Problem Solving in Business - Microsoft vs Disney Diversification - Assignment Example

Problem Solving in Business Student’s Name Institution Affiliation Question1 An economy of scale is defined as the pricing edge a company gains as a result of expanding its business. Gaining economies of scale means that a firm would have gained an advantage in costs over its competitor, making it to achieve efficiency in its products. Technological changes for example could alter costs making businesses to penetrate into the existing markets resulting to economies of Scale. This would precipitate a cost reduction. For example a retail store acquiring 4,000 bags of sugar as opposed to around 200 bags, would cost low. This means that the marginal prices for delivering 4,000 bags will be lower compared to acquiring 200 bags. Economies of Scope on the other end are the aspects which make production of a variety of products to be cheaper compared to production of individual products. A firm which produces a wide variety of products instead of specialized goods of a certain product gains economies of scope. For example, a firm could diversify the range of its products in a bid to gain an advantage of its existing brand values. This is exploitation of economies of scope. Question 2 A growing economy needs critical entrepreneurship elements portrayed by the Indian families in the Havells case. They business leadership developed environments that are conducive for entrepreneurial behavior. In the Havellscase, the families do not encounter differences in each of their member’s opinions. Mr. Gupta has asserted this. In essence, there is no typical problem or friction brought by the younger generation to the established family business.Unlikewhat many people would do, Mr. Gupta is still very aware of the business’s happenings and this is attributed to his leadership skills, temperance, and his father’s willingness to be adaptable in ways of thinking (Dasari, 2009). The leadership displayed by the family means that they are able to foresee and set future ambitions through adopting specified agreed plans. Havells have laid a plan acquire a lightingfirm from China and considered a number of other firms for similar reasons (Dasari, 2009). The leadership of the family is relentless and hardworking as they have other plans of penetrating the expansive Chinese market for electrical equipment. Havells have a willingness to diversify their lines of business by venturing into the business of electrical motors. Question 3 Apple has been dominating the market with its touch screen iPad tablets. Apple is capable of sustaining this leadership. The key factor, which is likely to ensure that the organization keeps on producing iPad tablets for its market, is its ability to offer a wide range of content plus hardware within the market. Apple’s leadership has been due to its ability to diversify in its products line. This is similar to the Havells business, which has always invested in fields that are unrelated to it. For example, the firm was able to acquire a specialty hospital in Faridabad. Apple’s diversification coupled with its good-looking devices and offering videos, applications, music, well-designed books provides market for their wide range of products that are appealing in every aspect. This market ecosystem by apple in producing iPod, iTunes Music Store, as well as touch screen computers has ensured that they lead their competitors who have never managed replicating the products by Apple. Apple further commands leadership in the market by deploying a smaller version of iPad, which still emphasizes quality. This has been a need expressed by its market segment. Just like the Havells, Apple particularly understands the needs of its market in providing services and products. Question 4 A complementor is a company or organization that offers products orservices, which are complementary to, or compatible with those produced by a given industry. A complementor for a hotel is likely to be a health club whereby guests from a hotel would visit to enjoy a variety of services like sauna, massage, and exercises. An investments bank’s complementor would be an insurance industry A complementor for a DVD manufacturer would be the music or entertainment industry A complementor for a professional Sports organization would be a health club Question 5 Singapore Airlines is likely to experience key challenges in operating the budget of its full service airline having come up with low prices to compete with Air Asia and Jetstar. Among the challenges likely to be faced by Singapore Airlines, is strong competition which it battles with the rising number of airlines that have recently entered into its market segment. These competitor carriers impact on the budget of the Singapore airline. This challenge can be averted by the airline if it ventures into new routes so as to gain a double –digit growth. These routes can be penetrated in Europe markets. This is because in the European routes, the prices are still overpriced and the areas are underserved. For example, routes in France remain largely underserved. Such a route offers opportunities for exploitation. The Singapore Airline has also faced problems similar to Jetstar and Air Asia as a result of slowdown in the global economic situation. The net profits margins of the airline have thus been affected hitting on its cargo and passengerdemand. This is likely to translate to the airline digging deep into its pockets to mount the challenges in the future. The airline has also faced challenges in the rising oil prices. The Low-cost carriers venture into furtherfields and new regions have many at times impacted on the profits of the airline. The airline has struggled in offering low services regardless of the high fuel prices. The added market segments to be covered by these airlines would mean incurring more costs due to the world fuel prices. The rising costs have to be reduced. This especially applies to avoiding unnecessary costs which the airline has control over. For example, the airline can opt to operate on regions where demand for the travel on low costs is high instead of leaving the market upon entry of Jetstar and Air Asia Question 6 Organizing structureis referred to as arrangement of the means and for the executing business plans. The process involves creating an administrative set-up which will drive the plan to be executed. The organization structureusually suggests the management framework which will ensure that functions run smoothly. An organisation structure represents a functional group where workers team up to achieve a common objective. This structure offers a mechanism under which cooperative and integrated actions by a given number of people who aim at implementing plans available. Organisation structure facilitates proper direction, administration, as well as control to avoid human labour and raw materials wastages. There are different types of organization structures i.e. functional organizational structure. This is whereby all staff members perform their duties for department managers, across and between teams. The managers in such structures have a weak authority and influence. The Matrix organization structure is whereby the organization is confined in functional departments like a projects management department among others. Organizational structureimpacts powerfully on ways the leader or manager of an organization influences decisions and authority. The power ranks and spread are of great essence to any organization. In the case of organizations which are completely projects organizations, the management of projects can happen in functional or matrix organization structures. This is because such organizations are usually led in their functionaloperations by the chief Executive officers and executive directors. In such a structure, the projects and objectives can be directed from a central making the activities to proceed without roadblocks or setbacks. For matrix organization structures, the experience is that completion of tasks within the specified timelines is complicated and tougher. Question: 7 Microsoft’s resource is related with The Harley-Davidson theoretical point in theHarley-Davidson case. Just like the Harley-Davidson case, Microsoft values the emotional connection it shares with its customers through their products, experiences, and services. They are motivated by loyalty in their brand and trusts that their customers will be offered premium quality to offer a satisfaction experience. Microsoft’s entry into the video games console is not a divorced strategy fromits capabilities and resources. This is because the organization is still aiming at making more profits through diversification of its products. This strategy has made the corporation to evolve from only a software supplier to digging into the entertainment, informationservices, as well as the seamless technology. This strategy makes it less dependent on PC’s alone. Microsoft intentions through this has been to set its services, software, and operating system as standard for getting access to communication, information, business transactions and entertainment. The diversification into video games has in fact been attractive to its investors and customers in exploring new markets according to Bill Gates. Microsoft vs. Disney Diversification Disney unlike many other entertainment companies does not depend solely on movies, parks, or TV. The Company has diversified and has gained a wide reach into creation of a famous and popular brand in the world. The Disney Company acquired Marvel in the year 2009 and Pixar. These have improved the company's growth by increasing its diversification further. Marvel, has enabled the company to produce films having new characters never seen in Disney before for example Thor, Iron Man, etc. Microsoft’s diversification into a number of products, services and video games has ensured it remains attractive to its customers and investors in the use of its resources and capabilities. Diversifying into services for speech and handwriting recognition, decent tools development have improved the market penetration of the customers they serve apart from the traditional PC’s and developed software they offered. Question 8 The best way for John to sort out the discrepancies experienced in the Hamilcar Barca Builders would beconsidering ethical standards expected of his profession. John should adhere to this and he should thus start by understanding the policies and spirit guiding the codes of his work and perform his work in line with these codes. This means that he ought to subject all the individuals he deals with in the company to the expected requirements so as to preserve trust, honesty and integrity. This would ensure that his job’s future and the company’s survival is a guarantee. This responsibility would be to impart proper ethical acts in high standards of all employees interacting with his department. He should make all the owners and stakeholders to know that running the company is a shared responsibility and that it is everyone’s duty to ensure that the right ethical standards are maintained for the company to survive. John should prepare and also maintain accurate records, which relate to the business in the best ways that he knows and in compliance with finance and accounting principles. This would be followed by a rigorous audit of the finances of the organization All the transactions done in the business constituting the team member activities and transactions have to be timely reported and accurately recorded in accordance with the accounting standards which apply, the legal requirements, and internal controls within the Hamilcar Barca Builders without falsification altering, or adding inappropriate information to the records. In transactions relating to relatives, he should request for permission from the top management in placing more restrictive guidelines to ensure that there are no interests conflicting in the transactions of the business. References Dasari, S. (2009). Havells India: The Sylvania Acquisition Decision. Canada: Ivey Management Services. Read More