources. I attempt to present the information on the cases in a consistent format whereas there are some differences due to the availability of information. It is for example not clear what the strategic activities are that Benetton keeps in-house (Benetton Group, 2011). In applying the TAC framework I have used this information and extended the analysis with my own evaluation if procurable on the different dimensions of the transaction (discussin Scott?). Primary data, possibly gathered through interviews with the retailers production offices, were not collected but would add additional value to analysing the relationship between the apparel retailers and the manufacturers. This would help to understand how retailers manage their supplier relationships, how they negotiate over contracts and how they deal with contingencies that are not pre-specified in product orders. Such information would help to evaluate the degree to which relationship-specific investments occur in the apparel industry and consequently how the different dimensions of a transaction differ across and within firms. In particular, the potential hold-up risk created by the adversarial relationship between suppliers and manufacturers, would be easier to quantify. Whereas I am using a qualitative approach to examining the relevance of relationship-specific assets in apparel manufacturing there is much empirical work based on case studies and econometric analysis devoted to the relevance of transaction costs. Scholars have managed to quantify the transaction attributes of asset specificity, complexity and contractual difficulties. Joskow (1987) for example provides evidence for the US coal industry that higher relation-specific investments encourage longer commitments of buyers and sellers to the terms of future trades. In general the the empirical results are much more consistently supportive for TCE (Joskow P. J., 2006, p. 27) than for the neoclassical theory on vertical integration. Case studies from the apparel industry In this section I am going to describe the cases of Zara, HM, Gap Inc. and Benetton trailblazers of fast fashion operating in the middle priced casual apparel segment. The four firms accounted combined for approximately 3.0% of global revenues in 2010  [14]  . All companies are close competitors but have positioned themselves differently with respect to vertical scope in manufacturing and in terms of pricing and fashion content  [15]  . I am going to describe each firms governance structure and coordinating mechanisms with manufacturers, background information on the apparel industry, the idea of fast fashion and the firms studied can be found in Appendix D. Gaps governance structure and coordination with manufacturers The group controls design, merchandise, distribution, marketing and retailing of its own brands and also sells products branded by third parties. The group purchases all garments private and non-private label from independent vendors with approximately 700 factories in 50 countries  [16]  . In terms of costs 98% of merchandise is produced outside the US with South/ Southeast Asia representing approximately 50% of the factory base  [17]  (The Gap Inc, 2008a). Overall no vendor accounted for more than 3% in 2010. The firms sourcing and logistic group along with buying agents coordinates with vendors around the world and place orders. After the clothes are manufactured they are sent to the firms distribution centers  [18]  where the firm conducts quality audits (Wells Raabe, 2006, p. 21). The firm manages its vertical chain with lead times  [19]  of 3 to 8 months. (Quelle?) Since the 1990s and particularly after the ATC expired in 2005 the group has increased efforts in building long-term relationships with suppliers attempting to get discounts and extend the sharing of planning and forecasting information through aligned IT systems at strategically-located factories (Wells Raabe, 2006, p.12; Guericini Runfola 2004, p. 311). To facilitate coordination the group pursues a factory engagement strategy  [20]  : factories need to get the firms approval based on quality, price and delivery time  [21]  , factories are closely monitored  [22]  to ensure they act according to the legal, social and environmental standards outlined in the COVC, the social performance of factories is evaluated such that problems can be resolved and factories are supported with building compliant and operationally effective management systems. The attention devoted by Gap to each factory depends on the specific requirements. Recently, the firm started to support factor ies with developing human resource management systems. Repeated violation of the firms standards may lead to a termination of the supplier relationship but is attempted to be avoided by Gap  [23]  . Seldom, the firm issues conditional approval to a factory in case of a short-notice order. Benettons governance structure and coordination with manufacturers The Benetton group operates through a sequential and integrated supply chain covering the steps from design, RD, manufacturing, distribution and sales  [24]  . This approach is to balance efficiency with speed and is planned and coordinated from headquarters by the product department. For roughly 50% of its production Benetton uses a vertically integrated manufacturing model keeping automated and strategic activities in-house and outsourcing labour-intensive tasks  [25]  to SMEs (Benetton Group, 2011). Each plant is specialized in one type of product and control, integrate and coordinate the production activities of contractors leveraging  [26]  their network of skills (Benetton Group, 2005). In order to adjust production to demand, Benetton had developed a process where the dyeing of the garment was postponed after manufacture. The firm further engages in full production cycles and controls parts of its upstream processes through a subsidiary  [27]  . The remaining 50% of merchandise are sourced from external suppliers with whom the firm coordinates through localized production offices  [28]  . Finished garments are distributed centrally through the firms logistic hubs  [29]  . Benetton runs operations with lead times of two weeks for continuative articles and up to four months for newly designed garments. Through providing production planning support, technical assistance to maintain quality and financial assistance to procure [] machinery the group built close relationships with its approximately 200 contractors. This enables the group to smoothly coordinate the contractors activities into the production process. The group audited the compliance with the groups code of ethics  [30]  of 200 suppliers but did not enter formal contracts with suppliers since this was not felt by either party (Indu, 2008a, p. 4). Postponement strategy? HMs governance structure and coordination with manufacturers HM operates in product research, design, merchandise, distribution and retailing. Product development and procurement is managed through the central buying office in Stockholm which coordinates with merchants at 16 production offices in Asia and Europe. Merchants for the most part drawn from the local population manage the interface with the 700 independent suppliers which produce all of HMs garments in around 2,700 production units in Asia and Europe  [31]  (HM, 2011). According to estimates, around one third of production is done in China, one third in residual Asia (e.g. Bangladesh) and one third in Europe (particularly Turkey) (just-style.com, 2011; Indu, 2008b; Guericini Runfola, 2004). Finished garments are shipped to the central warehouse in Germany or one of the distribution centres. HM operates with lead times between twenty days and several months. The production offices keep in regular contact with suppliers, identify new suppliers, place orders and are responsible for monitoring suppliers compliance with the COC. Throughout an auditing cycle HM scores the suppliers management systems  [32]  aimed at preventing violations of the COC (HM, 2010a). When placing an order, buyers balance the factors quality, price, lead time and location of the supplier  [33]  (HM, 2011). To ensure quality HM carries out extensive testing  [34]  at the factories and after delivery. Order for high volume basic items were placed about six months in advance while in vogue garments are designed, produced and sold within just a few weeks (Indu, 2008b). For the latter, proximity of the manufacturer to sales market was the prime consideration, but overall the firm focused on producing at low cost (Indu, 2008b). HM audits its suppliers compliance to the firms COC, helps to implement corrective actions, provides training and engages in knowledge sharing. The firm meets with suppliers to discuss their evaluation and attempts to minimise late changes on product orders by establishing capacity plans and purchasing orders where possible most relevant for its key suppliers  [35]  . HM attempts to contribute to the long-term improvement of its suppliers but may terminate its relation in the case of continued non-compliance but in that case commits to a reasonable phase-out period (HM, 2010a). Zaras governance structure and coordination with manufacturers The business model of Zara  [36]  is characterized by an integrated approach covering the design, manufacturing, distribution and retailing of apparel (Inditex, 2010). This allows the firm to adjust production to demand observed in stores and achieve lead times of minimum two weeks. Zara produces time-sensitive items at a dozen manufacturing subsidiaries in Spain estimated at 50% of total production  [37]   or with suppliers whose processes are [] integrated with the groups dynamics (Tokatli, 2008, p. 34) located close to the firms distribution centre. Basic items tend to be outsourced mainly to Asia where back in 2006 20 suppliers accounted for 70% of external purchase. Zara maintains relationships with 1,237 suppliers  [38]  managed through purchasing offices in Spain and Hong Kong attempting to minimize formal commitments (Ghemawat Nueno, 2006, p. 11). Zara operates automated and capital intensive tasks, specialized by garment type, of pattern design, cutting and finishing while outsourcing labour-intensive tasks to workshops in Northern Spain or Portugal. Those workshops have long-term relationships with Zara who provides them with technology, logistics and financial support (Ghemawat Nueno, 2006, p. 11). Roughly 85% of in-house production is done during the selling season and the firm may leave open production capacity for short notice orders or changes, limits production runs and strictly controls inventory (Ghemawat Nueno, 2006). Upstream, half of the fabric is purchased by a Spanish subsidiary as gray allowing in-season changes of production (Ghemawat Nueno, 2006, pp. 10-11). All clothes are distributed through the firms distribution centre in Spain. Both, internal and external suppliers are re

Graduation Speech -- Graduation Speech, Commencement Address

Well, this is it. These are the only seniors who were able to survive the culminating exhibition. If I had known that there would be this many open seats, I would have invited my third cousins from Norway. You know, it's funny. As I look around at the familiar faces in the student section, I am reminded about something. Our class, particularly the girls, have been very fashion-conscious over the last four years. Some even seem to be in competition with one another. Well girls, here we are on the most important day of your high school careers, and you're all wearing the same thing. The guys, on the other hand, could care less. I know for a fact that a couple of you aren't wearing anything underneath your tailored tarps. For those who know me, it's common knowledge that I don't shy away ...

Video Games: The High Tech Threat To Our Younger Generation Essay

Video Games: The High Tech Threat to Our Younger Generation Anyone who has ever walked through a shopping mall on a weekend knows how popular videogame arcades have become with our young people. It is becoming a force in the lives of millions of kids all across America. Parents and teachers become more concerned and worried when they see their kids devoted to videogames. They are highly concentrated because vidiogames greatly influence the mental and learning processes of the younger generation. Many parents believe that their children learn values more from the mass media rather than their from homes. Generally speaking, the video and computer game industry has been a growing concern to the religious groups, responsible politicians and bewildered parents for the disturbing contents and the substandard themes in some of its games. The videogame technology must be recognised for its role and influence on the younger generation because, for better or worse, it clearly affects their academic and social life. Indeed, statistics are really alarming on the videogame industry. It is a multi-million dollar business growing at 40 per cent a year from 1987 to 1993 (Palmeri 102). Tetzeli in his article "Videogames: Serious Fun" compares videogames $ 6.5 billion--a--year business to the Hollywood film industry (110). He continues to point out that two Japan based conglomerate have put about 64 million videogame machines in US households in total. In addition to that they also produced and licenced for all their softwares for their machines (110). Palmery estimates to produce and market a ful featured videogame it would costs up to $10 million (102). Because of the cost producers attempt to make a return on their investments and earn as much profits as they can. To achieve their goals, they feature more blood, gore and human dismemberment in their games to appeal to the younger generation because violence sells. According to Palmery the game Mortal Kombat has sold a record 5 million copies for about$65 apiece.(102) The advanced technology in upcoming videogame machines even allows the players to interact with screen images in ways never before possible. Analysts in this field say that it is only a prelude to the emerging world-wide network popularly known as the electro... ...which would require the stores to place signs on shelves in stating : "Warning. Think before you buy. This is a war toy. Playing with it increases anger and violence in children. Is this what you really want for your child? (WAR TOYS). Which may not be very effective altogether to control the vidiegames with violent contend. But still the warning gives a chance and may be the parents pause a moment before they decide to buy any thing for their offspring. Voluntary rating system or any other form of self regulatory arrangement will only help to widen the loop holes of the existing system. By including this multi billion dollar industry under the existing film rating system or something similar to that would greatly reduce the risk of violence and ultimately would prevent the youths on turning for violent solution for all their problems. And also would help to form a violent free life style and prevent the younger generation and spend their quality time with their studies and parents. All other arrangements will, at least help us to further delay the process of controlling the emerging violent theme and content of the many thousands of videogames yet to be produced or released.

The Effects of Divorce on Children Essay -- Impact of Divorce on Child

Divorce is becoming a worldwide phenomenon, significantly affecting children’s well-being. It radically changes their future causing detrimental effects. According to (Julio CÃ ¡ceres-Delpiano and Eugenio Giolito, 2008) nearly 50% of marriages end with divorce. 90% of children who lived in the USA in the 1960s stayed with their own biological parents, whereas today it makes up only 40% (Hetherington, E. Mavis, and Margaret Stanley-Hagan, 1999). Such an unfavorable problem has been increasing, because in 1969, the legislation of California State changed the divorce laws, where spouses could leave without providing causes (Child Study Center, 2001). This resolution was accepted by the other states and later, the number of divorced people has been steadily growing. Such a typical situation is common for most countries in the world, which negatively affects children’s individuality. However, remarkably little amount of people can conceive the impact of marital separation c aused to offspring. (? passive) Many children after separation of parents are exposed to a number of changes in the future. They have to be getting used to a further living area, feelings and circumstances. Their response to divorce can vary and depends on age, gender and personal characteristics. This essay will show the effects of divorce on children under various aspects such as educational, psychological and social impact. In addition, it will contain data about the divorce rate in the US and present disparate reactions of children. It will also include adequate recommendations for parents as to how act to children after divorce, in order to minimize the adverse effect on children. Increasing divorce rate: During the 1960s and 1980s in the USA, there were signi... ...d become more successful. Works Cited Hetherington, E. Mavis, and Margaret Stanley-Hagan. "The Adjustment of Children with Divorced Parents: A Risk and Resiliency Perspective." Journal of Child Psychology & Psychiatry & Allied Disciplines 40, no. 1 (January 1999): 129. Academic Search Premier, EBSCOhost (accessed March 8, 2011). Sobolewski, Juliana M., and Paul R. Amato. 2007. "Parents' Discord and Divorce, Parent-Child Relationships and Subjective Well-Being in Early Adulthood: Is Feeling Close to Two Parents Always Better than Feeling Close to One?." Social Forces 85, no. 3: 1105-1124. Academic Search Premier, EBSCOhost (accessed March 8, 2011). Shansky, Janet. 2002. "NEGATIVE EFFECTS OF DIVORCE ON CHILD AND ADOLESCENT PSYCHOSOCIAL ADJUSTMENT." Journal of Pastoral Counseling 37, 73. Academic Search Premier, EBSCOhost (accessed March 8, 2011).

Monitoring and evaluation Essay

Evaluating development programmes 5 What is impact evaluation? 6 Types of evaluation 7 Evidence-based policy making 8 Evaluation questions; hypotheses and performance indicators Development Finance (IFMR) Monitoring an Dec 2,2013 2/11 d Evaluation It is a process that increases â€Å"the range of human choice† [sen,2000] Development is a multidimensional concept: HDI (UNDP) Growth is unidimensional: PCI, GDP Growth and development are interdependent: two-way causality Inclusive growth or growth with a ‘human face’ Eradication of â€Å"capability† deprivations: hunger, malnutrition, access to healthcare, education, etc. Efficiency vs Equity: Bhagwat’ vs Sen 3/11 Development economics as a discipline Emerged in 1940s (following World War II): Asian, African and Caribbean colonies became independent How to achieve development in these emerging economies? Their problems are wholly different from those in advanced countries Need for planning was felt Promoters of development: The World Bank and its affiliates, agencies of I-IN, etc. New evelopment economics went beyond classical(Smith, Malthus, Ricardo) and neoclassical predecessors 4/11 lopment economics as a discipline Why a separate discipline? â€Å"Development economics consists in part of the refinement of general economics to deal with questions which arise in the context of development, and partly of certain special ideas which have proved useful in studying developing countries. † [Bliss, Handbook of Development Economics(1989)] Development economics is dead (Hirschman, 1981; Lal, 1983): ‘East Asian Miracle’ as a triumph of free market Initial phase: industrialisation (Mahalanobis model); inward looking policies

Harrington Collection

Case Assignment #2 – Harrington Collection Outlook for overall women’s apparel industry Since the downturn that began in the early 2000s significantly impacted the women’s apparel industry, the increasing rate on overall sales had presented a slight decrease from 2004. Although it came up from 3. 5% to 5. 7% in 2004, it began to come down from that year as well with a relatively stable dropping rate. However, it led to a significant fluctuation among units that sold in different price ranges.Let’s take a look at Chart-1 below which is transformed from Exhibit-2 in the case to the form of increasing rate and proportion respectively. According to (a), units sold whose price is more than $200 and in the range of $100 and $200 increased well below the average increasing rate. While the units sold whose price ranged from $50-$100 and under $50 increased higher than the average increasing rate. What’s more, the growth rate of units sold under $50 had jump ed to 11. 50% in 2007 by 4. 28% which is in great contrast with that of only 1. 5% whose price ranged from $100-$200. Chart-1: (a) Price Point| 2006 (growth rate)| 2007 (growth rate)| difference| $200+| 0. 6508%| 2. 8736%| 2. 2228%| $100-$200| -0. 0457%| 1. 5075%| 1. 5532%| $50-$100| 7. 0548%| 9. 0851%| 2. 0303%| Under $50| 7. 2188%| 11. 5010%| 4. 2822%| Total| 5. 1272%| 8. 1631%| 3. 0359%| According to (b), the units sold proportions presented little difference from 2005 to 2006. However, in 2007, we found that 2 points less of units sold pricing up from $100 and 2 points more of that were priced under $50 compared with previous year.Chart-1: (b) Price Point| 2005 (proportion)| 2006 (proportion)| 2007 (proportion)| $200+| 10. 7601%| 10. 3020%| 9. 7982%| $100-$200| 17. 0388%| 16. 2004%| 15. 2036%| $50-$100| 34. 0776%| 34. 7025%| 34. 9983%| Under $50| 38. 0456%| 38. 8025%| 40. 0000%| Total| 100%| 100%| 100%| Although the statistics suggests a slight increase of the total demand in th e industry of women’s apparel, the shift in the structure of units sold in different price ranges indicates a downturn in the industry which led to a downward consumer purchasing behavior.Indeed the economic sluggish hit the segment targeted on upscale-class apparel pricing higher than $100, however, it provides a great opportunity for manufactures who engaged in the segments targeted toward â€Å"budget† and â€Å"moderate† classifications. As a result, consumers undergoing economic downturn would become more and more price sensitive, especially for those who were always purchasing â€Å"moderate† or â€Å"budget† apparel even before the economic sluggish began. Competition Since the industry was moderately concentrated, it should belong to monopolistic competition market, under which sellers could differentiate their offers to buyers.Products can be varied in quality, features, or style, or the accompanying services can be varied. Sellers try to develop differentiated offers for different customer segments and, in addition to price, freely use branding, advertising, and personal selling to set their offers apart. Retailing Competition for the Apparel Market In current years, department stores have been squeezed between more focused and flexible specialty stores on the one hand, and more efficient, lower-priced discounters on the other.It results in a markedly falling in market share which can be found in Exhibit-5. In the contrast, specialty stores with narrow product lines and deep assortment, and supercenters who are actually giant specialty stores with broader product lines presented an enlightening future trend. The fierce competition, as a result, gave rise either to merger and consolidations between retailers in order to gain bargaining power with suppliers, or to contracting directly with manufacturers to produce private label products.Manufacturers also expanded their roles by integrating forward into retailing so a s to reduce expenditures and to take better control over their own business. Harrington Collection Harrington Collection targets itself at high-class fashion enthusiasts and divides the â€Å"upper-class† market into 4 further specific segments represented by 4 brands which focus on people with different income status, ages, self-concepts, etc. If we refer back to Chart-1: (b), we find that market share of total apparel industry pricing higher than $100 decreased in 2007.It would hit the performance of Harrington Collection since all of its products are priced up from $150. In addition, we also find a rapid growth was taking place in the low-end market in 2007. As a result, senior executives of the company is considering to introduce active-wear into manufacturing and stretch its product line downward to grab the opportunity in low-end market as well as to make up for their profit loss in high-end market. However, a brand’s price and image are often closely linked and a change in price can adversely affect how consumers view the company.When a cheaper product is introduced into the market, their loyal consumers would think that the quality has been reduced. Especially for luxury oriented company like Harrington Collection whose customers are extremely loyal to the brand and looking for status that the company’s brand stands for, lowering price would threaten the company’s position in the minds of its loyal customers. (disadvantage) On the other hand, when it comes to new customers who never purchased Harrington’s apparel before, lowering price might attract consumers in â€Å"moderate† or even â€Å"budget† segments to buy its products.Moreover, if prices are similar with that of competitors who target only in â€Å"moderate† or â€Å"budget† segments, consumers are more likely to purchase Harrington’s apparel, because the brand would make them look wealthy. (advantage) However, it is not th e case. Consumers belonging to â€Å"moderate† or â€Å"budget† segments are extremely price sensitive, especially under a downturn economic situation. When company slightly raise the price to meet a higher quality or service requirement, lots of consumers coming from these two segments would turn to its competitors.Even though the company makes profit due to the current fad, it would hurt the company’s profitability in a long run. (disadvantage) As a result, management of Harrington Collection should trade off both advantages and disadvantages when making decision of lowering its price to develop active-wear product line. Active wear According to the case, both the facts that the number of active-wear units sold was expected to double by 2009 and the extremely high turnover rate suggest a promising future of active-wear classification.So the point is to which segment active-wear classification should target and how this new product line should be priced. First of all, let’s refer back to our analysis right above. Although targeting to consumers who pinch pennies and lowering price to attract this kind of â€Å"new† purchasers might make profit in short term, the great price sensitivity and disloyalty hidden behind this group would result in a greater loss in a long run. Moreover, the inexpensive brand image would drive a lot of loyal customers away to its competitors.However, â€Å"10% of customers purchasing apparel in the $100-$200 price range would buy an active-wear set if one with superior styling, fabric, and fit was available. † â€Å"There is a sub set of Harrington customers who were loyal to the brands throughout their careers but no longer desire the tailored, professional look. They are now interested in something fresh and comfortable that fits with their active lifestyles. † â€Å"The aging baby boomer population wants clothing that does not make them feel old. All of these facts suggest that it seems safer and more conservative to remain in the existing classification and excavate the need of loyal customers. However, due to the high growth in low-end market, we don’t want to give up the opportunity to take a bite on that tempting market. So why don’t we price the product slightly higher than the â€Å"moderate† active-wear product, and increase the quality as well as add exceptional features to attract both old customers and new consumers who are not that sensitive to price?For instance, if customers purchasing active-wear from Liz Claiborne related themselves with sexy and glamorous image, Harrington could redesign the active-wear product adding features to attract customers who would like to relate themselves with elegant or sophisticated images which is more consistent with the company’s value. It can also increase the quality in fabrics, manual work and services. People would love to pay a little higher price in exchange of a much higher qu ality, unique style and better services.In this way, not only it would attract new customers who are less price sensitive with affordable prices and retain them by reliable quality compared with that of poorly made â€Å"moderate† products, but also it would bring fresh experience to its old customers and then increase the times of their purchasing behavior without eating up the sales of company’s other brands or hurting a luxury image. Secondly, if Harrington faces a host of smaller competitors charging high prices relative to the value they eliver, it might charge lower prices to drive weaker competitors out of the market. However, Liz Claiborne, one of Harrington’s major competitors, was also one of the leaders in the â€Å"better† active-wear category with relatively low price. As a result, the company may decide to differentiate itself with value-added products at higher prices. In conclusion, Harrington should price the new product line of active-we ar slightly higher as well as increase its quality and services in order to support the price and keep consistency with its luxury image.Furthermore, Harrington should differentiate its style and features to avoid direct competition with other leading manufacturers. Brand Targeting and Positioning Myer thought active-wear would be a perfect addition to the Vigor division for two reasons – Vigor styles were less traditional than the other Harrington divisions, and Vigor division emphasized comfort and fashion although it’s a career-oriented design. However, these two reasons cannot sufficiently support whether active-wear would well fit into Vigor brand.Even though attributes and benefits brought to customers could be varied among different products, the images, beliefs and values created for customers must be consistent with each of the product under the same brand. For instance, active-wear and existing Vigor’s product don’t have the same features, as ac tive-wear is more sporty and casual while the other is more work/professional oriented. The point is neither the same attributes they have in common nor the comfortable benefits they will bring to customers. The point is the same image customers would like to relate themselves with and values the company intends to create.Since Vigor has already successfully created an image of â€Å"Trend Setter†, the new product line must also create values of â€Å"breaking rules†, â€Å"looking exceptional†, â€Å"pursuing new life style† for customers to meet the requirement under the brand of Vigor. As a result, it’s not a bad idea to branch out Vigor to support active-wear manufacture. Advantages and Disadvantages Moreover, to extend a current brand name to a new category will give the new product instant recognition and faster acceptance. It also saves the high advertising costs usually required to build a new brand name.And it could also use the brand†™s existing support and functions to run the new business, which would decrease part of overhead expenditures. At the same time, branching out Vigor involves some risks. If a brand extension fails, it may harm consumer attitudes toward the existing products carrying the same brand name. Potential Retail Trade Since Company-owned stores accounted for about 20% of the manufacturing group sales, and the remaining sales were split 40:60 between specialty stores and department stores. It can be inferred that the sales proportion among these three outlets is 20: 32: 48 in manufacturing group.According to the sales information provided in Exhibit-6, the sales and corresponding proportions among different retailing terminals can be concluded as below: (For instance, in 2005, sales of Own store is $556*20%+$843=945. 2) Chart-2: (a) | 2005 (sales in millions)| 2006 (sales in millions)| 2007 (sales in millions)| Own Store| 945. 2| 921. 4| 913. 6| Specialty Store| 177. 92| 173. 44| 172. 16| D epartment Store| 266. 88| 260. 16| 258. 24| Total| 1390| 1355| 1344| Chart-2: (b) | 2005 (sales in pro)| 2006 (sales in pro)| 2007 (sales in pro)| Own Store| 68. 00%| 68. 0%| 67. 98%| Specialty Store| 12. 80%| 12. 80%| 12. 81%| Department Store| 19. 20%| 19. 20%| 19. 21%| Total| 100. 00%| 100. 00%| 100. 00%| As we can see from Chart-2 above, sales from Company Owned Store account most of the company sales. By integrating itself forward into retailing or the entire value chain, company could be able to reduce the time required of distribution, to take control of promotion and retail prices directly, and to provide more personal selling services to customers by professionally trained salesperson so as to better meet customer needs.On the other hand, multiple channels offer many advantages as well to companies facing large and complex markets. With each non-company owned store, the company expands its sales and market coverage and gains opportunities to tailor its products and services to the specific needs of diverse customer segments. But such multichannel systems are harder to control, and they generate conflict as more retailers compete for customers and sales. The current channels of different brands are exhibited in Chart-3: Chart-3: | Harrington Ltd. | Sopra| Christina Cole| Vigor|Price Range| $500-$1000 (Dsn)| $400-$800 (Brd)| $300-$700 (Brd)| $150-$250 (Btr)| Retailer| 70 Company Own; Specialty;Department| Specialty| 70 Company Own; Specialty;Department| The other 50 Company Own;Specialty;Department| 40% (50 stores) of the Company Owned Stores sell Vigor exclusively. One of the reasons might be that Vigor stands for a less traditional image and a new life-style relatively to the others. As a result, environment, decorations and even salesperson of stores selling Vigor would be specifically designed to meet the specific expectation of the customer positioned in that segment.Since we’ve decided to branch out Vigor to integrate active-wear line into it due to the similar value they represented, we should display active-wear together with existing Vigor brand with separated segments in order to deepen the assortment of Company Owned Stores and give customer psychological suggestions about the value it intends to present. Secondly, since specialty store carry a narrow product line with a deep assortment, active-wear provides a great opportunity to enrich the classifications of the store. Thirdly, upscale-department outlets might also find active-wear an appropriate supplement for their product line.Since consumers with relatively high income would like to give the stylish, active and more casual clothes a shot in the case that the clothes have to be made in good quality. As Harrington’s active-wear has differentiated itself with exceptional quality, features and services, which implies nothing related to the cheap prices. As a result, upscale-department would love to support this product line regardless its low price range . What’s more, Harrington could develop its channel into Superstores which indeed is a giant specialty store, since it might attract a larger group of people with various income statuses and self-positioning.Reaction of Competitors If active-wear with Vigor’s logo performs brilliant once it is introduced, it would attract lots of small competitors into the market. Since it’s a monopolistic competition market which allows a wide range of price and competitors could differentiate their products with various qualities, features, values and services, small companies who are not able to find themselves competitive in quality and creativity would be more likely to cut their price down to attract customers coming from a more price sensitive and less loyal segment compared with the segment targeted by Harrington.Although the price would be slightly higher than that of those small competitors, Harrington has gained strong customer relationship and its newly brought-in pr oduct targets both to loyal customers and to new customers who are less price sensitive and who’d like to pay more attention to quality and features. As a result, Harrington would successfully avoid competitions from its competitors. Demand and Profitability Analysis Start-Up Costs:| Start-up Costs Pants Plant| $1,200,000| Start-up Costs Hoodie and Tee-shirt Plant| $2,500,000| Equipment Pants Plant| $2,000,000|Equipment Hoodie and Tee- shirt Plant| $2,500,000| Launch-PR, Advertising| $2,000,000| Fixtures for Company Stores| $50,000*50| Total Start-up Costs| $10,200,000+$50,000*50| Annual Depreciated Start-up Costs| $2,540,000 (total start-up cost/5)| Annual Ongoing Operating Costs – Fixed:| Overhead Pants Plant| $3,000,000| Overhead Hoodie and Tee-shirt Plant| $3,500,000| Rent Pants Plant| $500,000| Rent Hoodie and Tee-shirt Plant| $500,000| Management/Support| $1,000,000| Advertising| $3,000,000| Total Fixed Operating Costs| $11,500,000|Direct Variable Costs:| Hoodie| Tee-shirt| Pants| Sew and Press| $3. 25*x| $2. 00*y| $2. 85*z| Cut| $1. 15*x| $0. 40*y| $0. 70*z| Other Variable Labor| $3. 20*x| $2. 40*y| $3. 05*z| Fabric| $9. 10*x| $2. 20*y| $7. 50*z| Findings| $3. 85*x| $0. 50*y| $2. 30*z| | $20. 55*x| $7. 50*y| $16. 40*z| Direct Variable Costs Translated into â€Å"Unit† Cost| Hoodie| Tee-shirt| Pants| | $20. 55| $7. 50| $16. 40| | *0. 5 (weight)| *1. 5 (weight)| *1 (weight)| | $10. 275| $11. 25| $16. 4| Indirect Variable Costs| Wholesale â€Å"unit† price| $100*50%*0. (weight)+$40*50%*1. 5 (weight)+$80*50%*1 (weight)=$95| Total variable costs as % of wholesale price| $(3+4+1+0. 7+0. 24+0. 15)%=9. 09%| Indirect variable costs per â€Å"unit†| $95*9. 09%=$8. 6355| Direct variable costs per â€Å"unit†| $10. 275+$11. 25+$16. 4=$37. 925| Indirect variable costs per â€Å"unit†| $8. 6355| Total variable costs per â€Å"unit†| $46. 5605| Contribution:| Wholesale price per â€Å"unit†| $95| Less tota l variable costs per â€Å"unit†| $46. 5605| Contribution per â€Å"unit†| $95-$46. 5605=$48. 4395| Breakeven:|Fixed annual costs (operating and depreciated start up) | $2,540,000+$11,500,000=$14,040,000| / Contribution per â€Å"unit†| $48. 4395| =Breakeven Units| 289,846 units| Profit Margin:| Revenue| $7,500,000*2*40%*7%*$95=420,000units*$95=$39,900,000| less fixed annual costs| $14,040,000| less total variable costs| $46. 5605*420,000units=19,555,452| Profit before tax| $6,304,548| Profit margin before tax| 15. 8009%| If Harrington could guarantee that there’ll be 289,846 units sold in the launch year, it won’t lose money.If market share of 7% â€Å"better† active-wear segment is accurately estimated, the breakeven point will be definitely met and the company will even earn a15. 80% profit margin. If the company decides to raise price in order to earn more on one unit in expense of losing part of its sales volume, consumers’ price elasticity would be extremely important for company to see whether the amount of money it makes more on one unit would cover the loss of volume decrease. Sometimes the price-demand curve slopes upward when it comes to prestige goods, but it is another case.