Analysis of Context and Critical Evaluation Essay

Analysis of Context and Critical Evaluation - Essay Example This makes it easy for an organization like Ford to adapt easily to meet evolving needs. The eternal environment of an organization contains social and economic conditions which play a crucial role in the process of decision making by the executive. These factors must be incorporated with the requirements of the stakeholders which are often inconsistent. Execution of decision in top organizations requires a broad approach and skills. Strategic management cannot be separated from organizational success. Introduction Strategic management refers to decisions and actions that aim at formulation and execution of initiatives in order to achieve the objectives of the corporation. Henry Ford founded the company in 1903 in Michigan, USA. The company pioneered in the use of the moving assembly line. The company had a market share of 50 percent. In 1956, the company went public. This was greatly influenced by the company’s growth coupled with a significant presence in the automotive mark et around the world. However, the company has not been doing well for the last one decade. This has been contributed by a product portfolio that is below par. Allan Mullaly became the chief executive in the year 2006. The company was functioning as detached entities in the United States, Australia, Europe and other regions. The move impacted the company negatively because of the huge operational expenses incurred. Reports indicate that the cost of developing a single vehicle from the scratch was approximately $800 (Ford 2012). The new top executive was duty bound to come up with strategies that were cost effective and profitable to the running of the organization. The new organizational leadership was compelled to come with strategies that would make the company globally competitive. Mullaly altered the structure of Ford’s management structure. This included transforming the company’s operations from regional ineffective company branches to an integrated globally compe titive organization. The company came up with the one-ford initiative whose aim was to reduce time spent in duplication and focus in high quality products instead. The new organizational strategy intended to make the Ford company products high quality and appealing to the global market. Ford’s business strategy focused on how to make a broad and sustainable strategy in order to remain competitive (Hoffman 2013). The rise in fuel prices and green technologies had called for a change of strategy in the motor vehicle industry. Ford Company decided to invest in development of affordable vehicles in the face of an organizational crisis that amounted to debt (Hoffman 2013). The company decided to break from using few important products to multiple affordable and accessible products. Ford was able to establish that most of the loyal customers across the world wanted safety, reliable brands and after sales service for customers (Hoffman 2013). Ford Company differentiated itself from other companies by investing in R & D. features like my-ford-touch and sync were only affordable in expensive vehicles. Ford Company has made products affordable to common man. The strategy has made a difference as the company has increased motor vehicle sales. The Ford used the One-ford strategy to simplify the brand structure. This caused the Ford strategic team to have to sell Land Rover, and Jaguar at most of the Mazda ownership. This reinvented the original Ford brand which had a high reputation when it came to safety,

Corporate Social Responsibility: History, Benefits and Types

Corporate Social Responsibility: History, Benefits and Types Corporate Social Responsibilityis know by many other names. These include corporate responsibility, corporate ethics, coporate accountability and corporate citizenship just to name a few. A key point to note is that Corporate Social Responsibility or CSR has no universal definition; however, it generally refers to clear business practices with respect to ethical values, compliance with Legal requirements and respect for economic values. CSR goes beyond making profits, companies and stakeholders are responsible for their impact on people and planet. Increasingly, stake holders should expect that companies should be more responsible both socially and environmentally in their conduct of their business. The World Business Council for Sustainable Development has described CSR as the business contribution to sustainable economic development. A Brief History of Corporate Social Responsibility The history of CSR dates back many years and in one instance can even be traced back 5000 years in Ancient Mesopotamia around 1700 BC, King Hammurabi introduced a code in which builders, innkeepers orfarmers were put to death if their negligence caused the deaths of others, or major inconvenience to local citizens. In Ancient Rome senators grumbled about the failure of businesses to contribute sufficient taxes to fund their military campaigns, while in 1622 disgruntled shareholders in the Dutch East India Company started issuing pamphlets complaining about management secrecy and self enrichment. With industrialisation, the impacts of business on society and the environment assumed an entirely new dimension. The corporate paternalists of the late nineteenth and early twentieth centuries used some of their wealth to support philanthropic ventures. By the 1920s discussions about the social responsibilities of business had evolved into what we can recognise as the beginnings of the moder n CSR movement. The phrase Corporate Social Responsibility was coined in 1953 with the publication of Bowens Social Responsibility of Businessmen (Corporate watch report, 2006). The evolution of CSR is as old as trade and business for any of corporation. Industrialization and impact of businesses on the society led to a complete new vision. By 80s and 90s CSR was taken into discussion, the first company to implement CSR was Shell in 1998. (Corporate watch report, 2006) With well informed and educated general people it has become a threat to the corporate and CSR is the solution to it. In 1990 CSR was standard in the industry with companies like Price Waterhouse Copper and KPMG. CSR evolved beyond code of conduct and reporting, eventually it started taking initiative in NGOs, multi stake holder, ethical trading. (Corporate watch report, 2006). Implementing Corporate Social Responsibility There are no generic CSR methods, each method is based on the individual firms needs and circumstances. Each method will vary in its attentiveness of CSR issues and how much work needs to be done with respect to the approach. CSR can be utilized integrated into a firms core decision making, management processes, strategy and activities, be it over a period of time or systematically. Most companies already possess policies with respect to the handling customers, community, employees and the environment. These can be perfect starting points for firm-wide CSR approaches. What follows below is a framework for the development and implementation of a CSR approach that builds on current existing policies as well as experience and knowledge of other fields, such as economic and environmental. The broad framework follows a familiar plan, do, check and improve model. This framework has been designed with the intention to be flexible so that firms would be able to mold and adapt it as appropriate for their organization. Implementation Framework When? (Conceptual phase) What? (Task delineation) How? (Checkpoints on the journey) Plan arrow 1.Conduct a CSR assessment Assemble a CSR leadership team Develop a working definition of CSR Review corporate documents, processes and activities Identify and engage key stakeholders 2. Develop a CSR strategy Build support with senior managment and employees Research what others are doing prepare a matrix of proposed CSR actions Develop ideas for proceeding and the business case for them Decide on direction, approach and focus areas Do arrow 3. Develop CSR commitments Do a scan of CSR commitments Hold discussions with major stakeholders Create a working group to develop the commitments Prepare a preliminary draft Consult with affected stakeholders 4. Implement CSR commitments Develop an integrated CSR decision-making structure Prepare and implement a CSR business plan Set measurable targets and identify performance measures Engage employees and others to whom CSR commitments apply Design and conduct CSR training Establish mechanisms for addressing problematic behaviour Create internal and external communications plans Check arrow 5. Verify and report on progress Measure and verify performance Engage stakeholders Report on performance Improve arrow 6. Evaluate and improve Evaluate performance Identify opportunities for imporvement Engage stakeholders return arrowCross-check: One cycle completed Return to plan and start the next cycle Benefits of corporate social responsibility CSR offers many benefits both externally and internally to companies. Externally, the benefits are greatly positive amongst the people for its company and their peers. It can create short term employment opportunities by taking various community projects like construction or maintenance of local parks and sporting complexes, etc. Working with keeping in view the interests of local community bring a wide range of business benefits. Businesses also have an impact on the environment. Plantation and cultivation activities taken up by many companies are highly respected programs, as well as recycling used products. This also acts as a step towards minimizing wastes. Internally, the benefit are mostly but not only felt by its employees, the attraction and retention of qualified and skilled employees as well as employee loyalty, increased productivity, quality, sales and financial improvement for all. Most importantly, it also serves as a diversion from the routine workplace practices and gives a feeling of purpose and meaning to the entire work force. Apart from this, companies also benefit from CSR in areas such as business sustainability; competitive advantage; easier compliance with regulatory requirement. CSR and BRANDS Brands are basically the identification in which a companys product is identified by the consumer. The sales and revenue of the company are widely dependent on the brand they give to their product. Here are some CSR traits that positively / negatively affect the brand Positive Marketing/ Brand Building Times of India (kalingatimes.com) Brand insurance NIKE (Corporate Social Responsibility, 2003) Crisis management- Pepsi (wikipedia.org) CSR and Globalization As companies expend through globalization, many challenges have waited for them from Government regulations to the varying standards of what is deemed to be labor exploitation, these challenges have the potential to cost companies millions of dollars. Some companies are of the view that these policies are merely a cost hindrance, while other companies use CSR tactics as a strategy to gain public support for the presence in the global market. CSR and Human resources A CSR program can be an aid to hire and retain staff particularly within the competitive graduate student market. Potential recruits often inquire about a firms CSR policy, and having a comprehensive policy can give an advantage. CSR can also add value in the perception of a company among its staff, particularly when staff can become involved through fundraising activities or community volunteering. Also CSR can be driven by employees personal values, in addition to the more obvious economic and governmental drivers. CSR and Risk Management Managing risk is a central part of many corporate strategies. No matter how hard a company tried their reputations which took decades to build up can be questioned in a matter of minutes through incidents such as corruption or environmental accidents. These can also draw unwanted attention from courts, governments and media. Building and promoting great CSR policies can sometimes offset the risks. CSR and Government Policies Government politics have tremendously shaped the regulation of businesses in several ways. First, government business policies insist that organizations operations shall bring no harm to society or the environment. Businesses shall be friendly to society and vice versa, to ensure that businesses follow these policies, the government enacts laws to monitor both the conduct and operations of a business. In addition, to these laws violators also face punishment if they are not followed. Secondly, governments provide businesses with various grants and incentives provided that they comply with those government regulations and policies. Studies show that a very high percentage of businesses have reported more benefits than expected from complying with the government policies. Finally, governments regulate businesses in the interest of protecting stakeholders and shareholders. With the absence of proper business regulation societies can be misled, manipulated and exploited, therefore the government needs to be responsible and regulate businesses in order to provide a level playing field where all business have the opportunity to operate and expand. Governmental policies have been designed and put in place to assist not only consumers both organizations as well, by protecting consumers from unfair business practices as well as protecting the organizations from public misconduct and interference. Criticisms and concerns Critics of CSR debates a number of concerns, these include CSRs relationship to the fundamental nature of business and questionable motives for engaging in CSR, including concerns about insincerity and hypocrisy. Conclusion I believe that the above problems are not inherent flaws in CSR, but rather that they result from both a disingenuous commitment to CSR on the part of many business managers as well as an uninformed public opinion on many CSR issues. It is important to expose and confront CSR abuses not so that the CSR movement could be turned back, but rather to protect the kind of CSR that genuinely promotes social advancement. Nobody would be opposed to business practices that benefit both individual firms and society at large. In an ideal world, competent managers would always conduct business in a matter that translates productive relationships into real value for society. After all, the economy is not a self-serving machine: it is a purposeful system for organizing everybodys interests in such a way that people can engage in mutually beneficial exchange. I agree with the notion espoused by CSR advocates that profits should not be the sole motivator in business decisions. Although the profit mot ive is the driving force for both firms and the macro economy, there is a point at which it degenerates into greed: breeding microeconomic ethical dilemmas that, when can collectively threaten the economys health and ought to be curbed by a proper concept of social responsibility. CSR becomes less of an outside pressure and more of a genuine business principle. It is the responsibility of an informed public to be able to separate reasonable CSR from harmful CSR. All too often, people support counter-productive initiatives out of romanticized views of social justice, environmentalism, or nationalism, not realizing that ideas are not as appealing in the real market as they may appear in the public imagination. It seems to me that a root cause of CSR abuses is a conflict of interests between firms three main stakeholders: shareholders, employees, and management. For individual managers, the best course of action may be to engage in as much CSR as possible. Managers who receive positive press for their leadership initiatives become eminent in their fields, and therefore more valuable. For this reason, managers have an intense focus on expanding companies and investing in high profile projects that earn them the publics attention, and may make uninformed decisions in the process. This differs substantially from the interests of shareholders. A shareholder is uninterested with a managers popularity but very interested with the return that the  manager is able to deliver on the shareholders investment. Unless a corporation can  justify CSR practices in very clear terms, i.e. revenue and cost, shareholders will be  unhappy with the result. Likewise, workers in a company benefit greatly from responsible CSR policies. Companies that deal honestly will build trust within their workforce. Managers that earn obscene salaries while simultaneously throwing millions of dollars into charitable causes and announcing layoff plans can only blame themselves when workers beco me more dissatisfied and less productive, or when the public places less faith in their product (consider the slow death of the American auto industry). Like shareholders, employees are unwilling to support frivolous practices that jeopardize the companys financial strength: they are most concerned about their long-term employment security, an interest that managers should take into account as well. Influence of Price on Decision Making: Research Influence of Price on Decision Making: Research Nowadays, many businesses have launched in the market. But its not easy to make appreciate for every people. Maybe, that is a reason of the customer decision. While, the student is part of purchasing power that the trader directed. Consumer behaviour is the study of how individuals make decision to spend their available resources on consumption-related item(SchiffmanKanuk, 1997). In University the product is important for the student. While, the product not cover all student because maybe the teenager choose the product follow the life style that their love. So, the product have more effected to decision purchasing with the student in teen ages. Specially, the foreign brand is trust brand that have support purchasing power by the customer. In Global setting, every product have evaluated and developed all time for customer need that is heart of competition in a commercial sale. The most people have selected the product follow several factor. So, the companies will be improving your products. Otherwise, the customers that have purchasing power can be change to other royalty brand. The better they understand the factors underlying consumer behaviour (Assael, 1998). The better able they are developing effective marketing strategies to meet consumer needs. In National setting, the several factor to make a purchase. Its reason to consider for trader to select product that sales and support. The several factor have effect to making a purchase (Scheinberg, 1992) such as marketing strategies, sex, ages, occupation, prices and also the product name have a reputation values. The last factor is important to study that why the brand name have effected to customer decision. Locally, the product names have a reputation values is the trust brand. The product that sale for student in business bachelor administration for Rajamangala University of Technology Thanyaburi will be in trends to response their customer in this age. This study concern with the behaviour in making a purchase that Brand is what consumers purchase and product is what consumers use; this shows that branding is very important. The brand name is the trust brands that have effected to make a purchase. Present, student cant said that dont love their brand name and specially, the foreign brand is part factor to making a purchase. Even though, the trust brand has copyright infringement but the student will buy for owner that products. May be, the lower prices and closer style of real band are instead in using. Follow the plaza, student would like to view every week and someone choose to owner. While, the real trust band name from foreign in the Leading department stores have student only high purchasing power that only few percentage. All of behaviour from student in business bachelor administration for Rajamangala University of Technology Thanyaburi is thing to study for know the reason why their choosing. Consumers make many buying decisions every day (Kotler Armstrong, 2001). Most large companys research consumer buying decisions in great detail to answer question about what consumers buy where they but, how and how much they buy, when they buy, and why they buy. 1.2 Statement of the Problem Foreign brands are expensive for students. Quality of product imitates. The current materialism of society makes students feel like they have to buy foreign brand products or imitations of them. The personality of the customers. 1.3 Research Objective The objective of the study is to meet the answers of the problem; Foreign brands are expensive for students. Quality of product imitates. The current materialism of society makes students feel like they have to buy foreign brand products or imitations of them. The personality of the customers. The answer to the problem is as follow: To find out how the price of foreign brand products and imitations of them influence decision making. To find out how the quality of foreign brand products and imitations of them influence decision making. To find out how the social value of foreign brand products and imitations of them influence decision making. To find out the supplement personality of foreign brand products and imitations of them influence decision making. . 1.4 Scope of research The scope of this research is the population studying at Rajamangala University of Technology Thanyaburi. This includes males and females aged 18-25 years old of 11 different faculties totalling approximately 24,053 people. (http://www.oreg.rmutt.ac.th/SKOStdCourse/2552/report%203-2.asp) The sample in this study was students from the faculty of Business Administration, University of Technology Rajamangala Thanyaburi. This faculty has seven branches including both men and women aged 19-25 years who make a purchases by themselves; a total of 6,299 people. The variables studied: Independent variables are students gender, age, department of study and the year of study. Dependent variable is the attitude toward buying foreign brand products (price, quality, brand names and value.) 1.5 Limitations of the Research We acquired this information by sending questionnaires to students at Rajamangala University of Technology Thunyaburi; this includes both men and women. One of the limitations of this study is, if a sample of students does not send the questionnaire back to the researcher, or if they send it back incomplete. Another limitation is the amount of time we have is to send the survey to the students, receive the information and calculate the received information. 1.6 Significance of the study This research is a study of factors that influence behaviour of students (of business administration at Rajamangala University of Technology Thanyaburi) when buying product imitated foreign brands. The findings of this study will help those interested in doing business foreign or interested in operating foreign brands companies by determining marketing strategies to suit the needs of target customers. 1.7 Definition of Terms Foreign brands are expensive for students. The students will receive the money from their parent. So, they dont have money to buy foreign brands product. Quality of product imitates. Continually, imitates products quality have very good quality compare to foreign brand products, so there is a choice for students who has limited their money and want to use same brand but good quality. The current materialism of society makes students feel like they have to buy foreign brand products or imitations of them. Following the student social in university, the students want to be in trend of fashion for concept from their friends. The personality of the customers. Some students, they dont have confident in themselves. So, the students will use the product from foreign brands to help them have more confident. CHAPTER II Review of related literature and studies 2.1 Definition and Features of the Independent Variable In this chapter, discusses the title of research. Because this research is relevant to consumers: students of business administration at Rajamangala University of Technology Thanyaburi. So, need to know the meaning of consumer behaviour on buying for study factors affecting the decision of the students. Consumer behaviour is the study of how individuals make decision to spend their available resources on consumption-related item. It includes the study of what they buy, why they buy it, when they buy it, where they buy it, how often they buy it, and how often they use it (Schiffman Kanuk, 1997). The aim of marketing is to meet and satisfy target customers needs and want. The field of consumer behaviour studies how consumer select, buy, use, and dispose of products, services, ideas, or experiences to satisfy needs and desires (Kotler, 2003). Marketers have come to realize that their effectiveness in meeting consumer needs directly influences their profitability. The better they understand the factors underlying consumer behaviour. The better able they are developing effective marketing strategies to meet consumer needs (Assael, 1998). Consumers make many buying decisions every day. Most large companys research consumer buying decisions in great detail to answer question about what consumers buy where they but, how and how much they buy, when they buy, and why they buy (KotlerArmstrong, 2001). Possibly the most challenging concept in marketing deals with understanding why buyers do what they do. But such knowledge is critical for marketers since having a strong understanding of buyer behaviour will on what is important to the consumer and also suggest the important influences on consumer decision-making. Using this information, marketers can create marketing programs that they believe will be of interest to consumers (Kanhasiri, 2006) In addition to this, also need to know meaning of the word imitate foreign brands. Imitate foreign brands means the product copy as products of a foreign brand. Popular products make copy are bags, watches, clothes, and shoes. The imitate foreign brands products that we know and see often in everywhere are Chanel, Louis Vuitton, Nike, Christian Dior, Gucci and etc (Kanhasiri, 2006 ). 2.2 Theories Related to the Independent Variable (s) 2.2.1 Foreign brands are expensive for students. Prices, product differentiation and quality measurement: a comparison between hedonic and matched model methods studied by Gian Maria Tomat (2005); related contributions to Pakes, Berry and Levinsohn (1993) and Nevo (2003) consider the problem of making exact welfare comparisons on the basis of the estimated parameters of consumer preferences in a discrete choice model. This approach has been used in these works to study problems such as the effect on consumer welfare of changes in environmental regulation or of the introduction of a new brand of a product. Specifying the consumers choice problem in the space of product characteristics, simplifies the analysis in comparison with analogous problems studied on the grounds of traditional demand theory, as is done for example in works by Hausman. However, the results of the prices, product differentiation and quality measurement: a comparison between hedonic and matched model methods studies show that the approach can at most generate up per and lower bounds to the true price indexes and the empirical evidence shows that these bounds are usually quite wide. 2.2.2 Quality of product imitates. From Quantity-Discount Dependent Consumer Preferences and Competitive Non-linear Pricing studied by Z. Jane Gu and Sha Yang (2009); they investigated the quantity-discount effect, a type of transaction utility consumers derived from the unit price difference between a small and a large package size of the same product in a non-linear pricing environment. Consumers may perceive quantity discounts as gains for purchasing larger package sizes with lower unit prices, or as losses for purchasing smaller package sizes with higher unit prices. In addition, consumers may differ in their tendencies to perceive quantity discounts as gains or losses. 2.2.3 The current materialism of society makes students feel like they have to buy foreign brand products or imitations of them. Post-Materialism as a Cultural Factor Influencing Entrepreneurial Activity across Nations studied by Lorraine M. Uhlaner, Roy Thurik and Jan Hutjes(2002); the underlying premise of this research study is that the material gains that are central or crucial to entrepreneurial activity are of less value to post-materialist individuals. The Research by McGrath, MacMillan and Scheinberg (1992) shows that individual entrepreneurs from a wide variety of countries are more likely to have materialistic values; such as viewing success as making lots of money, than their non-entrepreneur counterparts. However, they do not test for country differences. Blais and Toulouse (1998) made such comparisons and conclude that entrepreneurs across countries tend to have similar motivations. In another studied of individual entrepreneurs Robichaud, McGraw and Roger (2001) find a positive correlation between extrinsic motivation of the entrepreneur and sales performance whereas they find negative relationsh ips between the independent variables, intrinsic motivation and autonomy and independence on the one hand and the dependent variable, sales performance, on the other. These findings are interesting because at the micro-level they correspond to the thesis that entrepreneurs, especially successful ones, are more materialistic than their counterparts. Lacking comparable research at the macro level of analysis, we can only draw on these studies for our hypotheses. In particular, assuming that trends from the micro level can be aggregated to the societal level, we predict that the relationship between post-materialism and entrepreneurship is also negative, i.e., the less materialistic the culture, the fewer people choose to become self-employed. The central hypothesis of the present paper then reads: The more post-materialistic the culture, the lower the overall level of entrepreneurship. 2.2.4 The personality of the customers. Consumer Assessment of Social Product Features: An Empirical Investigation Using Choice Experiments by Pat Auger, Timothy M. Devinney and Jordan J. Louviere studied the growing importance of this topic can be seen in the current movement toward social accountability audits (Economist 1999), and the increasing amounts of money that corporations spend to fix systems under pressure from increasingly sophisticated interest groups. Their research is relevant to this issue because it shows that although consumers do not understand the ethical dimensions of the products they purchase, their purchases can be influenced by these dimensions if properly presented. From a managerial perspective, more work needs to be done on educating consumers to the hidden ethical nature of the products they purchase. Corporations also need to understand which customers care about ethical dimensions and what dimensions they care about. However, our results also suggest that consumers wont sacrifice product per formance for ethical considerations in spite of what activists might hope. 2.3 Critical Analysis/Discussion of the Theories Related to the Independent Variable Motivation Theory 2.3.1 Maslows Hierarchy of Needs; (Abraham Maslow,1908-1970) Abraham Maslow was a psychologist. He developed a theory called the Hierarchy of Needs. This hierarchy referred to the various needs that he believed characterised humans. He identified five main human needs. These are: Physiological needs These include the most basic needs that are vital to survival, such as the need water, air, food and sleep. Maslow believed that these needs are the most basic and instinctive needs in the hierarchy because all needs become secondary until these physiological needs are met. Security Needs These include needs for safety and security. Security needs are important for survival, but they are not as demanding as the physiological needs. Examples of security needs include a desire for steady employment, health insurance, safe neighborhoods and shelter from the environment. Social Needs These include needs for belonging, love and affection. Maslow considered these needs to be less basic than physiological and security needs. Relationships such as friendships, romantic attachments and families help fulfill this need for companionship and acceptance, as involvement in social, community or religious groups. Esteem Needs After the first three needs have been satisfied, esteem needs becomes increasingly important. These include the need for things that reflect on self-esteem, personal worth, social recognition and accomplishment. Self-actualizing Needs This is the highest level of Maslows hierarchy of needs.  Self-actualizing  people are self-aware, concerned with personal growth, less concerned with the opinions of others and interested fulfilling their potential. Figure 1 Maslows Hierarchy of Needs Maslow suggested that the first need dominates a persons behavior until it is satisfied, and then the second, and so on. A learner would not be interested in learning, need 5, until needs 3 or 4; belonging and being esteemed by others had been satisfied. Nor indeed, would they be interested in learning until they were warm, and replete. A light, airy, warm, comfortable safe learning environment, adequate comfort breaks and realistic timings can help to facilitate these conditions. An awareness of, and proactive approach to, group dynamics will also help to satisfy (or at least not de-satisfy) some of the affiliation and esteem needs. (Abraham Maslow, 1908-1970) (Source:http://www.envisionsoftware.com/articles/Maslows_Needs_Hierarchy.html) 2.3.2 Clayton Alderfers ERG Theory; (Clayton Alderfer, 1969) An attempt to simplify Maslows needs theory was put forward by psychologist Clayton Alderfer with his ERG theory. Both theories see needs as the motivating force behind behaviour. People are motivated to do things by different needs, of which Alderfer identified three: Existence Needs Include all material and physiological desires (e.g., food, water, air, clothing, safety, physical love and affection) Maslows first two levels. Relatedness Needs Encompass social and external esteem; relationships with significant others like family, friends, co-workers and employers. This also means to be recognized and feel secure as part of a group or family. Maslows third and fourth levels. Growth Needs Internal esteem and self actualization; these impel a person to make creative or productive effects on himself and the environment (e.g., to progress toward ones ideal self). Maslows fourth and fifth levels. This includes desires to be creative and productive, and to complete meaningful tasks. Figure 2 Clayton Alderfers ERG Theory Alderfer argued that it was possible to move in either direction. This means that, if growth needs become difficult or impossible to meet, frustration regression occurs, causing individuals to concentrate on fulfilling their relatedness and their existence needs. Unsatisfied needs, therefore, become less rather than more important. Maslow proposed the opposite. In this study the researchers used two theories are Maslows Theory (Maslows hierarchy of needs) and Clayton Alderfers ERG Theory are main formulated in this study (Clayton Alderfer, 1969). (Source: http://www.envisionsoftware.com/articles/ERG_Theory.html) 2.4 Discussion of the Dependent Variable The price of products have effected to making decision. In addition, Arthur Rafael (2002) found When the new product launches and better quality also this product will be compared to increase price. While, Aart Jaume (2000) said that When the products have high demand so the products prices that will be increase on demand also Ray (2002) found Business will find the ways to avoid the problem to improve the popular product and harder to imitate for decrease their risk as a result Amine, Taimur Joseph (2007) supported Vendors will be developing price products to get the popularity may be the consumers using pirated goods in fact Gian (2006) said that The price is appropriate adjustments so the product will be popular Increasing then Xavier Giround (2008) found The quality prices will be changed follow the quality products in the past Laszlo Miklos (2004) stated The import product price will be rise follow depend on the technology and competitive environment of the buyer. On the other hand, Joanna (2006) found The analysis of price convergence to the consumer market is examined on aggregate and disaggregates levels although Peter, Judith Anil (2002) stated The decision purchas e of consumer will depend on price by the lower price also the purchasing power that so rise. Finally, Emek (2005) supported The quantity the price of a low-cost have more effected to consumer decision. The quality of product imitates have effected to making decision when, Wong Zhou (2005) found perceived value has a greater effect on purchase intention for conspicuous foreign products While, Heflin, Shaw Wild found The liquidity of equity markets depends on quality information and Faruq (2006) found RD activities and FDI inflows are important determinants of quality then Sharma found The brand must be relevant to a latent need of the consumer but Jin Leslie (2002) found Providing people with better information causes people to change their purchase decisions and causes à ¯Ã‚ ¬Ã‚ rms to modify their behaviour while Orosel Zauner (2003) found goods quality is unobservable to buyers, a continuum of quality levels is technologically feasible, and minimum quality is supplied under competitive conditions although Koppius Heck(2002) found Electronic auctions have rapidly incr eased in popularity, but the consequences of switching to an electronic auction are unclear Moreover Borin Lamieri (2008) found empirical studies over clear evidence on the increasing importance of intra-industry trade in presence of vertically deferential products however Matsa (2009) found Product quality is an important element of competition in a wide range of markets, including the supermarket industry in addition Bertini, Wathieu Iyengar (2010) found parsimony and simplicity in consumption is necessarily advantageous across all categories of business The current materialism of society makes students feel like they have to buy foreign brand products or imitations of them have effected to making decision then, Mehrotra (1919) found collect various technical information about managing your tax affairs and mergers and acquisitions, tax law and the special rights or intellectual property rights and the idea of the American company. Each other based on principles of law and political economy of the country. while Closius (1995) said that the termination of the movement of certain groups of people in America with a change to the political policy of national unification and the creation of justice to occur and create social awareness to the public more than ever Moreover Kyvelidis (2001) stated that Measure currents in the Black Socialist materialism may be obtained from the GDP of each country, which evaluates the value per head was increased from the current popularity with the increasing materialism. After that Anderson (2001) has found that satisfaction in materialism is one of the psychological problems that make people in society are trying to do everything to get it occupied, such as car, house and fashion. And Boven (2005) study that most people want to live well and happily in every person and found that materialism, such as the car home fashion is important to create happiness for them very good. However, Uhlaner, Thurik, Hutjes (2002) supports that found that entrepreneurs across countries tend to find a way to trade against the competition in trade and create stability for themselves as to dominate the growing market and found that many of the cultural factors and materialism of the people affected. In addition Fuchs said that the theories of cultural objects are important factors correlated with the values of people in society. Therefore Sarkar(1996) found the role of men is to purchase goods and Research indicates that attitudes in the possession of materialism rather than value of the object with the purchase of such products used in life Which led to satisfaction and success of many people. As a result of Kroh (2008) discovered that the role of the purchases is likely to change the price level and economic security but Boven, Campbell Gilovich(2005) the study found that current flow in the materialism in society more selfish, selfish private interests over public. The personality of the customers have effected to making decision when, Devinney Louviere (1986) study that of interpersonal psychology, ethics and personality have been shown correlated with the number of complex social problems. While Rajagopol (1986) found that of the model to measure the performance of brands and attitudes, including personalities, image, reputation and trust. But Balaji a Raghavan (1970) discovered that Cultures and different image for the product of themes related to technology and brand reputation. Therefore Pandey (1968) found that Experiment designed to examine the role and relevance of the personality of the person. Found that the advertisement or communication program plays an important role in the perception of brand personality although Bartholomew Horowitz (1994) study that Changes in market and competition has reduced the cost of marketing and new product introductions, including the risk of failure of the product. Thus Sharma (1997) supports that w e also found that consumer ratings of management performance in the context of consumer retail low but Zhenzhong Ma (1970) found that Aims to create understanding about the local brand can survive. In fact Mckenzie Woodruff (1964) study that present the basic concepts for exploring the relationship between personality and patterns of conflict behavior and business negotiations. Then Koufopoulos (1999) stated that Product innovation. Personality and affect a very important opportunity to entrepreneurs to innovate. Finally, Kanhasiri (1990) found that Products and measure the relationship between the feature comparison in the future. Quantitative methods of analysis and means of collecting data, frequency analysis of research and planning data in line charts and bar graphs and suggestions for future research will take effect to competitors with better customer loyalty. 2.5 Relationship of the Independent Variable (s) to the Dependent Variable Arthur Rafael (2002) found When the new product launches and better quality also this product will be compared to increase price. Although many business office products are brand name copyright infringement very seriously and prohibit all research and product development at the time out to study consumer satisfaction, with the updates of new products out of the market demand. But still have other business products illegally copied out widely. Consumers like the products that they are cheaper and look like the real. While, Aart Jaume (2000) said that When the products have high demand so the products prices that will be increase on demand Cheap is increasing on demand. Many consumers decided to buy imitation products backpack instead of the genuine product is expensive. Also Ray (2002) found Business will find the ways to avoid the problem to improve the popular product and harder to imitate for decrease their risk The quality of product imitates have effected to making decision when, Wong Zhou (2005) found perceived value has a greater effect on purchase intention for conspicuous foreign products and Faruq (2006) found RD activities and FDI inflows are important determinants of quality The Company that manufacture high quality products to the market are disclosed information to consumers less known because those are important to the company and the liquidity of the market. The company has disclosed only basic information only. Countries are exporters of quality differences. This is the result of differences in factors such as endowment, technology, research and development (RD). While, Heflin, Shaw Wild found The liquidity of equity markets depends on quality information The current materialism of society makes students feel like they have to buy foreign brand products or imitations of them have effected to making decision then, Anderson (2001) has found that satisfaction in materialism is one of the psychological problems that make people in society are trying to do everything to get it occupied, such as car, house and fashion. And Boven (2005) study that most people want to live well and happily in every person and found that materialism, such as the car home fashion is important to create happiness for them very good. The materialism is satisfied from the hearts of individual values resulting psychological advantage over the other now, value of the crop cover materialism has resulted in increasing attitude of buying commercial end epicurean and often not satisfied with the simple life and different people require a comfortable life. Although materialism has a negative effect, but many people will want to own it like a big house, luxury cars, expen sive clothes , beautiful furniture and other. Because human needs are infinite, they seek what they want to come and have a genuine product if the price is too high, making them purchases commercial grade copy. Although it is copied, it can substitute the same name that looks realistic and cheaper it is one reason consumers purchase decision without regard to copyright infringement laws. The personality of the customers have effected to making decision when Devinney Louviere (1986) study that of interpersonal psychology, ethics and personality have been shown correlated with the number of complex social problems. While Rajagopol(1986) found that of the model to measure the performance of brands and attitudes, including personalities, image, reputation and trust. But Balaji a Raghavan (1970) discovered that Cultures and different image for the product of themes related to technology and brand reputation. Therefore Pandey (1968) found that Experiment designed to examine the role and relevance of the personality of the person. Found that the advertisement or communication program plays an important role in the perception of brand personality The cultural and social including kick similar picture with Bush. This is sometimes the product to the personality of our products or we like it because it is often too expensive brand, so many people chose to be turned to imitate instead of the actual product. 2.6 Previous Studies There are 4 standards section; Introduction background The brand name is the trust brand that have effected to making a purchase from student at RMUTT. Now, the student say love brand name. According to Schiffman Kanuk (1997) Consumer behaviour is the study of how individuals make decision to spend and choose this things. When, notice the students that show their use accessories brand name. This is normal happen now but its not fair in their suppliers that think and make it for sale. While, the real trust band name from overseas in the Leading department stores have student only high purchasing power that only few percentage. Behaviour from student in business bachelor administration for Rajamangala University of Technology Thanyaburi is thing to study for know the reason why their choosing. Methods The methods to study behavior of student at RMUTT such as notice, questionnaires, and bring the theory that related to concerning study with case study. Result Now days, Counterfeiting is so much. In a view of supplier, the so called product piracy can be only roughly outlined. The Experts and everyone, who well know that product piracy: trade mark rights in a commercial as trust global brands have effect to Counterfeiting and Criminal way. Such as the actions of someone that who only thing for make a benefit to yourself as The aim of marketing is to meet and satisfy target customers needs (Kotler, 2003). While, who would like to be owner of the trust brands product. That all said that

A Brief look at the Physiological Basis and Neurological Effect of Brain Tumors :: Biology Essays Research Papers

A Brief look at the Physiological Basis and Neurological Effect of Brain Tumors I've always been interested in medicine, and more specifically, in surgery, but I never really knew which realm of surgery appealed to me the most. So I set out on a quest to find where my future in medicine may lay. I spent time with an orthopedic surgeon and loved the carpentry-like style of the trade, and I spent a week with a general surgeon and watched him fix hernias and cut out moles. But the surgery that struck me the hardest, and the one that I vowed to stay the furthest from, was neurosurgery. The idea of carefully manipulating someone's nervous system in order to give them back the most basic of physical abilities, that of control over one's body, was almost too much to handle. Of all the systems of the body, the nervous system seems to be the most delicate of all. Yet only now, in this class, do I realize the incredible balancing that goes on between so many different components to make the nervous system functional. Furthermore, any alteration to that balance can cause a host of serious problems that could render the nervous system as a whole, or even part of it, completely useless. Tumors are an excellent example of how the balance can be upset, and are one of the most well known of the afflictions to the brain. There are several different kinds of tumors that effect the brain, each is based on what kind or kinds of cells it developed from in the brain. The four main kinds of cells that are effected are astrocytes, oligodendrocytes, ependymal cells, and microglial. Tumors in each of these cell types are referred to as astrocytomas, oligodendrogliomas, microgliomas or primary nervous system lymphoma, and ependymomas. Although tumors can arise from these nervous system cells and others, approximately 65% of brain tumors are astrocytomas. The actual cause of any given tumor is difficult if not impossible to determine, but tumors are generally caused by one of or a combination of three things: radiation, chemicals, and viral agents. Tumors can also be caused during mistakes in DNA replication, but this accounts for a smaller incidence of brain tumors. These genetic alterations can often be harmless, resulting in the effected cell dying and being disposed of by the organism. But on occasion, the effected gene is one that is responsible for having a cell lie dormant , oncogenes, or one that is in place to regulate growth, tumor suppresser genes.

Queuing Theory

Waiting Line Models ? ? ? ? ? ? ? ? The Structure of a Waiting Line System Queuing Systems Queuing System Input Characteristics Queuing System Operating Characteristics Analytical Formulas Single-Channel Waiting Line Model with Poisson Arrivals and Exponential Service Times Multiple-Channel Waiting Line Model with Poisson Arrivals and Exponential Service Times Economic Analysis of Waiting Lines Slide 1 Structure of a Waiting Line System ? ? Queuing theory is the study of waiting lines. Four characteristics of a queuing system are: †¢the manner in which customers arrive †¢the time required for service the priority determining the order of service †¢the number and configuration of servers in the system. Slide 2 Structure of a Waiting Line System ? ? Distribution of Arrivals †¢Generally, the arrival of customers into the system is a random event. †¢Frequently the arrival pattern is modeled as a Poisson process. Distribution of Service Times †¢Service time i s also usually a random variable. †¢A distribution commonly used to describe service time is the exponential distribution. Slide 3 Structure of a Waiting Line System ? Queue Discipline †¢Most common queue discipline is first come, first served (FCFS). An elevator is an example of last come, first served (LCFS) queue discipline. †¢Other disciplines assign priorities to the waiting units and then serve the unit with the highest priority first. Slide 4 Structure of a Waiting Line System ? Single Service Channel Customer arrives ? Waiting line Multiple Service Channels System S1 Customer leaves System S1 Customer arrives Waiting line S2 Customer leaves S3 Slide 5 Examples of Internal Service Systems That Are Queueing Systems Type of System Customers Server(s) Secretarial services Employees Secretary Copying services Employees Copy machine Computer programming servicesEmployees Programmer Mainframe computer Employees Computer First-aid center Employees Nurse Faxing service s Employees Fax machine Materials-handling system Loads Materials-handling unit Maintenance system Machines Repair crew Inspection station Items Inspector Production system Jobs Machine Semiautomatic machines Machines Operator Tool crib Machine Clerk Slide 6 Examples of Transportation Service Systems That Are Queueing Systems Type of System Customers Server(s) Highway tollbooth Cars Cashier Truck loading dock Trucks Loading crew Port unloading area Ships Unloading crew Airplanes waiting to take off Airplanes RunwayAirplanes waiting to land Airplanes Runway Airline service People Airplane Taxicab service People Taxicab Elevator service People Elevator Fire department Fires Fire truck Parking lot Cars Parking space Ambulance service People Ambulance Slide 7 Queuing Systems ? ? ? ? A three part code of the form A/B/k is used to describe various queuing systems. A identifies the arrival distribution, B the service (departure) distribution and k the number of channels for the system. Sym bols used for the arrival and service processes are: M – Markov distributions (Poisson/exponential), D – Deterministic (constant) and G – General istribution (with a known mean and variance). For example, M/M/k refers to a system in which arrivals occur according to a Poisson distribution, service times follow an exponential distribution and there are k servers working at identical service rates. Slide 8 Queuing System Input Characteristics = 1/? =  µ= 1/ µ = = the average arrival rate the average time between arrivals the average service rate for each server the average service time the standard deviation of the service time Slide 9 Queuing System Operating Characteristics P0 = Pn = Pw = Lq = probability the service facility is idle robability of n units in the system probability an arriving unit must wait for service average number of units in the queue awaiting service L = average number of units in the system Wq = average time a unit spends in the queu e awaiting service W = average time a unit spends in the system Slide 10 Analytical Formulas ? ? For nearly all queuing systems, there is a relationship between the average time a unit spends in the system or queue and the average number of units in the system or queue. These relationships, known as Little's flow equations are: L = ? W and Lq = ? Wq Slide 11 Analytical Formulas ? ?When the queue discipline is FCFS, analytical formulas have been derived for several different queuing models including the following: †¢M/M/1 †¢M/M/k †¢M/G/1 †¢M/G/k with blocked customers cleared †¢M/M/1 with a finite calling population Analytical formulas are not available for all possible queuing systems. In this event, insights may be gained through a simulation of the system. Slide 12 M/M/1 Queuing System ? ? ? ? ? ? Single channel Poisson arrival-rate distribution Exponential service-time distribution Unlimited maximum queue length Infinite calling population Examples: †¢Single-window theatre ticket sales booth Single-scanner airport security station Slide 13 Notation for Single-Server Queueing Models ? ? = Mean arrival rate for customers = Expected number of arrivals per unit time 1/? = expected interarrival time ? m = Mean service rate (for a continuously busy server) = Expected number of service completions per unit time 1/m = expected service time ? r = the utilization factor = the average fraction of time that a server is busy serving customers = /? m Slide 14 ? Assumptions 1. Interarrival times have an exponential distribution with a mean of 1/?. 2. Service times have an exponential distribution with a ean of 1/m. 3. The queueing system has one server. †¢ The expected number of customers in the system is L = r? /? (1 –? r) = /? (m? – ? )? †¢ The expected waiting time in the system is W = (1 / ? )L = 1 / (m – ? ) †¢ The expected waiting time in the queue is Wq = W – 1/m = ? / [m(m – ? )] â⠂¬ ¢ The expected number of customers in the queue is Lq = ? Wq = ? 2 / [m(m – ? )] = r2 / (1 – r) Slide 15 ? The probability of having exactly n customers in the system is Pn = (1 – r)rn Thus, P0 = 1 – r P1 = (1 – r)r P2 = (1 – r)r2 : : ? The probability that the waiting time in the system exceeds t is P(W ; t) = e–m(1–r)t for t ? ? The probability that the waiting time in the queue exceeds t is P(Wq ; t) = re–m(1–r)t for t ? 0 Slide 16 Problem: ? Consider the situation where the mean arrival rate is one customer every 4 minutes and the mean service time is 2. 5 minutes. Calculate the following †¢Average no. of customer in the system †¢Average queue length †¢Average time a customer spends in the system †¢Average time a customer waits before being served. Slide 17 Problem: ? ? ? Arrivals at a telephone booth are considered to be Poisson, with an average time of 10 minutes between one arrival an d the next. The length of a phone call is ssumed to be exponentially distributed with mean 3 minutes. What is the probability that a person arriving at the booth will have to wait? The telephone department will install a second booth when convinced that an arrival would expect to have to wait at least three minutes for the phone. By how much must the flow of arrivals be increased in order to justify a second booth? Slide 18 Example: SJJT, Inc. (A) ? M/M/1 Queuing System Joe Ferris is a stock trader on the floor of the New York Stock Exchange for the firm of Smith, Jones, Johnson, and Thomas, Inc. Stock transactions arrive at a mean rate of 20 per hour.Each order received by Joe requires an average of two minutes to process. Orders arrive at a mean rate of 20 per hour or one order every 3 minutes. Therefore, in a 15 minute interval the average number of orders arriving will be ? = 15/3 = 5. Slide 19 Example: SJJT, Inc. (A) ? Arrival Rate Distribution Question What is the probability that no orders are received within a 15-minute period? Answer P (x = 0) = (50e -5)/0! = e -5 = .0067 Slide 20 Example: SJJT, Inc. (A) ? Arrival Rate Distribution Question What is the probability that exactly 3 orders are received within a 15-minute period? Answer P (x = 3) = (53e -5)/3! 125(. 0067)/6 = . 1396 Slide 21 Example: SJJT, Inc. (A) ? Arrival Rate Distribution Question What is the probability that more than 6 orders arrive within a 15-minute period? Answer P (x ; 6) = 1 – P (x = 0) – P (x = 1) – P (x = 2) – P (x = 3) – P (x = 4) – P (x = 5) – P (x = 6) = 1 – . 762 = . 238 Slide 22 Example: SJJT, Inc. (A) ? Service Rate Distribution Question What is the mean service rate per hour? Answer Since Joe Ferris can process an order in an average time of 2 minutes (= 2/60 hr. ), then the mean service rate,  µ, is  µ = 1/(mean service time), or 60/2. m = 30/hr. Slide 23 Example: SJJT, Inc. (A) ?Service Time Distribution Ques tion What percentage of the orders will take less than one minute to process? Answer Since the units are expressed in hours, P (T ; 1 minute) = P (T ; 1/60 hour). Using the exponential distribution, P (T ; t ) = 1 – e- µt. Hence, P (T ; 1/60) = 1 – e-30(1/60) = 1 – . 6065 = . 3935 = 39. 35% Slide 24 Example: SJJT, Inc. (A) ? Service Time Distribution Question What percentage of the orders will be processed in exactly 3 minutes? Answer Since the exponential distribution is a continuous distribution, the probability a service time exactly equals any specific value is 0 . Slide 25Example: SJJT, Inc. (A) ? Service Time Distribution Question What percentage of the orders will require more than 3 minutes to process? Answer The percentage of orders requiring more than 3 minutes to process is: P (T ; 3/60) = e-30(3/60) = e -1. 5 = . 2231 = 22. 31% Slide 26 Example: SJJT, Inc. (A) ? Average Time in the System Question What is the average time an order must wait from th e time Joe receives the order until it is finished being processed (i. e. its turnaround time)? Answer This is an M/M/1 queue with ? = 20 per hour and m = 30 per hour. The average time an order waits in the system is: W = 1/( µ – ? ) 1/(30 – 20) = 1/10 hour or 6 minutes Slide 27 Example: SJJT, Inc. (A) ? Average Length of Queue Question What is the average number of orders Joe has waiting to be processed? Answer Average number of orders waiting in the queue is: Lq = ? 2/[ µ( µ – ? )] = (20)2/[(30)(30-20)] = 400/300 = 4/3 Slide 28 Example: SJJT, Inc. (A) ? Utilization Factor Question What percentage of the time is Joe processing orders? Answer The percentage of time Joe is processing orders is equivalent to the utilization factor, ? /m. Thus, the percentage of time he is processing orders is: ?/m = 20/30 = 2/3 or 66. 67% Slide 29 Example: SJJT, Inc. A) Solution ? 1 2 3 4 5 6 7 8 9 A B C D E F Poisson Arrival Rate Exponential Service Rate Operating Character istics Probability of no orders in system Average number of orders waiting Average number of orders in system Average time an order waits Average time an order is in system Probability an order must wait G ? m H 20 30 Po Lg L Wq W Pw 0. 333 1. 333 2. 000 0. 067 0. 100 0. 667 Slide 30 M/M/k Queuing System ? ? ? ? ? ? Multiple channels (with one central waiting line) Poisson arrival-rate distribution Exponential service-time distribution Unlimited maximum queue length Infinite calling population Examples: Four-teller transaction counter in bank †¢Two-clerk returns counter in retail store Slide 31 1 ? P? n ? m ? P0 , for (n ? k) ? n! ? ? n ? ? m ? P0 , for (n ? k) ? ? ? 1 n k ? 1 1 km ? ? ? ? n! ? m ? ? k! ? m ? km ? ? ? ? ? 1 ? k! k n ? k P? 0 P w ? n ? k ? 1 ? n ? 0 ? n 1 ? ? P(n ? k ) ? ?m? ? k! ? ? k km P0 , km ? ? k ?m ? ? m ? ? ? ? ? ? L? P0 ? 2 m (k ? 1)! (km ? ? ) W? L ? , Lq ? ,r ? km Lq ? 1 ? L? , Wq ? W ? ? m m ? Slide 32 General Operating Characteristics Little' s F low Equations : L (or W ? ) ? Lq (or Wq ? ) ? L ? ?W L q ? ?Wq W ? Wq ? 1 m Slide 33 Problem: ? ? ? ? ? ? ? ?A Tax consulting firm has four service stations (counters) in its office to receive people who have problems and complaints about their income, wealth and sales taxes. Arrivals average 80 persons in an 8 hour service day. Each tax advisor spends irregular amount of time servicing the arrivals which have been found to have an exponential distribution. The average service time is 20 minutes. Calculate the average no. of customers in the system, average no. of customers waiting to be serviced, average time a customer spend in the system, average waiting time for a customer in queue. Calculate how many hours each week does a tax advisor spend erforming his job? What is the probability that a customer has to wait before he gets service? What is the expected no. of idle tax advisors at any specified time? Slide 34 Example: SJJT, Inc. (B) ? M/M/2 Queuing System Smith, Jones, Joh nson, and Thomas, Inc. has begun a major advertising campaign which it believes will increase its business 50%. To handle the increased volume, the company has hired an additional floor trader, Fred Hanson, who works at the same speed as Joe Ferris. Note that the new arrival rate of orders, ? , is 50% higher than that of problem (A). Thus, ? = 1. 5(20) = 30 per hour. Slide 35Example: SJJT, Inc. (B) ? Sufficient Service Rate Question Why will Joe Ferris alone not be able to handle the increase in orders? Answer Since Joe Ferris processes orders at a mean rate of  µ = 30 per hour, then ? =  µ = 30 and the utilization factor is 1. This implies the queue of orders will grow infinitely large. Hence, Joe alone cannot handle this increase in demand. Slide 36 Example: SJJT, Inc. (B) ? Probability of n Units in System Question What is the probability that neither Joe nor Fred will be working on an order at any point in time? Slide 37 Example: SJJT, Inc. (B) ? Probability of n Units in Sy stem (continued)Answer Given that ? = 30,  µ = 30, k = 2 and (? / µ) = 1, the probability that neither Joe nor Fred will be working is: 1 P0 ? k ? 1 ( ? / m )n (? / m ) k km ? ( ) ? n! k! km ? ? n? 0 = 1/[(1 + (1/1! )(30/30)1] + [(1/2! )(1)2][2(30)/(2(30)-30)] = 1/(1 + 1 + 1) = 1/3 = .333 Slide 38 Example: SJJT, Inc. (B) ? Average Time in System Question What is the average turnaround time for an order with both Joe and Fred working? Slide 39 Example: SJJT, Inc. (B) ? Average Time in System (continued) Answer The average turnaround time is the average waiting time in the system, W. Lq = ? µ(? / µ)k (k-1)! (k µ – ? )2 P0 = (30)(30)(30/30)2 (1! ((2)(30)-30))2 (1/3) = 1/3 L = Lq + (? / µ) = 1/3 + (30/30) = 4/3 W = L/ (4/3)/30 = 4/90 hr. = 2. 67 min. Slide 40 Example: SJJT, Inc. (B) ? Average Length of Queue Question What is the average number of orders waiting to be filled with both Joe and Fred working? Answer The average number of orders waiting to be filled is Lq. This was calculated earlier as 1/3 . Slide 41 Example: SJJT, Inc. (B) ? Formula Spreadsheet 1 2 3 4 5 6 7 8 9 10 A B C D E F Number of Channels Mean Arrival Rate (Poisson) Mean Service Rate (Exponential ) Operating Characteristics Probability of no orders in system Average number of orders waitingAverage number of orders in system Average time (hrs) an order waits Average time (hrs) an order is in system Probability an order must wait G k ? m H 2 30 30 Po =Po(H1,H2,H3) Lg ## L =H6+H2/H3 Wq =H6/H2 W =H8+1/H3 Pw =H2/H3 Slide 42 Example: SJJT, Inc. (B) ? Spreadsheet Solution 1 2 3 4 5 6 7 8 9 10 A B C D E F Number of Channels Mean Arrival Rate (Poisson) Mean Service Rate (Exponential ) Operating Characteristics Probability of no orders in system Average number of orders waiting Average number of orders in system Average time (hrs) an order waits Average time (hrs) an order is in system Probability an order must waitG k ? m H 2 30 30 Po Lg L Wq W Pw 0. 333 0. 333 1. 333 0. 011 0. 044 1 . 000 Slide 43 Example: SJJT, Inc. (C) ? Economic Analysis of Queuing Systems The advertising campaign of Smith, Jones, Johnson and Thomas, Inc. (see problems (A) and (B)) was so successful that business actually doubled. The mean rate of stock orders arriving at the exchange is now 40 per hour and the company must decide how many floor traders to employ. Each floor trader hired can process an order in an average time of 2 minutes. Slide 44 Example: SJJT, Inc. (C) ? Economic Analysis of Queuing Systems Based on a number of factors the brokerage firm as determined the average waiting cost per minute for an order to be $. 50. Floor traders hired will earn $20 per hour in wages and benefits. Using this information compare the total hourly cost of hiring 2 traders with that of hiring 3 traders. Slide 45 Example: SJJT, Inc. (C) ? Economic Analysis of Waiting Lines Total Hourly Cost = (Total salary cost per hour) + (Total hourly cost for orders in the system) = ($20 per trader per hour) x (Number of traders) + ($30 waiting cost per hour) x (Average number of orders in the system) = 20k + 30L. Thus, L must be determined for k = 2 traders and for k = 3 traders with ? = 40/hr. nd m = 30/hr. (since the average service time is 2 minutes (1/30 hr. ). Slide 46 Example: SJJT, Inc. (C) ? Cost of Two Servers P0 ? 1 k ? 1 (? ? n? 0 / m )n ( ? / m ) k km ? ( ) n! k! km ? ? P0 = 1 / [1+(1/1! )(40/30)]+[(1/2! )(40/30)2(60/(60-40))] = 1 / [1 + (4/3) + (8/3)] = 1/5 Slide 47 Example: SJJT, Inc. (C) ? Cost of Two Servers (continued) Thus, Lq = ? µ(? / µ)k (k-1)! (k µ -? )2 P0 = (40)(30)(40/30)2 1! (60-40)2 (1/5) = 16/15 L = Lq + (? / µ) = 16/15 + 4/3 = 12/5 Total Cost = (20)(2) + 30(12/5) = $112. 00 per hour Slide 48 Example: SJJT, Inc. (C) ? Cost of Three Servers P0 ? 1 k ? 1 (? ? n? 0 / m )n ( ? / m ) k km ( ) n! k! km ? ? P0 = 1/[[1+(1/1! )(40/30)+(1/2! )(40/30)2]+ [(1/3! )(40/30)3(90/(90-40))] ] = 1 / [1 + 4/3 + 8/9 + 32/45] = 15/59 Slide 49 Example: SJJT, Inc. (C) ? Cost of Three Servers (continued) (30)(40)(40/30)3 Hence, Lq = (15/59) = 128/885 = . 1446 (2! )(3(30)-40)2 Thus, L = 128/885 + 40/30 = 1308/885 (= 1. 4780) Total Cost = (20)(3) + 30(1308/885) = $104. 35 per hour Slide 50 Example: SJJT, Inc. (C) ? System Cost Comparison 2 Traders 3 Traders Wage Cost/Hr $40. 00 60. 00 Waiting Cost/Hr $82. 00 44. 35 Total Cost/Hr $112. 00 104. 35 Thus, the cost of having 3 traders is less than that of 2 traders. Slide 51

KRISPY KREME Essay

1. What can the historical income statements (case Exhibit 1) and balance sheets (case Exhibit 2) tell you about the financial health and current condition of Krispy Kreme Doughnuts, Inc.? The historical financial statements can tell us a lot about the financial health and condition about Krispy Kreme or any other company. By utilizing some key financial ratios we can determine how the company compares year over year as well as against competitors in many ?different dimensions. These dimensions include short term solvency, or its ability to meet its immediate obligations, long term solvency, or its ability to manage debt leverage, asset management, or its ability to utilize company assets to make profit, profitability, or its ability to generate a favorable bottom line, and market valuation measurement, or its overall company value in the market compared to book value or earnings. 2. How can financial ratios extend your understanding of financial statements? What questions do the time series of ratios in case Exhibit 7 raise? What questions do the ratios on peer firms in case Exhibits 8 and 9 raise? As mentioned above financial ratios can really give an analyst a look into how effective, efficient, and profitable a company is and has been in the past. In exhibit 7, different ratios bring up different questions. The trend of the current ratio is a bit puzzling to me and begs the question, why does it continue to grow? Krispy Kreme has by far the highest current ratio in the industry, and it appears as though some of the biggest competitors have current ratios at or below 1. Although it is good to have short term solvency, too high of a ratio could be a sign of missed opportunities for investment. What else could Krispy Kreme be doing with its liquid assets that might garner increase profitability that seemingly others in the industry are acting on? The next ratio that interests us is the asset to equity ratio, or the equity multiplier. This ratio is an indicator of how the company manages leverage. The higher the ratio, the more of a percentage of operations is funded by equity. Krispy Kreme’s equity multiplier has been relatively consistent since 2001, but is just below par with most of its competitors. What this means to us is that Krispy Kreme is not as effective in utilizing leverage to benefit the company as some of its competitors which doubles up on the previous question asked. What else should Krispy Kreme be doing, or investing in to improve efficiency and performance. Total asset turnover is an important ratio to look at because it is an indicator of how well a company utilizes its assets to generate sales. The first thing that we noticed is that Krispy Kreme’s total asset turnover ratio decreased every year from 2000-2004. This speaks to an increase in inefficiency in the use of asset to generate sales. It should however be noted that it is typical that as companies grow, it is difficult to maintain a higher total asset turnover ratio. That notation is exemplified when you look at the competitor ratios. The biggest competitors like McDonalds and Wendy’s have similar if not lower ratios. Our overall concern is that none of the other competitors had ratios that low and we did not feel that Krispy Kreme was or is anywhere near the size of McDonalds or Wendy’s. This raises the concern that even though the company is expanding and acquiring new assets, it is not effective in translating the growth into sales. Finally, and perhaps most importantly, we took a look at ROE, or return on equity. This ratio gives an idea of the profitability of the company as well as a return that an investor would expect on his or her investment. Although Krispy Kreme has benefited from stable ROE over the period of 2000-2004, it is sub-par compared to its competitors. What would make Krispy Kreme more attractive to investors, if its ROE is below average in its own industry? To look a little further into some of the statements and ratios, we did a DuPont analysis for Krispy Kreme and several of its competitors. Each of  the individual components have been previously discussed, but it is interesting to compare them together to see how three of the most important aspects of the business have changed over time. Specifically it is worth noting that Profit Margin has increased significantly every year since 2000. What this means is that Krispy Kreme has gotten better every year at turning each sale dollar into net income. 3. Is Krispy Kreme financially healthy at year-end 2004 When looking at the 2004 DuPont analysis, you see that not only has profit margin increased every year, but it is more than 2% better than the industry average. That being said, Krispy Kreme does not utilize its assets as efficiently as its competitors. This potentially troubling because of the fact that they have gone through aggressive growth in stores recently. Is this an indication that these stores are not generating the sales necessary to justify the investment, or at least as well as its competitors might be able to? Finally the equity multiplier comes in below the industry average. To us this means that Krispy Kreme does not utilize its leverage as effectively as the competition. Perhaps it would be to Krispy Kreme’s benefit to increase leverage and invest in order to increase growth and earnings in a similar manner to its competition. Overall, we believe that Krispy Kreme is moderately financially healthy as of the year end 2004. The profitability of the company is we ll above industry average, and the asset turnover and equity multiplier ratios are not drastically different from industry averages. 4. In light of your answer to question 3, what accounts for the firm’s recent share price decline? There was a decline in the share price because, firstly, the company said to expect fewer earnings because of the low-carbohydrate diet trend and also they had close down few underperforming shops, which was a result of their aggressive store expansion. The main cause of the recent share price decline is when the financial scandals became public. As a result, investors lost confidence in the company. 5. What is the source of intrinsic investment value in this company? Does this source appear on the financial statements?