Business Analysis Part I Ford Motor Company Essay Example

Business Analysis Part I Ford Motor Company Essay Business Analysis Part II Ford Motor Company Rocio Rodriguez MGT/521 Management May 25, 2011 Nickolas Skelton Business Analysis Part I Ford Motor Company Henry Ford and a group of investors founded what is known as the Ford Motor Company in 1903 based out in Dearborn, Michigan. The entrepreneur began manufacturing all of the automotive parts used in production and started the innovation of a moving assembly line to mass produce vehicles that are affordable to the public. Although the company changed names and investors a few times, it remained strong enough to survive through the great depression and become one of the largest auto manufacturers in the world today. The following analysis covers the company’s strengths, weaknesses, opportunities, and threats to obtain a better understanding of the successes and downfalls of Ford Motor Company. Strengths Despite of the recent downturn in the economy, Ford remains a competitive force in automobile manufacturing market. Certain factors exist that strengthen the company’s brand and product. For example, Ford Motor Company is the top 4th largest car manufacturing entity in the world (Ford, 2011). The company has 90 manufacturing plants worldwide, 7,000 supplier facilities that distribute vehicles in six continents, and all 50 U. S. states (Ford, 2011). Ford has a strong presence in the market and is easily recognized worldwide with the slogan â€Å"Built Ford Tough† as the company motto (Ford, 2011). The company keeps a competitive advantage by following innovative trends that attract the attention of more consumers. We will write a custom essay sample on Business Analysis Part I Ford Motor Company specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Business Analysis Part I Ford Motor Company specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Business Analysis Part I Ford Motor Company specifically for you FOR ONLY $16.38 $13.9/page Hire Writer One of these trends focuses on fuel efficiency, brought on by the current deteriorating economic state. Ford’s fuel-efficient lineup increased sales by 19% since the launch in 2009 (Ford, 2011). Even the less economic models are still in demand because of their design, durability, and versatility. The Ford-F150, Ford’s most popular vehicle, is the current top seller on the market for this year (Ford, 2011). Ford is comfortably sitting at #10 on the Fortune 500 list and has made an astonishing $6. 6 billion in net income for the first quarter of 2011, which is the most the company has made in the ast 10 years (Ford Motor Company, 2011). Ford established Ford Motor Credit Company to offer the public a more accessible way to finance vehicles and survived through the failing economy. The company made it without any government bailout funds because the owner made a wise move and obtained $24 billion in financing a short time before the economy took a turn for the worse (Ford Motor Company, 2001). That money helped the company stay afloat until they could make profit again. Another strength the company has is its reputation and their corporate social responsibility with the public and the environment. Ford Motor Company provides support to many causes such as disaster relief efforts in the United States, invests in education for children, promotes safe driving programs for teens, and helps American farmers strive (Ford Motor Company, 2011). Ford is also a proud supporter of NASCAR and started the Performance Racing Parts segment of the business. The company is following the trend of environmentally friendly products by researching solar powered and electric vehicles that reduce emissions and harm the environment. The company plans to invest $14 billion in Research and Development in 2011 to improve fuel efficiency in Ford models by over 25% (Mulally, 2010). Because of the constant contribution and involvement in the community, the public is aware that Ford is not in it just for the money; ultimately Ford contributes and makes a difference in society and embraces the earth’s environmental health. Weaknesses Despite all the strengths mentioned above, there are weaknesses that can hinder Ford’s success. The most obvious weakness is the troubling economy. The economic downfall affected everyone including all car manufacturers. Consumers lost jobs, homes, and stability during these tough times, and purchasing vehicles was no longer a priority for most Americans. The demand for vehicles, especially trucks, dropped dramatically because of the lack of income for consumers, the rise in gas prices, and fewer lending opportunities. Additionally, just as the economy began to fall, so did the stock prices. Ford stock prices hit the ultimate low in 2009 selling at $1. 74 compared to the $14. 91 in the first quarter of 2011 (History of the Stock Market Crash, 2011). The most dangerous disadvantage for Ford’s weak market share North American automotive operations. Ford’s market share dropped 6. 3% from 2003 to 2008 and is currently making a slow and steady increase (Ford, 2008). Competitors like Toyota and Honda led the market with quality, fuel efficient models, at a bargain price. The weakness that tarnished Ford’s reputation and financial health has to be the recalls of some models because safety concerns. Ford recalled a total of 16 million vehicles in 2009 because of a faulty cruise control switch that causes a fire in the vehicle (Ford, 2008). Similarly, in 2008 Ford recalled Escape models due to transmission failure issues. Additionally, who can forget the notorious Firestone tire recall in 2001 that claimed the lives of many drivers worldwide (Ford, 2008). The tread on the defective tires on most Explorer models peeled off and when they failed it caused the vehicle to roll over and cause fatal accidents (Legal Information Center, 2001). This recall cost Ford $2 billion, the competitive advantage in the United States light-truck and sport/utility vehicle market, and the trust of the consumer (Isidore, 2001). Opportunities Nonetheless, Ford has moved forward and learned from their experiences and is focused on expanding the opportunities for the business. Because the environmental factor is a leading trend in the market, Ford has taken the opportunity to expand their product line to align with the consumer demand. The company developed the EcoBoost V6 engines that provide 20% better fuel economy and reduce carbon monoxide emissions by 15% (MediaFord. com, 2011). Hybrid models are currently in production and the company plans to double their output in 2009 to meet consumer demand. Ford is investing and researching new technology to produce electric and solar powered vehicles in the near future as well as intelligent vehicles, or talking vehicles designed to help make the roads a safer place. The company’s efforts have not been in vain. The company was awarded the 2011 Best New Technology Award for their innovative rear inflatable seat belt design (Ford Motor Company, 2011). Similarly, the giant car manufacturer also became the first to earn top safety ratings worldwide for their Fiesta and Ford F-150 models (Ford Motor Company, 2011). The last opportunity that can help Ford gain global market share is the partnership with China to produce the Ford Fiesta model. Ford unveiled the Fiesta in China in 2009 and by 2010 the company sold more than 75,000 vehicles, 59% more than the previous year (MediaFord. com, 2011). The Fiesta received a warm welcome from the Chinese consumers with its stylish exterior, fuel efficiency, and even received a five-star safety rating from the China Automotive Technology and Research Center (CATARC) (MediaFord. com, 2011). With the success of the launch in China, Ford can expand worldwide and explore other opportunities in foreign countries to penetrate and grow the Ford name. Threats The last factor to consider in the analysis is the threats that hinder Fords success in the market. These factors can prevent the company from growing as planned and potentially harm the giant automaker’s financial stability. Many of the same factors listed as weaknesses can be potential threats. For example, the recession and the rise in fuel prices. As prices rise, consumers look for ways to reduce their expenses by either consuming less gas or replacing their gas guzzlers with compact fuel efficient models. If Ford fails to produce a compact, fuel efficient model that meets the consumer’s demands, the public will still purchase a vehicle but definitely not a Ford model. The rise in raw materials can also pose a threat to Ford because the company needs to provide an affordable product that meets the demand for safety, durability, and quality, all while keeping production costs at reasonable rates to make a profit. Producing vehicles with subpar materials to keep within budget can risk the safety of the end user and risk the reputation of the Ford brand. Fixing any potential issues with future recalls is usually more expensive than producing the product meeting all federal guidelines. The last major threat to the Ford Motor Company is the lack of investment in Research and Development and Quality Control. Compared to the competition, Ford falls short in capital spending, which can hinder the possibility of growth. For example, Ford’s biggest competitor, Toyota reduced their capital spending from $1. trillion to $670 billion during 2010 because of the financial crisis (Dow Jones, 2010). In comparison, Ford usually spends five to six billion dollars in capital spending each year totaling $4. 5 billion during 2010 (Ford Motor Company, 2011). With that much difference in capital spending, the competition has the means and the edge to develop the next best thing out on the market, leaving For d behind. To summarize the analysis, the Ford Motor Company has the potential to remain one of the top car manufacturers in the world if the company takes advantage of all strengths and opportunities to grow and xpand the business worldwide. The key to staying competitive is following consumer trends and above all take pride and care to produce the best product for the end-user. Keeping a close eye and managing the weaknesses and threats to the business will serve as a learning experience and help the company adapt, improve business practices, and processes. The company has been successful thus far, even through a recession, and once the economy recovers Ford has the potential to become more thriving than ever with the latest advances in technology the company plans to develop. Business Analysis Part II Ford Motor Company Financial Health Comparison The financial statements in Appendix A-C reflect the income statement, balance sheet, and cash flow for Ford Motor Company for recent and previous years. Comparing the numbers side by side helps understand the trends in the economy and the company and gives a better understanding of the company’s financial health. After reviewing each statement one can see that the company has been a successful one, and recently suffered during the time of recession. Profits went down as well as stock value as seen in Appendix D. Capital Expenditures were reduced and the company even faced negative figures in most statements during the recession in 2008. The company had a healthy cash flow and earnings in the years before 2008, and is presently recovering at a steady pace. The one major concern noted after reviewing the statements is the slow recovery of the company. With the recession out of the way, the company has enough new products and incentives to help boost sales and make profits similar to those seen in 2005-2007 at a faster pace. The slow recovery can help the company prepare for future periods of recession by having a plan implemented to develop the most innovative, quality, and affordable product for the consumer and increase demand worldwide, thus making profits at a faster pace. †¢ Summarize companys financial health – compare it to other companies in the industry †¢ Summarize the companys technological advantages – compare to others †¢ How globalization affected the businesses practices †¢ Benchmark analysis – best practices, operational processes and procedures, products or services References AOL Daily Finance. 2011, May 20). Ford motor company balance sheet. Retrieved from http://www. dailyfinance. com/financials/ford-motor-company/f/nys/balance-sheet Bloomberg Businessweek, (2011, May 24). Financial statements for ford motor company. Retrieved from http://investing. businessweek. com/research/stocks/financials/financials. asp? ticker=F:US Dow Jones, (2010, Dec ember 24). Toyota vice president: to hold down capital spending. Retrieved from http://www. dowjones. de/site/2010/12/toyota-vice-president-to-hold-down-capital-spending. html Ford. (2008). Market share and sales. Retrieved from http://corporate. ford. om/microsites/sustainability-report-2008-09/economy-data-market#a Ford Motor Company, (2011, May 12). Safety. Retrieved from http://corporate. ford. com/innovation/car-safety Ford Motor Company, (2011). Ford posts net income of $2. 6 billion in second quarter 2010. Retrieved from http://www. corporate. ford. com/news-center/news/press-releases/press-releases-detail/pr-ford-posts-net-income-of-26-32973 History of the Stock Market Crash, (2011, April 23). Ford stock up 757% since the 2008-2009 crash. Retrieved from http://www. worststockmarketcrashes. com/featured/ford-stock-up-757-percent-since-the-2008-2009-crash/ Isidore, C. 2001, May 21). Ford recalls 13 million tires. Retrieved from http://money. cnn. com/2001/05/22/recalls/ford/ L egal Information Center, (2001). Firestone tire recall. Retrieved from http://www. firestone-tire-recall. com/pages/overview. html Media Ford. com, (2011). Ford fiesta receives maximum 5-star safety rating in china ncap. Retrieved from http://media. ford. com/article_display. cfm? article_id=33815 Microsoft Money, Initials. (2011, April 24). Financial results ford motor company. Retrieved from http://moneycentral. msn. com/investor/invsub/results/statemnt. aspx? Symbol=FstmtView=Ann Mulally, A. (2010, October 26). Ford car share in North America on the rise. Retrieved from http://seekingalpha. com/article/232164-ford-car-share-in-north-america-on-the-rise Yahoo Finance, (2011, May 22). Ford motor company cash flow. Retrieved from http://finance. yahoo. com/q/cf? s=F+Cash+Flowannual Appendix A[pic][pic][pic] |Income Statement Comparison | |Dec 31 |Dec 31 |Dec 31 |Dec 31 | |Currency in | |2007 |2008 |2009 |2010 | |Millions of U. S. Dollars |As of: |Restated |Restated |Restated |USD | | | |USD |USD |USD | | |Revenues |154,379. 0 |127,635. 0 |103,868. 0 |119,280. 0 | |Cost of Goods Sold |142,667. 0 |120,558. 0 |98,746. |104,372. 0 | |Selling General Admin Expenses, Total |21,132. 0 |21,049. 0 |12,965. 0 |11,876. 0 | |OPERATING INCOME |-701. 0 |-6,492. 0 |-1,219. 0 |8,892. 0 | |Interest and Investment Income |1,713. 0 |928. 0 |205. 0 |262. 0 | |Income (Loss) on Equity Investments |403. |381. 0 |195. 0 |538. 0 | |EBT, EXCLUDING UNUSUAL ITEMS |-1,018. 0 |-7,151. 0 |-2,249. 0 |7,975. 0 | |Gain (Loss) on Sale of Investments |-109. 0 |-1,309. 0 |373. 0 |125. 0 | |Other Unusual Items, Total |-432. 0 |-5,569. 0 |4,666. 0 |-844. | |EBT, INCLUDING UNUSUAL ITEMS |-3,857. 0 |-14,895. 0 |2,599. 0 |7,149. 0 | |Minority Interest in Earnings |-312. 0 |58. 0 | |4. 0 | |EARNINGS FROM DISCOUNTINUED OPERATIONS |41. 0 |9. 0 |5. 0 | | |NET INCOME TO COMMON INCLUDING EXTRA ITEMS |-2,795. 0 |-14,766. 0 |2,717. 0 |6,561. | [pic][ pic][pic](Bloomberg Businessweek, 2011) Appendix B Balance Statement Comparison |Period Ending |FY2010 |FY2009 |FY2008 |FY2007 |FY2006 | |Assets | | | | | | |Net Receivables |48. 22 B |8. 15 B |64. 43 B |68. 75 B |4. 15 B | |Progress Payments Others |-865. 00 M |-798. 0 M |-891. 00 M |-1. 10 B |-1. 02 B | |Current Assets Total |90. 87 B |57. 29 B |117. 33 B |135. 72 B |78. 98 B | |Investment in Unconsolidated Subsidiaries |2. 57 B |2. 37 B |1. 59 B |2. 85 B |2. 79 B | |Property, Plant Equipment Net |23. 03 B |22. 46 B |28. 35 B |35. 98 B |35. 79 B | |Accumulated Depreciation |33. 90 B |33. 41 B |38. 4 B |36. 56 B |34. 98 B | |Tangible Other Assets |4. 16 B |12. 30 B |6. 52 B |18. 34 B |16. 00 B | |Total Assets |163. 32 B |189. 35 B |215. 77 B |276. 46 B |276. 01 B | |Income Taxes Payable |392. 00 M |3. 09 B |2. 79 B |2. 67 B |3. 14 B | |Current Liabilities Total |74. 13 B |77. 85 B |111. 96 B |110. 5 B |112. 65 B | |Provision for Risks Charges |18. 24 B |17. 76 B |17. 32 B |31. 37 B |35. 91 B | |Deferred Income |1. 62 B |1. 66 B |1. 77 B |1. 99 B |2. 04 B | |Total Liabilities |163. 97 B |197. 13 B |231. 89 B |269. 41 B |278. 31 B | |Common Equity |-673. 00 M |-7. 82 B |-17. 31 B |5. 63 B |-3. 6 B | |Capital Surplus |20. 80 B |16. 79 B |9. 08 B |7. 83 B |4. 56 B | |Equity in Untaxed Reserves |-7. 04 B |-13. 60 B |-16. 14 B |-1. 48 B |-17. 00 M | |Treasury Stock |62. 00 M |407. 00 M |521. 00 M |103. 00 M |— | |Common Shares Outstanding |163. 32 B |189. 35 B |215. 77 B |276. 46 B |276. 01 B | (AOL Daily Finance, 2011) Appendix C Cash Flow Comparison | | | | | | | | | | | | | | | |Period Ending | | | |Dec 31, 2010 | | | |Dec 31, 2009 | | | |Dec 31, 2008 | | | | | | | |Net Income | | | |6,561,000 | | | |2,717,000 | | | |(14,672,000) | | | | | | | | | | | | | | |Operating Activities, Cash Flows Provided By or Used In | | | | | | | |Depreciation | | | |- | | | |- | | | |19,737,000 | | | | | | | |Adjustments To Net Income | | | |- | | | |- | | | |1,027,000 | | | | | | | |Changes In Accounts Receivables | | | |- | | | |- | | | |1,091,000 | | | | | | | |Changes In Liabilities | | | |- | | | |- | | | |(12,647,000) | | | | | | | |Changes In Inventories | | | |- | | | |- | | | |(358,000) | | | | | | | |Changes In Other Operating Activities | | | |- | | |- | | | |2,489,000 | | | | | | | | | | | | | | | |Total Cash Flow From Operating Activities | | | |11,477,000 | | | |15,477,000 | | | |(179,000) | | | | | | | | | | | | | | | |Investing Activities, Cash Flows Provided By or Used In | | | | | | | |Capital Expenditures | | | |(4,092,000) | | | |(4,059,000) | | | |(6,696,000) | | | | | | | |Investments | | | |9,774,000 | | | |10,682,000 | | | |(2,676,000) | | | | | | | |Other Cash flows from Investing Activities | | | |1,226,000 | | | |(4,000) | | | |6,229,000 | | | | | | | | | | | | | | |Total Cash Flows From Investing Activities | | | |6,908,000 | | | |6,619,000 | | | |(3,143,000) | | | | | | | | | | | | | | | |Financing Activities, Cash Flows Provided By or Used In | | | | | | | |Dividends Paid | | | |- | | | |- | | | |- | | | | | | | |Sale Purchase of Stock | | | |1,339,000 | | | |2,450,000 | | | |756,000 | | | | | | | |Net Borrowings | | | |(18,558,000) | | | |(21,710,000) | | | |(9,256,000) | | | | | | | |Other Cash Flows from Financing Activities | | | |(7,202,000) | | | |(3,570,000) | | | |(604,000) | | | | | | | | | | | | | | |Total Cash Flows From Financing Activities | | | |(24,421,000) | | | |(22,830,000) | | | |(9,104,000) | | | | | | | |Effect Of Exchange Rate Changes | | | |(53,000) | | | |454,000 | | | |(808,000) | | | | | | | | | | | | | | | |Change In Cash and Cash Equivalents | | | |(6,089,000) | | | |(910,000) | | | |(13,234,000) | | | | | | | | | | | | | | | |Currency in USD. | | | Appendix D Ford Motor Company Stock Value Comparison

Marketing Study on Portable Water Cooler Essays

Marketing Study on Portable Water Cooler Essays Marketing Study on Portable Water Cooler Essay Marketing Study on Portable Water Cooler Essay Executive Summary Breeze Waters will introduce a bottled water cooler that is portable and easy to bring outdoors and will provide cool/cold water anytime, anywhere. The product’s main feature is its portability. Bottled water coolers are mostly indoors and are place in a fixed spot in vicinity. Our product will take on the mobility of users as the target market will be professional athletes that are always on the go in their trainings and game tours, and other professionals whose work are mostly on the field and access to a cool/cold water is limited to stores and offices. We are also taking advantage on the health benefits of cold water as a daily human need. The primary marketing objective is to achieve first year Philippine market share of one percent (1%) with unit sales of 1,000,000. The primary financial objectives are to achieve first year sales revenues of P5 million, keep the first year losses to less than 100000, and break even early in the middle of first year. I. Situation Analysis A water cooler is a device that cools water. It is generally broken up in two categories. First is the bottle-less or the point of use (POU) water coolers where the device is hooked to a water supply. Second is the bottled water coolers (BWC) that requires large bottles from vendors. In recent years, with increasing attacks from the environmental movement on bottled water in small plastic disposable bottles, water coolers has emerged an arguably the more environmentally friendly approach to dispensing bottled water. Market volumes for water coolers are holding steady, despite difficult market conditions. Whilst the overall market was stable, figures showed an increased bias in favor of POU coolers as against BWC. However this decline for BWCs is expected to slow over the coming year. Market value in 2009 had decreased since the peak experienced in 2005 but still showing some growth taking as a whole decade since 2001. Philippines market for water coolers had developed slowly since the 1990s, but aggressive cut-price competition has resulted in very low margins that are insufficient to offer quality delivery service to the consumers. Consumers mostly in the public sector felt it was best for staff working in large offices to have ready access to water and for this reason BWCs can provide a more flexible option. In the private sector, too, smaller companies and those, for example on construction sites, who need ready supply of water, choose the bottled variety. However, current market has not yet considered providing cool/cold water to workers that are always on the go and does not stay in an office for a long period of time, through the use of a BWC. To gain market share, Breeze Waters will focus its efforts on a specific target market bringing in the feature of portability as a value to be created in a growing market of water coolers. 1. Market Summary Breeze Waters’ market consists of professional fieldworkers (sales representatives, field auditors, surveyors, etc. ) and athletes who are always on the go and seldom stay inside an office or a building. After being on a field for a long period of time, these consumers would like a drink of cold water especially during hot and humid temperatures, and would find it more convenient if a cool/cold water is readily available. Exhibit A shows how Breeze Waters addresses some of the most basic needs of the target market in a cost-effective manner. The additional benefits like temperature adjuster, being cordless, and chic design of the product just enhances its appeal to the identified segments. Bottled water coolers are operated by either thermo-electric or compressor units. Thermo-electric units are silent and the most cost-efficient to operate but are not suitable for use in very hot environments. Compressor units, on the other hand, are extremely powerful and produce colder water, even in the highest temperatures. Both types can dispense cold, or room-temperature, depending on the particular brand and model. Exhibit A: Needs and corresponding Features/Benefits of Breeze Waters |Target Segment |Customer Need |Corresponding Feature/Benefit | |Professionals Clean and crisp cool water while on the go |Portable water cooler from 12 ounce to 1 liter | |Fieldworkers, |Â   |sizes. | | | | | |Athletes | | | | | |Stays cold for a longer period of time. | |Readily available whenever and wherever |Can be plugged in to any power source. | | |Cordless |Battery operated and rechargeable. | | |Adjust water temperature |Temperature adjuster based on the user | | | |preference. | [pic] 2. Market Demographics The profile for the typical Breeze Waters customer consists of the following geographic, demographic, and behavior factors: Geographics Breeze Waters will initially focus its effort of distribution in the Philippines, particularly in multinational and local companies that have employees engaged in field works such as pharmaceutical companies, heavy equipment companies and other organizations that invest heavily in marketing agents and sales representatives to sell their products. ? Breeze Waters will also cater to Philippine national and college/university sports teams particularly basketball and football. ? Total targeted population is 100,000 users in the first year of operations. Demographics ? There is an almost equal ratio between male and female users. The working group aged 22 to 35 will be the bulk of Breeze Waters products. They are mostly the age group that companies hire to be their sales representatives and/or agents. ? Part of Breeze Waters clientele will be the sports athletes both in university and national levels. This will comprise of users aged 17 to 21. Behavior Factors ? Users enjoy cold and crisp water anytime, anywhere especially after hours of working and/or practice/games. ? Users usually bring handy water containers when travelling long distances. ? Users are always on the go and are assigned to far flung areas where instant access to cold water is unlikely. Market Analysis | | | | | | | |Potential Customers |Growth |2013 |2014 |2015 |2016 |2017 | |Working group aged 22 to 35 |15% |50,000 |57,500 |66,125 |76,044 |87,450 | |Sports Athletes |Â   |Â   |Â   |Â   |Â   |Â   | | National |10% |35,000 |40,250 |46,288 |53,231 |61,215 | | Collegiate/University |5% |20,000 |23,000 |26,450 |30,418 |34,980 | |Other |3% |10,000 |11,500 |13,225 |15,209 |17,490 | |Total |33% |115,000 |132,250 |152,088 |174,901 |201,136 | 3. Market Needs Breeze Waters is providing the market with a handy water cooler that anyone can bring anytime and anywhere, and have a cold and crisp water at their beck and call. The c ompany seeks to fulfill the following benefits that are important to its customers: ? Portable/Mobile. Users can bring anywhere a water cooler to provide them with fresh and cold water anytime they want. ? Rechargeable. Permanent power source will not be needed always as the product runs through battery. Users can just bring spare batteries like for cell phones and digital cameras to continue usage of Breeze Waters. Adjustable Temperature. Users don’t just get cold water, they get the cold water they want. Drinkers of cold water have varying preference as to the degree of coldness in the water they are drinking. Some like it ice cold, some just like it chilled, and some like it depending on the weather. With this feature, Breeze Water is able to give the drinker the freedom to adjust the water’s temperature according to preference. 4. Market Trends Breeze Waters will differentiate itself from other similar products in the market in its portable and rechargeable feature . Research of the current market revealed that no product exists similar to Breeze Waters. Closest product to Breeze Waters is the typical water coolers that operate on a permanent power supply and smallest size cannot be conveniently put inside an average backpack or is too bulky to carry around. The water cooler market is composed of approximately 360,000 bottled water coolers. Over the last several years many bottled water cooler customers have migrated from bottled coolers to mains-fed plumbed-in. POU (mains-fed) water coolers now account for approximately 50% of the market. However, the migration from bottled to POU (mains-fed coolers) has all but ceased. Latest available data (2000 to 2013) showed that the total market will enjoy modest growth of 1% or 2% per annum over the next four years, with little or no change in the product mix between bottled and POU coolers. [pic] 5. Market Growth Using figures based on factual volume and financial data provided directly from members of British Water Cooler Association, the review contained some surprising results as it reported on the trends for Point of Use and Bottled Water Coolers over the last 5 years. There was a modest growth in bottled water coolers and a continuing reduction in the growth for mains fed water coolers, with improved margins for bottled coolers against plummeting margins for mains fed coolers. The same too can be expected in the Philippines as people are clamoring for clean water especially that not all places in the Philippines can provide clean water. Plus the need for cold water especially in areas without electricity is also high. Giving them the alternative of battery operated water coolers albeit in small sizes is more than welcome. [pic] 6. Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis Breeze Waters has several strengths on which to bank the product, but our major weakness is the lack of brand awareness and imaging due to little investment in marketing. The major opportunity for the product is its portability and mobility which is a feature that is yet to be tapped in the bottled water cooler market. A major threat on the other hand is that of the mass availability of substitutes like bottled waters that can easily be bought from stores. Strengths a. Portability/ Mobility Breeze water comes in tumbler-like sizes of twelve (12) ounces and one (1) liter that will be easier to bring or put inside a bag for the yuppies and sportsmen that are always on the go. b. Cordless ? Breeze Waters is a water cooler that is able to cool water from a portable power source (battery pack) without any cable or cord to limit its mobility. Furthermore, the user may opt to cool his beverage at the time of drinking which gives a crisp coolness to the water instead of cold water turned tepid due to long period of time being ignored. c. Rechargeable ? The portable power source that makes Breeze Waters portable is rechargeable. Users can bring as many battery packs as they can when travelling to continue easy access to a cool/cold water anytime, anywhere. d. Adjustable temperature ? Breeze Waters is capable of adjusting the cooling level of water depending on the desired coldness of the user. Weaknesses a. Lack of brand awareness ? Breeze Waters has no established brand or image as no similar products are yet available or/or known in the market. Brand awareness will be the primary goal of advertising in the early months after the product launch. b. Small sizes ? The product’s main feature is its portability and mobility which makes the size to be inherently small. Small sizing of Breeze Waters may not satisfy users as to the volume of water they can cool at one time anytime, anywhere. To counteract this weakness, we will emphasize on the value of Breeze Waters that good things come in small packages. Opportunities a. Growing market for water cooler industry ? Customers are becoming more demanding with regard to the look, features and service of water coolers whether in the office or on the go. b. Product is in the introduction phase of product life cycle ? Breeze Waters can be a pioneer brand in the classification of portable water coolers , and intellectual property may be established. Threats a. Varying substitute products ? Instead of bringing portable water cooler in the field, consumers may just go to any retail stores to buy bottled cold drinks and a wide array of choices are available. Breeze Waters have to intensify marketing of the advantages and benefits of a portable water cooler especially in far flung areas where cold water is hard to come by due to, for instance, the absence of electricity and commercial establishments. In such cases having a cold water to drink is a luxury- a luxury that Breeze Waters only can offer. b. Aggressive cut-price competition of water coolers in the Philippine market ? This resulted to very low margins that are insufficient to offer quality delivery service to the consumers. Breeze Waters’ objective of breaking even with the second-year sales is realistic, given the low margins in the Philippine market for water coolers. 7. Competition Research of the current market revealed the absence of product similar to Breeze Waters with regards to size and features. Hence, no direct competition can be identified. However, several substitutes exist as follows: a. Portable Insulated Water Cooler Jug ? Heavy duty construction resists dents and corrosion. Extra thick insulation keeps beverage hot or cold. Screw tight insulated lid. Interior lid vent for smooth pouring. Fast flow faucet for easy pouring. b. Bottled Beverages ? Any potable liquid substance contained in a bottle. Bottled drinks are not limited to water, it also includes soda, energy drinks and others. c. Tabletop Water Cooler Tabletop water dispenser offers both hot and cold water dispensing and thermoelectric cooling. Lightweight design includes durable ABS construction, push button faucets for hot and cold drinking water, a removable drip tray, built-in cup holder, and full LED display for all functions. Hot and cold water operations have separate on/off switches . 8. Product Offerings Breeze Waters offers the following standard features: ? Operates in an ion-based battery pack capable of easy recharging and replacement ? Temperature of water may be controlled depending on the user’s preference ? Handy- sizes of twelve (12) ounces and one (1) liter ? Chic and stylish First year sales revenues are projected at 1 million, based on 50,000 units of 12 ounces and 50,000 units of 1 liter, sold of Breeze Waters at a wholesale price of 500 and 1,000 respectively. Bigger sizes of Breeze Waters will be introduced in the second year and will be focusing on providing cold water to areas without electricity, as a direct competition of main stream water coolers operating through a permanent power source. 9. Distribution Breeze Waters will be distributed through a network of wholesalers and retailers in the top 100 Philippine markets. Among the most important channel partners being contacted are: ? Electronic specialty stores Breeze Waters will be included in featured electronic must haves of the season (summer). ? Appliance Centers Leading appliance centers in the country will carry Breeze Waters in stores, in catalogs and also on-line. ? Bottle fillers To line up with the traditional water coolers and dispensers, Breeze Waters will be included as a handy and chic version of water coolers now available in the market. ? Sports apparels stores Breeze Waters will be introduced as a better and permanent substitute to conventional water jugs and tumblers as workout companion. Distribution will initially be restricted in the Philippines, with appropriates sales promotion support. Expansion outside the Philippines will follow after target sales have been reached. 10. Keys to Success The key to success is being able to engage big companies and teams to contract with Breeze Waters. Through this, the company can establish niche and loyal customer base. As the target market of the product are athletes and field workers who usually travel places, bringing Breeze Waters with them will also serve as advertisement to places where regular publicity and promotions of Breeze Waters cannot reach. 11. Critical Issues As start-up business, Breeze Waters is still in the introduction stage. The critical issues for Breeze Waters are: ? Establish itself as the premier provider cordless and portable water cooler. ? Emerging microbial control issues in cooling water systems ? Constantly monitoring consumer satisfaction, ensuring that the growth strategy will not compromise service and satisfaction levels. II. MARKETING STRATEGY Breeze Waters will aggressively be courting sports apparel shops and bottle filling stores to intensify the product’s distribution to sportsmen/athletes and industry field workers, on the first phase after product launching. Being able to attach Breeze Waters to a popular sports person or team will be a good mode of advertising and publicity for the product. The same thing with the field workers, companies can add to their usual procurement Breeze Waters product for their field personnel and even to office based workers. Being able to contract with big companies will give a steady stream of sales for Breeze Waters at least as the product goes about the introduction stage. After launching Breeze Waters, it will join the season must haves of specialty electronic stores that will present Breeze Water products as personal collectibles, gift items and the likes. Finally, Breeze Waters will join other electronic appliances and conventional water coolers and dispensers in appliance centers nationwide. 1. Mission Breeze Waters mission is to provide cold and crisp water anytime, anywhere through a portable and cordless water cooler, chic and small enough to carry around or put inside an average backpack. 2. Marketing Objectives ? Maintain positive strong growth each quarter (notwithstanding seasonal sales patterns). ? Achieve a steady increase in market penetration. ? Achieve 1% market share in the water coolers market through unit sales of 1 million in the first 2 years of operation. 3. Financial Objectives ? Sales of to achieve first year sales revenues of P5 million. ? Keep the first year losses to less than 500,000. ? Break even early in the middle of first year. 4. Target Markets As mentioned in Exhibit A above, efforts will be focused to the field workers agents and sports people who spend most of their time outdoors. 5. Positioning For professionals on the go who like their cold and crisp cold water readily available anytime, anywhere. Unlike conventional water coolers, Breeze Waters are easy enough to carry around to give the drinker instant access to cold water without the need of a permanent power source. 6. Strategies The utmost objective is to become the pioneer of cordless water coolers available in the market, serving our fieldworkers and athletes in the outdoors where access to cold and clean water is limited to stores in a given area. The marketing strategy will seek to first create customer awareness concerning the offered product. Compared to other industries, the cooler industry has a significant opportunity to use marketing and PR to drive business forward. Small distributors will be tapped given their entrepreneurial expertise. Breeze Waters will be matched with the right markets (fieldworkers and athletes primarily), and the right players within the market. In addition, we like our brand to be perceived as the pioneer in the market that delivers innovative and state of the art water coolers at reasonable prices. 7. Marketing Program ? Pricing. This will be based on a per product retail price. Distribution. Breeze Waters will be introduced to four different channels: electronic specialty stores, appliance centers, bottle fillers, and sports apparel shops. ? Advertising and Promotion. Aside from collaborating with top companies and school and national sports team, promotions will come in small packages as smal l distributors especially in rural areas will also be utilized to widen the reach of the product. Aesthetics will also play an important role in Breeze Waters advertising, as consumers are naturally drawn to attractive things and the photography we will be using reflects the quality of the products and attention to detail we put into it. Customer Service. Perpetual warranty will be provided. Breeze Waters believes that products sale is not the end of the cycle. Customer satisfaction is constant and hence perpetual. 8. Marketing Research We need to cover two main elements of market research: ? Manufacturers. We need to know the market of manufacturers in the geographic area of our target market, including market trends and developments related to manufacturers of water coolers. ? Channel Marketing. We nee to know the trends in channel competition, emergence of new channels, economics, major competitors and substitutes, new technologies and major players in the target market. Being in the introduction stage, our research is mainly secondary research generated by keeping up with the media, including trade press, international association of water cooler companies and the Internet. We should quickly establish a strong filing system so that we can use the information that appears in secondary sources and catalog and organize for effective use later on. III. Financials The following sections will outline the important financial assumptions. Breeze Waters will address break-even analysis, sales forecast, expense forecast, and indicate how these activities link to the marketing strategy. 1. Break-even Analysis The Break-even Analysis indicates what is needed in monthly revenue to break even. Break-even Analysis |12 ounce |1 Liter | |Monthly Units to break-even |1,000 |500 | |Monthly Sales break-even | 500,000. 00 | 500,000. 00 | |Assumptions: |Â   |Â   | |Average per unit revenue |500 |1000 | |Average per unit variable cost |350 |700 | |Estimated monthly fixe d cost |150,000 |150,000 | 2. Sales Forecast Breeze Waters conservatively projected its sales. It will steadily increase sales as the advertising budget allows. Our sales will have a steady minimum increase of 10% per year both for the 12 ounces and 1 liter sizes of Breeze Waters. Sales Forecast |2013 |2014 |2015 |2016 |2017 | |Sales: | | | | | | |12 Ounce Breeze Waters | 6,000,000. 00 | 6,600,000. 00 | 7,260,000. 00 | 7,986,000. 00 | 8,784,600. 00 | |1 Liter Breeze Waters | 500,000. 00 | 550,000. 00 | 605,000. 00 | 665,500. 00 | 732,050. 00 | |Total Sales | 6,500,000. 00 | 7,150,000. 00 | 7,865,000. 00 | 8,651,500. 00 | 9,516,650. 0 | | | | | | | | |Direct Cost of Sales (70% of Sales) | | | | | |12 Ounce Breeze Waters | 4,200,000. 00 | 4,620,000. 00 | 5,082,000. 00 | 5,590,200. 00 | 6,149,220. 00 | |1 Liter Breeze Waters | 350,000. 00 | 385,000. 00 | 423,500. 00 | 465,850. 00 | 512,435. 00 | |Subtotal Cost of Sales | 4,550,000. 00 | 5,005,000. 00 | 5,505,500. 00 | 6,056,050. 00 | 6 ,661,655. 00 | 3. Expense Forecast The expense forecast will be used as a tool to keep Breeze Waters on target and provide indicators when corrections/modifications are needed for the proper implementation of the marketing plan. The same with monthly sales, expenses are also expected to grow at least by 10% each year and a steady contribution margin of 30% for five years. |Monthly Expense |2013 |2014 |2015 |2016 |2017 | |Payroll | 420,000. 00 | 462,000. 00 | 508,200. 00 | 559,020. 00 | 614,922. 00 | |Sales and Marketing Expense | 600,000. 00 | 660,000. 00 | 726,000. 00 | 798,600. 00 | 878,460. 00 | |Depreciation Expense | 60,000. 00 | 66,000. 00 | 72,600. 00 | 79,860. 00 | 87,846. 0 | |Leased Equipments | 144,000. 00 | 158,400. 00 | 174,240. 00 | 191,664. 00 | 210,830. 40 | |Utilities | 120,000. 00 | 132,000. 00 | 145,200. 00 | 159,720. 00 | 175,692. 00 | |Insurance | 24,000. 00 | 26,400. 00 | 29,040. 00 | 31,944. 00 | 35,138. 40 | |Taxes | 240,000. 00 | 264,000. 00 | 290,400. 00 | 319,440. 00 | 351,384. 00 | |Total Expenses | 1,608,000. 00 | 1,768,800. 0 | 1,945,680. 00 | 2,140,248. 00 | 2,354,272. 80 | | | | | | | | |Percentage of Sales |24. 74% |24. 74% |24. 74% |24. 74% |24. 74% | |Contribution Margin | 1,950,000. 00 | 2,145,000. 00 | 2,359,500. 00 | 2,595,450. 00 | 2,854,995. 00 | |Contribution Margin/Sales |30. 00% |30. 00% |30. 00% |30. 00% |30. 00% | IV. controls This plan is about implementation, introducing new and innovative products and making it better. It is worth nothing if not implemented. In this chapter we look at specific implementation programs, and the details that it takes to make it happen. ? Implementation. The following table and chart identify the key marketing programs. Dates and budget are clearly established. Point persons are informed of their main programs and they are on board with implementation We will be tracking plan vs. actual results for each of the programs and discussing them at our monthly meetings. The programs will be revised each year. This year’s plan includes only the programs to be implemented this year. Milestones |Â   |Â   |Â   |Â   | |Corporate Identity Revisions |3-Jan |5-Feb | 10,000. 00 |KMDM | |PR Development Quotes |20-Jan |22-Oct | 20,000. 00 |ACM | |Website Online |2-Jan |30-Mar | 55,000. 00 |KNDM | |Standard Page Brochure |3-Mar |30-Apr | 50,000. 00 |KNDM | |PR: Sponsorship in schoo l leagues |12-Jun |30-Sep | 350,000. 00 |ACM | |Targeted Advertising |16-Aug |15-Nov | 100,000. 0 |KMDM | |Athletes (collegiate/national) |16-Aug |15-Nov | 500,000. 00 |ACM | |Industry Fieldworkers |11-Sep |31-Dec | 300,000. 00 |ACM | |Press Release 1 |6-Jun |6-Jun | 5,000. 00 |KMDM | |Press Release 2 |1-Dec |1-Dec | 5,000. 00 |KMDM | ? Marketing Organization. Our Marketing Department is headed by Arnold C. Madrio, a seasoned marketer exposed in various marketing efforts brought about by his previous experiences in the field. We need the marketing department to maintain its professional integrity above and beyond the specific associates looking out for our marketing goals and implementing the marketing program as best fits our strategy. ? Contingency Planning. The most likely change in the marketing scheme is adding bigger sizes of Breeze Waters and introducing the same to a different market segment. We will be keeping a close eye on the market trends related to this plan. As of today, we expect we can develop our niche and focus without direct competition from the market with the same product specifications. Worst case scenario is that Breeze Waters cannot support itself on a going concern basis and having to liquidate equipment and intellectual capital to cover liabilities.

Toyota Economic and Recall Crisis Research Paper

Toyota Economic and Recall Crisis - Research Paper Example Toyota has 522 subsidiaries, more than 320,000 staff worldwide, more than 12 Japanese factories, and more than 51 locations in 26 countries. As of 2009, Toyota faced a crisis that almost brought about its down fall. The company had earlier faced an economic crisis that started in 2007 spreading across auto industries worldwide. Consequently, in March 2008, the company recorded its first ever loss after 70 years. Other problems that have faced Toyota include the problem with acceleration in 2009 that led to a recall of millions of vehicles. As a result of this, consumer attitudes towards the brand changed. In January 2010, complaints from customers continued and the number of recalls continued to rise. This continued through April 2010, causing a further drop in customer’s feelings towards the brand. In an attempt to retain its customers, and maintain its position as the number one global auto industry, Toyota changed its motto to â€Å"Moving Forward!† Through this, the company communicated its desire to create a new and better beginning. Gradually, the company has been gaining positive disposition from its customers. Today, Toyota has been able to rise again, even though it has lost its number one spot. Keywords: Toyota, Toyota Motor Corporation, Toyota Production System, Manufacturers, Crisis, Automobile, Auto-maker, Gas Pedals, Acceleration, Recalls For many years, Toyota Motor Corporation has been the biggest automobile manufacturer in the world. It also is a leading advocate eco-friendly and technological cars. The company has exported millions of vehicles worldwide. Through this, it earned the reputation of being the best automobile manufacturer and exporter. Since 2007, the company has however faced a number of problems affecting both its reputation and positive customer disposition. Today, the company has however gradually regained its reputation. Toyota Motor Company was established in 1937 by Kiichiro Toyoda. In 1952, the company rapidly grew becoming successful (Borowski, 2010). Initially, the company exported its vehicles to South America. After five years, it was able to penetrate markets in North America. Having sold its products in North America, Toyota was able to penetrate the United States market in the business of exporting automobiles. Borowski (2010) points out that â€Å"In 1982, Toyota Motor Company and Toyota Motor Sales Company joined forces to Toyota Motor Corporation (TMC)† ( p.3). â€Å"The company now has 522 subsidiaries, 320,808 staff worldwide and is producing not only in the 12 Japanese factories but also in 51 other locations in 26 countries† (Borowski, 2010, p.3). In 2007, Toyota Motor Corporation had the highest share price value among all car-manufacturers. In, 2008, Toyota made an annual turnover worth billions of United States dollars after selling millions of vehicles.. Consequently, the company gained the status of being the biggest manufacturer of automobiles. This has however changed due to the financial crisis that began in 2007, damaging Toyota’s image, and also due to over sticking gas pedals that led to many recalls worldwide. According to Ohno, a structure of theories and procedures for improving collaborative strength known as the Toyota Production System is used at Toyota to maintain the company’s productivity, and at the same time, ensure that customers are satisfied with the quality and efficient delivery of vehicles (1998). The production of Toyota automobiles evolved from Henry Ford’s historic manufacturing systems. Herny Ford manufacturing system thus paved way for the foundation of the Toyota Production System. Due to conditions in Japan, there was inherent need to make considerable improvements to Ford’

Disscussion on any Economic Resource Which is Scarce in UAE or a Well Assignment

Disscussion on any Economic Resource Which is Scarce in UAE or a Well Known Country - Assignment Example Apart from that the water consumption in the emirates is massive and it is almost four times as that of Europe and desalinization plants will not be able to protect the fresh water resources for long time (Oil Rich But Water Scarce UAE in Grave Danger of Losing It’s Water Resources in Just 50 Years,2010). Thus identifying the problem, the paper focuses on the governmental measures to tackle this problem, cost structure and mechanism of the emirates on fresh and its price elasticity of demand. Finally it points out in suggesting optimal strategies to tackle this problem. Governmental measures to tackle the problem of water scarcity The government had been well aware of the water scarcity problem and devised many policies to overcome this problem (Massad & Kannan, n.d., p.100). However the scope of discussing all is limited and the focus is some particular strategies. The oil wealth of the UAE has attracted myriad of population into this arid empire with high demand of water whi ch made the government to face severe challenges to tackle the problem. The scarcity of water and high demand for water can be explained in a demand supply equilibrium framework. Fig.1 In the above diagram the initial equilibrium is attained at the point E, where the demand curve (DD) and supply curve SS intersects each other and the equilibrium price is P0 and the equilibrium quantity is Q0. Now as we have discussed that the population pressure has increased the demand of water to a great extent. So at the same price P0 it is found that the new demand curve (DD1) has shifted rightwards and an excess demand of occurs at that price. The supply being short there is problem in adjusting and attainment of equilibrium is a problem. Government has implemented strategies to lower the immigration rate. As for example in Dubai, the employers are subject to a new work permit quota system and are required to obtain pre-approval in order to sponsor individuals for work permits. Again in Abu Dha bi, the foreigners are required to have medical insurance or health card in order in order to obtain work permits and growing charges for attestations confirming foreign degrees .As direct consequences of the population boom heavy pressures fell on the agricultural sector of the Arab emirates. Enhanced technology research, support to local farmers, use of waste water and innovative solutions are adapted and implemented by the government to solve the water crisis problem. Other policies include large scale water production through eco-friendly techniques applied in desalinization plants, tight controls are kept on the quality of the imported produce as well as the stockpiling of the key crops (Szabo, 2011, p.6). Stress have been also given on non water policies because they are critically central to water policy reforms as the tasks becomes easier and productive when people outside the water sector show their eagerness to engage in complementary actions (Jagannathan et al, 2009, p.28 ). Awareness programs are also initiated by the government as well in solving the problem. Price elasticity of demand and water scarcity in UAE â€Å"The price elasticity of demand measures the sensitivity of the quantity demanded to changes in the price† (Elasticity n.d.). In other words it is a measure of how much a quantity demanded of a commodity changes when its price changes. Mathematically the price elasticit

Performance of any construction project

Performance of any construction project Chapter 1: Introduction. 1.1 Introduction: The delivery of any project is considered successful, when it achieves its predetermined goals and objectives. The performance of any construction project is measured or benchmarked by three aspects i.e. time, cost and quality. Any variations to these three aspects may lead to the failure of the project. Cost of the project, its duration and the value achieved from the project is an important issue, particularly for public funded projects. As these types of projects are sponsored by tax payers, hence it becomes necessary to provide better value for their money in terms of services or facilities. Increased duration means the tax payers and the overall economy of the country have to wait for facilities such as infrastructure and services. This will make hurdle for the progress of economy of that country. The simplest definition of the cost overrun in the construction project is an overrun which occurred rather than presumed cost. The researchers findings suggest that most of the public funded projects across the globe suffered from the phenomenon of cost overrun. The study of Flybjerg et al (2002, 2003 and 2004) had covered 23 countries across five continents and found as infrastructure projects often suffer from the cost overruns. For the successful delivery of the project without any cost overrun, it is necessary to investigate the various causes of cost overrun and as per various causes, preventive measures are to be implemented to avoid cost overrun. There is an internal relationship between the type of the project i.e. size and purpose of project, type of risks involved in the projects and the phenomenon of cost overrun. Most of the mega projects are more susceptible for the cause of cost overrun due to various reasons such as, longer duration, variety of risks involved and influence of stake holders. Every cost escalated project has unique causes of cost overrun particular to that project, which mostly depends upon the location of the project, culture of construction industry at that location and type of project etc. Various researchers have found out the cause of cost overrun particular to their case studies. These causes of cost overrun are further subcategorised as technical causes and non technical causes. Majority of technical causes found are inaccurate cost estimates, poor project management and improper risk management. Even though there are various causes of cost overrun for different projects, same measures can be implemented for any projects to take care of cost overrun. Though there are various case studies for successful projects and unsuccessful projects in aspects of cost overrun, the case study of construction of terminal 5, Heathrow is explained here as it is one of the successful project delivery without any cost overrun due to various measures and innovative strategies adopted by BAA during the project management. The case of Wembley stadium is considered for finding the causes of cost overrun as a failure project, which led the contractor to the huge amount of loss of profit. Cost overrun has various impacts in a construction industry such as prolonged duration of projects, budget shortfall, supplementary agreements, loss of reputation for client, contractors and consultants and adversarial relationship among the stake holder due to failure of the project. As said above, most of the public funded projects were suffered from the cost overrun. It is necessary to attain the effective measures for cost overrun for the successful completion of the projects, which will be helpful for the socio-economic progress of that country. 1.2 Purpose: Every country across the globe it may be developed or developing, is trying to make life of the citizens easier by providing or enhancing the infrastructural facilities. History shows that most of the infrastructural projects are prone to cost overrun with effect of delays or suspension of the projects, leading to deceleration in achieving infrastructural facilities for the tax payers or that country. In order to realise every nations development dream and to leap towards the respective aspiration, every professional of construction industry will have to opt for successful project delivery without any cost overrun, sticking to time constrain and with optimum quality. This fact gives the much needed motivation for the research. 1.3 Aim: The aim of the research is to investigate the major causes of cost overrun in construction projects and measures to avoid cost overrun. 1.4 Objectives: To build clear understanding of the causes and measures for the phenomenon of cost overrun. To study some practical evidences to compare causes found for failure project and measures taken for successful project. Analyse the information obtained from study (literature review and case studies) and provide results to facilitate further recommendation and suggestions for avoidance of cost overrun. 1.5 Research questions: What are the major causes of cost overrun? What are the various measures to avoid cost overrun? 1.6 Breakdown of the dissertation: This chapter gives the summery of the various contents which were covered in the research. For better achievement of aims of research every topic will be covered in the chapters, following are the introduction of all chapters Chapter 1:- Introduction This chapter covers the preliminary introduction to the topic with purpose of study, aim, objectives, research questions and breakdown of the dissertation. Chapter 2:- Review methodology This chapter explains about the methodology followed to execute the study with explanation about research strategy, literature review, case study, research design, methods of data collection etc. Chapter 3:- Literature review This chapter covers the literature review with description about cost overrun, megaprojects, causes and measures for the cost overrun. Chapter 4:- Case study This chapter gives the evidence of real life case studies, to get better idea of causes for failure and measures for success of project. Case study of terminal 5, Heathrow is studied to understand successful delivery and case study of Wembley stadium is considered for causes of failure of project. Chapter 5:- Finding and analysis This chapter covers the knowledge gained from the studies and analysis in the form of future recommendation to avoid the cost overrun in construction projects. Chapter 6:- Conclusion This chapter covers the introduction for conclusion, objectives and their attainment, limitation and strength of the study, which will be benefited from the study and the future recommendations. Chapter 2: Review Methodologies 2.1 Introduction Sekaran (1992) defined research as an organized, systematic, data based, critical, scientific inquiry, or investigation into specific problem, undertaken with the objective of finding answers or solution to it. This chapter explains the methodology and the techniques, which were used for achieving the objectives explored in the Chapter 1. For doing so it will first discuss about the research design process, theoretical and practical explanation about selecting structured literature review and case study approach. It also elaborates about the actual design of the case study and details surroundings the selection of the case study. These detailed explanations involve the formation of questionnaire about the case study, overview of case study and discussion of the related issues. After this the section describes about the data collection methodology which was utilized in this investigation. 2.2 Research strategy A Research strategy is a plan containing the ways of finding out the answers of the research questions. For framing the research strategy it is necessary to define the objectives of the research and accordingly the research strategy can be developed. Flyvbjerg (2006) and Bell (2005) explained about the strategy, study and the situations. Accordingly, the problems under study and the situation will decide the strategy. Also the approach of information collection does not depend on one method. Methods are opted for feeding required data to produce complete piece of research. Various methods are used to examine a subject which eventually increases the validity of the theory. Yin (2003) had elaborated five different strategies, which will support the research, accordingly, Experiments: Experiment will be helpful when there will be degree of control over the iterative trials and researcher is focused on current events. This will help to find out the conclusions by interrelating the cause and the effects of the variables in the research, which can be achieved by manipulating and control of external factors. Survey: A survey is a structured questionery which is to be questioned to the people. This will be the alternative for the experiments when there is no need of the control over circumstances of the event. The quality of the data by this method is lower than the other methods because the behaviour or approach of the person facing the questionery will affect the survey result. Case study: It involves thorough observations of few individuals. Data collection may involve inspecting the events, interviews and finding records. Archival analysis: It involves the thorough analysis of collected documents, archives, which may be journals, books, web pages etc. Here archival analysis is considered literature review. History: History is similar as archival analysis as it does not require control over the response of the events, only difference is as archival analysis focuses on the current events while history does not. History is practical when there is no control over the behaviour events and investigator does not focus on contemporary events. From the various methods stated above the author has considered case study and literature review as the potential methods for the research under study. Specifically case studies of construction of Terminal 5, Heathrow and construction of Wembley stadium have been adopted for the proper understanding of the topic.By adopting the recommendations and similar conditions in context to the research, the study under view plans to follow broad range of methods such as qualitative and some elements of quantitative techniques. To accomplish this research project, both case study and literature review approaches will be used. There are various reasons apart from as stated above for the adopting literature review and case study approach. One of the reasons will be the problem of biased selectivity in reviewing the literature and bias in reporting which reflects authors bias. In addition to that, there may be difficulty of generalization of data on the basis of individual cases as interpreted by Flyvbjerg (2006).However the combination of the data from the literature review in context with case studies and further analysis will greatly improve the quality of this research and with anticipation, will not produce any barriers at the analysis and interpretation stage. 2.3 Literature Review Bouner (1996) explained about the various reasons for giving time and efforts for the literature review before approaching towards the research project. Accordingly To identify gaps in the literature To avoid reinventing the wheel To carry on from where others have already reached To increase your breadth of knowledge of your subject area To identify seminal works in your area To identify opposing views To put your work in to perspective To identify information and ideas that may be relevant to your project To identify methods that could be relevant to your project On the basis of the above reasons literature review can be defined as a survey of the scholarly articles, relevant books and other academic sources (Dissertation, conference proceedings) in context with the research subject, providing details, critical analysis and summery. Literature review can be done by adopting various steps one by one as Define the topic Compile a list keywords Identify resources Search results Screening results Organize findings Data extraction and Reporting. 2.4 Case study Feagin et al (1991) defined case study as an ideal methodology when a holistic, in-depth investigation is needed. Yin (2003) explained about the case study as when the phenomenon under study is not readily distinguishable from its context. According to Flyvbjerg (2006) case study is beneficial in view of developing and analyzing the hypothesis but not limited to these research activities alone. He elaborated the case study as a perfect choice for achieving the greatest possible amount of information on a given problem or phenomenon. Yin (2003) recommended about the data collection for the formation of the case study, accordingly data obtained from the multiple resources, approaches will add value and strengthen the case study. Yin (2003) identified six sources of case study evidences namely documentation, archival record, interviews, direct observations, participating observations, and physical artefacts. Due to certain limitations including time and lack of funds, this research will make use of only documentation and archived materials. Data from the two separate case studies was collected to get near to the aim of the research and trying to find literal replication to support the findings of the research. The propositions directed and shaped the collection and analysis of data in each case study. Yin (1994) given recommendation to be followed for methodology for a case study which has four stages; Design the case study protocol: determine the required skill develop and review the protocol. Conduct the case study; prepare for data collection distribute questionery conduct interview Analyze case study evidences: analytic strategy Develop conclusion, recommendations, and implications based on the evidence. Yin (1994) intimated that case study designs are not variants of other research design he proposed five components of case studies: A studys questions, Its propositions, if any, Its unit(s) of analysis The logic linking the data to the propositions, and The criteria for interpreting the findings (Yin, 1994, p.20). The stage of analysis is a critical factor in case study because it is a system of action rather than individuals or group of individuals. Case studies will be isolating, focusing on one or two issues which will be helpful to understand the system being examined. Multiple case studies will adopt the logic of replication. Each individual case study consists of a whole study, in which facts are gathered from various sources and conclusions drawn on those facts. The topic of cost overrun is vast because to understand or to investigate the various causes of cost overrun it is necessary to go thoroughly to the every phase of the project, right from its inception to completion stage. Hence the time available to write dissertation on such huge and vast topic is limited, so instead of writing two much case studies, emphasize is given on two case studies such as successful project as a project T5 and failure project as a Wembley stadium. Why case study of project T5 and Wembley national stadi um? The answer is, Terminal 5 project considered here to understand the successful project delivery without any cost overrun and the Wembley stadium is considered for finding and comparing the causes of failure of project. 2.5 Research Design A deliberately planned arrangement of conditions for analysis and collection of data in a manner that aims to combine relevance to the research purpose with economy of procedure (Cook et al 1981).The purpose of the research design is to map the process of research, i.e. research design is used to frame the research, by mapping all the major parts, components, and activities involved to achieve the objectives involved in research project. Various parts and components of the research are samples or groups, measures and activities such as methods of assignment are to be addressed to central research questions. Before planning research design the very first step is identification of the research objectives and then the research questions are then asked and accordingly strategies are to be identified. While fixing the strategy about research design, researcher needs to overlook and decide about the usage of viable and accessible source of information with the help of currently available t ools and methods. The data should be collected in view to get assist to the identified problems or reveal some unknown aspects of the research problems. As research strategy is decided by focusing on aims and objectives of the research, all the data collected should be eventually related within the scope of the research. Efficient collection of data requires through understanding and clear definition of the problem and opportunities surrounding the research subject. (See Figure No 2.1) 2.6 Methods of Data collection Various sources of data which were used for data collection is below Databases Emerald Science direct Scopus Wiley interscience Google scholar e-Library, University of Salford EBSCO host Scirus.com Informaworld RICS BAA OGC NAO Wembleystadium.com Other potential sources of information are textbooks, journals available at library, University of Salford. 2.7 Limitations While searching the appropriate article for collection of the data, it is observed that the same article is appeared in most of the resources. As research aim is in context with the overall construction projects, most of the articles found based on public projects and it is difficult to find the article for private projects. Also it is observed that there are very less articles purely on the topic of cost overrun, most of the articles combined cost overrun and time overrun. 2.8 Summary The research methodology is explained here as a process by which the aims and the objectives of the research have been achieved. For finding out and going near to the answers of the research question is achieved by following the research strategy, which includes adoption of the literature review and case studies with justification adoption of case studies for the particular research. Finally the research design described about the collection, segregation and extraction of data from the authentic sources. Chapter 3: Literature review. A construction project is a unique undertaking for essentially a single purpose which is defined by scope, quality, time, and the cost objectives. The cost and the quality objectives are met by the use of limited resources (Ahuja et al 1994). One of the clients main requirements in respect of any construction project is the assessment of its expected cost (Ashworth, 2004).The importance of cost control as explained by Ashworth (2004) is to limit the clients expenditure within the amount agreed, to achieve a balanced design expenditure between various elements of buildings and to provide the client with a value-for-money project. The value-for-money may be the satisfaction achieved by client in sense of optimum quality and in time possession of the project. For any construction project which may be small or large, the first initiative is to prepare the cost estimates. After this stage the cost control measures are to be implemented during the project life cycle to limit the client expenditure within the amount agreed. This will be the theoretical explanation which seems easier rather than the implementation of the various measures because, the various factors such as forces of inflation, economic uncertainties and the erro r prone human input are influencing during the project lifecycle. In construction industry, there are very rare projects which are completed as per the estimated cost and on scheduled time. The projects which are completed on its estimated cost are exception rather than the norm. As said above the construction project has to go through the many phases during the project life cycle. By the transformation along with the duration it will affected by the various factors such as geological conditions, weather and many other parameters which will be unknown during the planning stage of the project. Accordingly the variation in prices, quantities and many other parameters like that prevent accurate cost estimates. Also as the project progresses towards its completion lots of new things will be propping up which eventually change the estimated cost of the project. World recession has generally produced a shortage of funds for capital purposes and construction in general. This has been coupl ed with high inflation and interest charges, resulting in the costs of construction soaring to high level. (Ashworth, 2000) 3.1 Type of project, risk, cost: Kerzener (2006) explained the rules and the guidelines about the execution of the large construction projects. According to that, such projects involves vast number of people often for short or intense period of time and continuous organizational restructuring may be necessary as each stage of the project goes through the different life cycle phase where the matrix and project organization form may be used interchangeably. As stated above every project must satisfy the aim of the client by proper utilisation of the time and resources. For successful completion of such projects the contractor and his organization should be prepared with all the required qualities. There may be various factors within the organization which are found to be critical in concern with the success of the project such as training in the project management, rules and procedures clearly defined, communication at all levels, quality front end planning etc. Kerzener (2006) explained about the behaviour or approac h of the some of the companies and the mega projects. According to this, many companies dream about winning the mega projects rather than recognizing their own capacity such as, lack of availability of on site and skilled workers, lack of properly trained supervisor staff and last but not least, unavailability of raw materials. As a result of such problems, company immediately assigns its employees who may have experience of such project or they may be new to such projects, who eventually face working stress from the execution of the project consequently reducing their efficiency. Such situation will create confusion and delay for the project execution which results in increase the completion cost of the project. Mega projects are not always as glorious as people think they are .Organizational stability, accompanied by moderate growth rate, and may be more important than the quantum steps to the megaprojects. In short megaprojects should be left to those companies that have the faci lities, expertise, resources, and management know-how to handle the situation (Kerzener 2006). Flyvbjerg (2005) explained about the characteristics of the large infrastructural projects as Such projects are inherently risky due to long planning horizon and complex interfaces Technology is often not standard Decision making and planning are multi actor processes with conflicting interest Often the project scope or ambition level will change significantly over time Statistical evidences shows that such unplanned events are often unaccounted for leaving budget contingencies sorely inadequate As a consequence, inappropriate information about costs, benefits, and risk is the norm The result is cost overrun and/or benefit shortfalls with majority of projects. Every construction project differs from the various types of risks such as social/institutional, technical and market related risk. International Program in the Management of Engineering and Construction (IPMEC) has conducted a study about the various types of the risks with the project. Miller et al (2008) have given examples of a various type of the projects such as, oil platform are technically difficult, but typically they face few institutional risks because they are built out of focus of the public attention. Hydro electric power project are tedious in concern with engineering but very difficult in view of social acceptability. Nuclear power projects have all technical, social and institutional risks. A road and tunnel project present high level of technical risk as rock information usually hides big surprises which may eventually affect the cost and length of the project. Here author has explained about the various types of the projects and risks related with that project. The se risk factors are the major catalyst for the causes of the cost overrun and time overrun during the project which eventually drags project towards the failure. Miler et al (2008) explained about the one of the aspects of the risk which he calls as the Turbulence. This is not the type of the risk which occurs in the construction project but it is observed in many of the construction engineering projects. Turbulence refers to the way that consequences of events are compounded in unforeseen ways, even if the initial event lies within the range of possibilities that was known in advance, but often more seriously in the case of events that are truly surprises (Miler et al 2008).In the face of such difficulties the project may get stuck, the parties which are working for the project may leave the project hence again there may be the possibilities to restart the project which may take re-approval of procedure and renegotiation to complete the project. This eventually creates delay and cost overrun in the project. Thus here we can find that the type of project, size of the project, and risks involved with the projects are interrelated with the possibility of the overrun of the cost of the project. 3.2 Cost overrun: Arditi et al (1985) conducted a survey to investigate the causes of the cost overrun in Turkey. For his study he considered the various government projects between the periods of 1970-1980. According to him various causes such as Increase in material cost and wages Inflation burden Shortage of materials and variation in the price index of the material cost, and lastly most important Delay in construction and errors in the initial estimates are the major causes of the cost estimates. As per Arditi et al (1985) the effect of the cost overrun is not only limited up to the construction industry of the turkey but also it had shown its effects to the economy of the that country. Author also stated about the worst situation of the project delays. According to him many of the time situations may arise that many of the completed activities such as casting, fabricating, exterior works of the projects get worn out during lag period and it has to be reinstated after re-approval and restart. Here author tried to explain about extra expenditure which will be spent for the reinstatement of the damaged work due to the project delay which automatically adds up a cost for the project. Author has found occurrence of cost overrun in various stages of the project such as preconstruction and construction phase. Author has not suggested any recommendations for avoiding the cost and time overrun for the projects. Only thing the author has made comment about is the practice of the publ ic agencies regarding their estimating and the payment practices. It shows that there are chances for the minimization of the cost by adopting proper and correct estimation technique and payment procedures. Various studies have been observed in the Nigerian construction industry. Dlakwa and Culpin (1990) conducted survey to investigate the various causes of cost and time overrun for the various projects during the third quarter of 1988. Dlakwa and Culpin (1990) has considered only the construction phase particularly near to completion time of the project for finding and identifying the various reasons for the cost overrun. The author here explained about the significance of completion stage, as there is maximum amount of money of the clients is invested at the completion stage as compared to conception stage of the project. Author has interpreted survey results, according to which there are five major causes for the cost overrun, Fluctuation in labour, material and plant cost Construction delay Inadequate preplanning Deficiencies in the initial estimates Unforeseeable circumstances. Author has recommended about the relationship, trust among the various stake holders such as agencies, contractors and consultants which were involved in the public project, for that reason he suggested various factors such as disagreement on the contract clauses and specifications and enforceable circumstances has to be given prime importance to avoid cost overrun. Mansfield et al (1994) carried out survey for the recently completed highway projects during 1992. The author here explained about the construction industry of one of the developing country and impact of construction industry on the economic growth of the country. Author insisted about the cost effectiveness within the project planning and project management for the development of the economy of the particular country. Author has explained about the current practices of the contracts which were used in the Nigeria. Hence it is observed as even though there are various forms of the contracts are used by public clients, the greater emphasis was given on the fixed-priced contract. Author conducted survey among 50 construction professionals ranging from contractor, consultant and client organization. According to his survey cost overrun attributed to finance and payment arrangements, poor contract management, material shortage, inaccurate estimating and overall price fluctuations in deve loping countries. The lack of proper phasing of construction project

Rhetorical Devices in Great Gatsby

Gatsby Essay Honors English II Asura Louise Osborne In the 1920’s, the world was full of new inventions, dances, and drinks. The standards of even the most rigorously structured social classes were changed, allowing the rich to cut loose and throw elaborate and entertaining parties. Every day, the world was changing for the better. Author F. Scott Fitzgerald’s work â€Å"The Great Gatsby† reflects these ideas, communicating through various rhetorical devices that the world is a magical place, and that even in times of sadness, anything is possible. Prior to the Jazz Age, growing up was associated with a loss of happiness and hope.During the 20’s, however, this standard seemed to change, pushing the perception of adulthood into something magical and frivolous. Fitzgerald reflects this in the archetypal portrayal of a city, describing it as â€Å"in white heaps and sugar lumps†. White is an archetype for purity, innocence, and hope. It illuminates the hope that the young adults living in the 1920’s felt, as well as the innocent parties they danced at, innocent not because of what took place in them, but because they were blissfully unaware of the harsh realities that existed elsewhere in the world.Happiness is also communicated in the use of the word â€Å"sunlight†, because the sun is an archetype for energy and hope. Through the personification of the city â€Å"rising up†, it is illuminated that the roaring twenties came from seemingly nowhere, almost like a fairytale. The magic of the upper classes’ world was also portrayed in the hyperbole, â€Å"all built with a wish. † In reality, the city merely began as a wish, but Fitzgerald portrays it as something that sprung up from a thought.Potentially the most illuminatory literary device is the imagery in the sentence â€Å"its wild promise of all the mystery and the beauty in the world. † The picture painted is one of excitement, hope, and perhaps most importantly, the creation of a wonderful world borne from fancy. In times of loss, a traditional coping mechanism is bargaining. This is generally portrayed as â€Å"If I do such and such, so and so will come back. † It is usually a time when the bargainer believes in part that anything is possible. F. Scott Fitzgerald dives into that idea when Jay and Nick become part of a funeral procession.One way he communicates the idea that anything is possible is in the juxtaposition of life and death, â€Å"A dead man†¦in a hearse†¦heaped with blooms†¦Ã¢â‚¬  His diction also illuminates this concept through the use of the word â€Å"blinds†, suggesting that most people are blind to the presence of possibility. In addition to diction and juxtaposition, Nick’s reaction to seeing blacks in an affluent setting also illuminates that Fitzgerald is communicating through him, â€Å"Anything can happen now†¦anything at all. † Even in the presence of a â€Å"somber holiday†, the world is still coming up with new possibilities.The world is ever changing, which is one thing that makes life on Earth so exciting. All of the changes that are present today really began in the 1920’s though, a time of new ideas and hopes. F. Scott Fitzgerald led America’s run head-first into the Jazz Age, and gave future generations a peek inside what life was like at the time with his novels. In his book, â€Å"The Great Gatsby†, he uses many literary devices to illuminate the concepts that life is magical, and that even in times of sadness, the world is filling itself with new possibilities.

Analysis of Central Idea in Helena Maria Viramontes’ “The Moths” Essay

The short story â€Å"The Moths† by Helena Maria ViraMontes is the story of a Latina granddaughter reminiscing about her relationships between herself and family, most specifically with her grandmother, when the narrator was a teenage girl. The narrator speaks about the indifference she felt among her sisters because she feels she was not pretty enough and could not â€Å"do the girl things they could do† (ViraMontes 1118.) Furthermore she expresses that she is always in trouble and she is used to getting punished for her disruptiveness. She spends her time watching over her grandmother since her grandmother has always watched over her. Throughout the story, the grandmother progressively becomes more and more ill with cancer, while the grandaughter becomes more and more emotionally, and productively responsible. Finally the cancer kills the grandmother, and the granddaughter continues to take care of her, undressing her and washing her in the tub, as she holds her and rocks her back and forth. At this point, moths are released from the grandmother; the moths which the grandmother told the granddaughter â€Å"lay within the soul and slowly eat the spirit up† (ViraMontes 1121.) The granddaughter cries and sobs in the tub with her grandmother until her sadness transformed into relief. Later the granddaughter talks about the sun and how it cannot shine forever. It must disappear in order to reappear for the next day. She also notices that â€Å"endings are inevitable† (ViraMontes 1121) and it is necessary to be reborn. After the grandmother has passed, on the granddaughter who felt so distant from her mother, now longs to be with her, to establish a new relationship was born from the death of an old one. Therefore during emotionally challenging times, we must all be able to let our guard down, be vulnerable, and allow our emotions to own us in order to obtain peace in one’s life.