Bangladesh and Vietnam: Factors of Inflation

Bangladesh and Vietnam Factors of fanf beQuestion 2(a) hash out and analysis the factors of rising prices in your selected countriesBangladesh and Vietnam are our selected countries. Inflation is a perpetual vexion in the general p sieve level of goods and services in the economy. Inflation has trine types which are creeping lump, mild inflation and hyperinflation BangladeshInflation in Bangladesh has a lot of factors. there are wages in the major employment, add-on in the put up of m nonpareily, anele price, humble achievement and higher price of imported commodities.Based on the factor for change magnitude in wage rate in the major employment, wages in Bangladesh has been increasing for much than the last both decades collect(p) to both hale or moderately strong labor union. Due to political, social and ethnical tradition and for a humanitarian reason, the Government outhousenot make a bank note amongst productive, unproductive, and moderately productive se ctor in their attempt to amplification the wages. Wages increase without any ware increase, easily transferred to higher bell of business and higher prices of consumer goods, allowing for sustained inflation. Under the assumption of picayune or no im lay downment of workers productivity growth, wage inflation at such(prenominal) high level is an indication of cost escalation over time.Money cut is an important determinat of inflation. Production in agriculture and fisheries sectors in Bangladesh is still assailable to the whims of nature to a notable extent. Therefore supply of bills in Bangladesh is increasing every year in order to get it. It has been claimed that one of the main causes of the high food inflation throughout the FY05 was poor growth of aus, aman and wheat crops.6. The yearly employment of these three crops went d ingest by 18.12, 14.76 and 22.11 share respectively in FY05 over the FY04.7. An instance of price hike out-of-pocket to this fall of producti on is that the price of aman rice rose indoors the look-a resembling of BDT 16 to 19 in FY05 from the range of BDT 14 to 16 in FY04. This excessive rise in the issue forth supply of silver may go to the cause of high inflationary pressure in Bangladesh. rock oil price is a factor of inflation in countries include proposeetary. crude oil is a fundamental input of production, it constitutes a signifi stinkpott portion of production cost in every sector of the economy. Although there are virtually recent adjustments in the administered price of energy products, much of the increase cost of imported fuel has not been passed on to end users, curiously on diesel and kerosene. Iraq has the second largest oil field. Oil production in Iraq has been contend by 5,00,000 barrels per day since the U.S. invasion in Iraq for more than three years. Crude and refined oil is apply in all sphere of life including manufacturing and production of consumption and material goods. Once incre ased oil prices, it have increased the cost of production world-wide. The firms and suppliers have no other(a) choices except to raise the price of goods and materials. Therefore it has caused a cost-push inflation.In Bangladesh the take growth rate is always lower than the population growth rate. This low productions is not only for reason of human resources, weather is also included. As an example, the production of wheat in Bangladesh has declined drastically over the years. Further, except for the Boro, the areas of rice cultivation have declined in recent years. The production of pulses and oilseeds has also declined signifi crowd outtly. anomalous weather in Bangladesh had caused crop give offures. Therefore Bangladesh oft faced with problem of food shortages. As the net domesticated production of food is not sufficient to get together demand such as oil, supply cranny of cereals and food items, Bangladesh forced to import these from external markets. Therefore the gr eater character of increase in the populaion has brought about a scarcity of goods. As a result, excess demand occurs that contributes to rise in prices.Bangladesh has to import huge smashing goods, necessary consumer goods and even huge quantity of food grain. The most of the infixed food items are imported like sugar, rice, wheat, onion and edible oil and also included machineries, intermediate goods and raw materials used in production. big import willing increase the price of import. The inflation in external countries causes a rise in prices in Bangladesh through the importation of commodities from those countries. When the relationships mingled with import price index and non-food inflation in urban and rude are insignificant, the former is found to have frugalally as comfortably as statistically highly significant association with the categories of food inflation. In a short word, the reasons for increase in import price are twofold which is exchange rate depreciati on and increase in transnationalistic commodity prices.VietnamInflation in Vietnam has also a lot of factors. There are excessive service spending and bias assignation in the market, supply and demand mismatch, governements increased wages policy, boom of opposed direct investment (FDI) and unbalance money used for economic growing and society.The monetary factor is excessive service spending and bias allocation in the market. Inflation can be caused if giving medication activity doesnt plan and manage amount of money circulation which include in society and commodity. As an example if government allocates too much money to society like education loan, there will caused a loss of money to contribute to eonomy. Excess cash will happen if the number of commodity production is sustaining and has not increased. It will increase consumer purchasing pressure and leads to hyperinflation.In Vietnam supply and demand mismatch is a problem or cause of inflation pressure in the country. The evident is the signs of overheating the economy such as severe electricity shortage and congested roads and ports, a taut labor market with skilled and semi-skilled labor supply falling uttermost behind demand and a sharp widening of trade and true account deficit. But even year to year core inflation which excludes food and fuel is stimated to have increased by 18% as Benedict Bingham, senior representative of International Monetary Fund (IMF) predicted. Because of the output gap in Vietnam willnt overcome easily, so he sovereign effects of demand effects will persist to the next years. indoors this context is important to underline, that persistent excess liquidity in the domestic markets can stoke inflationary expectations over time.In Vietnam, government has been provided an increased wages policy. Analysis of the movements of nominal wage rate inflation mainly gives an idea about the labor cost scenario. In Vietnam, government encourages workers wages income can be increased if their performance is improved. Due to increase in salary income, workers have higher chance to spend more on consumption. Demand excess supply. If promotion of distributors and manufactures is helding, it will stimulate the market to increase buying power and creates leverage for a result of demand exceeds supply. subsequently that inflation will happen.Booming of orthogonal direct investment (FDI) in Vietnam will have a high rate due to Vietnam very much do FDI projects that can pull up their investors population. As an evidence, there were more than 16,300 active FDI projects in Vietnam that have collectively pulled in a total of $238 billion. These investors came from 100 countries and territories, and many of them are some of the worlds leading(p) multinational corporations. In 2013, FDI inflow exceeded $22 billion, an increase of more than 35% from 2012. The figures indicate that Vietnam has become a destination of choice for foreign investors Vietnam often do FDI projects that can pull up their investors population. Therefore high influx of foreign exchange will often happens into the economy. It will increase money supply and if too high influx of foreign exchange, it will be a reason of inflation. Demand will also rise due to influx of foreign exchange. When a rise in demand cannot meet same level by import will push up the price of product until inflation.In Vietnam, unbalance money used for economic development and society will always be conducted. Because of wars against French-American in the past, government need to spend enormous money to restore the economy. Therefore money which used for economic development such as subsidiares to help suppliers is slight and make a website of demand exceed supply. The product prices will increase and It leads to the inflation. Therefore the government didnt use monetary effectively means dont lead consumers to a way nof controling the production and consumption of the society. Then, nation al budget will be reduced due to the lack of income or money. Government always lived beyond its means they must(prenominal) use government funds either from local anaesthetic or foreign country to compensate for the expenses.In conclusion, Bangladesh and Vietnam are easily face the situation of inflation based on those factors preceding(prenominal).Who Should Own native Lands?Who Should Own Indigenous Lands?Christopher Wood F469950Evaluate the claim that the boldness of autochthonal solid grounds is best left field to local communities.Due to the expansion of globalisation, concerns over the management of resources has grown from local issues to worldwide issues on how people should engage with the sustainable development and ecesis of global resource systems or jets. Common resources can be overseen and governed by a mixture of institutional positions that can be generally delineated as governmental, common soldier or communal. This essay will look at the merits of bot h buck private will power of resources as endorsed by Ronald Coase and common topographic point regimes often employed by communities, a solution advocated by the economist Elinor Ostrom, whilst using further evidence of these two competing ideas, by exa archeological site the plight of the indigenous group of people known as the Dongria Khondh in their battle against the effectual private multinational company Vedanta.One of the issues that arise with common resources, is the query of ownership and who has the right to manage and divide these resources, curiously as the grocery store expands and the resources of the planet begin to be depleted (Shipman, 2015, p.119). Ronald Coase investigated this problem of exhaustible resources and suggests a solution to protect resources by arguing that ownership of the commons by assigning seat rights would by its do promote a confirmative outcome. The assignment of exclusive property rights and the potential for bargaining results in demeanor that is changed or altered to account for the negative impact our choices have on others, regardless of which party is initially assigned property rights. Private ownership and the resulting economic benefit for both parties encourages an equitable solution to rights, ensuring resources are used in a way that prevents overuse and preserves sustainability (Shipman, 2015, p125). A make water example of Coases arguments can be seen by comparing a domain communal space environ a residential area to that of the yard surrounding a private residence where the owners have to pay a service charge to maintain the grounds. Public areas tend to be uncombed and abused, private grounds are generally better kept and preserved, this action suggests that individual ownership and financial incentive motivate an innate verificatory outcome (Shipman, 2015, p.130). Further evidence of the positive outcome of using property rights can be seen in the real-life case study of the collaborati on among the Vietnamese government and the World Bank. The Land Administration Project, assigned democracy rights to citizens, enabling them to grow crops and feed their families, on with having the extra benefits of allowing family members to gain access to education and the owners to leverage this land to get finance, so they could expand and increase their wealth, this, in, turn, would encourage growth within the family unit, regionally and then nationally (The overt University, 2016a). However, assigning property rights doesnt always have a positive outcome, especially when the rights of the smaller landowners clash with the development of large real estate projects. In this case, the same Vietnamese government decided to seize inherited land from citizens, leading to violence and arrests. Free market economic policies of larger private concerns dominating the individual citizens claims and rights to land (The rotate University, 2016b).An alternative to managing common res ources can be found in the theories ofprominent economist Elinor Ostrom. Ostrom suggests that many issues surroundingrights, ownership and depletion of resources, are better-taken care of bycooperation, assigning rights to collectives and not individuals (Shipman, 2015, p.133). This is especially useful when dealing with resources such as the fish rich amniotic fluid off Alanya in Turkey. Here the Fisherman became aware that unregulated search would lead to permanently exhausting stocks of fish.Using principles such asRules are well matched to local needs and conditions.Individuals affected by these rules can normally participate in modifying them.A system for self-monitoring members behaviour has been established.A gradational system of sanctions (against rule-breakers) is available.The fishermen devised a plan following these guidelines that provided a flexible arrangement for the community to gain rights and access to fishing stocks, whilst gathering approval from the governmen t in the form of the Aquatic Resources Act, which recognised the communities right to administer their own rules. (open air University, 2016c) Despite this success, Ostrom recognises accomplishing a positive result in the management of common resource pools tends to have more success in smaller communities. globalization has presented problems concerning resources that need the varying parties to agree on a specified effect and a set of actions, which on this larger scale may prove to be difficult (The Open University, 2016d).A gather in example highlight the potential problems involving power imbalances between private commercial companies and local communities can be seen by exa excavation the plight of the indigenous people Dongria Khondh and their battle with the mining company Vedanta. The dispute centred around the land surrounding the Lanjigarth region and dedicated mountain of Niyamgiri. This land held great spiritual importance and familial ties to the Dongria Khondh, b e rich in biodiversity and holding a prime place within the local community. On the other hand, the mountain was also known to be rich in the mineral Bauxite, a valuable resource to a company such a Vedanta (Bhagwat, Jones and Mohan, 2015, p.150). Because of the inherent power imbalance between the two competing actors, it was necessary for outside agencies to become involved, to aid mediating in the dispute. These practiced groups consisted of namely the Central Empowered Committee (CEC) along with the Ministry of Environment and Forests (MOEF), these two groups visited the area and gathered information from Vedanta and representatives of the local communities (Bhagwat, Jones and Mohan, 2015, p.151). Prior to this Vedanta had established mining facilities, assuming terra nullius or no mans land assuming that this land belonged to no one, the invisible cultural significance to the indigenous people wasnt recognised (Bhagwat, Jones and Mohan, 2015, p.151). Conflicts between homogene ous cultures and private entities are fraught with difficulties, especially in jurisprudential precedents. This issue of jurisprudence concerning governance presents complex problems, despite formal international rights as set out by the UN, there is very little political will to enforce them. Consequently, access to valuable resources where there isnt clear governance, can leave the productive potential of such lands greatly underused and can be a barrier to economic progress, whilst confusion reigns for the indigenous peoples sensed inherent right to keep resources that are vital for their survival.Using the examples above it is clear to see that governance of common resources can have antithetic outcomes depending on the scale and complexity of the situation. Personal and local situations can be governed quite simply by cooperation and economic incentives based on private property rights. On the other hand interactions between governmental institutions, international private co mpanies and local communities has proven to be difficult. The most important lesson to great deal attention to, is that advocating a particular course of action for solving problems relating to the governance of common resources may work in some settings but fail in others. Further, policies also have to be adaptable to recognise the sluttish cultural setting and arrangements of those who depend on these diverse ecosystems. Cooperation between individuals, communities and governments along with flexible arrangements between the different actors is vital to ensure equitable access to common resources.Word Count 1201ReferencesBhangwat, S. Jones, N. and Mohan, G. (2015) Indigenous lands and territories mapping the commons, in Drake, DH. Morris, A. Shipman, A. and Wheeler, K.(ed.) study The Social World 2, Milton Keynes, The Open University.Shipman, A. (2015) Putting a price on common resources, in Drake, DH. Morris, A. Shipman, A. and Wheeler, K.(ed.) study The Social World 2, Milt on Keynes, The Open University.The Open University (2016a). 5 Vietnam Securing the Future through the Formalization of Land-Use Rights Video DD103 Investigating the social world. getable at https//learn2.open.ac.uk/mod/oucontent/view.php?id=842096section=5(Accessed 2/17/2017)The Open University (2016b). 5.3 power Erupts in Vietnam over Land Seizure Video DD103 Investigating the social world. usable at https//learn2.open.ac.uk/mod/oucontent/view.php?id=842096section=5.3(Accessed 2/17/2017)The Open University (2016c). 6.1 Fisheries in Alanya DD103 Investigating the social world.Available at https//learn2.open.ac.uk/mod/oucontent/view.php?id=842096section=6.1(Accessed 2/17/2017)The Open University (2016d). 6.3 Ostrom Could this Approach be Scaled up to Global Problems? Video DD103 Investigating the social world.Available at https//learn2.open.ac.uk/mod/oucontent/view.php?id=842096section=6.3(Accessed 2/17/2017)

Strategic Planning Methodology

strategicalal Planning Methodology strategical abbreviation is a process which is base on three percentage points outline, prep and vigilance. We can select it into two types function smack, and tool sense. In persona of the function sense strategicalalal outline is a set of actions which diagnose both. the organisation and its purlieu, and frankincense enable build strategic plan and its increment. When it comes to the tool sense, strategic abridgment is a set of analytic thinking methods which avail examine, assess, and predict the future states of selected confederations elements and its environments in order to make it survive and develop on the foodstuff. Every theater director in the corporation moldiness think strategically. The idea of strategic thought is to create a long-term plan and slew of the comp any, by taste the home, analyzing the chances, setting the goals and rules to engage resources. Whats more, it carrys the substance abuse of var iant techniques and analytic thinking and synthesis methods which testament protagonist realise these goals and gain all the needed teaching. Strategic mentation is characterised by the constant need of changing beas and forms of the companys actions in accordance with its vision and its environments condition. T here(predicate) atomic number 18 different types of analysis in the company, however, what differs strategic analysis from the others ar two characteristicsTwo ways of perceiving way and information resources re take c aring the environment and company at the same time, and hencely confronting all results. This way has its root in the art of war, and is opposite to traditional companys analysisUse of the qualitative and quantitative methods, from the different fields scrimping, finance, sociology, psychology, statistics, and marketingStrategic caution growth had a strong influence on the strategic analysis. Since 50s and 60s in that location has been a risi ng instability and complexity of the world that surrounds the company, and thus ca utilise scientists to create methods which could service it adapt to all changes by rational and planned manners. Long-term supply was the first issue that came into existence, but it was changed into the strategic proviso term. Since 80s we can talk of the town almost the strategic management ontogenesis. New concepts were made when the old champions did non work, and at that placefore helped companies be effective on the market. While developing the strategic management idea, there was a big pressure put on the rules and techniques of formulating the dodge. After that scientists were focusing the empirical researches, and basing on them they were classifying. In the last stage, the concluding characteristics of the researches and analysis atomic number 18 as follows organisation dodging multi-dimensional treatment, strategic thinking focus, and trying to create strategic management concep t. Strategic management development helps understand the evolution of methods and strategic analysis techniques, changes in the way of its use in the companys management, and treating the moment of the strategic analysis foundation garment as a separate analysis category. in that respect is a big increase in demand for these types of practices, which help assess the current and future situation of the company and then predict the future conditions of its functioning. Its connected with the increase of the environmental complexity, and then putting into practice long-term, and then strategic planning. Strategic planning, primary(prenominal)ly in the global corporation, required more effort and thus analysis of the private- infixprise(a) environment, macro-environment, and measurement of the companys strategic position.The main factors that forced people get deep into the strategic analysis and strategic planning were tough times of the fast changes in the global economy, appli ed science development, and worse economic factors. Companies improve their strategic analysis, because they face repeating organisation crises, worse congenital development, lower market shares, or change of the target market. Whats interesting, these changes are very often influenced by the management board changes, or new scheme development and its implementation. consort to Richard Koch (1998) there are two consulting companies, which implemented the system analysis into their stemmaes and thus became achieverful in the early 50s Boston Consulting Group and McKinsey. Until the end of 70s, there were created seven civilise of the strategic thinking, which were connected with the two all- authorised(a) management figures strategic understanding ( Harvard School, Strategic Planning School, Matrix Positioning School, and duodecimal shallow ) and strategic behaviours ( Behavioural school, System School, Incrementalists school ) .First paradigm describes strategys technic al-economical dimension, normative approach, which create rational patterns of behaviours, assessments and way of acting ( Gierszewska et al, 2007). The first chemical group of schools is described below Harvard school is characterised as a exit to test the company and its agonistical position against the environment, and to search for both positive and prohibit factors connected with functioning of the company in the different markets and its strengths and weaknesses. There are three best known strategic analysis models created by this school LCAG model ( developed by E.P. Learned, H.K. Christensen, K.R. Andrews, W.D. Guth ). The idea of this model is to describe the search and research of the influence on the strategic choices of the companys strengths and weaknesses, and opportunities and threats that are connected with the environment. It has been utilize by the specialists in the field of management, until there were developed a go methods of the strategic analysisConti ngency model ( A.D. Chandler, P.R. Lawrence, J.W. Lorsch )This model permits to implement different solutions to the strategic problems. These solutions differ according to the situation of the company Industry analysis model ( M. Porter )Michael Porter suggests to assess the companys situation that concentrates on the competitive environment. Additionally, it leads to the assessment of the sector attractiveness extent, in which company would like to shut awayStrategic Planning School as a term says, it is virtually the strategic planning, however it doesnt operate any models nor strategic analysis methods which help in the strategic management. It proves, that the rationality of the actions is a good plan.Matrix post school used qualitative and quantitative analysis tools, and helps gain diminutive techniques of the companys competitive position measurement. Presents the companys product portfolio and compares the dynamics of change between one-time(prenominal) and the futu reQuantitative School methods and techniques that are strongly connected with the multi-criteria and statistics analysis. It is establish on the econometric modelling. Second paradigm is defined as exposing of the socio-political strategy dimensions and strategic analysis ( Gierszewska et al, 2007 ). Basing on this paradigm, there were created three schools of the strategic thinking. They are as followsBehavioural. It has four fathers H.A. Simon, J.G. March, R.M. Cyert, and H. Mintzberg. The idea of this school are the real processes of formulating and implementing the companys strategy, without any information background, how to make strategic decisionsSystemD. Katz, R.L Kahn and M. Crozier are the founders of this school. This case describes the role of the person in the formulating strategy process, relations between participants, and highlights the genial background of the organisation Incrementalists school C.E. Lindblom, T.J. Peters, and R.H. Waterman This school repres ents the pragmatic management approach. The only way to improve the quality of management is to follow already proved patterns implemented in the business by the successful companies. Whats more, pauperism of the participants in the management process and example of the other successful corporations plays here a very important role. It is the initiation of the further future success ( Giermaszewska, 2007 ). As we can observe, these schools provide us with the different approaches to the analysis methods expediency and strategic management. According to Giermaszewska ( 2007 ), and., schools based on the paradigm of the strategic rationality are more valuable than schools based on paradigm of the strategic behaviours. Harvard and positioning matrix schools bring more concretes and details, and thus bring and require more practical approach. The other schools focus the theoretical analysis methods and strategy creating. French scientists divided the strategic analysis models and put them on the continuum. They dismay from the sociological models ( which are general and synthetic ) to the microeconomic models ( more complex, and bring more concrete analysis tools and techniques ).Sociologic models Macro-economic modelsLCAG-ANSOFF-PORTER-McKINSEY-ADL-BCGThese classifications, schools evaluation, and strategic analysis models indicate the instruction of the analysis evolution. New classifications ignore the latest schools and methodology propositions. M.F. Gouillart has chronologically uniform best known strategic analysis schools, and thus presented nine of them. He began from the early 60s, and ended on the 90s. Strategic analysis development, according to M.F. Gouillart thrum Analysis 1965Portfolio analysis 1970Japanese influence the role of quality, production and technology 1975Shareholders benefits analysis 1980Porters Model ( Porters 5 forces ) 1985Price of perfection 1990TIme-based competition ending and strategic skillsStrategic changeStage on e presents LCAG analysis from the harvard school, portfolio analysis corresponds to the matrix positioning school, Porter model stands for the industry analysis model, and outlay of perfection stage represents the incrementalists school. However, M.F. Gouillart has enriched this group with two models more. They are as follows analysis of the shareholders benefits, and Japanese influence. He adds also three issues that occurred in the early 90s time-based competition, goal, strategic skills, and strategic changes. Analysis of the shareholders benefits type of the companys position assessment. It comes together with the financial analysis signification increase, and capital market forecasts. More all over, it focuses shares value increase as a main goal of the company, and implementation of the financial analysis into the strategy training and its developmentJapanese influence this term was created in the 70s, when Japanese economy became very successful and was admired by the we stern companies. Just-in-time inventory strategy describes well the idea of this school, which puts pressure on the precision and punctuality, one of the main key success factors. Time-based competition time advanced companies stomach a serious advantage over the competition. Main tools used in this stage are techniques which help elaborate the dynamics of the given phenomenon, processes, and organisation ( Gierszewska, 2007 ).Time is one of the main factors which influence the result of the rivalry between companies. Goal and strategic skills the main role of the organisation is to define the mission and most important goals of the company. Basis of the success lays in the ability to use the companys strategic skills. Strategic change it describes the problem of the companys and executives adaptation to the changes in the environment and in the organisation. If there is too much attention put on the changes, the goal of the strategic management is lost from the horizon. This me ans, that elaboration and implementation of the strategy development are not taken into consideration ( Gierszewska, 2007 )All these methods do not go out, while the more attractive ones are being implemented. Useless methods are rejected, useful just improved and adjusted to the ask of the company, and technical and information capabilities ( Gierszewska, 2007 ). Whats more, the older methods from 50s and 60s are still being used in the consulting companies and business schools. LCAG method, product life-cycle, and BCG matrix are invaluable help for the beginning analysts. There is one more classification of the strategic management schools that has to be mentioned. superstar of the best known polish economists, Krzysztof Oblj, has named and described them as followsTraditional ( planning ) first thing to be considered is a detailed environment, and second creation of the formalized strategy Evolutionary more behavioural and politics-focused. dodge is an evolutionary seeking f or the common pattern. It is in the middle of the case and many organisational processes ships boat for power, customer needs fulfilment, fixation of the activities routine Positional idea of this school is achieving the competitive advantage. It assumes that the strategies are characterised by the product-market concept, and put the pressure on the situation of the company in the environmental sectorResources and capabilities companys key capabilities and resources are the basis for its development strategiesModern strategic analysis is partially based on the methodology of science, such as sociology, psychology, economy, and management. This connection helps in listing the followers characteristics of the strategy analysis approach Use of the financial analysis engineering science development has simplified complex methods of the financial analysis, and therefore it is more graspable for the specialists and the managers. Strategic financial analysis is used both, in the asse ssment of the companys financial condition and the structure of the capital, and in the assessment of the competitive position of the organisation. Additionally, it helps work out sector entry and exit barriers, and became a basis for the production portfolio estimation. Whats more, strategic costs, price strategy, and strategic alliances planning are also very important issues to consider. Quality factors The idea of quality factors is to make company be awake of its soft elements, such as culture, qualifications, and peoples motivations, strategic mission, ecological management aspect, and respectable side of the strategic analyses ( Gierszewska, 2007 ). These elements relate especially to the information about the competition, which is used in making decision process.Situational approachCompany focuses the correct coming procedure, and capability to interpret the analysis results without already selected tools and imposing assessments. Analysis is a tool, used by the managers in their everyday job. Thus, strategic planning departments are liquidated, information is being decentralized, and moreover company creates special group which takes over this task. Complex characterCompany takes into account both internal and outside(a) factors from all of it subsystems and environment. In this case it explores relationship between these two factors ( Gierszewska, 2007 ).1.7.1 Strategic Planning MethodologyThe purpose of this factor is to set information needs and methods of carrying on the strategic analysis in the company. First issue that must be considered is the analysis of the environment, in which company operates, and its internal background, such as strengths and weaknesses, staff development, and its potential to develop the process of the new strategy. Knowledge about the past, presence, and capability to predict the companys future and its environment, helps in building the strategy that will adapt to the reality. A good strategic plan helps the com pany use its potential and strengths to fight the threat and not to loose any probability offered by the market. Managers can just set the strategic goal and during implementing the chosen scenario change the ideas into the concrete plans ( Gierszewska, 2007 ), but they may face some problems in the meantime, for example lack of precision in formulating the goals of the actions. Strategic planning is based on determining the sequence of decisions that have been made earlier, but have to be put into practice.Strategic management means, that the strategic decisions have to be put in the adept order, findings in the different realms must be coordinated, and on the different levels of the management ( Gierszewska, 2007 ). The following methods, presented by Grazyna Gierszewska and Maria Romanowska ( Gierszewska et al, 2007 ), are very helpful in putting the companys strategy on the right track, plan different types of operations, and management functions. Levels of the strategic man agement ( Maria Romanowska, 2007 ) ( STR 32, Gierszewska )Levels of the management Types of the strategyManagement BoardCompany development strategy department managementThe most important decisions for the company come from the management board. Portfolio operations depend on the number and type of sectors of the future activity, type of technology, and geographic scope of sales ( Gierszewska et al, 2007 ). So, according to what is said the corporate strategy should be considered as a first step to the further internal solutions. scheme of the company is also responsible for the number of the different sectors, technologies, and markets, and investment priorities as well ( Gierszewska, 2007 ).Sector strategy is divided into two sub-groups suppliers strategy, and competition strategy. Strategy making process in all these cases is limited by the goals and pecking order that was implemented in the company development process. If corporations that operate only in one sector, ther e are no two strategic planning levels. They are just treated by the management board as a one strategic plan. However, they appear only when company wants to enter a brand new sectorLast type of the strategy are the functional strategies. Their object is to evaluate the goals and ways of achieving them in the area of the financial management, marketing, personal policy, structure shaping, focusing the management procedures, and technology development ( Gierszewska, 2007). To conclude, the aim of the functional strategies is to oversee all strategic plans in the altogether organisation. 1.7.2 Scope of the strategic analysisStrategic management requires capability to mark internal and external events/phenomenons. Managers are able mainly to research internal problems of the company rather than external ( Gierszewska, 2007 ). External problems estimation needs help of the consultants, and thus managers fail to analyse the environment. Corporation which constantly observes the envir onment is nimble for the threat that may occur. Situation on the market helps the company condition the good strategy and plan the future. tells what steps should be taken in order to therefore

Impact Of Social Networking In The Airline Industry Marketing Essay

Impact Of sanitary-disposed Net puzzle push throughing In The airway Industry securities attentioning Essay neighborly Networking is lurch magnitudely rising as an innate chat tool for the travel application. The growth of hearty networking phenomena in the respiratory tract perseverance signl(a)y commenced through sites much(prenominal) as Face allow, Twitter and Myspace since it has been growing with more than professionalism with the turn up of in the buff fabrication specified well-disposed networks (e.g., Tripadvisor.com). With step forward much research on how to engage with la ecstasyt nodes, many an(prenominal) air hoses collapse receiveed apply Twitter streams. Addressing the guest concerns and complaints is not realiz subject by many respiratory tracts on mixer networking sites since they do not hurt any defined system. (Kirby, 2010).Over 2000 flight paths go more than 23,000 aircrafts, providing service to all(prenominal) everyplace 3700 airports in todays globular airway Industry. The gentlemans flight paths flew al closely 28 million schedule flight departures and over 2 million passengers were carried in 2006. Over the prehistoric 30 years, the growth of air travel has averaged 5% approximately, with annual variations due to the differences in the economic fluctuations and circumstances in different regions of the world. The total revenue for the labor expected by IATA get out be slightly $545 billion in 2010, rise of 13% from $483 billion in 2009. Every turning point of the globe has been served by the inter field airline attention which has contributed in the mental hospital of a global economy. (IATA, 2010a)As many authors dupe researched well-nigh amicable networking no such book or an article has described affable networking impact in the air duct intentness perspective. A better pinch of societal networking has been brought out in this paper. Evaluation of affable networking wi th the airline industry throughout this research get out be an essential platform since most of the companys fear from embracing fond networking.The impact of kind media on airlines and the come outions for undefeated deployment of sociable media grow been detailed in the report. The aim of this report is to acquire and help air duct companies to formulate strategic retorts for a score and divide opportunities since loving networking has creation taken into consideration as a trade tool. Sharing and gathering of exclusive study through social networking helps to reduce the advertising budgets and in return increase the revenue and relieve oneself brand loyalty.Methodology of the ResearchThe intention of this research is to prove that the Airline industry has a great potential in social networking as it formalism be ignored in 2010. As few major airlines such as JetBlue, Virgin America and British Airways generate started social networking which has changed their lick fundamentally by improving customer satisfaction, reducing costs and increasing brand loyalty.Through an inclusive books review by pursuance schoolman literature, white papers, popular media, journal articles and books, the pastime argonas which atomic number 18 associated with social networking on the Airline industry let been exploredCritical research about social networking offspring with the purpose to establish the potential impact of it on the Airline industry.To rise up out how social networking result change the Airline consumer appearance and what should be the strategic solution from the industry in response to these changes.What selling professionals should do to find their feet in the social networking argonna in term of their skills, attitudes and behaviors?In order to ensure credibility, reliability and viability of information which have been utilize for this article, comparison of that information has been done using different connatural sourc es. Accuracy of that information has been evaluated in the analytic opinion of include References (9.0) of this document.Industry AnalysisEuropean airline giants such as Cathay Pacific, Emirates, US Airways, japan Airlines, Air France-KLM and Southwest Airlines have dominated the airline industry. Over 2000 airlines operate more than 23,000 aircrafts, providing service to over 3700 airports in todays Global Airline Industry. The worlds airlines flew more or less 28 million scheduled flight departures over 2 billion passengers were carried in 2006.The Airline Industry is an intensively belligerent foodstuff which was negatively affected by the economic downturn and hike in the anele prices over the past two years. The Airline Industry saw a loss of $16 billion in 2008 followed by $9.9 billion in 2009. match to IATAs most recent financial forecast, carriers are projected to stimulate $2.5 billion in 2010. (Refer Appendix I for further details) parentage ATW macrocosm Airline Report 2010 conformation 1 Revenue/Expenses vs. Net network by Year attend 2 International Passenger and payload Growth judge 3 Number of Scheduled International Passengers Carried in 2009Impact of fond Networking in the Airline Industry kind Networking, incorporating meshwork 2.0 technologies, has been credited with the ability to expand social takes, accelerate business processes, ameliorate customer relations, cost- pictureive recruitment of high-caliber staff and the betterment of morale, motivation and barter satisfaction among staff (MessageLabs, 2007a).Is fond Media Evolution or Revolution?Since social networking is emerging and has hit its tipping point, conventional networking sites are posteriornibalizing and competing with each another(prenominal) for members (Neisser, 2008). Today, blade 2.0 is extremely changing customers expectations and behaviour. Social networks such as Facebook, Myspace, and YouTube and so forthtera will change industries than the Int ernet since they allow customers to communicate with each other, without the involvement of companies (Boynes, 2008). pulp 4 Growth of Facebook by Country and Top 10 Social Networking land sitesSource Nielsen/NetRatings Report, 2009/2010Liveliness of Social Networking in the Airline Industry wherefore?As Social networking in a corporate context will become impossible to be ignored in 2010 most of the major airlines have started using social media to re-invent and enhance their clients facing parts which they were doing on a one to one al-Qaeda. Most of the airlines have created a Facebook or Twitter fan page in regards to this as a start but no one seems same getting the potential out of it by doing active social networking. Social media reveals many transformative opportunities within the airline industry. The Industry is using social network sites to simplify customer contact and response by proactively monitoring and responding to the online chatter.How?The immediate social me dia based feedback elevates stress and tension for the flyers who have lost their luggage or missed a flight. UKs low cost carriers such as easyJet has over 45,000 followers on Twitter, where Virgin Atlantic and airBaltic have 8000 and with 8500 followers accordingly (Field, 2008). Facebook has been utilise as a platform by Ameri stinker Airlines in which they have launched Travelbag where the users are able to cook do their travel experiences and plans and also set up countdowns for early events or trips. harmonise to the airline, they are trying to differentiate and segment its passengers along with identifying their buying habits.Social Networking the Catapult for the Airline Industry directly, the entire world is evolving towards technological know-how with continuous improvements in ICTA developments in many industries. Airline/ aura industry has driven a massive growth in all over the world due to ICTA development which has catchd recently. The 12th annual SITA/Airline Business Airline IT Trends Survey, out of 129 airlines that took part, 56% expected an increase in IT spending next year, with only 10% expecting a decrease. As being recovered from the economic downturn, the survey shows how global cost pressures continue to influence IT strategies.Figure 5 ICTA Spending in Airline IndustrySource The Airline IT Trends Survey. 2010The above mentioned ICTA trends are evident resources that infrastructure and spending are available to drive the change and impact which has been created by social networkingTaneja (2008) warm ahead of the airplane has mentioned that Social Networking/Media is increasingly emerging as an essential dialogue tool for the travel industry. The growth of social networking phenomena in the Airline industry initially commenced through sites such as Facebook and Bebo since it has been growing with more professionalism with the turn up of sunrise(prenominal) industry specified social networks.Presently people are looking to co mplete their activities via their planetary phones. With the arrival of social networking it has become an essential part of their life as they get employ to mobile social networking. This is a potential impact for the Airline industry as they have already started online digital merchandise such as E-tickets, E-flyers, etc.How Consumers move the Fundamental miscellanyWith the growth of the internet many firms use online consumer reviews as securities industrying tools which are also strategically manipulated since it female genital organ help the consumers to discover quality products (Dellarocas 2003). According to a survey by an Internet commercialize placeing Research Company comScore (2007), 24% of the internet users plan of attack online reviews out front making payments for work delivered offline.Li and Bernoff (2008) argues that the consumers expect 24 hours customer service capabilities along with broad self-serve online options. Return on Influence would be ano ther suitable theory in the matter of WOM and commercializeing should be strategically carried out by influencing and identifying those who have the most influence over others (Brogan and Smith, 2008). Around 60% of the worlds population visit social networking sites such as Facebook and MySpace or blogging sites as according to the Nielsen Global Online study.Figure 6 Global Social Network TrafficSource Nielsen/NetRatings Report, 2009/2010Traditional behavior before the introduction of social mediaBefore social networking became an intermediate support for the airline passengers, they have been gathering information, planning their trips and reserving their tickets through particular airline companies or travel agents.Customer service was also not regular, identical and bonnie among all passengers. Flight availabilities, delays etc. couldnt be informed to consumers. The places such as blogs, forums and specialized websites were limited to talk about the negative and positive impa cts which have been faced by the passengers.Traditional versus Online Consumer behaviorTraditional ways of consumer behavior has changed fundamentally by social networking since it has overhauled conventional methods of communication with the use of enunciate of Mouth method to create a positive effect.WOM was considered as an option to the traditional selling tools by several books. According to (Misner, 1999) it is a least understood dodge but yet effective. Since traditional ways of communication are diminishing, marketers are elicit in understanding WOM (Nail, 2005). Presently mobile social networking has emerged to help social networking spread all over the world.According to Nielsen Mobile, the U.K. and U.S. stands ahead of many markets in mobile social networking. Social networks were accessed on phones by 1.6% of U.S. mobile subscribers and 1.7% of U.K. mobile subscribers in December 2007 January 2008 as compared to 0.6% in France, 0.2% in Germany and 0.8% in Spain.Fig ure 7 Personnel vs. Social do good in Social Networking Figure 8 Where Do Consumers Search selective informationAccording to a study done byOTX Researchon behalf ofDEI shows that consumers currently obtain information of brands, companies or products with the use of social media.According to the Nielsen online report, users from each segment visit social networking sites as part of their recipe routine activities. The emerge of social networking has exposed particular industry products and services and hence majority of the young users are the key influences and are tough in purchasing decisions rather than depending on their parents who were previously influenced with the traditional method.Figure 9 Use of Social Networking Sites by AgeSource Nielsen/NetRatings Report, 2009/2010AISAS (AIDA) presentThis model was another version of the traditional AIDA (Attention, arouse, Desire and Action) model to accurately describe consumer behavior on the internet. AISAS online consumer b ehavior model concept was develop by the Dentsu Group and it is being used since 2004 to describe online consumer behavior.Figure 10 AISAS (AIDA) ModelSource Concept developed by Dentsu GroupHow AISAS models clobber with Social NetworkingSocial networking sites have the ability to get the attention of consumers by displaying banners, information, etc as they arseholenot rely on traditional one-way methods of communication e.g. TV and print ads. Interested customers will be searching for more information to take decisions. This helps companies to spread their message for a low cost since pursualed consumers who are unable to buy the product fire still share details through social networking as this model can work in many ways than the traditional AIDA model. In terms of communication it may work in four ways as explained in the above diagram.Social networking can be used to get the initial attention towards a company by publishing photos, videos, advertisements, current affairs and through connecting people.In order to hold the attention of the consumers, overbolds articles, future promotions, travel packages, CSR factors and service information can be sent.Once the interest is built, promotions such as low cost tickets and other offers will suffer the consumers to search more information before taking decisions. This will change to create desire and make their service believable and collect reasons to buy.Social networking can do this process predominantly as it can direct the consumers to e-ticket sites or a travel agent who is available online and make a purchase.Positive or negative feedback will be shared as per individual experience. Consumers can upload photos and share experiences with one another.AttentionInterestSearchActionsShareConsumer Satisfaction effects in Social NetworkingAirline Industries can increase the customer satisfaction with the help of social networking since it can provide better services, suggest or share ideas to others. Re garding the consumer behavior, companies have abandoned more consideration to satisfaction.Figure 11 Conceptualized Model Satisfaction effect of the consumerWhy Consumers are moving towards social networking sitesThe passengers can make the surmount choice and get a clear picture of what to expect from each airline such as services and products E.g.- meals drinks offered, in-flight entertainment, crew service standards etc. and also share their ideas by uploading pictures, videos and status updates about their personnel experiences on Facebook, Twitter etc.Figure 12 Technographics ladder Consumer Behavior in Social NetworkingSource Forrester Research, 2006Internet ticket reservation has been accelerated by social media as most of the airline consumers are selling and promoting their tickets using social networks. E.g, JetBlueCheeps A Twitter stream devoted to last-minute fares sales. in that respect are uncontrollable events which cannot be prevented such as weather delays, Fed eral strikes etc. which causes a negative impression on the minds of the customers. Therefore the airline sites should be able to address such situations. E.g., The CEO of JetBlue went on Youtube and intercommunicate the concerns of the people due to Snow storm delays which occurred on the 14th February 2007 which trustworthy a positive feedback.Why consumers are involving in Social networkingWith the handiness of many touch points the consumers can make correct decisions with referrals and recommendations. Although there are some voices withholding assents with regards to social media as a merchandise tool, social media have essential applications for customer kind management programs, merchandise campaigns and existence relations activities. The following diagram describes how the Airline consumers are involving with social networking sites.Figure 13 Airline Consumer Involvement in Social NetworkingBenefits of social networking to the airline consumersShare their own ideas and plan trips with more easeTravel applications have been introduced by social networks such as TripIt and DopplrPurchase air tickets at a low rate and get further discounts from social networking sitesDisintermediation such as Travel agentsMore convenience and less time go through to make the correct decisionGet additional information about airline brandsGreater expectations of customer service and managing relationshipsFree availability of worthy informationFindings and DiscussionsSocial Media platforms improve fall into place and promote campaign messages and airline industry activities. Through the research it has been identified it will be able to capture the common mood, emotion and knowledge about airline related issues. This will enable a range of opportunities to tailor messages and engage the public in a conversation about airline promotions with transparency which would improve loyalty and trust.Creating of a Facebook, Myspace, Twitter, blog or forum under a company name is not social networking (Hernandez, June 2010). Presently most of the airlines have social networking but apart from few airlines majority are not doing active social networking which means they dont practice social networking components to build their market. quest are the few examples of how some major players actively engage in social networking.October 5th 2010 Malaysia Airlines won the Best Use Of Social Media To Drive Revenue Award at the inaugural Simpliflying-Airline Business Social Media virtuousness Awards for Airlines. (Malaysia Airlines, 2010)As per facts/statistics that have been published in the previous chapters, the consumer behavior is changing very rapidly towards social media. In order to cope with these changes airline companies require to have good strategies and specified skills from their market experts. (Please refer tribute section for further details.)Besides the famous conventional social networking sites there are airline specific websites, for ums and blogs in different languages such as Tripadvisor.com, Flying.org, Aerhub.com, genflylounge.com, and Aircollector.com, etcWith the ever shrinking global differences and the ever evolving technology highway, the airline industry has great potential to expand as the global opportunities have increase and the world is congruous a local market for all the businesses. This has coat way to increase travel opportunities, which could be targeted efficiently through the increased use of social media.Summary of the Research PaperAccording to the literature review, social media plays a significant role in the modern marketing world. Although there are some voices withholding assents with regards to social media as a marketing tool, it has essential applications for customer relationship management programs, marketing campaigns and public relations activities.As most of the Airline companies have not embraced social networking prominently there are potential opportunities which the Air line industry can snatch and make Social media as a marketing tool. With the emergence of social networking and mobile phenomenon behaviors, attitudes of customers are changing rapidly as they are looking forward for more convincing and unique customer services.To alleviate this fundamental change Airline companies must have to build a strong strategic response which can increase their company goodwill, market share and image by attracting more consumers. Special set of skills, attitudes and behaviors needs to be adapted by marketing professionals in the industry to make the best out of social networking.More research is required to sound the accurate impact of social media on consumer awareness, behavioral change, nature of opposition and B2B opportunities. Coordination of social media material and collaboration with airline companies at all levels of the establishment will become increasingly critical.RecommendationsSocial networking Building the Airline industry MarketSocial networking has been able to revolutionize many industries by helping to build market share and earn more revenue since it can be used as a marketing tool. Airline companies would greatly benefit through social networking since it has a greater visibility into the customer needs and their opinions and facilitate quick and direct moveion.In 2007 the use of social networking sibyllinely became popular among the internet users. (Nilesen, 2009). By the Airline industry, Social media marketing is taking off in a major way with sites like Facebook and Twitter E.g., Westjet have been investing in Facebook and Twitter during the past cardinal months for escapeding and enhancing communication with the consumers (Field, 2008).Strategic Response to Emerge As a Social Marketing PioneerEven though majority of airlines havent embraced social networking utterly, components of it such as online advertising is being used since longtime ago. advertizing will not be a good strategic response to em erge social networking in the airline industry. In order to reception to this fundamental macro theme the airline industry must have a proper strategy to get the potential of this which will open up new opportunities.According to a new forecast from ZenithOptimedia (www.zenithoptimedia.com), online-marketing will account for a greater proportion in the global ad sector in 2012 than it does now-17.1 per cent of overall ad spending in two years time compared with 12.7 per cent in 2009. Creating a buzz around services is the requirement for airline companies. It doesnt start from creating a Blog or creating a video, its a social media strategy that encompasses social media and pipeline marketing. There are so many social marketing tools that can be used to fulfill the potential of internet business.Figure 14 Development of Strategies(Sims and Smith, 2003)According to the above mentioned framework when developing a strategy, Airline companies should consider three factors mainly.What Basis? Every Airline company defines their basis (corporate main purpose) when it has been started such as cost leadership, differentiation, cost differentiation revolve about according to Porters generic strategy.Which Direction? As social networking has become a frontier in communication, usage of proper social media can change the direction of Airline companies. According to many authors, consumers are embracing new media experiences with a staggering speed.How? Airlines need to develop a technological pinch skill in order to drive the growth of social networking in terms of market development. This means that the marketing professionals should develop their skills and behavior in response to the emerged macro environmental theme. (Refer chapter 8.2 for further details)According to the Ansoff Matrix, by becoming a social media leader, Airline companies can develop their market since it is exceedingly penetrated.Figure 15 Ansoff Matrix for the Airline Industry(Ansoffs, 1957)T here are so many categorizations with the industry such as budget, low cost, premium, national and regional, etc. Requirements will continuously be different to each other. chase are the main factors that airlines should consider before compiling a market development strategy.What is the pitch and the strategic intentionsAnticipation of the market development green light (Awareness, sales and loyalty)Current Relationship with the passengersHow is the current behavior in terms of social mediaThe ways you are going to address them to build the marketExecution and Identifying successMost of the airline companies are using traditional digital marketing steps such as email campaigns, online banners, etc. To get the use of social media they need to use digital marketing moderately in a different way.Figure 16 Change in Online Marketing Usage/Spending in 2009(Source Ad-Olgy Research, 2008)New Cynosure for Market Building, Customer Service and GoodwillA Market development strategy should be mainly backed up by social networking components. With this strategy more results with a less marketing budget can be expected than traditional marketing procedures. more airline companies accept social media as emerging and a proper digital marketing tool.Figure 17 Social Networking Components (The Digital EcoSystem)(Infuz Whitepaper, 2010)How Social Media helps to build the Airline MarketFigure 18 Traditional Process vs. Social Networking ProcessThe following section will describe how social networking can be used as a prominent marketing tool to develop the market according to Ansoffs Market development strategyIdentification of New Segments Social networking has been used by many consumer segments which will enable to identify new customer segments other than targeting offline. (Please refer Figure 19)Take advantage Opportunities to reach an audience would be by Blogging, Twittering and maintaining Facebook fan sites which would ease the decision making process and allow th em to share ideas.Spark discussions With social media, companies can interact with their customers regarding their thoughts about the operations of the company. carry should be kept distinct Channels such as blogs, Twitter, Facebook etc. can be used for spread news, promotions etc. and enable the users to visit different outlets rather than sticking to one. bit It consists of the means which the message should be delivered such as channels, digital tools etc.Exposure Once the digital tools are selected the boldness needs to find the ways these tools need to be implemented.Content Ideas This consists of the process in which the organization ensures that the public receives the message which can be through news feeds, promotions etc.Monitoring and Controlling Gaining control and continuous monitoring of digital average activities against set KPIs.Have fun There should be fun as a team and it should help the company to position them as friendly, customer driven and a convenience Ai rline.Figure 19 Social Networking Site User Segments(Ofcom, 2008)How the Marketing Professionals Should Adapt to the ChangeAs per the above discussions, social networking is emerging rapidly without any obstacles. Social networking components can be used as digital marketing tools such as online advertising, sharing, blogging, etc to increase the market share and brand loyalty. To continue competitive sales, marketing professionals need to keep their skills up-to-date and effective (Victor et al, 2009).Todays economical condition is extremely different to that of five, ten or twenty years ago. Long complex proposals and contracts are the norm these days. According to Cheverton (2004) there are few important skill types that marketing professionals should acclimatize according to the macro environmental changes occurring rapidly. Those are Communication Skills, Social Skills, Flexibility, Openness to Diversity, Thinking Skills, Personal Development and Learning Skills.Social media marketing will be unsuccessful if it doesnt match with the corporate culture or people are resistant to change. Following are the few of new skills, attitudes and behaviors which requires to be adapted by marketing professionals.Figure 20 Social Networking Skills, Attitudes and BehaviorsMarketers should offer various competitive prices, promotions, and tactics in order to build their market.Skill/Attitude/BehaviorDescription bright researchersA deep research would provide information for making the correct decisions and overlay a solid platform for doing the required tasks in order to develop a simple tactic or a social media plan.Business shrewdnessThe requirement for the growth of the business needs to be figured out and acumen social media tactics will fulfill it.Strategic thinking and planningIf the company wants to target the right group of people, it is very essential to think beyond single tactics and instead take all the tactics which can help to achieve the objectives.Stro ng journalistic make-up and storytellingCommunication leads to success in social media which in turn creates an luck for businesses to share their stories directly with the people.Video/Image productionVideos and images should be uploaded on social networking sites to attract consumers.Innovative and CreativeInnovative ideas needs to be generated in terms of advertising, networking, connecting people, etc.Relationship developmentSocial media relationship development is all about the value the brand can demote to others rather than the benefit others can give to the brand.Experts in social media platformsExpert knowledge in social media should be adapted by marketing professionals to build their company.Self-Directed LearningIn order to stay competitive in the market, further learning about social media can be completed by supporting groups and discussions, reading blogs and visiting sales gentility web sites.Restive CuriosityPeople in every industry are very curious and restless regarding new developments and are always finding new alternative ways to accomplish tasks.Analysis of Included ReferencesSourceDescriptionCredibilityReliabilityMeritsRelevancePrinciples of MarketingThis book looks at the major decisions that marketing Managers face in their efforts to balance an organizations objectivesMany peer reviews specially from industry experts, CEOsAuthors Philip Kotler, Gary Armstrong, Veronica Wong, John A. Saunders (Written by well know masters in the marketing arena)HighMarketing in Travel and TourismThis book aims to guide and support readers through the complexities of tourism marketing in the 21st Century.The report has been reviewed and used content for other publicationsIllustration 4 EditionsButterworth-Heinemann (well known publisher)Authors Victor Middleton has been an independent management consultant, academic and author since 1984. Professor at Oxford Brookes University and the University of Central Lancashire.MediumJournal of Marketin

Is Print Media Dead?

Is scar Media Dead?The chump and the digital media hurl been in the forefront in acting as the societal mirror reflecting on what goes on in the society. Thus when it is utter that the photographic bulls eye media is utterly it becomes kinda disturbing beca wont traditionally it is known as the only tool that people support come to trust to quit deposeation in a holistic bearing. Well, in the denote world, it is fictitious that the more the products ar dis turn tailed in p matures of magazines and unfermentedspapers they atomic number 18 bound to be change more because of the already built brand. Moreover, in the digital media one has to be fitted to access a com stupefyer or any digital gad hire to be able to make use of the online outlets for what is current.In nubble when it is said that the cross media is troublight-emitting diode dying, it translates to the huge ground that the internet has cover in terms of developing content in serious a short while l eading to the panic within the media fraternity (Stanley 2010, p.20). Consequently, the photographic chump media starts to lose its fervent readers to online sites for smarts and advertisement and liquid feels left in the dark because there is no clear path that they stinkpot use to curtail the transit. The accredited deal with the media industry lies in the much silver spent in the infallible advertisement. It is quite cost effective to drop dead money on the internet than in the write media which required huge sums of money just to buy a small advertising space such as those fol scurvy upn for obituaries.The travel rapidly with which the digital media spreads its intelligence activity has set a new record for the uninitiated. The use of the internet in particular the blogs has delineate the manner in which the intelligence operation is spread. It selects not be official, only when the effect that is felt by the home run media is horrible. With the advent of mobile phones, hug discs, television, e-books, e-commerce and the internet, there has been a competitive news dissemination process that the print media tries to catch up with by tauts of and through rebranding processes that promise a new experience. directly it greennessplace to find art galleries on the digital media virtuallything the print media suffernot pass off considering its static nature. This means that the issues of globalization are catching up fast than wildfire as people from world glosss get to sell selective information that was divergently im feasible with the print media. In theories that define the use of both print and digital media, we are to know what popular finale re lay outs, mass culture and convergence culture all which influence the trends within the media fraternity.The Evolution of the Print and Digital MediaPrint media has come a long way with send-off newspapers and magazines being published as early as in the sixteenth century. Oth er useful print media re witnesss that found their way into the market include the production of tabloids, flyers, novels, brochures, newsletters, and broadsheets which catapulted the spread of news to an new(prenominal) train, at least sooner contention arose ( warren 2008, p. 24). As the historic periods went by, it came a time when the electronic world revolutionarised the manner in which the print media re registered its news and advertisements. This meant that there was incr quenchd speed in the manner of printing and delivery of magazines and newspapers to the closures of access so that the man kindhearted sess update themselves on the rupture news.Their main role was to inform the semipublic, educate the public and offer close to recreation as was prove through the production of comic books, cartoon sections, fashion sections and jokes columns. Owing to these roles that the print media frivoled to the gen periodl public, there was a bit of a tortuousness in stati ng that the print media is dead. This could simply mean that the all trusted point in time of information delivery at least to the general public was not good enough in its game. This meant that there was no use for the inseparable memos that are quite effective in delivering the message or take down brochures that are effective in creating the right rapport with clients if advertisement is to be efficient.The problem ofcourse started to arise because there were individuals who could not read due to beginning literacy levels leading to the smooth al close to unnoticed spiritual rebirth to the electronic media such as televisions and radio which could present information in audio recording and visuals. This showed the beauty and listener that the message was understood when there is audio and visual delegation of the news (Carrie 2009, p.11). However, the cheap manner of producing print media proved that there was press release to be sustainability in the industry of news an d advertisement production consequently limiting the rapid spread of the electronic media. This meant that the co initiation of the print media and the electronic media triggered the flak from the digital media which could present the best of both the print and electronic media.The conditional relation of the print media is in the category where it is able to provide jobs to the masses who are implemented as journalists in different capacities of the print production. As the arguing becomes rife from the digital it becomes apparent that the resource persons who facilitate production and distribution will become obsolete leading to lose of jobs and livelihood. When it became clear that analogue data finish be converted to digital data through the sampling process that uses binary codes, a number of organizations that had specialized in print media rushed to take advantage of the emerging technologies. The problem with this transition is that they were digging their own grave through a technological encroachment that meant what they could reproduce and sell was easily accessed through the simple click of a button. In the early 1990s, the digital transition was catching up in a slowed pace albeit the slow adoption that was attributed to database building.When finally the World large-minded Web was created the internet became a culturally strong tool in dissemination of information due to not only easy use of the information but rather the wide area that was seemingly covered. The clash of the mass production and availability of cellular phones, computers and game consoles ensures that people got their information and entertainment from the comfort of their homes leading to the evolution of the computer age. The point that this kind of information delivery becomes a killer for the print media is that it commode be cheaper to maintain and has the ability to sometime deliver information almost slack of charge to the readers. Moreover, it is now possibl e to produce the same information in the print media in the internet portals which represents a typical digital outlet.Theories Emanating from the Media companyCertain trends are created through the media that include fashion, technology and politics which has led to a revolution in the usage of the media as a tool. This crapper not be achieved without establishing the theories that do led to the revolution as we see it. To vex a smooth transition from the traditional to the new era of media large(p)ism, we take for to give a globalization trends the deserved place in creating a flawless transition. The intention should be in letting everyone present their own news in the manner they deem comfortable for them with forgetting that all(prenominal) and every channel should compliment the other (Al 2002, p.33).For instance we cannot interpret that the digital media can replace the print wholly but can be a good supplementing channel which to others could seem credible to fetch the inevitable information. Moreover, the traditional sense of the print media can very much employ the latest technologies such as cellular phones and the internet in in accumulation information which is accordingly presented in print. When news is collected and a discharge overhaul of the truth is made, then the slow pace of the print media can be better than the quick always changing or change digital media information. Below we look at the conceptualized theories that can be quite helpful in analysing media transitions.When terms such as popular culture are mentioned what comes to mind first is the mass media in connection with the entertainment scene. The truth is that the media has a lot to do with what culture becomes hence this could in the main mean that this is culture taken up by the masses to intimate those common attributes. Almost all the time the media both in print and digital has a huge role to play in popularising something. In the modern era when something is produced and commercialised through the media to become like a culture, then the media finds its position in the world of mountain trends. The youth who patch the trends are considered as seeking an alternative to what they perceive as unquestionable culture. The popularisation of this societal transition was more profoundly supported by the electronic media which quickly made way for the pure digital media of the new millennium. Through the use of the strong media tools it is possible to pick popular elements in some segment of information and use it in hypnotising the general public in a make believe trance. Thus this has been seen as a foundation through which the effects of globalization its terms of sharing information became evident thus setting a common underrating of some situations.Secondly we look at the mass culture theory which depict elements that belonged to the early up to middle 1900s. The evolution of the mass media brought about the existence of a common ave nue through which people could congregate and share some cultural practices (Robert 2010, p.5). The cultural practices that were mostly shared included symphony and art in all its forms leading to a huge interest to certain trends that were set by the emerging media tool. In essence the liberal outlook of things is brought into the fore a fact that calls for the cultural practices that emanate from the day-by-day interactions made by people. Therefore, this presents the programme on which popular culture can be mounted to bring out the influence of the media in its confused stages of development. As the media takes up its role as the sole provider of information, it collects as much information as possible to the extent that the quantity surpasses the feature leading to mass consumption of the attributes that are assumed to be correct.lastly we look at the theory of convergence culture which creates the outpost at which the traditional and new media interact. For convergence t o take place there has to be a high level of interaction within the media fraternity. For example it is classical to understand the proper mixing of the professions that get interconnected in media. Professions such as journalism, marketing, communications, advertising and pubic relations have their special constituent towards the continuity of the mass media activities. The significance of all this is that there is at some point a well meaning clash of various cultures which have to be harnessed to bring out the positivity of the mass media divisions. Therefore, through convergence of cultures a new consensus is achieved giving the new trends that the advancing technologies present a harmonious outlook.The Digital Media and its Revolutionary TrendsThe digital media has come of age in terms of the trend setting innovations which bring about the acerb edge above the rest. The internet, the World Wide Web and cellular phones have galvanised the attacking echelons which have contes ted the place of the print media (Henry 2009, p.102). However, the main stratum is told through the efficiency with which the information is delivered. For example, there can be a curtailment in the print media through occurrences like war and innate(p) disasters that can leave the only point of information reference point being the digital media. This means that even the most illiterate person can be able to use a cellular phone to overhaul as it shall be by word of mouth.At the same time, it is possible to use equipments such as computers through the internet to convey messages or news after all other physical infrastructures have been hurt off. Moreover, journalists who have been sent to hardship areas such as war tear countries cannot convey their messages softwoods down if the digital media was not made possible. Although, information compiled from the digital media can be used to string stories for the print media, it should be give tongue to here that the deserved ac colades should be forwarded to the right function performed.The competition or replacement of the print media by the digital media notwithstanding, it should be stated that the contribution of the cellular phones has been outstanding when it comes to news gathering and delivery. Other than providing an audio platform for which delivery of information can be performed, it also provides the internet finishing which can be launched from any place. Thus for practical applications such as those for audio delivery, it is quite normal to find those who cannot be able to read good delivering or receiving information as they can understand their dialect ( Warren 2008, p.32). On platforms such as the internet, there are trend setting social network innovations that have made globalization a reality.The social networks that include twitter and Facebook have completely revolutionised the informal avenues of delivering news. With the number of computers and cellular phones increase so does th e quick spread of information at just the click of a button within the network. Another advantageous point of view that the digital media has brought about is the delivery of information in real time. For instance, it is possible to suffrage in your countrys general alternative while still in another country and the cast vote be reflected immediately on tallying screens in the home country. This has contributed tremendously in the tallying process which takes a short while for the whole country.The Print Media and its plausible ContributionsThe truth as it stands is that the print media cannot be declared dead disregarding of the popularity that the digital media has come with. The culture that has completely stuck on instigates that people have to buy magazines and newspapers in order to have the feel of the content on a daily basis regardless of the day of print. Moreover, there are print media outlets that have created a brand of their own to the extent that the potency levels with readers are high. Here we mention the significance of fashion magazines which have had tremendous competition from the bloggers who develop the same content on fashion and then pass it on the World Wide Web. This has greatly shifted the balance from the common magazines which have a long process of acquiring them or a long issue day compared to the blogs which make updates every minute something new comes out.Even though the blogging has taken root in the domain where magazines had their transcend day, there is not going to be easy fodder for the digital world as the very magazines start a new rebranding outline (John 2010, p.89). This includes the use of fashion forecasters who shall give the magazines an edge over what the world should take care in the near future with regard to fashion. Thus with such moves that are pointers to hyper-innovation, the magazine world will have the deserved chance for a breather in terms of having its popularity back.When we look at the news papers and tabloids which ofcourse compete for the gathering of news with tabloids inclined to gossip, it is common to find a more redoubted experience. Unlike the fashion magazines which can be used for more than once, the newspapers have to serve their purpose and then get discarded. But with the same application as is done in the magazines, innovation is the key word. Most newspapers have turned to the use of research articles that act as a source of information other than the news to give the reader the much require peripheral information.The reason we say that the print media cannot be dead is with reference to the brands or household names that the newspapers created long before the advent of the digital media. On the other hand, it can be said that the print media brought the need to have high literacy levels which enabled some people to read for themselves the information in the newspapers. In reality the culture of reading as we know it was started by the print media hen ce catapulting the interest among readers to a whole new level (Carrie 2009, p.96). Therefore, in comparison with the digital media, the print media has a relatively low cost of acquisition which keeps people glued to it. The hustle that goes with acquiring a computer and the internet server requires a lot of money which most people cannot be able to raise of even sustain an already installed computer. Thus for this reason one can find the convenience of the print media more appealing than the digital media.The advent of new technology oddly that points to the digital media has not hampered the originality of the print media which is considered inferior to the accolades that the digital media has. Nevertheless, the print media frame a pivotal segment in the mass media because of the variety it is able to present. If we say that the newspapers, novels, magazines, brochures and flyers belong to the print media, then we can possibly say that the information carried therein is quite v aried. The information can be conveniently divided into the educative or classified as entertainment (Al 2002, p.62). When books or novels are referred to in the print media, it becomes apparent on the role that they play in the continuity of knowledge that concerns history, culture, politics and scientific discourse among other topical issues that are worthy mentioning in books.When it comes to magazines, their contribution in various subjects in society is quite vast. Their significance is seen through the commitment that they put into making credible research topics r each(prenominal) the reader in a well compiled booklet. In the process of offering this, the magazines provide the latest in life trends and common problems that act as feature stories which the digital media cannot be able to compile and distribute accordingly. Furthermore, newspapers have their irreplaceable place in the mass media because they are well placed to provide the harmony required in news delivery. They make regular updates in terms of advertisements, news delivery and informative articles that are guaranteed over certain periods of the day.Through the surveys that have been done over the years since the inception of the print media it has been established that a wide audience is reached through its segments of message delivery. Although the oral culture of bedcover information got eliminated in the process, it has been found that those who can read are many in terms of wide area coverage compared to the spread of the digital media. Moreover, the print media has the tendency to finance itself when it comes to news preparation and delivery. By this we mean that the advertisements that are used can be effectively used to reach a wide area through the print media which shall translate to a cost effective scheme when payment starts.Whenever there is something new that is in the offing, it is easy to popularize it using the print media than digital because it has the upper hand of cov ering a wide area and in a memorable newspaper pullout (Stanley 2010, p.41). Therefore, we cannot say that the digital media has killed the print media pass but rather there is a mutual coexistence that makes them seem as complimenting the other. It can be seen that the digital media can distribute its news on a daily basis and free of charge but still we should be informed that the role is supplementary due to the longevity in the print media that can act as a reference points.Another gene to consider while looking at the sustainability of the print media is that large team that is winding in the delivery of information. For instance, whereas the digital media world may not require a specialised team to collect and edit the news accurately, the same cannot be said for the print media. The vastness of the team that is involved in creating a magazine or newspaper makes the print media not to be just willed away.The entire team comprises of the management, publisher, editor, editori al team, designer, reporter, the advertising faculty and the circulation staff who act as an ensemble that can lead to the winner of the print media (John 2010, p.55). This kind of arrangement encourages creativity especially within the advertising segment due to the large team that is availed to offer ideas. When production of the different segments of the print media have been finalised, it is time to compete for the same market that can read and the choice can be greatly influenced by the age of the reader. Otherwise, if any competition is evidenced it is considered to be part of the growth that is required in the industry which calls for a higher level of cooperation.ConclusionThe media both classified as print or digital has its role to play in gathering and delivery of information. But delving into the statement that the print media is dead can be untrue to the extent where we study the role of each of the presented types of media. Though traditionally the print media had a huge chunk from where to get its users, it is no longer the case hence leading to the doubts as to its survival. The ease with which information on the digital systems can be accessed has led to the revolutionised speeds that breaking news can be delivered within a networked sharing platform. However, the genuineness of the print media should remain intact in the face of such competition which should be seen as supplementary rather than acting as a replacement. At least the print media should have its place reserved because it still reaches to the masses even to the most obscure of places.

The Successful Business Of Google Inc Commerce Essay

The Successful Business Of Google Inc Commerce EssayThe aim of this memorise is to explore the features of an organisation that contribute towards advantageful proficient unveilings. We would use a case study approach to analyze the same, with company in concentrate on being Google Inc.We would use the book Managing k same a shotledgeability by Joe Tidd and John Bessant as the base for our literature review. This would be supported by the following articles The mutation Value Chain, The Ambidextrous disposal, Innovation Management in context Environment, Organization and Performance, Managing Innovative RD teams and lead and Innovation Relations between Leadership, Individual Characteristics and the execute of RD teams.The study showcases that thither is no single best social organisation that facilitates cosmos. An agreement needs to set up the most suit sufficient fit between the mental synthesis and the operating contingencies. There argon numerous things that affect the innovative deed of the company and concept should non be looked at in closing off but as a whole cross-functional system.Literature Review and trip StudyTidd and Bessant (2009) state that an innovative governing needs to align itself with the impertinent environs and build internal social organizations, processes and culture that alter innovation to flourish. Innovation dep finishs on a range of factors and the innovation process should change itself with changes in the commerce environment. There is no single best measure of innovation and some indicators formulate well for certain sectors while others dont. In short, procreation innovation is a lot more complex than it sounds.A determined of components, which appear to be linked with success, father been drawn out by Tidd and Bessant (2009). Let us examine these components in greater detail.Sh ard Vision, Leadership and the Will to innovateLeadership is perhaps the most critical factor in any successful c ompany. Without this, an organization bednot move fore. Not everybody is able to recognize opportunities. Leaders need to pass an alert mind to grime them and entertain the risk taking ability, ability to motivate others in the team and the will to innovate and exploit the opportunity. Stoker et al (2001) state that the intent of leaders keeps changing according to different stages of innovation. The leadership style to a fault keeps evolving, from being visionary at the initial stage and take the prime(prenominal) step, to involving employees and then to facilitating self-managing teams. A leader has to exercise a style that fits not all the team, but dealwise the environmental characteristics and individual characteristics of the team members. It has been observe that empowering community is directly related to the quality of work and it as well enhances the dedication of employees.Top focussings commitment and sh ard sense of purpose among the employees/team member s are key features of a successful organization.The founders of Google Inc., Larry rascal and Sergey Brin, had the mission to organize the universe of discourses cultivation and make it univers bothy accessible and useful (Corporate Information). It is this mission of theirs that motivated them and provided them with the braveness to take it forward. They struggled quite a lot to get initial patronage to get the venture started (Casey, 2007). It was due to their will and leadership qualities that Google took off and now pass ons value to the whole world.Appropriate StructureIf an organization wants to thrive, its structures and processes need to enable technological change. As innovation does not relegate in isolation, cool flow of information and cross-functional co-operation are required to foster innovation. An innovation is handle a fragile flower that needs right kind of environment to flourish. It does not take long for a voltagely great innovation to simply die out .Tidd (2001) argues that complexity and uncertainty of the environment affects the degree, type, organization and way of innovation the greater the fit between these factors, the greater the performance of the innovation. organizational structures are influenced by the nature of task to be performed and by the business environment. Increasingly, innovation is comely a bodily-wide task, involving not only RD but also production, marketing, administration and other international entities such as customers, suppliers, consultants, etc.It is consequential to note that not al agencys do loose models/structures for innovation work and appropriate balance needs to be sought between the flexibleness and rigidity of the structure. Thamhain (2003) states that the key challenge is not so much of generating estimates in the RD department, but effective transfer of technology from the inception to the market. Here, an appropriate structure is required to enable the transfer. unrivalled of the toughest challenges faced by companies is to balance legitimate/present opportunities with future ones (OReilly Tushman, 2004). low such circumstances, it is suggested that an organization has separate structure/process/culture for in the buff innovations as the existing system baron cause hindrances for the impudently ones.According to the book, The Google Story, the initial employees of the company were actually friends who examine at the Stanford University with Larry Page Sergey Brin. Due to this, the environment in Google was always quotidian and had little hierarchies. Even though the environment has always been casual, the co-founders still create a tight grip on many of the companys decisions (Smith, 2007). It is this casual air travel and horizontal management style that forms an appropriate structure to foster innovation. discern IndividualsAs there are conglomerate uncertainties and complexities involved with innovations, it is helpful to have a key ind ividual (or a group) who is passionate and enthusiastic some the innovation and is willing to take it through the organizational system. These key individuals may be product champions or the leaders of the organization. Through their passion, they motivate others in the organization to look at their innovative idea / invention that could add value not only to the customers but also the organization. They have to have the ability to solve problems that could arise during the evolution / commercialization process and should be committed towards it. Even if they do not have detailed technological familiarity, they need to strongly believe in the potential of the innovation.Key individuals would also need to face other issues such as procuring re beginnings, convincing quizzical or hostile critics elsewhere in the organization. Their faith in the potential should be so strong that they manage to everyplace scrape all the barriers.Larry Page Sergey Brin have been the leaders and key individuals behind Google. They had a complete concord of the technology. They faced a lot of challenges initially, especially with regards to funding, but they stuck to what they believed in and overcame all the barriers. Now, they encourage their employees to embrace the role of key individuals with regards to their respective innovative idea (Weldie, 2009) and take their ideas forward.High Employee familiarity in InnovationJust like the saying, The more the merrier, the more the number of people involved in an innovation, the chances are that feedback and suggestions provided by them would help to improve the offering. Innovation is no longer contain to specialists in RD, Marketing or IT departments. It should be realized that creative skills and problem-solving abilities are possessed by almost everybody in the organization. Although each individual may only be able to make limited, incremental innovations, the sum of these efforts understructure have far-reaching dazes . Continuous improvements, involving large number of motivated individuals and taken over an extended period of time, has the potential to signifi plundertly impact the strategic development of the organization. This could also turn out to be an inimitable source of private-enterprise(a) advantage over the long term.Effective Team WorkThe only factor that equals Leadership of the organization to achieve successful innovation is an effective team work. It is the team that is at the amount of the innovation activity. If innovation is earlier about combining different perspectives in solving problems, then teams/groups have more to offer than individuals in terms of fluency of idea propagation and in flexibility of solutions developed. Cross-functional teams can bring together different knowledge sets required to take the innovation forward. They also represent a assembly where deep rooted differences in perspectives can be resolved. As an innovation is not confined to a single de partment, a cross-functional team can help other departments make different perspectives and help facilitate shine flow of information and integration between different departments. With this in mind, teams are increasingly being seen as a mechanism for bridging boundaries within an organization and in solving inter-organizational issues.In parade to develop an effective, high-performance team, tasks and objectives moldiness be clearly defined, there should be effective team leadership, there should be a good balance of team roles and it should be matched to the individuals behavioural style and a continuous interaction with other factors that could affect the innovation.It should be noted that such teams rarely happen by chance. They result from a careful selection which is aligned with the needs and requirements of the innovative idea in hand. An effective team is a critical determinant of the projects success and the corporate management should be responsible for putting toget her a capable, cross-functional team. As the team members may come from varied backgrounds, a mechanism should be in place to resolve conflicts as soon as achievable so that the speed of the innovation process is not hindered.Soon after(prenominal) launching, the founders realized that if they want to grow, they need to bring in professional management. In 2001, they appointed Eric Schmidt as the CEO to bring to table the capabilities that they lacked (Casey, 2007). It was then they stared their process of building professional/experienced team with defined tasks.Creative climate and CultureCreativity of individuals needs to be fostered through the right environment. An organization needs to set up conditions within which innovative ideas can flourish. Under this, a firm needs to put its people at the heart of innovation. The structures and processes should be designed around people and not the other way round. In the knowledge economy, it is about managing the minds of individua ls by providing them with right infrastructure desirable for growth.Culture is a complex concept which mainly refers to shared values, beliefs and agree norms which shape behavior of individuals. Changing the culture of an organization is one of the toughest things for the management as it is path dependent. But by bringing about alterations in the structure or processes, an organization can gradually move towards the desire culture. However, this is a time consuming process and requires acceptance by the employees. One way to facilitate this is by rewarding / incentivizing employees based on the new structure.In an organization with a supportive and innovative culture, individuals with bright ideas can progress them with support and encouragement from the system. Management needs to ask itself whether the on-line(prenominal) structure is supporting or acting as a burial vault to innovation. Also, do employees have all the resources and freedom required to innovate. Innovation i s inherently uncertain and will often involve failures as well as successes. The management needs to understand this and build a culture where people take risks and failures are accepted as an opportunity for acquirement and hike up development. The regretfulgest barrier lies in the minds of individuals, who are reluctant to innovate due to risks associated with failures. Failures should not be looked down upon and the senior management and leaders should clearly eliminate this to the organization. Managerial leadership style, both at RD and senior management, has significant impact on creativity (Thamhain, 2003).Googles organizational culture provides enough space for employees to learn, test and grow. The casual and friendly environment promotes interaction between employees which results in raise knowledge base and thus promotes innovation. In each of its offices, Google has a big cafeteria with large tables and maximum seating capacity. Managers have observed that people l ike to talk while having their food. People from different product teams sit together for meals and interact with each other. As people from different product teams come together, the interactions become quite diverse. This mechanism of knowledge sharing leads to collective learning and thus benefits the organization as a whole (Merrill, 2007).Looking in and Outwards for Innovative IdeasAn organization can no longer skilful look inwards for innovative ideas. As innovation is increasing becoming an open process, collaboration with external parties is gaining importance. This includes associations with suppliers, customers, consultants, etc. the top management needs to ensure that the organization does not face the Not invented here syndrome (Hansen and Birkinshaw, 2007) and looks forward to exploit relevant innovative ideas thrown at them by the external partners.The leaders also needs to provide opportunities for its employees to be part of various conferences, seminars, networkin g events, etc and tap into the knowledge base of those alfresco the organization. Knowledge accumulation is a slow and steady process and idea generation does not happen overnight. Keeping this in mind, the management should not pressurize it employees to come up with innovative ideas just after being a part of a single workshop, for example. Hansen and Birkinshaw (2007) argue that companies need to assess whether they are sourcing enough ideas from outside the company or even outside the industry. Many firms do this poorly, resulting in missed opportunities.Clear Understanding of User Needs and User InvolvementThe base of every business is its understanding of user needs. It is this point that determines the success or failure of the organization. Any user-focused innovation needs to know but what the user wants, how he wants it and how much is he willing to pay for it, among others. Having the end point in mind, the organization can draft its strategies accordingly, in order to meet the customers needs.Increasingly, companies are involving customers in the innovations process. This sort of arrangement is helping organizations develop more personalized offerings while creating a sense of loyalty in the minds of the customers. Involving the users also provides great insights into how the user uses the product or service, how is their experience like, what they promise at the end of the usage journey, etc. All these insights can shine up areas that require further innovation and this can be a source of competitive advantage for the company.Understanding of the Macro and Micro EnvironmentAn organization needs to analyze it Macro environment in order to understand the changes that are taking place in the Political environment, Economic situation, Society, proficient arena, Ecological and Legal frameworks. This would provide a sense of direction where the world is heading, and based on this, potential areas of innovation can be explored. synopsis of the Micr o environment is useful in providing a clear ikon of the industry the company operates in. It would showcases the position of competitors in the market, bargaining power of customers and suppliers, threats from substitutes and threats from new entrants into the market. Based on this, an organization can draft it differentiation scheme and establish a foot hold in the market.Conclusion