Pestel Analysis Essay Example for Free

Pestel Analysis Essay Australia is the 15th richest nation in per capita terms and is the 6th oldest continuously functioning democracy in the world. Australia has the 14th biggest overall economy in the world and the 9th biggest economy. Australia’s economy is open and innovative. Over the past decade solid productivity gains have been accompanied by low inflation and interest rates. Also Australia has low barriers to trade and investment .Australia foreign and trade policies promote the security and long term prosperity of Australia in a global context. Australia’s economy is highly susceptible to the impact of climate change. In 2008 the Australian Government committed to create an organization called â€Å"Infrastructure Australia† to provide a new national approach to planning ,implementing and funding the nations future. Being a safe, stable and prosperous country Australia is an increasingly attractive hub for international and regional business and business operations. Political environment In Australia, it is a liberal-capitalistic democracy. The state keeps interfering substantially in the economy through the use of various roles; for instance the parliament might decide to set up importation taxes aimed to protect the national economy, or it might create environmental protection laws aimed to protect the natural heritage of the country. This affects international business because when taxes keep varying and increasing especially there will be an impact on the economy which in turn will affect the exchange rates and currency rate. According to surveys Australias economy continued to gather pace in March as world demand for commodities boosted the nations coffers. However due to recent uncertainty from the European debt crisis could lower expectations of economic growth in the future.

Plato’s Concept of the Soul and its Relationship with the Body Essay ex

Plato’s Concept of the Soul and its Relationship with the Body Plato’s theory of the body and soul originated from his earlier theories and dialogs, ‘the analogy of the cave’ and ‘the theory of forms’. Plato believed that the soul is immortal. That the soul existed before it came to the physical body, and it is still there when the body dies. This is a dualistic interpretation of the mind/body problem. Plato linked the soul to a charioteer in charge of two horses, the mind and the body, which are pulling in completely opposite directions. The soul wanting to go back to the world of the forms and the body wanting to enjoy the five sense plus pleasure. In Plato’s words - the body is the source of endless trouble†¦it fills us full of love and lust and fear and fancies of all kinds†¦and takes us away from all power of thinking at all. Therefore emphasised that the philosophers must live simply and avoid sensual pleasure so as to focus the mind on the soul and gain its knowledge. The analogy of the cave relates to the...

Net present value vs Internal rate of return Essay

How do the results of the NPV technique relate to the goal of maximizing shareholder wealth? The NPV technique measures the present value of the future cash flows that a project will produce. A positive NPV means that the investment should increase the value of the firm and lead to maximizing shareholder wealth. A positive NPV project provides a return that is more than enough to compensate for the required return on the investment. Thus, using NPV as a guideline for capital investment decisions is consistent with the goal of creating wealth. In theory, why is NPV the most appropriate technique for making capital budgeting decisions? The NPV method is theoretically the most appropriate method for making capital budgeting decisions because it measure wealth creation, which is the assumed goal of financial management. NPV is an absolute measure of a project’s profitability and indicates the expected change in owners’ wealth from a capital investment. As an evaluation technique, NPV considers all expected future cash flows, the time value of money, and the risk of the future cash flows. Thus, NPV can help identify projects that maximize shareholder wealth. If a firm selects a project with an NPV of $75,000, what impact should this decision have on shareholder wealth? If the estimated cash flows and discount rate are accurate, this project should increase shareholder wealth by $75,000. If a project’s NPV is positive, what does this suggest about the required versus estimated return on the project? What does this suggest about accepting the project? A positive NPV suggests that the estimated return on the project is greater than the required return for the project. The NPV decision rule is to accept a project whose NPV is greater than zero because this investment should increase shareholder wealth. The IRR measures a project’s yield or expected rate of return. This return does not depend on anything except the cash flows of the project. Thus, the IRR provides a single number summarizing the merits of a project. Mathematically, the IRR is that rate of return (discount rate) that makes the present value of all expected future cash flows equal to zero. That is, the IRR is the discount rate that causes a project’s NPV to equal zero. Why may using the IRR method as a decision criterion not lead to maximizing shareholder wealth? What factors can lead to misleading results when comparing the IRR with the NPV? If projects are independent and are not subject to capital rationing, using the IRR method in evaluating projects indicates the ones that maximize shareholder wealth. However, using the IRR method as a decision criterion may sometimes lead to selecting projects that do not maximize wealth if the projects are mutually exclusive or capital rationing exists. When evaluating mutually exclusive projects, the IRR may indicate a different decision than the NPV because of the reinvestment rate assumption. The IRR implicitly assumes reinvestment of all intermediate cash inflows at the IRR, whereas the NPV implicitly assumes reinvestment of all intermediate cash inflows at the cost of capital. This reinvestment rate assumption may lead to different decisions in selecting among mutually exclusive projects when any of the following factors apply: (1) differences in timing of cash flows among the projects, (2) differences in scale, and (3) differences in the useful lives of the projects. What are the similarities and differences in decision rules when using NPV versus IRR? For independent projects with conventional cash flows and no capital rationing, the NPV and IRR generate the same accept-rejected decision. Thus, the decision rules are similar for investment projects. The decision rule for NPV is to accept the project if the NPV is positive and reject the project if the NPV is NPV is negative. The decision rule for IRR is to accept the project if the IRR equals or is greater than the required rate of return and reject the project if the IRR is less than the required rate of return. Technically, the firm should be indifferent between accepting and rejecting a project with an NPV equal to zero or an IRR equal to the cost of capital because such an investment would not change shareholder wealth. The cost of capital is the discount rate for the NPV and the hurdle rate for the IRR. The firm should accept the project because it has a positive NPV. However, the discounted payback method is inconsistent with shareholder wealth maximization because the method ignores some cash flows that contribute to the present value of investment. What are two reasons for the superiority of the NPV method in evaluating capital investment projects? The NPV method is the best approach in evaluating projects because it measures the amount by which a capital investment creates wealth. This is because the NPV is an absolute measure of a project’s worth. In addition, NPV has a more realistic reinvestment rate assumption than IRR. It implicitly assumes reinvestment of intermediate cash inflows at the required rate of return. Both reasons supporting the superiority of the NPV method assume that managers invest the cash flows from the investment for the benefit of shareholders. In summary, no other capital budgeting technique does a better job of measuring wealth creation than the NPV method. Which capital budgeting techniques are increasing in popularity? Which are decreasing in popularity? Survey results suggest an increased use of more sophisticated capital budgeting techniques. The use of discounted cash flow techniques, specifically NPV and IRR, has increased in popularity over time. Several reasons may explain increasing popularity of these methods such as the widespread use of personal computers with spreadsheet programs that reduce the knowledge and effort required to calculate discounted cash flow measures and increased familiarity of managers with these techniques. NPV has been the dominant method taught in business schools for many years and many financial managers hold business degrees, especially MBAs. The popularity of the IRR is mostly likely because it is a measure of yield and is easy to explain to people who do not have formal training in finance. Since financial managers often deal in yields, some may be slightly more comfortable dealing with the IRR than NPV. Methods declining in popularity include the use of the payback period, although still popular, and the accounting rate of return. The rationale for this decline in popularity likely results from several factors including their simplicity and failure to consider the time value of money. In addition, the accounting rate of return uses accounting income instead of the cash flows.

Marketing Place and Space - Free Essay Example

Sample details Pages: 8 Words: 2421 Downloads: 10 Date added: 2017/09/14 Category Advertising Essay Did you like this example? Place and Space Abstract At its most basic, â€Å"space† marketing simply offers your customers more than one channel to purchase your goods or services – through a retail establishment, a Web site and a catalog, for example. But harnessed properly, multichannel marketing does much more. It provides a business with more opportunities to interact with customers and potential customers. And those interactions can generate a closer relationship and more business with customers, as the messages in each channel reinforce the other channels. In fact, customers of multichannel companies spend 30% more than customers of one-channel companies. This essay reviews â€Å"space† and â€Å"place† marketing and how customers can move from one to another. Examples are further given of organizations who have managed to create transparency between the two. Introduction Market space can be defined as a second, parallel world where buyers and sellers may never meet and the goods and services may be delivered in a different way than in a traditional setting. One example that makes definitions of place and space clear is when banks provide services to customers at branch offices (i. e. , the market place) and when customers use banks’ electronic online services (i. e. , the market space). Sviokla Rayport, 1995) conclude that â€Å"to succeed in this new economic environment, executives must understand the differences between value creation and extraction in the market place and in the market space: they must manage both effectively and in concert. † Background and significance The World Wide Web was invente d in 1989 by Tim Berners-Lee (Barnes-Lee, 2000, para. 1). He started a whole new way of doing things in business. Companies now can use the power of the internet to sell their products. Today thousands of sites can advertise their goods on websites such as Myspace, Facebook, and such search engines like Google. Don’t waste time! Our writers will create an original "Marketing Place and Space" essay for you Create order Many of these sites offer free advertising, which is even better for the companies because there is no cost involved. Sponsored searches and online advertising are amazing marketing tools with clear advantages for brand building and driving both on- and offline sales. These new tactics that companies are using are and can have a huge impact on their profitability. E-commerce grew rapidly in the last decade in areas such as electronic buying and selling, in electronic markets for various products, and in the use of intelligent agents for commerce, as predicted by (Malone, Yates, Benjamin, 1987). But the recent failure of Internet companies has made both researchers and academicians wonder about which business models will lead to sustainable competitive advantage in the digital economy. . Managers of brick-and-mortar companies who now have come to understand the importance of e-business, but are not quite sure how to migrate from their existing business models to a combination of bricks-and-mortar and the Internet. Weill and Vitale (2001) express concern for the senior managers of â€Å"old economy† companies who have pressure from all sides: from investors, stock market analysts, employees, customers, suppliers and competitors to migrate from market place to market space. Place vs. space When comparing traditional business to e-business, one can see several differences between the two. The most obvious difference when buying standard goods (such as a toaster, a book, or a new computer) is the store. When dealing with e-business there is no real store or merchandise to look at. It is all presented through the merchants webpage, or by other electronic means. You will not be able to touch, or inspect potential purchases. All you will have to go on is perhaps a picture and a brief description of the item in question. This is obviously a big change from traditional store-based business practices. Why would any self-respecting consumer buy something via e-business if they were unable to touch, or inspect a potential purchase, and there is a real store just down the street? There are several reasons why e-business is appealing to a growing amount of people. If you are using the Internet, you are not bound by geography. You can access any site, anywhere in the world from the comfort of your computer chair. What does this mean to the consumer? Now the consumer has access to several things they didnt before. The consumer now has diversity and ease of purchase. How can customers move effortlessly from one to another? First, we must understand why companies are being drawn towards selling their products online. A well implemented web site can significantly lower both order taking costs up front and also customer service after the sale has been made. For example being located on the Internet means that place does not enter into the marketing mix of an e-commerce company. As its customers will not visit the business, it means having a prominent high street location is no longer of importance. Also when considering mail orders, there is no longer the need to endure the costs of designing, printing and sending out catalogues. These factors contribute to e-commerce companies being able to offer products at greatly reduced prices as overheads have been minimized. This has been a â€Å"win-win† for both marketers and consumers. Internet consumers have the opportunity to preview products, conduct price comparison, locate stores or purchase the product online. McCall et al (2005, p. 46) argue that for an â€Å"environment to be responsive its users must feel as if they have the ability to move around and interact with objects in their personal and action spaces. † They define â€Å"action space† as distance grater than arms length but less than 30 meters (Loomis Knapp, 2005, cited in McCall et al, 2005, p. 6). If this is true, then shopping the Internet is the perfect medium. It is indeed almost seamless transition for consumers with basic computer skills. Before, the advertiser was in control and trying to persuade the customer to buy a product or service. Now the customer is in control with a plethora of information at their fingertips. Moreover, the internet is a new two-way medium the advertising message is put out ther e, and the potential customer can comment on it, forward it to ten friends, mock it, improve on it, blog it, etc. This two-way medium has created a new form of Internet marketing and with it, additional challenges and benefits for marketers Overall, the Web is best conceptualized as a developing marketing channel that transcends national boundaries and encompasses elements of informing, investigating, interacting, distribution, transacting, eliciting feedback, and supporting. In the pre-purchase stage, the Web can be used to investigate (e. g. , conduct market research into consumer attitudes, needs, and wants; monitor competitors; benchmark other service organizations), for hich the flow of information is primarily toward the service provider, and inform (promote, position, advertise, and inform consumers of the service and its options), for which information flows toward the consumer. In the purchase stage, the Web can be used to facilitate transaction, in which the consumer provides information regarding order specifications, payment details, and delivery; interaction, in which the consumer a nd service provider interact to co create unique customized service packages; and distribution, in which the provider actually distributes the service to the consumer. Finally, in the post purchase stage, the Web can be used to elicit feedback (the service provider gathers information on options, suggestions, level of satisfaction, potential loyalty, future services, and other pertinent areas), for which information flows from the consumer to the service provider. Examples of companies who have successfully created the transparency Internet opens a world of opportunities to the organizations as well as customers. It gives customers a much wider choice of products, services and prices from various suppliers. For organizations, it gives opportunity to widen horizons by entering new markets and offering new services thereby competing with larger business. Yet, comparably speaking few companies have transitioned, evolved or created transparency in their â€Å"place† and â€Å"space† strategies. Exceptions would be Dell Computers and Barnes and Noble, both written about in previous assignments (see appendix). These organizations make online shopping an â€Å"experience† that truly benefits the consumer. Further, we could argue which drives customers â€Å"place† or â€Å"space† in these companies as they complement each other so well. Conclusion Emerging technologies have redefined business by erasing the traditional boundaries of time and geography and creating new communities of customers, distributors and suppliers, with new demands for products and services. Most notably, the Internet has redefined how commerce occurs between businesses and consumers and with that, how businesses create, communicate, and deliver value to consumers marketing. With the evolution of the Internet over the past decade, the practice of marketing has changed significantly and will continue to evolve. Effective multichannel strategy requires integrated brand management that can customize the message for each channel; the messaging must work in isolation and in combination with the brand messages on co-channels. References Barnes-Lee, T. (2000). Weaving the web The original design and ultimate destiny of the world wide web (1st ed. ). New York, NY: Harper Paperbacks. Malone, T. W. , Yates, J. , Benjamin, R. I. (1987). Electronic markets and electronic hierarchies. Communications of the ACM, 30(6), 484-497. McCall, R. , O’Neill, S. , Carroll, F. Benyon, D. , Smyth, M. (2005). Responsive environments, place and presence. PsychNology, 3(1), 35-73. Sviokla, J. , Rayport, J. (1995, Nov/Dec). Exploiting the virtuall value chain. Harvard Business Review, 72(6), 141-151. Weill, P. , Vitale, M. (2001). Place to space Migrating to e-business models (1st ed. ). MA: Harvard Business Press. APPENDIX A Barnes and Noble e-business Barnes and Noble offers a variety of marketing tools to enhance the online shopping experience and add value to their relationships with their customers. The search engine on the site allows the customer to define book searches via a variety of methods including using the ISBN number for a known book. This tool is a very useful feature for academics and serious book lovers. This is a feature also offered by Doubleday and Amazon. A nice feature is that many of the search returns provide the customer with the option to buy a used copy of the book, of a slightly damaged copy at a significant discount. While Amazon also offers this service, Doubleday does not. This is a useful promotional tool that coupled with their discount membership offers their customers and excellent value. A customer value add from the BN site is the existence of a Barnes and Noble University, where a person can register for a series of web based training programs on a variety of topics from literary studies to musical instrument lessons. This is a value add that promotes further online and in store sales volume while providing a useful service. This service is an edge over Amazon that does not support a similar program. Barnes and Noble also offer a series of audio podcasts on a regular basis with featured authors as the guest speakers. This program comes as a subscription service with Barnes and Noble downloading a new podcast to their members computer each week. This is an excellent feature for the avid reader that wants to learn more about their favorite authors. While not as broad in their product offerings as Amazon, Barnes and Noble offers an interesting online experience, offering a number of useful services for their customers. Customer service and a help section with answers to frequently asked questions section serve to promote comfort with the shopping and purchasing process The company has been selling direct to consumers for over 25 years, beginning with its mail-order catalogue in the 1970s. Today, the Barnes Noble. com Web site serves as the company’s largest store, enabling customers to order any book any time from anywhere. With more than one million unique titles, the site’s standing inventory is the largest of any bookseller online. Customers also have access through Barnes Noble. com to millions of used and out-of-print titles from a network of authorized book dealers, as well as a vast selection of music CDs and DVDs. APPENDIX B Cost-efficient build-to-order manufacturing Dell builds its computers, workstations, and servers to order; none were produced for inventory. Dells build-to-order strategy meant that it had no in-house stock of finished goods inventories and that, unlike competitors using the traditional value chain model; it did not have to wait for resellers to clear out their own inventories before it could push new models into the marketplace-resellers typically operated with 30 to 60 days inventory of prebuilt models. Dell customers could order customer-equipped servers and workstations based on the needs of their applications. The orders were directed to the nearest factory. At all locations, the company had the capability to assemble PCs, workstations, and servers; typical orders were built and delivered in three to five days. Its in-house manufacturing delivered about 6% cost advantage versus outsourcing. This happened because Dell was not simply carrying component inventory against forecasted sales, but rather was aligning inventory and sales, managing profitability on a daily, weekly and monthly basis. Second, as inventory disappeared, the companys returns grew disproportionately. Not only did Dell avoid carrying costs and obsolete stock, but it was also saving enormous amounts of money on purchasing components because the component prices were dropping 3 percent per month. Direct sales strategy Dell offered competitive prices, high levels of support, and a focus on selling and supporting PCs without the distraction of offering a full line of hardware and services. Further, Dell partnered with reputable suppliers of PC parts and components in long-term rather than to integrate backward and get into parts and components manufacturing on its own. Customer service and technical support This strategy includes value-added services, premier pages designed for all kinds of customers, companys website with local language and currencies, on-site service which charges fees to provide technical support and other services. Use of the internet and e-commerce technology Dell was a leader in using the Internet and e-commerce. Dell is offering its customers its own individual touch on your orders; it has always been Dell’s main area of expertise. If customers feel they are getting special treatment from an order, it will make them feel as if they are being personally praised for their order. They are focusing on the fact of being a product lead company, and by cutting out the retail side within shops worldwide they are able to focus more on customer needs Dell listens to customers and delivers innovative technology and services they trust and value. Uniquely enabled by its direct business model, Dell sells more systems globally than any computer company, placing it No. 33 on the Fortune 500. Dells climb to market leadership is the result of a persistent focus on delivering the best possible customer experience by directly selling standards-based computing products and services. Revenue for the last four quarters totaled $59. 4 billion.