Analysing the performance of the Kamdar BHD business in Malaysia - Free Essay Example

Sample details Pages: 6 Words: 1932 Downloads: 5 Date added: 2017/06/26 Category Business Essay Type Analytical essay Did you like this example? Kamdar Sdn Bhd was established in Malaysia since 1972, and has since achieved a dominant position in the garment and textile departmental store industry. The Kamdar brand stands for quality of service, history and value for money. Kamdar stores specialize in textile fabric, furnishing fabric, in-house designed garments for ladies, men and childrens clothes, Indian clothing and school uniforms. Don’t waste time! Our writers will create an original "Analysing the performance of the Kamdar BHD business in Malaysia" essay for you Create order In 2004, Kamdar Group (M) Berhad was established as the holding company for the group in order to facilitate its listing on the main board of the KLSE. After more than 50 years of growth, Kamdar has 21 outlets around Malaysia and employs about 1,200 staff. Ratio Analysis What is Ratios Analysis? Ratio analysis is a tool used by individuals to compute a quantitative analysis of information in a companys financial statements and evaluate the performance of company. According to Groppelli, Angelico A., In finance, a financial ratio or accounting ratio is a ratio of two selected numerical values taken from an enterprises financial statements. There are many standard ratios used to try to evaluate the overall financial condition of a corporation or other organization. Comparison Ratio analysis is generally calculated from current year numbers and then used to compare the performance or position of a single company with other companies or with an industry. Trend analysis is compared the companys current performance with previous years or even current performance against the budget. It is use to identify the companys strength and weakness with financial situation. Besides that, it acts as a guide for manager to improving with proper action. Industry comparison is compared the companys performance with the competitors companies which is similar nature companies or with the industry average. It is helps to point out deviation from norms in industry. The users of ratios analysis are group of people which related with company such as investors, employees, lender, suppliers, customers, government and public. Financial ratios can be divided into 5 categories: Profitability Ratios Measure the overall effectiveness of the company. It can help an organization manage the funds such as increase the return with control the expenses. Liquidity Ratios Measure how quickly an organization can obtain the cash to meet its short-term requirements. Which means ability of an organization generates revenues to cover the obligations. Capital Structure Ratios Analyses how assets financed. Means assess the firms long-run ability to meet its obligation. Asset Management Ratios Measure efficiently and intensively a firm uses its assets to generate sales. Market Value Ratios Measure the market value for companys stock compared with accounting values. But it can only calculate for shares that are traded in the market. Ratio Analysis for the Kamdar Group (M) Berhad: Formula: 2008 2007 Profitability Ratios :- Gross Profit Margin = Gross ProfitÃÆ'Æ’-100% Sales = 68,343,838ÃÆ'Æ’-100% 182,416,634 = 37.47% = 62,576,977ÃÆ'Æ’-100% 177,442,850 = 35.27% Operating Profit Margin = Earnings Before Interest TaxÃÆ'Æ’-100% Sales = 19,683,440ÃÆ'Æ’-100% 182,416,634 = 10.79% = 18,544,992ÃÆ'Æ’-100% 177,442,850 = 10.45% Net Profit Margin = Net Earnings Available to Common StockholdersÃÆ'Æ’-100% Sales = 8,481,844ÃÆ'Æ’-100% 182,416,634 = 4.65% = 7,918,897ÃÆ'Æ’-100% 177,442,850 = 4.46% Return on Assets (ROA) = Net Earnings Available to Common StockholdersÃÆ'Æ’-100% Tota l Assets = 8,481,844ÃÆ'Æ’-100% 295,336,768 = 2.87% = 7,918,897ÃÆ'Æ’-100% 289,549,467 = 2.73% Return on Equity (ROE) = Net Earnings Available to Common StockholdersÃÆ'Æ’-100% Common Stockholders Equity = 8,481,844ÃÆ'Æ’-100% 151,992,341 = 5.58% = 7,918,897ÃÆ'Æ’-100% 143,510,497 = 5.52% Return on Capital Employed = Operating ProfitÃÆ'Æ’-100% Capital Employed (*Capital Employed = Total Assets Current Liabilities) = 19,683,440ÃÆ'Æ’-100% 174,741,198 = 11.26% = 18,544,992ÃÆ'Æ’-100% 229,418,962 = 8.08% Liquidity Ratios :- Current Ratio = Current Assets Current Liabilities = 127,341,176 120,595,570 = 1.06 times = 123,842,363 60,130,505 = 2.06 times Quick Ratio = Current Assets less Inventory Current Liabilities = 28,978,154 120,595,570 = 0.24 times = 35,171,965 60,130,505 = 0.58 times Capital Structure Ratios :- Total Debt to Total Asset Ratio = Total Long-Term Debt + Current LiabilitiesÃÆ'Æ’-100% Total Asset = 143,344,427ÃÆ'Æ’-100% 295,336,768 = 48.54% = 146,038,970ÃÆ'Æ’-100% 289,549,467 = 50.44% Long Term Debt to Equity Ratio = Long-Term Debt ÃÆ'Æ’-100% Total Shareholders Equity = 22,748,857x 100% 151,992,341 = 14.97% = 85,908,465x 100% 143,510,497 = 59.86% Times Interest Earned = Earnings Before Interest Tax Interest Expense = 19,683,440 4,630,469 = 4.25 times = 18,544,992 5,192,861 = 3.57times Asset Management Ratios :- Average Collection Period = Account ReceivableÃÆ'Æ’- 365 days Credit Sales = 7,218,271ÃÆ'Æ’- 365days 182,416,634 = 14.44 days = 8,347,582ÃÆ'Æ’- 365days 177,442,850 = 17.17 days Inventory Turnover = Inventory ÃÆ'Æ’- 365 days Cost of Sales = 98,363,022ÃÆ'Æ’- 365days 114,072,796 = 314.73 days = 88,670,398ÃÆ'Æ’- 365days 114,865,873 = 281.76 days Average Payment Period = Creditor ÃÆ'Æ’- 365 days Purchases (*Purchases = Cost of goods sold) = 5,124,727ÃÆ'Æ’-365days 114,072,796 = 16.40 days = 7,547,495ÃÆ'Æ’-365days 114,865,873 = 23.98 days Total Asset Turnover = Sales Total Assets (*Total Assets = Capital Employed) = 182,416,634 295,336,768 = 0.62 times = 177,442,850 289,549,467 = 0.61 times Market Value Ratios :- Earnings per Share (EPS) = Earnings Available to Shareholders Number of Ordinary Shares (*units) (*given by notes 25.b) = 8,771,828 198,049,026 = 4.4 sen / share = 8,348,542 197,990,002 = 4.2 sen / share Dividend per Share = Dividend Paid Number of Ordinary Shares (*units) (*given by notes 26) = nil (*did not declare dividend) = 4 sen Dividend Cover = Earnings per Share (EPS) Dividend per Share = nil (*did not declare dividend) = 4.2 sen 4.0 sen = 1.05 times Price Earning (P/E) Ratio = Market Price per Share Earnings per Share (EPS) = RM 0.200 RM 0.044 = 4.55 times (*Market Price as at 31/12/08) = RM 0.530 RM 0.042 = 12.62 times (*Market Price as at 2/1/08) Dividend Yield (% return of invest) = Dividend per share ÃÆ'Æ’- 100% Market Price / Share = nil (*did not declare dividend) = RM 0.040ÃÆ'Æ’- 100% RM 0.530 = 7.55% Performance Evaluation Profitability Ratios In order to analyze the profitability of the Kamdar Group (M) Berhad, we will look into several profitability ratios. The gross profit margin at year 2008 is at 37.47% higher compare to year 2007 is at 35.27%. This could be either at year 2008 has selling the product at a higher price or the purchasing cost at year 2008 is lower than year 2007. The operating profit margin for year 2008 is at 10.79% however for year 2007 is at 10.45%. This is indicated that the company has control the expenses at reasonable level, selling has increase with higher rate than expenses. Return on total assets ratio (ROA) for year 2007 is 2.73% increasing to 2.87% at year 2008. It is represents management has use assets efficiently and effectively ways to generate their profit and sales compare with year 2007. Return on equity (ROE) for year 2007 is 5.58% increasing to 5.52% at year 2008. It is represents the company has use the investors money to generate profit with more efficie ncy. Liquidity Ratios The current ratio and the quick ratio help to access the liquidity position of the company. The current ratio at year 2008 is lower at 1.06 times compare to year 2007 at 2.06 times. The quick ratio for year 2008 is 0.24 times comparing to year 2007 at 0.58 times. Both this ratios indicate that year 2007 has a better liquidity position compare to year 2008, because at year 2008 the increasing in current assets is less than increasing in current liabilities Thus, ability to handle their short-term obligation of year 2008 are poor than year 2007. Capital Structure Ratios The total debts to total assets ratio is lower for year 2008 at 48.54% compare to year 2007 which is at 50.44%.The long-term debts to equity ratio is 14.97% comparing to year 2007 at 59.86%. This indicate that year 2007 is more highly geared which means that quite a high proportion of a financing come from debts. In other words, Kamdar Group has improving the financing at year 2008. Th e time interest earns is higher for year 2008 at 4.25 times compare to year 2007 which is at 3.57 times. This indicates that there are more earnings available to meet interest payment and business is more stable to reduce the interest rate. Asset Management Ratios The average collection period for year 2008 is 14.44 days compare to year 2007 which is at 17.17 days. The ratios indicate that the year 2008 has strong credit management compare to year 2007. The stock turnover period for year 2008 is 314.73 days for year 2007 is 281.76 days. We can assume the Kamdar Group has estimated that the sales volume will increase at following year. The creditor payment period is shorter for year 2008 at 16.40 days compare to year 2007 which is at 23.98 days. This ratio indicates that company has sufficient cash to settling debts in time. At year 2008, company generates a higher sale at 0.62 times for every Ringgit invested in assets however at year 2007 only generate 0.61 times. Company has improving the efficiency to uses of its assets to generate revenue. Market Value Ratios The earnings per share of year 2008 is at 4.4 sen compare to year 2007 which is at 4.2 sen. Year 2008 earns a higher return per share. When we look at dividend per share, at year 2007 paid out RM0.04 for every share but at year 2008 company did not declare any dividend for every share. The dividend shown the dividend cover at year 2007 is 1.05 times but year 2008 never have dividend cover because company did not declare dividend. Therefore, the P/E ratio for year 2007 is 12.62 times but year 2008 is only at 4.55 times. Limitation of Ratio Different Accounting Policies Since the ratios are based on the figures taken from the financial statements, the results of the ratio analysis are dependent on the quality of the underlying statements. The choices of accounting policies may distort intercompany comparisons. For example, different company may use different depreciation method such strait-line method or reducing balance method, it may affected the figure in financial statement. Creative accounting The financial statement is very easy to manipulating. Company may manipulate the financial statement and trying to show the better financial performance or position which can be misleading to the users of financial accounting. Interpretation of the ratios Ratios need to be interpreted carefully and take time to understand it. It is difficult to generalize about a performance condition of particular ratio. It should not be considered in isolation. It is meaningless without making comparison with others. Rat ios are not definitive measures Ratios can provide clues to the companys performance or financial situation. Ratios cannot show whether performance is good or bad. It is just only guides for the users to estimate condition of company in future date. Historical or outdated information in financial statement The figures in a set of accounts are likely to be out of date, and so might not give a proper indication of the companys current financial position. It was represented in the conditions that ignore the economics issue. Different financial and business risk profile No two companies are the same, even when they are competitors in the same industry or market. Using ratios to compare one company with another could provide misleading information. Businesses may be within the same industry but having different financial and business risk. One company may be able to obtain bank loans at reduced rates and may show high gearing levels while as another may not be successful i n obtaining cheap rates and it may show that it is operating at low gearing level. To uninformed analyst he may feel like company two is better when in fact its low gearing level is because it cannot be able to secure further funding. Different capital structures and size Different size of companies may have different capital structures. Make comparison of performance when one is all equity financed and another is a geared company it may not be a good analysis. Conclusion Ratio analysis is useful, but analysts should be aware of these problems and make adjustments as necessary. Kamdar Groups ratio analysis shown it is growth in stable and health condition. The revenue earned by group has increased over the year. Companys total short-term debt has increasing because the company was converted part of long-term borrowing to short-term borrowing in order to reduce the total long-term debt. It can be help to survive in long run business especially economic slowdown period, but company will facing high gearing level in following year. It may affect investors to continue investing in the company. Based on the P/E ratio, the current investors will start to lose their confidence in the share of the company and choose to reduce the amount of investment in the company. Due to the continuously decreasing in the P/E ratio, it will be difficult to attract the new investors and it may cause the share price to be decreased. A slowdown in the stock exchange will affect the overall sales of the company. Therefore, the profit that earned by the company will be reducing. As a result, the dividends that paid to the stockholders will decrease. This will cause the current investors does not have confidence in the stocks and also make the stocks to be unattractive to the new investors.

Why Stalin Emerged as the Sole Leader of the U.S.S.R. and...

Why Stalin Emerged as the Sole Leader of the U.S.S.R. and Not Trotsky Trotsky was a leading Bolshevik and played a pivotal role in the revolution, persuading Lenin to delay the revolution until the Bolshevik’s had a much stronger place in the country. He also was crucial to the civil war, as he organised the troops and motivated them. Stalin on the other hand was in charge of all the dull jobs within the Bolshevik party and In Lenin’s last Testament, he was referred to as rude and he needed to be removed. So why did Stalin, and not Trotsky emerge as Lenin’s successor. It’s a mixture of Stalin’s luck and skill, and Trotsky’s misfortune, which will be explained in the following paragraphs.†¦show more content†¦These Were:  · Factionalism  · The N.E.P.  · Socialism In One Country/ permanent Revolution  · His Power Base Factionalism was the Idea that if a member of the party discusses ideas which did not have the majority vote by the party. There were 2 main Ideas about the N.E.P. , these were the left wing and the right wing. The left wing said it should go and the right wing said it should stay as it would aid Industrialisation, as it allowed free trade to sell goods on the open market which would give money into the open market. Stalin’s powerbase was due to him being the general secretary, who was in charge of recruiting people, so when the Lenin enrolment scheme was introduced, Stalin recruited â€Å"malleable recruits who wouldn’t be impressed by Trotsky’s intellect. This was skill on Stalin’s part, but also a mistake on Trotsky’s behalf, as he had paid no attention previously to Stalin, calling him a â€Å"grey blur† Permanent Revolution was the idea that Russia would change, but at the same time help other countries to change and receive their help. Stalin had an opposing idea to this, which was socialism in one country, which was basically that Russia revolutionise on it’s own with no input from other countries. 1924 was the first stage of the power struggle When Zinoviev, Kamenev and Stalin sided against Trotsky, as Zinoviev and

Human Population Growth Free Essays

The two types of population growth of any species are exponential growth and logistic population growth (Simon, Reece and Dickey, 2010). Exponential population growth is defined as the rate of which a population grows constantly over a period of time resultant of continuous birth rate and ideal environmental conditions. In other words, the quality and quantity of resources is available at an overall higher standard, (Otherwise, 2012). We will write a custom essay sample on Human Population Growth or any similar topic only for you Order Now The second type of population growth is logistic population growth. Most environments do not have unlimited resources. Limiting factors such as â€Å"carrying capacity† come into play. Carrying capacity is an environment that sustains a maximum population size (Simon, Reece and Dickey, 2010). When the population size begins to reach carrying capacity, there is a decrease in growth rate. When the population size is at its maximum for carrying capacity, it yields a zero growth rate (Simon, Reece and Dickey, 2010). As the population grows it can cause a number of serious problems such as food-scarcity, overcrowding, poverty, increased consumption, excess waste, and exploitation of natural resources such as land, water, fossil fuels, and vegetation. The combined effects of population growth, consumption, overuse, wastage and misuse of resources will strain the capacity of the earth to sustain life (Simon, Reece and Dickey, 2010). Human population exceeding its natural resources will limit access to basic needs such as adequate housing from overcrowded areas as lack of space will become evident. Building materials require resources such as timber from forests which results in deforestation. Means of transport require more consumption of fossil fuels, thus pollution of air, land and water result from greenhouse gas emissions. Scarcity of food and potable water will incur as more mouths to feed require agricultural production, also a result in deforestation, thus the need for increased water usage, and the application of pesticides and fertilizers that make the soil infertile and water scarce and non-potable. Generation of waste increase will require critical attention to proper waste management in order to prevent the spread of disease or epidemics (Simon, Reece and Dickey, 2010). Population will rise most rapidly in places least able to handle it, developing nations where hunger, political instability and environmental degradation are already pervasive (Otherwise, 2012). Massive efforts are in great need to keep social and economic conditions from deteriorating further. When the number in population exceeds the natural resources available to sustain it, there will be a profound effect on the overall quality of life and the degree of human suffering on Earth. How to cite Human Population Growth, Papers

Examination of Cohesiveness Strategies

Question: Discuss about the Examination of Cohesiveness Strategies. Answer: Introduction: The patient having the capability to consent can decline the health care treatment even it contradicts the recommendation of the medical expert. The patient may at any time withdraw the consent either orally or by writing. The decision of the patient to withdraw the consent should be communicated to the medical practitioner (Scarborough et al., 2015). The decision of the patient should be respected. Whenever there is a withdrawal of consent, it is the responsibility of the nurse to: Checking whether the patient has ability to make an informed decision; Evaluating the understanding of the patient and considering issues related to health literacy or communication; Reasons that has lead the patient to make such decision should be explored; The other health care option that might be acceptable to the patient should be considered; The process of withdrawing consent by patient that has the capacity to make the decision are as follows: The consent should be orally either written or orally. The consequences of the decision should be discussed with the patient. The risk and the effect on the outcome is discussed with the patient. The patent has the option to obtain second opinion regarding the treatment form a different medical practitioner. It is important that the decision to withdraw consent should be for a specific treatment or procedure. The decision of the patient to withdraw consent should be properly documented along with the reason for such decisions. In case the patient is unable to make the decision then substitute decision maker can also decline the treatment. This decision should be evaluated and acted in a manner that the patient id making the decision (Cheema et al., 2014). Reference Cheema, B. S., Robergs, R. A., Askew, C. D. (2014). Exercise physiologists emerge as allied healthcare professionals in the era of non-communicable disease pandemics: a report from Australia, 20062012.Sports Medicine,44(7), 869-877. Scarborough, J., Eliott, J., Miller, E., Aylward, P. (2015). Equity in primary health care delivery: an examination of the cohesiveness of strategies relating to the primary healthcare system, the health workforce and hepatitis C.Australian Health Review,39(2), 175-182.

101 Pathos and Fallacies Professor Ramos Blog

101 Pathos and Fallacies Four Strategies Quick Write Argument prompt 4 Ways to Persuade with Emotion (Pathos) Four Strategies Concrete Examples Connotative Diction Metaphors and Similes Tone Appeals to pathos target the link between audience members and their values. When we act on our values, we experience emotions like happiness, pride, satisfaction, etc. When we do not, we often feel shame, fear, or anger. The same goes for the actions of people around us: we are often pleased when the actions of people around us align with our values and angry when they don’t. Persuasion: Emotion Handout Appeals to Emotions Images can be used to instill an emotional response in the audience. Even implied images in text can be very emotionally powerful. A description of blood stained clothes draws certain emotions in a reader. Lawyers know how important visuals can be. They dress their defendants in suits and ties to make them seem more credible. Types of emotional appeals: appeal to pity appeal to fear appeal to self-interest Sexual bandwagon humor celebrity testimonials identity prejudice lifestyle stereotypes patriotic Would you persuade, speak of Interest, not Reason. – Benjamin Franklin Images as Arguments Images can be used to help us see the argument that the author is intending. They can be used to lower our skepticism, visual proof of something that happened. This is problematic nowadays with the popularity of programs such as Photoshop, where images can be changed or manipulated. Now more than ever, we have to be weary of taking images at face value. We have to critically think about images and their intended effect. Three basic questions we can ask. Who produced the image? Who distributed the image? Who consumed the image? If you think that pictures will help you make the point you are arguing, include them with captions explaining their sources and relevance. Persuasive Techniques in Advertising This is a great video that shows how pathos, logos, and ethos are used in advertising. Duration 8:28 Persuasive Techniques in Advertising Quick Write Fallacy Definition a mistaken belief, especially one based on unsound argument. a failure in reasoning that renders an argument invalid. faulty reasoning; misleading or unsound argument. We will be talking about fallacies today. These are general definitions of a fallacy. In your own words, what is a fallacy? What fallacies have you heard of? Intro to Fallacies Fallacies are connected to the different appeals: Ethos, Logos, and Pathos. Remember, Ethos is appeals to credibility or character Logos is appeals to logic and reason Pathos is appeals to feelings or emotions. Appealing to ethos or pathos is not in itself a fallacy, only appealing to them or using them unethically is.  Here is an example of a fallacy used to persuade. Why do we say this is a fallacy? Key Terms Argument: A conclusion together with the premises that support it. Premise: A reason offered as support for another claim. Conclusion: A claim that is supported by a premise. Valid: An argument whose premises genuinely support its conclusion. Unsound: An argument that has at least one false premise. Fallacy:  An argument that relies upon faulty reasoning. Booby-trap: An argument that, while not a fallacy itself, might lead an inattentive reader to commit a fallacy. The Internet Encyclopedia of Philosophy – Fallacies This is a great resource for further reading on fallacies and how they are  not so simple. The article  lists 223 of the most common fallacies. I do not expect you to know them all or to never use any. Fallacies are controversial. We appreciate logic and honesty in Western rhetorical thinking and that is at odds with many fallacies. Fallacies are not necessarily wrong, they work very well and are very good at persuading people. Fallacies are considered unethical and so we try to avoid them. They are thought of as flaws in thought, tricks, and sneaky uses of persuasion to convince others.

Marketing Management of Freshbins

Marketing Management of Freshbins Executive Summary The aim of this paper is to provide marketing ideas for a new invention, Freshbins Robotic Sanitizer, which is a highly efficient product that will contribute to keeping the Australian cites clean, increasing the hygiene, and lowering the level of diseases caused by airborne germs.Advertising We will write a custom assessment sample on Marketing Management of Freshbins specifically for you for only $16.05 $11/page Learn More It would work as a supplier of the Australian governmental and non-governmental organisations, which maintain cleanliness of the cities and appoints labour to work on field. This product will help such organisations to boost their efficiently by making them able to undertake huge number of bin cleaning programs at very short period of time and reducing the human efforts apart from saving time. This product will also be offered to private individuals and families for carrying out their household activities; therefore, fo r having such a large group of customers, the revenues generated by this single product will be huge, even if the prices are set at a moderate level. In order to provide marketing advices to the marketer of the product, this paper will focus on introducing the background information of the invention, conducting an environmental analysis consisting of the PESTEL analysis and the Porter five forces analysis, assessing the consumer behaviour analysis of the country, and concentrating on the segmentation, targeting, and positioning of the invention. It would also construct appropriate product and pricing plans for the marketer followed by a few concluding remarks. Introduction to the Background Information of the Invention With the consideration of the prospective market demand and the idea of improving the waste disposal system of Australia and accordingly reinforce the efforts to ensure environmental sustainability, the newly invented Freshbins Robotic Sanitizer is chosen for been mar keted at a large extent throughout the country. According to The Australian Broadcasting Corporation (2011), Freshbins Robotic Sanitizer is an extremely contemporary bin clearing and disinfecting method invented by Paul Sewell, which uses three-facet visions to assist the mechanical limb to pick up a dustbin that is mechanically rinsed in an ozone-disinfecting process before being returned to the land; amazingly, the entire procedure needs about only 30 seconds.Advertising Looking for assessment on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The product has patented mechanized technology to convey one of the most protected, ecologically sustainable, and competent bin maintenance procedure in the globe; besides, the truck performs the entire task with the driver seated in cabin; most importantly, the truck can process 1000 bins in a day; therefore, the pickup ability of the robotic-arm is among its highly ess ential features. The location of the dustbin is not a problem; it could even lie on land; however, the arm uses sensors to find a dustbin at 68 likely positions, whilst a second sensor identifies any creature or child’s movement around the dustbin; in addition, it saves vast quantities water (whist clearing one domestic-size bin manually requires about 100 litres of water). However, it is important to note that although the product possesses a number of highly significant features, the success of marketing it can be doubtful if appropriate brand building strategies and awareness programs are not properly undertaken. Hoeffler Keller (2002) stated that brand awareness programs are necessary for marketing all sorts of products through different marketing campaigns; on the other hand, Hoyer Brown (1990) pointed that in order to ensure repeat purchases of a product, constructing relevant marketing strategies are crucial in order to sustain for long run. Environmental Analysis of Freshbins PESTEL Analysis Hitt, Ireland, Hoskisson (2001) has noted that it is necessary for marketers to conduct PESTEL analysis before considering to launch any product in the market as a thorough environmental analysis assists to better understand the present conditions of the industry. Moreover, Pearce Robinson (2006) argued that without a proper environmental analysis, businesses might fail to apprehend actual circumstances of the industry and subsequently undertake poorly researched strategies leading to breakdown of sales and revenues. The PESTEL framework for Freshbins is illustrated below: Advertising We will write a custom assessment sample on Marketing Management of Freshbins specifically for you for only $16.05 $11/page Learn More Figure 1: PESTEL Analysis Source: Self generated from Hitt, Ireland, Hoskisson (2001) Political Factor The current political circumstance of Australia is fairly unwavering with the government of the country trying to provide the best possible corporate responsive impression to each its national markets with an intention to boost the gross national product and per capita income. More decisively, the government constantly promotes and aids the enlargement of the neighbouring companies by dictating the governmental financial institutions to provide sufficient loans to start up businesses after assessing their prospects, which makes it easier for Freshbins to enter. Economic Factor According to Index mundi (2011) in spite of the harsh situations arising from the global economic turmoil, the economy of Australia has recovered quite quickly and is still recovering to revive its industries and job sectors. The following figure shows the real GDP growth rate comparison for recent years, outlining that the GDP has recovered after the 2009 slump: Figure 2: The real GDP growth rateAdvertising Looking for assessment on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Source: Index mundi (2011) The graph below illustrates that the purchasing power parity of the Australian consumers is increasing, providing an optimistic outlook for Freshbins: Figure 3: The purchasing power parity Source: Index mundi (2011) Socio-cultural Factor The social and cultural aspects of Australia are highly diverse with the presence of people from many ethnic backgrounds; however, it is notable that Freshbins would stay beside the neighbouring communities and contribute to the societies by helping to better uphold a clean image to the world. Technological Factor Although the country has a booming technological sector, the industry competition is quite lower in terms of the market of Freshbins Robotic Sanitizer, as this is a pioneering innovation with highly equipped mechanics containing unique features not accessible in other similar products of Australia. Environmental Factor A number of environmental laws are present in Australia, which prevent the businesses of the c ountry to perform activities associated with massive pollutions. However, it is notable that the marketer of Freshbins will be socially responsible to reduce adverse affects in the environment by introducing more and more eco-friendly technology to eliminate germs from bins. Legal Factor For every start up business in Australia, a few numbers of problems arise due to lawful barriers such as environmental and labour legislations associated with the formation of the business and related advertisements of the products. Porter five forces of the Invention Porter (2004) has noted that environmental analysis of the industry helps the marketers to sort out the dilemma associated with the anticipation of the level of competition and the position of the particular business in the industry. However, the competitive position of Freshbins in accordance with Porter’s five forces is presented below Figure 4: Porter’s five forces for Freshbins Source: Self generated from Porter (2 004) Threat of New Entrants The threats of new entrants are quite low in the industry, because Freshbins has unique technology, which is also patent protected and so no new comers can quickly copy it and raise the level of competition. Bargaining power of buyer Bargaining power of buyers are low because there are no such services presently available in the Australian market where they can switch on. Bargaining Power of Suppliers The bargaining powers of suppliers are moderate because the supplies of the raw material needed to produce Freshbins come from much specialised producers who are lower in number, so the switching costs of the marketer of Freshbins are higher. Rivalry among competitors A low rivalry exist in the market owing to the individuality of the product and due to the fact that it is newly invented; moreover, even when slightly similar items are available, those are not as competent as Freshbins in terms of time saving, cost efficiency, and technology. Threats of subst itute product No substitutes are currently available and it is not possible to bring one because of the patent protection provided. Consumer Behaviour Analysis According to Bowden (2009), in order to influence consumer behaviour, the process of customer engagement needs to be enough dynamic in terms of strategic implementations put forward. Oliver (1999) noted that the marketer should not only endow focus to influence consumer behaviour, but also ensure that the respective policies are affirming consumer loyalty. Prus Randall (1995), Recklies (2006), Percy Rossiter (1992), and Cavero Cebollada (1997) stated that understanding behaviour and acting accordingly by overseeing customer awareness could lead to successful branding for any product. Conversely, successful branding reinforced by proper advertising will lead to repeat purchases of that item (Chi, Yeh, Yang, 2009; Deighton, Henderson, Neslin, 1994; and Macdonald ï ¼â€  Sharp, 2000). Because of all these reasons, customer behavioural analysis is essential; Sands Ferraro (2010) identified that Australian customers have turned more intrusive, pessimistic, demanding, and impulsive, expending cautiously and seeking console in dependable and trustworthy brands; moreover, about fifty percent of Australians started to search internet before purchasing in-store, whereas, 89 percent expend about three hours researching the product’s features. On the other hand, Sands Ferraro (2010) added that seventy-nine percent Australian customers now try to purchase online, so it is necessary for the marketer of Freshbins to build a website and sell over internet, as it is expected that further eighty-three percent people will buy online by the next year, whereas the sales will reach $23.4bn by 2014. Segmentation, Targeting, and Positioning Segmentation Johnson, Seholes, Whittington (2006) stated that before marketing any product, a properly conducted customer segmentation and configuration of people of the targ eted country would enable the marketer to obtain an idea about the probable clients and undertake marketing policies that would suit that market. For example, through the age configuration of people, it would be easy to understand the numbers of adults in the economy, providing a rough idea about people requiring a household bin-cleaning machine. Moreover, a rising growth rate of the economy would illustrate the future opportunity of having a further expanded customer base; so according to Kotler Armstrong (2006), market segmentation is crucial; the customer segmentation by gender and age configuration of people of the country are outlined below: Customer segmentation by gender and age configuration of people Total number of people 21,766,711 in 2011 estimation * Zero to fourteen year olds 18.3 percent (men 2,040,848 women 1,937,544) * Fifteen to sixty-four year olds 67.7 percent (men 7,469,092 women 7,266,143) * Sixty-five year olds and above 14 percent (men 1 ,398,576 women 1,654,508) * Total average age of population 37.7 yrs * Men: average age 37 yrs * Women: average age 38.4 yrs * Inhabitants development rate 1.148 percent in 2011 projection * Birth- rate 12.33 births per thousand population * Death- rate 6.88 deaths per thousand population * Ethnic origins in the country White ninety two percent, Asian seven percent, native other one percent * Below fifteen years 1.05 man per woman * Fifteen to sixty-four years 1.03 man per woman * Sixty-five years and above 0.84 man per woman * Literacy 99 percent men and 99 percent women * Table 1: Customer segmentation Source: Self generated from Index mundi (2011) Targeting The targeted customers of the Freshbins Robotic Sanitizer are the governmental and non- governmental organisations of the country, which act together with the vision of upholding hygiene in the national communities. This product will be supplied to such businesses in bulk, makin g high profit margins and keeping contribution over the socially responsible behaviours. Another target group are the private individuals and families that suffer great troubles for carrying out their household activities because of the busy lifestyle of people. This would help working men and women to finish tasks that are highly time consuming and require touching dirt by hand. Besides, rather than busy or working people, retired or unemployed people will also be the targeted group as most of them are old and frail and require help from technology to do it rapidly without any need for hard work. Positioning The following figure shows the market positioning of Freshbins; it shows that the product will be of high quality, and pricing will be higher because of uniqueness: Figure 5: Market positioning of Freshbins Source: Self-generated from Kotler Armstrong (2006) Product and Pricing Plans The product has a number of distinctive features, for example, using ozone as a disinfectant, it reprocesses water and remarkably uses merely 63ml per dustbin, whereas manually it requires about 100 litres; moreover, no chemicals are required for the purpose; therefore, there is no chemical remains either creating risk to the operator or atmosphere. In addition, no microbes will enter the atmosphere as the ozone even neutralises the toxicants in the waste; so, the wastes sent to the landfill is entirely germ-free; conversely, the operator has CCTV pictures of the entire activity and he manages them from a touch screen within the truck cabin. All such features indicate that the pricing needs to be quite higher for this invention; Brealey Myers (2002) noted that the more the uniqueness of the product, the more viable it is to set the price at high level, as no other substitute-items are available for consumers. However, Malhotra (2009) identified that a proper marketing research is essential before setting the prices, which should include quantitative or qualitative question naires intended for surveying the prospective customers in order to assess the amount they are likely to spend over such an item. Nevertheless, it can be argued that as this invention is completely new and the product is patent protected, it is not likely for any other businesses to bring out items with the same technology and offer those at lower prices gaining competitive advantage over Freshbins; as a result, there will be almost market domination by the Freshbins. Therefore, it will be feasible for the marketer of Freshbins to focus on premium pricing at the initial stage; however, considering the performance of the product for a substantial time, the pricing strategy can be reconsidered by evaluating demand and production costs. Conclusion It is important to state that although Freshbins Robotic Sanitizer has great opportunities after penetrating the market, it is necessary to conduct a market survey to identify the consumer confidence of Australia and the extent to which they are able to spend over the item. This is because although the economy has recovered from the recessionary impact, the current condition of the Euro zone crisis can get severe and spread over the Australian financial institutions, it which case, it would be tough for the marketer to collect the finance that is needed to enter the market, which includes costs such as outlays of advertising campaigns. Reference List Bowden, J. L (2009) The Process of Customer Engagement: A Conceptual Framework. Journal of Marketing Theory Practice, 17(1): 63-74. Brealey, A. R. Myers, S. (2002) Principles of Corporate Finance. 7th ed. New York: McGraw Hill. Cavero, S., Cebollada, J. (1997) Brand choice and marketing strategy: An application to the market of laundry detergent for delicate clothes in Spain. Journal of International Consumer Marketing, 10(1): 57-71. Chi, H. K., Yeh, H. R., Yang, Y. T. (2009) The Impact of Brand Awareness on Consumer Purchase Intention: The Mediating Effect of Perceived Quality and Brand Loyalty. The Journal of International Management Studies, 4(1): 135-144. Deighton, J., Henderson, C. M., Neslin, S. A. (1994) The effects of advertising on brand switching and repeat purchasing. Journal of Marketing Research, 16(1): 28-43. Hitt, M. A., Ireland, R. D., Hoskisson, R. E. (2001) Strategic Management. 4th ed. South-Western Thomson Learning. Hoeffler, S., Keller, K. L. (2002) Building brand equity through corporate societal marketing. Journal of Public Policy Marketing, 21(1): 78-89. Hoyer, W. D. Brown, S. P. (1990) Effects of Brand Awareness on Choice for a Common, Repeat-Purchase Product. Journal of Consumer Research, 17(2): 141-148. Index mundi (2011). Australia Demographics Profile 2011. [Online] Available from: indexmundi.com/australia/demographics_profile.html Index mundi (2011) Australia GDP (purchasing power parity). [Online] Available from: indexmundi.com/australia/gdp_(purchasing_power_parity).html Index mundi (2011) GDP real growth ra te (%). [Online] Available from: indexmundi.com/g/g.aspx?c=asv=66 Johnson, G. Seholes, K. Whittington, R. (2006) Exploring Corporate Strategy: Text Cases. 8th ed. London: FT Prentrice Hall. Kotler, P., Armstrong, G. (2006) Principles of Marketing. 11th ed. Prentice-Hall of India Private Limited. Macdonald, E. K., ï ¼â€  Sharp, B. M. (2000) Brand awareness effects on consumer decision making for a common, repeat purchase product: A replication. Journal of Business Research, 48(5). Malhotra, N. K. (2009) Marketing Research- An Applied Orientation. 5th ed. Prentice-Hall of India Private Limited. Oliver, R. L. (1999) Whence Consumer Loyalty? Journal of Marketing, 63(1): 33-44. Pearce, J. A. Robinson, R. B. (2006) Strategic Management. 8th ed. London: McGraw-Hill. Percy, L., Rossiter, J. R. (1992) A model of brand awareness and brand attitude advertising strategies. Journal of Psychology Marketing, 9(1): 263-274. Porter, M. E. (2004) Competitive Strategy. Export Edition. New York : The Free Press. Prus, A., Randall, B. D. (1995) Understanding your customers. Journal of Marketing Tools, 2(1): 10-14. Sands, S. Ferraro, C. (2010) 2010 Consumer Trends Report Australia. [pdf] Available from: salmat.com.au/content/documents/news-insights/2010-consumer-trends-report.pdf The Australian Broadcasting Corporation (2011) Freshbins: Invented by Paul Sewell. [Online] Available from: abc.net.au/tv/newinventors/inventions/2011.htm

Importance of Management Information Systems Assignment

Importance of Management Information Systems - Assignment Example I agree with the author’s claims about Management Information Systems (MIS) being the most important class a student can take in an undergraduate business class. This is so because it is all about how people whether as an individual entity, a group or even the whole organization can use the set systems and technology to make decisions for the benefit of the whole organization. The good thing about this is that it encourages uniform decision making and hence no extreme decisions that may affect productivity and sustainability of the organization negatively can take place.   The author mentions that the greatest advantage of an MIS is the fact that it can be utilized in any department in the organization whether   in marketing, accounting and finance, manufacturing, human resource department, in the social application or even in other general departments (Gupta 255). This is true and I agree with it because MIS has a set of systems it proposes organizations or groups to use and once they are engaged, they can be able to pinpoint out the areas the company or group needs to improve on and which ones are already perfect. This can happen in any department as long as the records kept are correct and updated. I however disagree with the author’s assertions that an MIS system is not as effective when utilized by an individual entity as it is when utilized by a group of people or the whole organization (Gupta 356). I disagree because MIS has already set systems in place and hence anyone with good knowledge of how to utilize them can gain meaningful results similar to what an organization or a group of people get.