Impact Of Technological Change In HMV group

Impact Of Technological Change In HMV group Sufficient changes have been taken place over the last ten years in the UKs music sector. One of the UK and Irelands leading CD, DVD and Computer Game seller is HMV. The central nature and context of the change for HMV is online music. Companys poor trading performance reflects because the lack of progress adapting to structural change. According to John (2007) planned change is triggered by the failure of the people to create a continuously adaptive organisation. William and Thomas (2009) state that 70 present of planned organizational change initiative fail because of the lack of reliable and valid diagnostic instruments to assess and track an organizations capacity for change. Change management entails thoughtful planning, sensitive implementation, consultation with and involvement of the people affected by the changes. Organization Name: HMV Group Nature of the change: There are three main categories of organisations that may experience period of change 1. The kind of self-organising and changing learning organisations. 2. Companies operating in niche market where they have not encountered the kind of environmental change. 3. Organisations that able to continue functioning without transforming themselves. There are two types of changes- 1. Transitional or Incremental Change 2. Transformational or Revolutionary Change Incremental Change: The focus for this part is doing better things through a continuous tinkering, adaptation and modification. This type of change is that it builds on what has already been done and may need continuous improvement. Transformational Change: It involves a break with the past, a step function change rather than an extrapolation of past patterns of change and development. It is based on new relationships and dynamics within the industry that undermine core competencies. In this part things need to be done differently rather than doing things better. SOURCE John Hayes (p-12-13, 2007) The delivery of music over internet expected a great future over the next 5 years. Sales of digital downloads are expected to increase from $22 million in 2001 to $1.6 billion in 2006. For this transformation of the music industry there is a major impact of social and technological factors. These chase influenced by Digitization, Compression and streaming technologies. The technological improvements in music industry increase the availability of music easily and reduce cost as well. (Web Source 1) Reason for Change: According to Joan (1958) technology can make a big change, not only with the development, manufacture, marketing and distribution of these new products, but also within their own corporate structure and culture. Burnes (1988) suggested an approach to assessing the need for the type of change which attempts to make the process of establishing objectives and outcomes more rigorous and open. Leaders focus on aligning people, communicating the new direction and creating coalitions committed to get the job done. Empower others to make the vision happen. A central feature of modern organisation is interdependence where most members of the organisation are tied to many others by their work as kotter argues (1995). Transformational leaders have the ability to identify those who might be able to support or sabotage an initiative, network with them and communicate in a credible way what needs to be done. The main change drivers of HMV are online music. Due to get the online music the business of HMV affected and it lose its market share. We discuss below how change impacts on technological and social drivers of change. The price is the drivers of the change. Because there are competitors Tesco and Asda have sell the CDs and DVDs in the less price than HMV. So, it has intense competition in the market .However, technological drivers are the main reason for the change in customer mind. So, we will discuss about the drivers how it gets the market. Company Background: HMV Group, formerly HMV Media: books, music and video for everyone formed in 1998 after HMV and Waterstones joined forces, acquired from EMI and WH Smith respectively, the HMV group began operations using its two chains.Both share the same goal in terms of customer satisfaction, offering the largest range of leisure and cultural products, despite the two chains keeping very much within the scope of their own work. HMV targeted the position of leading international distributor (Europe, Asia and North America) on the music and video (all formats) markets. Waterstones is dedicated to book sales and exclusively on a national scale. The power of the two entities is unquestionable as the HMV Group is made up of more of 500 shops. Aim and Objectives: The main change drivers of HMV are online music. Due to get the online music the business of HMV affected and it lose its market share. We discuss below how change impacts on technological and social drivers of change. The price is the drivers of the change. Because there are competitors Tesco and Asda have sell the CDs and DVDs in the less price than HMV. So, it has intense competition in the market .However, technological drivers are the main reason for the change in customer mind. So, we will discuss about the drivers how it gets the market.Same Day. External Factor: Change has been a future of organisational life for as long as organisations have existed, environment have brought about the need for organisations to adapt their internal attitudes, strategies, structures and operations to meet the demands of the new external conditions. Hence, the study of internal change has increased both in academic circles and in organisations themselves. In change need to understand reactive and proactive change this area is what of the two principal sources of impetus to change. Reactive change is change forced upon an organisation arising from a need to react to a change in the organisations environment. This can apply to an individual as well as an organisation, for example, you must change your lifestyle if your main source of income is suddenly reduced or discontinued. There are a number of environmental changes that can precipitate reactive change, but they usually have in common an element of necessity, of being unexpected or an element of surprise. Proactive change, in diametric opposition to reactive change, is planned in advance, usually with a particular objective in mind. Whilst proactive change may be as an indirect consequence of changes in the environment, it is essentially change because the organisation wants, or internally feel the need to change. To relate this to the individual, you might proactively improve your educational qualifications in order to increase your job prospects. [Source: David Campbal Tom Craig, p-(449-450)] A number of factors have stimulated interest in the learning organisational change concept: à ¢Ã¢â€š ¬Ã‚ ¢ The production of goods and services increasingly involves sophisticated knowledge à ¢Ã¢â€š ¬Ã‚ ¢ Knowledge is therefore as valuable a resources as raw material à ¢Ã¢â€š ¬Ã‚ ¢ Many organizations lost knowledgeable staff through de-layering in the 1990s à ¢Ã¢â€š ¬Ã‚ ¢ Information technologies are knowledge intensive à ¢Ã¢â€š ¬Ã‚ ¢ Knowledge can have a short life span, made obsolete by innovation à ¢Ã¢â€š ¬Ã‚ ¢ Flexibility, creativity and responsiveness are now prized capabilities à ¢Ã¢â€š ¬Ã‚ ¢ Knowledge can thus be a source of competitive advantage for an organization Complete PEST analyses of HMV Group: The PEST analysis is a useful tool for understanding risks associated with market growth or decline. This helps to understand the environment that HMV is operating in and what the risks that could affect its products and what to consider when developing a new product range. Such as political, economical, social environment and other legal factors. Most of them are out of the control of HMV. Political/legal factors- This affects HMV in many ways. For example the trading / government polices HMV have to follow when selling their product on the market and advertising them to the public. All business needs to follow the legal factors when producing and selling products such as prices/descriptions etc. HMV need to keep up to date with the changes in the law to make sure they stay within them. The social environment- This helps HMV to identify the specifics of its targeted market. To identify what type of person buys their products, so the company can produce products that suit their preferences. This also helps them to reveal the gender, income and other areas of the social environment that HMV is in. This provides the company with useful Information that they can use when promoting their products to help attract the type of consumers that is in the environment. Technological Factors- Technological Factors are most important factors for the business. because now a days businesses is working in changing environment. There is a great change in technology Advancement in technology and means of communication will help same day to keep track of its parcels and couriers. Economic Factors- All businesses are affected by economical factors nationally and globally. Economic factors affect your customers ability to purchase your goods and services as well as a firms cost of capital. Examples of these issues would be: Government intervention in the free market, Rate of inflation, Capital borrowing costs, Currency exchange rates, Inflation/deflation impacts, Labour costs. Lueckes Seven Steps to Change: In 2003, a new model of emergent change was given by Luecke which is known as seven steps of change. These steps are: If any change is to take place, the management should create and mobilize the energy and commitment needed to identify the problems of the organization and their solutions (Todnem, 2005) Management should include employees to create a shared vision of how the organization can be organized and managed in order to face the competition (Todnem, 2005). According to Todnem (2005), Luecke proposed that in third step that leadership to bring about change should be identified. The focus of the management should be the end result of the change and not the activities that lead to change (Todnem, 2005). According to Luecke (Todnem, 2005) change should start on small scale and then it should spread to the other parts of the organization. Policies, procedures and systems should be institutionalized to achieve success. If any problems occurs in the change process, strategies should be adjusted to deal with it (Todnem, 2005) Simon Fox new chief executive of HMV have chosen Lueckes Seven Steps model to gain its profit: Few HMV music store could be sold according to saving cost. Changing trends in the music market by internet in order to download track or buy albums from website such amazons. Company hoped to avoid redundancies by redeployment. HMV will focus heavily on its online presence, aiming HMV sales via internet from 6% to 10% by 2010. The company has announced a three year transformation plan which will save 50 million costs per annum by 2010 through simplifying HMV. In the UK and Ireland HMVs sales grew by 1%. The firm said it is initiating a turnover plan which it hoped would revitalize its core business. If the cost cut will go down well in the city(short term goal), Mr. foxs growth plan to derive 20% of HMV sales through its online channel compared to 6% by utilize high street store space. The most radical plan is for the transformation of its music retail business into an interactive store ai med at restoring HMV, will launch a loyalty-card scheme the target the rapidly growing mobile phone music market. HMV will team up with 3 to install concessions within its store that sale music centric handsets. It will also plan sell some mp3 players from the likes apples and Sony and reducing its dependences on sales of CDs and DVDs. HMV will also provide content to mobile music retailer 3s 3.7 million subscribers. It will launch its own social networking site for film and music. A refreshment hub shoppers will able to log on to a social networking site for music, films and games also provided. It will able to burn its own CD. Fox will increase HMVs sales of games 12 percent to 15 percent over 3 years, and digital music, audio and video products to 16percent from 5 percent. (Web Source-3) Benefits of Proposal: HMV should take a plan to have some meeting with its employees regarding the change and need to tell them how they have to participate with the change. It should tell their involvement with the change .it should take some training session, develop new ideas and approaches without being influenced by the old ways. The guiding coalition must remove obstacles that may be entrenched in organizational process. They should be given the opportunities to get on board any embrace the vision. Force Field Analysis: Force field analysis can suggest a number of changes to the initial plan: By training staff It would be useful to show staff that change is necessary for business survival in current music ins Staff could be shown that new technology would introduce variety and interest to their jobs. You could raise wages to reflect new productivity. HMV UK and Irelands expansion is a testament to its success. Board members of HMV attribute this to quality of HMV store manager who is developed from within the business. Their performance is judged on the achievement of weekly targets set by the business. In 1998 HMV conducted a company-wide opinion survey called your shout. To support management development HMV established a development programme. Day to day learning in store was less structured and less inconsistent application across the business. HMV saw the investors in people standard as a framework to accelerate the effectiveness of the companys response to the your shout survey. Quality could be assured by aligning a new development initiative with an external standard. A development package was created to provide a structural framework and comprehensive development materials for in-store learning which called the continuous development plan (CDP). Its aim to increase knowledge and skills of management and staff in the critical elements of HMV store operations. The knowledge of staffs is defined on their job role which is articulate in four areas. By the assessment existing levels of knowledge was identified so that people can get the individual development plan and workbooks to support CDP coach nominated by every store to support the CDP activities. All levels of staff support the training structure. Progress reported to the board in every month. HMV has supported this massive initiative with considerable additional resources, including 15 development centers across the UK Ireland, an expanded course offering for all staff levels and a larger learning and development team. Working with the investor in people standard has helped its employees recognise the day to day development. People can see what the knowledge and skills they developed and what they need to be a manager. The success of CDP rises by 12 months to twenty percent in critical areas. This helped to raise the standard of customer service and make the stock management efficient. Investors in people have helped us communicate the dynamic career opportunities in HMV. It has provided a structured framework to continuously support and stimulate the development of existing staff. The change Process: Simon fox appointed chief executive of HMV group plc. The management undertook a comprehensive review of operations to identify strategies for revitalising the groups business over next three years. The result of this work, together with the financial impact for the group and its capital structure which discussed below: The board expect the markets in which the group operates to be subject to significant structural change, with the total music and DVD markets continuing to decline, and growth in the books market coming from the online channel. In addressing this issue the board has identify three key areas of focus: Saving Driving cost efficiency Protecting revitalising the core business Growing- Establish new channels. Saving Direct cost efficiency Cost savings of  £40m per annum will be achieved by 2009/10 by simplifying the HMV UK and Waterstones supply chains, maximising group purchasing and head office synergies and from the review of the UK store portfolio. Protecting Revitalising the core business * HMV UK will launch an enhanced range of portable digital products from suppliers including Apple, Bose, Samsung and Sony. * A new HMV store format of the future is being developed and will be trialled from autumn 2007. * A loyalty card to drive spends across both brands and all channels will be rolled out during 2007/08. Growing Establishing the new channel * HMV will launch a social network site for music, films and games, proving revenue streams from advertising, sponsorship and paid-for content. * HMV UK is partnering with 3, the UKs leading mobile music retailer to provide content to 3s 3.7m subscribers. * Growth in hmv.co.uk and Waterstones.com will be accelerated by increased marketing. * HMV.co.uk will become 20% of HMV UK sales by 2010. As over 80% of the groups profit is made in the UK, today are strategic and operational review will be focused on UK markets. SOURCE HMV group website Media News Recommendations and Conclusion: STRENGTH: HMV is the market leader for CD, DVD and computer games. HMV brands are synonymous with range authority, expertise, customer service and a stimulating store environment. The company listed on the London stock exchange on 15 may, 2002 successfully establishing a more appropriate capital structure for the future growth of the company. SOURCE HMV group website About Us History WEAKNESS: HMV had not adapted quickly enough to the way customers are buying and consuming media. Before Christmas last year, HMV and other high street retailer issued profit warning because of poor sales affected by the growth of online retail. The group has admitted being too slow to recognise the changing shape of the music and entertainment industry and has been hard hit by competition from online specialist as Amazon and play.com as well as supermarket such as Tesco, asda with their offers of bargain CDs and DVDs. A new pricing architecture is being rolled out to the entire HMV UK chain by September 2006. HMV was named best retail chain in the 2006 music week awards for an eighth consecutive year, multiple retail success of the year at the 2006 British video association awards and most improved retailer in games in 2006 MCV Industry Excellent Awards. Sales in HMV UK and Ireland for the full year ended April 2006 were  £937.2m and operating profit was  £60.6m. For the year ended April 2006 turnover of HMV Asia pacific was  £275.5m and operating profit 8.6m. SOURCE HMV group website About Us Fast Facts

College Tuition Essay

There’s no escaping the fact that college cost are rising. According to recently released reports from the College Board, most students and their families can expert to pay, on average, from $95 to $1,404 more than last year for this year’s tuition and fees, depending on the type of college. (Collegeboard. com) The United States needs to lower the cost of college tuition; because students and parents have had to pay double the amount of money for schooling then they would have ten years ago. In the past five years, the average cost of in-state tuition and fees at public colleges has jumped thirty-five percent. In the past twenty-five years, the average cost of tuition and fees has risen faster than personal income, consumer prices and even health insurance. In 1999 students had to pay $2,489 for universities and $865 for community college. In 2003 the price rose from $3,441 for universities and $1,120 for community college. In 2006 the price jumped to $4,867 for universities and $1,483 for community college. Between 1999 and 2006 there was a 95. 54 percent change in the universities pay and a 71. 45 percent change for community colleges. There is no denying the fact that college tuition has doubled in prices (USAtoday. com). According to stateuniversity. com Blinn College undergraduate tuition for in-district students is $1,260, for in-state $2,478 and for out of state $5670; not including the undergraduate required fee which is $1,176 for all three districts. For tuition alone you are spending between $2,436 and $6,846. Now if you add in books and supplies which runs between $946 and $995. You also can not forget about room and board which can run $5,888 to $6,047 (stateuniversity. com). If you add that all together for Blinn College you are expected to spend roughly $9,270 to attend Blinn College for a semester. A small reduction in state support may result in a large increase in tuition. We help pay for maintaining access for handicapped students; Meetings environmental requirements; screening international students; and conforming to historical preservation requirements. If you think about it we are helping out the school and students. Prices increase as colleges compete for students to come to there college. Of course there are scholarships and financial aid, but not everyone can qualify for them. Paul Middendorf, 54, Richmond, Texas says, â€Å"†¦. When my first son, now twenty-six, applied for college, he applied for dozens of scholarships but was told they earned too much money to qualify for financial aid. † They had to finance their children’s college education with a mix of savings and federal parent loans. (USAtoday. com) According msnbc. msn. com; a companion report released on trends in student aid in grant aid – money students do not have to pay back – have covered only about one-third of the increase at public four year schools. Students are footing more and more of the bill with private loans from banks and student loans companies. Undergraduate private borrowing grew twelve percent to $14. 5 billion in 2006-2007. The rate of increase in total private borrowing for education has slowed, but borrowing has increased over the last decade. Legislators are tired of taking the blame for the escalating price of a college education, and some – mainly Democrats – say they want to resume setting tuition themselves. University leaders argue that the additional money is crucial for attracting and retaining top faculty. (chron. com) Students and families are caught in the middle. â€Å"With tuition and gas, it is hard to make end’s meet,† said Charlotte Atkinson, 26, a senior at the University of Houston. Instead of having to digest such an immense amount of information, students and their families should be able to apply for financial aid by making a note on their tax returns (a solution advocated by Democratic presidential nominee Barack Obama). It is hard to even realize that money is such a big factor in our lives today. Based on the information I have given you it is a fact that the cost of college tuition needs to be lowered so that more students can attend and pay for college.

Existence of Extraterrestrial Beings

With all our knowledge of everything around us, overwhelming as it may be, there are still a lot of aspects that are unknown to even the smartest scientists. Did you know that humans know only 5% of the entire universe? Yes, everything we know about the Earth, the Milky Way, and all the planets is barely even a fourth of what comprises the entirety of the universe. Knowing that, it would be illogical to say that the creatures on Earth are the only forms of life in the universe. Today I will tell you about unidentified object sightings, close encounters and even abductions. The first recorded UFO sighting was in Mexico, by an astronomer named Jose Bonilla in 1883 while he was observing sunspot activity. He was said to have seen more than 300 unusual flying objects crossing before the sun. The next one was three years after in Venezuela during a thunderstorm. People reported seeing a bright flying object accompanied by a humming noise hovering over a small hut. The people in that hut got illnesses from radiation exposure and nine days later, the trees surrounding the hut withered and died due to the same reason. Another alarming incident was in the United States of America where a UFO allegedly crashed in Texas and its alien pilot buried at the local cemetery incidentally, I read of the same encounter from a different source and it added this: That night, local officials called a reverend whose name I regret to forget, to go to the crash sight immediately to pray for the victims. When he got there, he was shocked to see non-human creatures. Not more than a few minutes later, military men came in a helicopter and told the reverend to leave and not say a word to anyone; it was an order. These incidents were way back in the 1800’s when our technology was not as enhanced and people were more naive. More recent sightings have been reported in very different areas of the world – Sweden, US, Brazil, Alaska, Argentina, Iran, Spain, China and even the Philippines! Any discussion on this conspiracy, however, will not be complete without talking what went and goes on in Roswell, New Mexico, or better known as Area 51. Area 51 is known to be a US Military Base where 75 miles away, there reported to be a UFO crash landing on July 2, 1947 that left an exceptional amount of debris all over the area. The Roswell Army Air Field reported that they recovered a â€Å"flying disc† but a few hours after this information was released, the government immediately said it was a â€Å"weather balloon. RAAF even reported having recovered alien bodies but as expected, the government denied again and simply stated that it was the military men’s trauma from accidents. Countless witnesses during and after the reported crash date have confirmed seeing flying objects, crop circles and usual activity within the area. Area 51 is now conspired to be a place where they examine evidences of alien bodies, UFO crashes, etc, but the government refuses to confirm and have denied these allegations. More than sightings, as promised, let me take you in on one of the craziest abduction stories. There have been over 60,000 reported abductions worldwide. In most cases, the victims are returned but don’t remember a thing. And in some, the victims are lost forever. The story I’m about to tell you is one of the most bizarre ones ever recorded. So bizarre that it took more than ten years to be able to have a complete review of the situation resulting to the victim and her family’s sanity and the obvious answer that it really did happen. On January 25, 1967, at around 6:30pm Betty Andreasson Luca was in her home with her family. They reported there to be a red light all over the house. When her husband went out to check where it came from, he saw 5 unusual creatures hoping towards the kitchen door where Betty was. She had a family of seven children all of which, including her husband and parents were put in some kind of trance during the whole thing, although they were conscious of everything. Betty was taken to the 20feet in diameter ship, which hovered over their front yard and it flew away to an even bigger mother ship just a few feet above. Betty was gone for four hours. When she has returned, she was perfectly normal and noticed that one of the aliens got left behind with her family, though they were fine as well. Impossible as it may seem, all of this actually happened and was proven correct when each member was questioned, undergone different psychiatric tests, polygraph examinations, and for Betty, fourteen sessions of regressive hypnosis. The result was a 528-page review which scientists still study until today. Betty’s case remains to be the most extraordinary proven case ever recorded. Usually, people who were abducted tend to feel the same things afterwards: lost or missing time for a couple of hours, frequent nose bleeds, unusual marks on the body, nightmares of the abduction, and symptoms of radiation exposure. Beforehand though, collected recorded abductions have the following similarities: it begins with a visual perception of a bright light, the victim feels paralyzed and cant say or do anything; communication is telepathic too! During the abduction, victims can barely describe any of the tools used due to their unfamiliarity to the objects and loss of memory, they know of undergoing a physical examination, and then nothing after that. However, most reported abductions are studied and examined and doctors seem to find a common ball-shaped or triangular shaped objects at the top of the nose, feet, hand, forehead or eyelid. These tiny items cannot be studied further because it is composed of chemicals not found on earth. With all this at hand, it would be very difficult to believe that we are the only form of life. I could go on and on about more stories and other things I know and have gathered from watching countless documentaries and reading articles on the subject but time and the fact that you all probably think I’m crazy constrains me. This is what I can tell you now though: these creatures could very well be amongst us without our knowledge. They are clearly more advanced than we are for they have found ways of coming to our planet and finding us when they most likely live light-years away.

Video Games Help Build Trust And Teamwork - 4085 Words

Over the years there has been a huge controversy over video games; the number one being the effect on the development of children, and this seems to be used a lot as a way to stigmatize gaming as something entirely destructive. In general, there are many misconceptions about video games. The Entertainment Software Association estimates that around 60% of Americans, around 145 million people in all, currently play some type of video game. Despite the common view of video games as being for kids, the average age of a video game player is actually around 29 years old. While most of the media and research available on video games is geared towards the potential for video game playing to have a negative impact, there is significant research†¦show more content†¦Video game training methods have become increasingly popular among large companies. â€Å"†¦a recent survey reported that IBM managers used lessons learned from online games to promote teamwork in their real jobs (Chun-Chia Lee, et al – 1).† IBM is not alone. Other companies have started to use video games for training too. According to CBS News, massive multinational companies such as Fidelity Investments, Royal Dutch Shell, and Coca Cola have invested millions in video game training materials in courses. The fact that such profitable and successful companies have been willing to not only test these methods, but continue to invest millions of dollars in using them to train their personnel, is a testament to the effectiveness of how video games can improve communication skills. Video games are also being used to increase problem-solving skills. For example, Florida State University and the University of Luxembourg, created a study in which they used a stealth assessment tool embedded in a game, to collect data on its users. They called this game Use Your Brainz , a slightly modified version of Plants vs. Zombies 2. Plants vs. Zombies 2 is a free-to-play tower defense strategy game, where your objective is to defend your territory from the enemy. This is normally achieved using defensive structures, which are either on or along the enemy zombie’s path. The modified game was used to test middle-school students on their problem-solvingShow MoreRelatedVideo Games And Its Effects On Education Essay1665 Words   |  7 PagesMs. Booth College Prep English 22 November 2016 Video Games In Education Current education systems are failing to give learning material to students in a way that they understand. 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There is no doubt that society needs to change from being unhealthy and overweight to physically active and healthy, but many changes need to be done in society to do so, and making adjustments to physical education must be done. Physical education exists in schools to help studentsRead MoreBsbwor502B949 Words   |  4 PagesSection 2 Develop Team Cohesion and Facilitate Teamwork Page 41 Time/Distance/Number/Events are all measure of Quantitive data? Give an example of this working in your current workplace (3 sentences max). What will you measure? How will you measure it and analyse the results? Page 42 People’s opinions are measures of Qualitive data? Page 43 Communication could happen where eg meetings. 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Altruism Is Good Or Good - 1165 Words

Altruism is defined as the principle or practice of unselfish concern for or devotion to the welfare of others. Why would someone think that certain actions are moral? There are two answers. First, altruism is naturally positive but on the contrary there are situations that decisions are made with morally bad tendencies and motivations, in circumstantial selfishness. Secondly, altruism is good because of its affirmative effects. The outcome of altruism does not only effect the person to whom the altruism is intended for, but it has its indirect ramification on society. There is truth to both of these answers. We all have experiences of acting out of an impartial concern for the health of a friend or loved one. These experiences that we have had seem to be an unambiguous instance of moral virtue. It seems likely that if our society had more acts of altruism, our world would be a better place to live than if there were no altruism at all. 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My Learning Style Essay - 708 Words

This paper will identify which of the Kolb learning styles best suits me and why I think so. It will also give some examples from my past and present to support these findings. After determining, the learning styles that best fit me and completing an inventory exercise, I have concluded that I learn best using audio and visual techniques in the learning process. I agree with everything this exercise has brought to light. I never knew that these styles were the meaning by which I learned. I have also included examples as to how I see the use and benefits of these learning styles in my career. My Learning Style After reviewing, the Kolb learning styles I have decided that the style that best suits me is a cross between Accommodating†¦show more content†¦A person with this learning style excels in the capacity to examine situations from many angles and generate many ideas. 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Business Environment And Strategic Management A Case Of Lego

Question: Describe how the value that the firm creates becomes valuable as a result of factors in the general and industry environment? Answer: 1. Introduction The report here deals with the analysis of Legos internal and external environment in order to identify the core competencies of the company and the added value that the company is providing the field of construction toys to the customers which was founded in 1932. The report further analyses the efficiency of the value chain system of Lego (Bloomberg, 2015). 2. Value of Lego The value created by the company attracts the large range of customers and increases the demand of the product. Lego has recorded a ravishing market share of 24% surpassing both Hasbro and Mattel in toy making by sticking to the core values of imagination, creativity, quality and constant renewal. According to Azadi Rahimzadeh (2012) while Mattel and Hasbro have grown by creating and acquiring a diverse array of toys, Lego has adopted the opposite strategy of focusing on one product iconic to the brand and engaged in constant innovation of the same. The vision of Lego is to inspire and develop the builders of tomorrow. The toy making company has integrated theme parks, Lego video games and also designed scenes of popular movies like Man of Steel, Lone ranger, Ninja Turtles etc which attracts the attention of all ages of customers. The introduction of the new Friends Line in 2011 for the girls made it possible for the company to surpass Mattel (Barutu Tunca, 2012). 3. PESTEL analysis 3.1 Political The depiction of the Star wars fight sequences, The Berlin wall Collapse and some of the other comic fight sequences by Lego was opposed by the Ministry of defense (_). The depiction of armed forces to the children was politically wrong and hence the removal order was passed against Lego. 3.2 Economical The company has faced reductions in sales due to the positive economic downturn in Korea by 52%. Conklin (2012) opined that the purchasing power of the country determines the demand for a particular product. Due to reduction in the purchasing power the Customers are switching over to purchase necessary items instead if toy products. Moreover factors like seasonal buying behavior also affect the sales of Lego. The company experiences 60% of the total sales in December during Christmas. Moreover advanced economic growth in the countries like UK and USA are also hampering the economic stability of Denmark. 3.3 Social Lego conducted Brick fest in order to give recognition to fans creations. By interacting socially with the fans the company was able to ascertain the type of product they should focus on. Moreover the company focused on making educational based promotions of the toys in order to retain the target customers (Sukowski, 2013). 3.4 Technological Olivas-Lujan Bondarouk (2013) opined that with the advent of technologies like three dimensional printing, virtual platform development and video games in tablet and mobile the desires of the customers in toy market are changing and turning to technology based games. 3.5 Environmental Legos current position may be hampered due to the lack of proper waste management system. Around 1099 pieces of plastic bricks are produced each day adding to the waste plastic and also carbon emission by the technologies. Hence improper management of the same will endanger the sustainability of the company. Moreover as per the Forbes majority of the paint used on the toys contain lead which is harmful for children use. 3.6 Legal Lego in order to formulate a growth strategy has started implementing the laws set by the Toy Safety Directives 2009. The company has switched over to plastic bricks with rounded corners so that the use of the toys is safe foe children below the age of 14 years. The company also faced copyright issues in respect of the movie produced by Lego with the Warner bros. The negative movie showing the negative affect of the deal between Shell and Lego damaged the goodwill of the company (Lasserre, 2012). 4. Porters Five force analysis 4.1 Threat of new entrants The factor like high oil prices, unstable economic condition and threat of substitutes makes it difficult for the new companies to enter into the toy market. Rothaermel (2013) opined that although the products can be copied easily however the economic condition is not favorable for the entrance of the new companies. 4.2 Threat of substitutes The company is facing High threat from substitutes like traditional toys, computer games, extracurricular activities and personal hobbies (Lee Carter, 2011). Especially in cases of girls dolls and traditional toys are a better option than construction toys. 4.3 Bargaining power of buyers The customers and the retailers like Wal-Mart and ToysR plays an important role in fixing the price of the Lego toys. Hence a delay in the supply of products during Christmas induces the retailers to take Lego off the shelves (Bloomberg, 2015) . 4.4 Bargaining power of suppliers The major raw material for Lego products is plastic which is being made by oil hence the bargaining power of suppliers are very high. Hence with the fluctuations of oil prices the companys cost of production fluctuates. 4.5 Rivalry of competitors The two other rival companies namely Best Lock from Hong kong and Mega Brands from Canada offers low priced products like Lego. However high brand loyalty and positive brand image reduces the chances of the rivals. Figure 1: Porters five force model of Lego (Source: Bloomberg, 2015) 5. Core competencies Developing product leadership and brand image in targeting a niche product market within the overall toy industry Adoption of the segmentation strategy to reach out to the target market Constant renewal of the same product and focus on high quality standards, design and efficient supply chain (Bloomberg, 2015) 6. Value chain analysis 6.1 Inbound logistics: Main supplier Use of standard commodities (Olivas-Lujan Bondarouk, 2013) 3D Printing Robotic transportation Operations include production according to market demand forecast and abiding by the rules of plastic directives (Azadi Rahimzadeh, 2012). The outbound logistics deals with the transportation of the products to retailers like Wal-Mart for seasonal sales and use of DHL for the purpose of Superior delivery. 6.2 Marketing and selling Lego for the purpose of increasing sales increase the brand value, enters into strategic partnerships and engages in services like downloadable manuals, web community etc. 6.3 Purchasing goods Quality control of plastics Procurement of oil from companies like Shell at high market price Arranging for fairs to recognize the creation of Fans 6.4 Technology development Digitalization of brick products by collaborating with reality company Metaio Usage of 3D animation technology(Barutu Tunca, 2012) 6.5 Human resource management High rate employee benefits like scope of innovation, employee brainstorming sessions Management workshops and congenial working hours Focused on employee motivation and satisfaction Employing creative people for the posts 7. Conclusion The report thus summarizes the values like creativity, logical thinking, constant renewal and innovation that Lego offers to its target customers in order to retain its position as a niche toy maker. The influence of the external factors can hamper the position of the company however by availing to the rules and regulations Lego can avoid the same. 8. Reference list Books Lasserre, P. (2012). Global strategic management. Houndmills, Basingstoke, Hampshire: Palgrave Macmillan. Olivas-Lujan, M., Bondarouk, T. (2013). Social media in strategic management. Bingley, UK: Emerald. Rothaermel, F. (2013). Strategic management. New York: McGraw-Hill Irwin. Journals Azadi, S., Rahimzadeh, E. (2012). Developing Marketing Strategy for Electronic Business by Using McCarthy's Four Marketing Mix Model and Porters Five Competitive Forces. Emaj, 2(2). Barutu, S., Tunca, M. (2012). The Impacts of E-SCM on the E-Tailing Industry: An Analysis from Porter's Five Force Perspectives. Procedia - Social And Behavioral Sciences, 58 Conklin, D. (2012). The global environment of business: new paradigms for international management. Strategic Direction, 28(2) Lee, K., Carter, S. (2011). Global Marketing Management. Strategic Direction, 27(1). Sukowski,  . (2013). Strategic Management as the Ideology of Power. Journal Of Intercultural Management, 5(3). Sumpio, B. (2013). Application of Porter's Five Forces Model and generic strategies for vascular surgery: should be stuck in the middle?. Vascular, 21(3), 149-156. Websites Bloomberg,. (2015). Brick by Brick: Inside Lego: Video. Retrieved 27 January 2015, from https://www.bloomberg.com/video/brick-by-brick-inside-lego-4-17-SlbmZEQnSfyC~y1eSm9FAg.html