Project management Essay Example | Topics and Well Written Essays - 1250 words

Project management - Essay Example It is usually, a temporary undertaking with specific goals in mind. It, thus, does not fall under the confines of normal business operations. As such, it is bounded by time, resources and the required results from the project. It, however, needs to be planned from the beginning to the end. A project is subjected to some certain constraints. These constraints range from time, personnel, money, equipment and the necessary facilities. The success of a project is hinged on the specific situation in which it has been employed. This stems from the fact that in some situations the concerned parties may be willing to sacrifice certain features for a hastened recovery. In dissimilar situations, parties may be willing to extend the respective timelines so as to build on quality results. The reality, however, is that rarely do projects run smoothly throughout its process. Research has shown that only about thirty four percent of projects are completed on time and on budget (Lock, 2007). Thus, each project that has been implemented has a significant probability of encountering snugs along the way to completion. For a project to be considered a success, it has to meet certain prerequisites. The project must meet its intended objectives and requirements. These are the reasons behind the formation of the project. Thus, it is imperative that it meets these objectives. In the event whereby some of the intended objectives and requirements are not met, it will necessitate a restructuring of the strategy that was employed as this forms the foundation of the project (Lock, 2007). In the event where this occurs, irrespective of the actualization of other factors of success, the project will still be deemed a failure. A project must operate within the confines of a pre-established budget. If it deviates from this budget the probability of failure significantly rises. The goal is to work within the constraints sourced from the budget and still met project goals, thus making the client happy. However, certain situations arise whereby, the set budget is not sufficient to cater for all the required features. The project management team has only two options to employ. It can either choose to ultimately increase the budget or it can decide to cut the scope of the project. Budget concern is the most vital. As such, the project management team must deliberate w ith the client on the features they are willing to sacrifice so as to stay within the allocated budget. This forms one of the reasons behind the rationale that effective project management is not an easy endeavour. The client might insist on the project meeting all the features in a situation where this is near impossible. To avoid such scenarios, it is imperative to iron out such details upfront before embarking on the project. A characteristic of any project is that it has three variables that can be adjusted throughout the process. These variables are the scope, the timing and the allocated budget. As such, it is important to find out from the client which of the variables are vital to them and which ones can be adjusted. Each project must strive to operate within the set timeline. This stems from the fact that it can result into havoc in the event where it is not appropriately managed. When a deadline has been established, the first question becomes whether it is a hard deadline or a soft deadline. A hard deadline does not necessarily indicate the complexities that will be encountered if the project is not complete by that time. Rather, it implies the nature of the deadline is such that, it has dependencies hinged on it. It is not impossible to alter but, it may eventuate in potentially embarrassing the client. In this

The negative economic impacts of World EXPO 2010 in Shanghai, China Essay

The negative economic impacts of World EXPO 2010 in Shanghai, China - Essay Example If the negative outcomes outweigh the benefits, it is always prudent that the country resists from hosting the event. Some of the considerations that a country considers among other things include environmental effects, economic benefits, social impacts as well as its ability to host the event successfully. It is always important that a country ensure that it has the necessary infrastructure to host large international events, failure to which, it may end up to engage in internal and external borrowing, something that may have far reaching economic impacts (Chalip, Breen & Hill 2003). This paper examines the economic impacts that were associated with the hosting of the World Expo that was held in the Shanghai city of China in 2010. This is an event that is organized under the United Nations umbrella and happens on a rotational basis in major cities of the world, after a successful bidding by the respective countries. It focuses on the effects the event had on the various macroeconomic economic of China, as well as that of other hosting cities for the same event. The World Expo 2010 was held in China, in both of the banks of Huangpu River; the event took six months, running from the start of May to October of 2010. The event was marked as one of the major World Expo in the customs of international and world fairs and Expositions. The event was the first of its kind that the city was hosting after 1992, something that influenced prior proper planning before the actual event was to take place. During the Expo, the theme that was settled at was, â€Å"Better City – Better Life;† the choice of the theme was to portray Shanghai as the next great city of the world (Abelson 2011; Crompton 2006). Indeed, many of the people that attended the Expo lived to ascertain the fact that Shanghai has been developed as the major city in the world, competing with other major cities in the world

Juvenile Justice Essay Example for Free

Juvenile Justice Essay Crimes are usually assumed to have been committed by adults, unfortunately, in today’s society; crimes are committed by juveniles at a growing rate. Maybe juveniles are viewing too many violent television shows or movies, playing too many violent video games, or maybe juveniles are committing crimes out of boredom. Nevertheless, the pertinent issue is the fact that juveniles are participating in the commission of criminal activity at an adult level. Juveniles are no longer stealing candy bars from the local grocery store, but they are committing violent crimes against other people. Even more astounding is the fact that these same juvenile offenders are walking away with only probation as their punishment. For the most part, juveniles commit offenses pertaining to property, public nuisances, and underage drug and alcohol related crimes. Violent crimes against other persons such as assault and battery and murder are now included in the list of crimes committed by juveniles (Torbet, 1996). In order to understand why specific crimes are committed, one must carefully examine the juvenile offender. Juvenile offenders are both male and female. Some come from broken or single-parent homes lacking adequate supervision of the juvenile during the evening hours. Some juveniles are suffering from an undiagnosed psychological disorder whereby making it difficult for the juvenile to understand the consequences of his or her criminal actions. Finally, some juveniles have become associated with local gangs or gang members as a means of joining the group. Probation is a necessary factor within the juvenile justice system. There is however, the lingering question as to what crimes constitute a probationary sentence and what crimes mandate incarceration. First time offenders have almost always been guaranteed probation as a means of scaring the juvenile into straightening out their life (Gaines Miller, 2008). Juveniles having committed petty larceny, underage drinking violations, and simple assaults may also be good candidates for probation, but juveniles who have committed felonies should not be afforded probation. Juvenile probation enacts specific mandates in order to retrain and discipline the offender for his or her wrongdoing against society. Community service and attending school are most common requirements of probation. Some courts even order the juvenile to pay restitution to the victims. Curfews are strictly enforced as are daily or weekly reporting to the assigned probation officer (Torbet, 1996). In certain cases, substance abuse counseling and attending groups such as narcotics anonymous or alcoholics anonymous are provisioned. Counseling is generally enforced as a condition of probation and may include anger management classes and social skills building therapy (Gaines Miller, 2008). If a juvenile fails to meet any provisions set forth by the probation officer, the juvenile’s probation could ultimately be revoked. It is difficult to combat or devise a universal solution to the juvenile delinquency problem in this country. Many programs have been created in order to aid the juvenile justice system by attempting to discourage repeat offenders. Some courts may find it necessary to require random urinalysis screenings of any or all juvenile offenders. Juvenile probation officers may discover in the course of monitoring certain juveniles that family counseling may be necessary in order to provide the juvenile with structure and stability. In more severe cases, it could be suggested that the juvenile may need to be removed from the home and placed into foster care in order to protect the juvenile from imminent danger created by addicted parents or crime filled neighborhoods. The juvenile justice system is in dire need of reorganization, and the best starting point would definitely be in the juvenile probation department.

Report Of Business Organizations Tesco And Oxfam Business Essay

Report Of Business Organizations Tesco And Oxfam Business Essay Term of Reference: I have investigated two organizations 20/10/10 one from profit sector which is Tesco and one from non profit sector which is Oxfam. Procedure: I am going to collect relevant material of these two by using internet and textbooks. FINDINGS: I have chosen two contrasting organizations TESCO and Oxfam. Tesco is a shopping mart where we can purchase our essential things. It can also be define as a global grocery and general merchandising vendor headquartered in UK. Sir Jack Cohen founded Tesco in 1919, when he began to sell extra food stuff from a stall in the East End of London. Tesco first appeared above a shop in Edgware in 1929 and since then the company has grown and developed. Tesco is the third largest retailer in the world measured by income Tesco private limited corporation (PLC) is the biggest super mart in UK which has 29% of shares in market compared to other companies like asda which has 17% shares in market. PLC private limited company and dont allow its shares for sale publically. Plc company makes profit more than public companies. A Plc company has no limits of share and share capital and there is no limit to the members liability because there is no limitation on members liability Purpose of Tesco is to make money and invest and sale quality products. And provide reliable materials to consumers. Why do Tesco exist? Tesco exist to provide the goods and services that people and earning money and profits from business .it provides jobs for people the Tesco provides daily need products . Products that customers demand like food, clothes, Home electircs,Sound and vision ,Bed and bath, Furniture and kitchen, Clothing and jewellery, Toys and gift, Baby and toddlers, Garden needs. Products and services supplied at profit, at cost and below cost. Tesco is getting profit by introducing new brands and also selling goods at lease.tehy are getting profit on products by supplying them to other countries and at whole sale. They can sell products by introducing off packages to customers at low prices for a specific duration which means to make them as a regular customers to gain profit in future. And also out of seasons sale which shows selling at low cost. Objectives of TESCO are as tesco is UKs finest food retailers having 519 stores in England, Wales, and Scotland. And 105 stores in France managed by wine producer and 44 in Hungary managed by international. Tesco offers best reasonable prices. Tesco meets the need of customers opinions regarding advance product quality, choice, store facilities and service Tesco is the main profitable investment with progressive return. Tesco is introducing young talents and sound management of workers and training practices and giving job on marit basis not by personal relations.Tesco maintaining its relationships with product makers supplier on quality and price criteria. Tesco is co operating on making of food in industry. also Providing good environment and protection. Ownership can be defined as Employee or executive who has the principle responsibility for a business, or project The public sector in this type of ownership only British people can get ownership in Tesco to gain profit. Sole Traders controlled and financed by one person. Least expensive form of ownership to organize. Sole proprietors receive all income generated by the business to keep or reinvest. Partnerships contains 2 -20 members who share their assets and profits from business. Public Limited Companies (PLCs) shares to the general public it contains Minimum of 2 but no maximum number of shareholders Private Limited Companies contains financed and controlled by between 2 and 50 shareholders. Franchises .A business which has bought the right to trade under established name in different cities.e.g McDonalds, KFC. Co-operatives it contains Groups of people who enter business and share the benefits customers Co-operatives, Producer Co-operatives, Worker Co-operatives. Charitable trust for helping famines and collect funds from rich .and also receives funds from GOVT. OXFAM It is a trouble reliever organization which includes 14 countries organization with 3,000 partners in around 100 countries to decrease poverty and injustice .It can be define as an International organization which helps and provide training and financial aid to people in developing countries and disaster areas. A UK based organization which was established in the 1942. Oxfam is campaigns, development program and emergency response by co operation of internationally connected associations. Oxfam international was formed in 1995 by an independent non government organization. Development Works with local partner organization And helps poor and poverty. And realizing People Their rights e.g. education, health Emergency Oxfam provides life saving aids during Emergency and help people for Future Crises Campaigning Putting the pressure on leaders to make long lasting change Oxfam International is group of 13 independent association contains Germany Australia, Belgium, Canada, France, , Great Britain, New Zealand, Hong Kong, Ireland, The Netherlands, Quebec, Spain and the United States. Why Oxfam exist? Oxfam exists to make a global impact on the causes of poverty. Today mostly countries areas are facing problems and Oxfam is the most efficient organization to help them. Campaign initiatives, planning and putting into practice new tactics and strategies to spread climate change.oxfam is trying to make relationships globally with international NGOs to develop prosperity. Objectives of OXFAM: Relieve suffering caused by natural disasters.Oxfam supports peace and understanding based upon mutual tolerance and respect. Strengthen peoples capacity to help them. Oxfam works for trade justice, fair trade, education and aid, health, HIV/AIDS, conflict ,campaigning and natural disasters, human rights, and climate change. Oxfams International purpose. The main purposes of Oxfam are Promote, assist and manage relationship between the Oxfam international to do help all disasterd people globall.and earning name at international level And removing poverty OXFAM has its committee in different countries which are as under Oxfam GB (Great Britain) .Oxfam Canada.Oxfam America. Oxfam GB (Great Britain) independent non-profit organization is the biggest family for help and has large capacity of workers and income for famines . In UK OXFAM GB was originated in 1942. Oxfam Canada is first member of Oxfam International, and was developed in 1963.in at start Canada Oxfam faced troubles soon Canada began to analyse its role in the development process. OXFAM in AMERICA an independent non-profit organization was developed in America in 1970 and fight for independence and shelter. Advantages of Oxfam are they dont have to pay tax. they get ready to help other. they receive money from businessman and Government. TESCO Stakeholder Stakeholder can be defined as a person, group or organization that has direct and indirect position in organization. It is affected by organizations rules, polices and decisions. Tesco has many stakeholders. Government, Customers, Employees, Local Community, Suppliers, and Pressure Groups: they all have equal importance in building of Tesco Customers. Usually a customer wants quality goods at a low cost. They would also want a variety of products to choose from key holders Diagram of stakeholder in organization Supplier Owners Government Creditors Customer Directors Workers Community Unions Key stakeholders in a business organization Customers. These are the people who buy products from shops and to save lives of needy people. Customers want reliable products and at low prices. Employees its how you manage in any situation; understand the customer; be first with the customer use your strength to deliver unbeatable value and look after the staff so they can look after the customer, teamwork trust and respect. Directors they are responsible for business objectives and managing all strategic decisions .director holds discussion at board meetings. Where they make strategy for improving business, Managers they are responsible for obtaining goals creating atmosphere of work among workers, each manager has handles accounting, law marketing, and sales production. Suppliers they supply products at commercial level like banking .they supply goods to different branches. Owners they are the business, assets holder, and pay the workers. Pressure groups not put up candidates for election, but seeks to influence government policy rules. Trade unions function is discuss pay and working conditions and creates discipline among workers Employee Associations they set up pay packages and employees for resolving argument. Stakeholders of Oxfam Stakeholder can be defined as a person, group or organization that has direct and indirect position in organization. It is affected by organizations rules, polices and decisions. Volunteers they are the workers who help in building Oxfams strength. Volunteering is a personal Choice, not a compulsory job. Express values in activities that are meaningful. And co operates for helping in medicine, education, or emergency rescue. Campaign supporters The Individuals, celebrities, politicians and organizations across the run campaign for collecting funds and to remove illiteracy and poverty. Individual donors this types of donors can make decisions faster, they mostly work in under developed countries to make them growing countries, and feel this easy to work alone. Donate personally money, clothes for removing poverty. Customers are the main participant in organization. They help by buying food, drinks, and also help organization by used drink bottles and wrappers for recycling and make collection for Oxfam. Without their involvement it is not possible collecting money for Oxfam. Employees they are workers of Oxfam and work in flood relieving, food preparation, palcing people in save places when they get infected. Pressure groups they help in protesting if Government is not funding properly.ank manage strike on roads, institutes, cites and encourage people for infected s help from Govt. FUNCTIONAL AREA OF TESCO Board of Directors Finance department Marketing sales department Production department Finance manager Accountant Marketing manager Area sales manager Sales staff Production manager Production supervisor Production workers Human resource department Human resource manager Clerical assistant ICT department Board of directors people are the people of tesco who have decision-making rights, voting rights specific responsibilities which in each case are separate and distinct from the authority and responsibilities of owners and managers of the business entity. Finance department is responsible of balance sheets, profit and loss of tesco and responsible to keep records of fund and all planning of Tesco financial income and loss. Finance manager duties are to make investment sheets ,financial reports, activities, and implement cash management strategies. Accountant helps managers to make reports, investments (savings), and tax implementations. Handles profit loss details, cost production, financial statements. Marketing sales department function is to understand users needs and fulfil requirements with quality of goods and also pay attention to their demands and fulfil that correctly. Sales manager sales out products and provide services to the customer for the profit and want to become finest retailer. They ake products available for all customers. Production Tesco is to make sure that the goods of Tesco are formed on time and is in a suitable quality for the customers. And maintain furniture. Production managers duty is to handle all kind of goods preparation demands and duration when product will get ready for customers and at given time and at exact time and standard. Production workers made goods according to the user demands and works exactly in uniform way. They have to know all about what customer wants and what kind of material should use. Human resources keep hold of good experienced staff and only choose hardworking employees and They deal with the recruitment, employees, planning, training and paying to employees. ICT (International Computers and Tabulators) its main function is to check that all data of Tesco is stored properly. All computer software are working, all business websites are accessing.(tescopls.com) FUNCTIONAL AREA OF OXFAM Oxfam ambassadors Political counsellors Deputy Chief of mission Defence attached Economic counsellor Public affairs Chief security assistant Administrative counsellor Director Counsellor office Agency representatives Director Peace Corps Ambassadors are the highly ranked representative within a nation for other organization. and directly linked by Government. Political counsellors/ Deputy Chief of mission/ Defence attached they all are directly attached with ambassador an communicate all society problem with each other and make decisions Director is a group of people nominated by the owners of a business who have decision-making authority, voting authority specific responsibilities which in each case is separate and distinct from the authority and responsibilities of owners and managers of the business entity Deputy Chief of missionHe or she acts like a ambassador in absence of chief of mission. He handles matter in absence of chief of mission Political, Economic, Public Affairs, Management) at the Embassy,. Director Peace Corps US company that sends American volunteers to developing countries for educational, agricultural improvements. Tesco Mission and values Planning, calculating and the passing of information form rival is called mission. Tescos mission is to earn profit and sale pure goods. And to sale goods online by using website tesco.com and public dealing in good manner to make regular customers and create significance for customers to earn their lifetime reliability. Values Values of an organization defines it standards. They show Respect to each others Try to give their best. Want to be energetic and fit. Tesco strategies to become are successful international trader, to become famous business party. To be good food provider to put community at the heart of what we do. Objectives Tesco increasing customers by offering buy 1 gets 1 free. Tesco offers best reasonable prices. Tesco meets the need of customers opinions regarding advance, product quality, choice, store facilities and service Tesco is the main profitable investment with progressive return. Tesco is introducing young talents and sound management of workers and training practices and giving job on merit basis not by personal relations. Tesco maintaining its relationships with supplier (product makers) on strict quality and price criteria.Tesco is co operating on making of food in industry. Provides good environment and protection Strategic Planning Tesco is trying to make shopping easy and comfortable. Seeking to low price to help people Lessing prices. Smart objectives of Tesco Specific Tesco wants to make profit its sale. Measurable Tesco is leading in business by its major shares in market. Achievable Tesco achieve its goal by increasing its customers and making profits. Tesco has achieved it by good quality products. Realistic Tesco is third big company in world. OXFAM Mission It acts for attitudinal change to facilitate in development, socially and economically. It helps famine and giving life to them. Values satisfactory behavior within organization. Behavior of individuals within the organization. And Flexible commitment. Use time and resources efficiently Strategic aims and objectives Oxfam works for trade justice, fair trade, education and aid, health, HIV/AIDS, conflict ,campaigning and natural disasters, human rights, and climate change. and supporting children by educating them and providing food. Oxfam strategic planning process Oxfam is worlds 3rd largest nonprofit organization and Oxfam strategic planning process is to works for the removal of poverty. To fight homelessness and also for the development of undeveloped area and for progress of organization. Smart objectives of Oxfam Specific Reducing Poverty is specific objective. Measurable Oxfam is responding to 26 emergency situations worldwide. Relevant skills Oxfam is finding people who have skills to tackle problems. Time-based Oxfam includes 14 countries union working in more than 100 countries. M1 Point of Views of different stakeholders Directors the business through meetings with top managers and managing stretegies for progress of tesco.Employees should work hard on making good quality products that will make profit and also increase pay and conditions of Employees and also helpful for safety, health and pension arrangements. Customers views are to getting latest brands and saving by low price products. D1 Evaluate the influence different stakeholders exert in one organization Stakeholders stand for great influence in organization. Developing countries employees make fashionable clothes and brands to exert little power over their employers to give them jobs and getting new products. Owners are the organizations main stakeholders and gain profit and pays all bills and wages to workers and remain profit shares with shareholders directors pay attention to make strategy and decisions regarding organization Government influences by law rights to change behaviour of environmental or health and safety. Employees exert main role in business profit or loss. When the economy is active they work hard and make extra products. Customers also create great influence within an organization by purchasing products from store or online at low prices. Conclusion I was given an Assignment of two contrasting organizations Tesco and Oxfam. I found that both organizations are serving better in their departments and both are for people. in both organizations stake holder are more important participant because if you dont have too many stake holder and your profitable and non profitable organizations will not succeed in their missions. Recommendations I would like to recommend the both different organization one is profit gaining Tesco and nonprofits gaining Oxfam have good customer connection because Oxfam is an international charity which is focused on fighting poverty and providing them shelter.and Tesco is providing daily needs products for customers and also providing funds to Oxfoam so that they can participate in decreasing poverty. So both plays important role for customers.

The Vision of The Anointed :: essays research papers

The Vision of The Anointed When we think what the definition of Vision is we might think that vision is the ability to see the features of objects we look at, such as color, shape, size, details, depth, and contrast, and that vision is achieved when the eyes and brain work together to form pictures of the world around us. But when reading Thomas Sowell’s book, The Vision of The Anointed, one might have a different perspective. Thomas Sowell wrote this book to contest the vision of those who are the artistic activist of modern society. In chapter two that is titled, The Pattern, Sowell what is interesting about visions, what are their assumptions and their reasoning. He then discusses the various characteristics of patterns that have evolved among the anointed. The pattern of failure is then listed into four stages: The â€Å"Crisis†, the â€Å"Solution†, the â€Å"Results†, and finally the â€Å"Response†. During the chapter he talks about certain topics, such as the war on poverty and sex education, and broke each one down with the four stages. I had a particular interest on the topic of sex education. I agreed with Sowell about the â€Å"Crisis† with the sex education within schools. He mentioned hoe pregnancy and disease was done in the 60’s than it had been in the fifties. Usually when society makes a fuss, it could do the opposite affect than help the situation. It seems when sex education was permitted into schools, which more sex started to happen. Although that may have not been the intent, but unfortunately it did not help the problem, that was never a real problem. In chapter three which is titled by the numbers, Sowell discusses scientific evidence through data. He enlightens us on how to take facts and create them into valid theories. One fascinating subtopic was the â€Å"AHA† Statistics, where he describes how people find some numbers that fit their insights. In this chapter he focuses on how people get paid differently according to race, and gender. I do find this to be true. I agree that somewhere statistics by the anointed has proven that those tiny details (race and gender) have an affect on the way someone is paid doing the same work. I agree that facts and numbers are not entirely correct, but they are shaped and formed to me the anointed needs, and desires. In chapter four he discusses the irrelevance of evidence.

Oppressiveness of Society Exposed in Emily Jane Brontes Wuthering Heights :: Emily Jane Brontes Wuthering Heights

Oppressiveness of Society Exposed in Emily Jane Bronte's Wuthering Heights Wuthering Heights, the creation of Emily Jane Bronte, depicts not a fantasy realm nor the depths of hell. Rather, the novels focuses on two main characters' battle with the restrictions of Victorian Society. Societal pressures and restrictive cultural confines exile Catherine Earnshaw and Heathcliff from the world and then from each other. The story commences in the desolate moors of Yorkshire, home of the estate Wuthering Heights. True to its setting, the novel develops Catherine and Heathcliff as mischievous children who wander the isolated bogs, separating themselves from the activities of Wuthering Heights. Catherine^s childhood exile stems from her lack of compliance with the rules concerning the conduct of a Victorian lady. As a child, her father was too ill to reprimand the free spirited child, ^who was too mischievous and wayward for a favourite.^(33). Therefore, Catherine grew up among nature and lacked the sophistication of high society. Catherine removed herself from society and, "had ways with her such as I never saw a child take up before; she put all of us past our patience fifty times and oftener in a day;...we had not a minute^s security that she wouldn^t be in mischief. Her spirits were always at high-water mark, her tongue always going--singing, laughing, and plaguing everyone who would not do the same. A wild, wicked slip she was--"(37). Catherine further disregarded social standards and remained friends with Heathcliff despite his degradation by Hindley, her brother. ^Miss Cathy and he [Heathcliff] were now very thick;^(33) and she found her sole enjoyment in his companionship. Catherine grew up beside Heathcliff, ^in the fields. They both promised to grow up as rude as savages; the young master [Hindley] being entirely negligent how they behaved,^(40-41). During her formative years Catherine^s conduct did not reflect that of a young Lady, ^and one of their chief amusements [was] to run away to the moors in the morning and remain there all day,^(41). Thus, Catherine^s behavior developed and rejected the ideals of an oppressive, over-bearing society, which in turn created an isolation from the institutionalized world. The two existed on their private island unchecked until Catherine suffers an injury from the Linton^s bulldog. Forced to remain at Thrushcross Grange, the Linton^s home, after her injury, isolates Catherine from Heathcliff and her former world of reckless freedom. Living amongst the elegance of the Lintons transforms Catherine from a coarse youth into a delicate lady. However, sublimation into Victorian society does not fit her

Business Buying Behavior

Business buyer Behavior| | | | In last Lesson we discussed the Consumer Buying behavior. Today We will discuss business buyer behaviour, types of buying situations, participants in the business buying process, and major influences on business buyers so our today’s topic is:BUSINESS MARKETS AND BUYING BEHAVIORThe  business market  includes firms that buy goods and services in order to produce products and services to sell to others. It also includes retailing and wholesaling firms that buy goods in order toects resell them at a profit. Because asp of business-to-business marketing apply to  institutional  markets  and  government markets, we group these together. The business marketer needs to know the following: Who are the major participants? In what decisions do they exercise influence? What is their relative degree of influence? What evaluation criteria does each decision participant use? The business marketer also needs to understand the major environmental, interpersonal, and individual influences on the buying process. A. What is a Business Market? The business market comprises all the organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others. It also includes retailing and wholesaling firms that acquire goods for the purpose of reselling or renting them to others at a profit. In the business buying process business buyers determine which products and services their organizations need to purchase, and then find, evaluate, and choose among alternative suppliers and brands. Companies that sell to other business organizations must do their best to understand business markets and business buyer behavior. B. Characteristics of Business MarketsIn some ways, business markets are similar to consumer markets. Both involve people who assume buying roles and make purchase decisions to satisfy needs. However, business markets differ in many ways from consumer markets. The main differences, are in the market structure and demand, the nature of the buying unit, and the types of decisions and the decision process involved. Business markets also have their own characteristics. In some ways, they are similar to consumer markets, but in other ways they are very different. The main differences include:1. Market structure and demand. Business markets typically deal with far fewer but far larger buyers. They are more geographically concentrated. Business markets have derived demand  (business demand that ultimately comes from or derives from the demand for consumer goods). Many business markets have  inelastic demand; that is, total demand for many business products is not affected much by price changes, especially in the short run. A drop in the price of leather will not cause shoe manufacturers to buy much more leather unless it results in lower shoe prices that, in turn, will increase consumer demand for shoes. Finally, business markets have morefluctuating demand. The demand for many business goods and services tends to change more—and more quickly—than the demand for consumer goods and services does. A small percentage increase in consumer demand can cause large increases in business demand. Sometimes a rise of only 10 percent in consumer demand can cause as much as a 200 percent rise in business demand during the next period. 2. Nature of the Buying Unit:Compared with consumer purchases, a business purchase usually involves more decision participants and a more professional purchasing effort. Often, business buying is done by trained purchasing agents who spend their working lives learning how to make better buying decisions. Buying committees made up of technical experts and top management are common in the buying of major goods. Companies are putting their best and brightest people on procurement patrol. Therefore, business marketers must have well-trained salespeople to deal with well-trained buyers. 3. Types of Decisions and the Decision ProcessBusiness buyers usually face  more complex  buying decisions than do consumer buyers. Purchases often involve large sums of money, complex technical and economic considerations, and interactions among many people at many levels of the buyer's organization. Because the purchases are more complex, business buyers may take longer to make their decisions. The business buying process tends to be  more formalized  than the consumer buying process. Large business purchases usually call for detailed product specifications, written purchase orders, careful supplier searches, and formal approval. The buying firm might even prepare policy manuals that detail the purchase process. Finally, in the business buying process, buyer and seller are often much  more dependent  on each other. Consumer marketers are often at a distance from their customers. In contrast, business marketers may roll up their sleeves and work closely with their customers during all stages of the buying process—from helping customers define problems, to finding solutions, to supporting after-sale operation. They often customize their offerings to individual customer needs. In the short run, sales go to suppliers who meet buyers' immediate product and service needs. C. Business Buyer BehaviorThe model in Figure suggests four questions about business buyer behavior: What buying decisions do business buyers make? Who participates in the buying process? What are the major influences on buyers? How do business buyers make their buying decisions? a. A Model of Business Buyer BehaviorAt the most basic level, marketers want to know how business buyers will respond to various marketing stimuli. Figure shows a model of business buyer behavior. In this model, marketing and other stimuli affect the buying organization and produce certain buyer responses. As with consumer buying, the marketing stimuli for business buying consist of the four Ps: product, price, place, and promotion. Other stimuli include major forces in the environment: economic, technological, political, cultural, and competitive. These stimuli enter the organization and are turned into buyer responses: product or service choice; supplier choice; order quantities; and delivery, service, and payment terms. In order to design good marketing mix strategies, the marketer must understand what happens within the organization to turn stimuli into purchase responses. Within the organization, buying activity consists of two major parts: the buying center, made up of all the people involved in the buying decision, and the buying decision process. The model shows that the buying center and the buying decision process are influenced by internal organizational, interpersonal, and individual factors as well as by external environmental factors. b. Major Types of Buying SituationsThere are three major types of buying situations. At one extreme is the  straight rebuy,  which is a fairly routine decision. At the other extreme is the  new task,  which may call for thorough research. In the middle is themodified rebuy,  which requires some research. In a  straight rebuy  the buyer reorders something without any modifications. It is usually handled on a routine basis by the purchasing department. Based on past buying satisfaction, the buyer simply chooses from the various suppliers on its list. â€Å"In† suppliers try to maintain product and service quality. In a  modified rebuy, the buyer wants to modify product specifications, prices, terms, or suppliers. The modified rebuy usually involves more decision participants than the straight rebuy. The in suppliers may become nervous and feel pressured to put their best foot forward to protect an account. Out suppliers may see the modified rebuy situation as an opportunity to make a better offer and gain new business. A company buying a product or service for the first time faces a  new-task  situation. In such cases, the greater the cost or risk, the larger the number of decision participants and the greater their efforts to collect information will be. The new-task situation is the marketer's greatest opportunity and challenge. The marketer not only tries to reach as many key buying influences as possible but also provides help and information. The buyer makes the fewest decisions in the straight rebuy and the most in the new-task decision. In the new-task situation, the buyer must decide on product specifications, suppliers, price limits, payment terms, order quantities, delivery times, and service terms. The order of these decisions varies with each situation, and different decision participants influence each choice. c. Participants in the Business Buying ProcessThe decision-making unit of a buying organization is called its buying center: all the individuals and units that participate in the business decision-making process. The buying center includes all members of the organization who play any of five roles in the purchase decision process. †¢Ã‚  Users  are members of the organization who will use the product or service. In many cases, users initiate the buying proposal and help define product specifications. †¢Ã‚  Influencers  often help define specifications and also provide information for evaluating alternatives. Technical personnel are particularly important influencers. †¢Ã‚  Buyers  have formal authority to select the supplier and arrange terms of purchase. Buyers may help shape product specifications, but their major role is in selecting vendors and negotiating. In more complex purchases, buyers might include high-level officers participating in the negotiations. †¢Ã‚  Deciders  have formal or informal power to select or approve the final suppliers. In routine buying, the buyers are often the deciders, or at least the approvers. †¢Ã‚  Gatekeepers  control the flow of information to others. For example, purchasing agents often have authority to prevent salespersons from seeing users or deciders. Other gatekeepers include technical personnel and even personal secretaries. The buying center is not a fixed and formally identified unit within the buying organization. It is a set of buying roles assumed by different people for different purchases. Within the organization, the size and makeup of the buying center will vary for different products and for different buying situations. Business marketers working in global markets may face even greater levels of buying center influence. The buying center concept presents a major marketing challenge. The business marketer must learn who participates in the decision, each participant's relative influence, and what evaluation criteria each decision participant uses. The buying center usually includes some obvious participants who are involved formally in the buying decision. d. Major Influences on Business BuyersBusiness buyers are subject to many influences when they make their buying decisions. Some marketers assume that the major influences are economic. They think buyers will favor the supplier who offers the lowest price or the best product or the most service. They concentrate on offering strong economic benefits to buyers. However, business buyers actually respond to both economic and personal factors. Far from being cold, calculating, and impersonal, business buyers are human and social as well. They react to both reason and emotion. Today, most business-to-business marketers recognize that emotion plays an important role in business buying decisions. When suppliers' offers are very similar, business buyers have little basis for strictly rational choice. Because they can meet organizational goals with any supplier, buyers can allow personal factors to play a larger role in their decisions. However, when competing products differ greatly, business buyers are more accountable for their choice and tend to pay more attention to economic factors. Figure lists various groups of influences on business buyers— environmental, organizational, interpersonal, and individual. Major Influences on Business Buyers†¢Ã‚  Environmental FactorsBusiness buyers are influenced heavily by factors in the current and expected  economic environment,  such as the level of primary demand, the economic outlook, and the cost of money. As economic uncertainty rises, business buyers cut back on new investments and attempt to reduce their inventories. An increasingly important environmental factor is shortages in key materials. Many companies now are more willing to buy and hold larger inventories of scarce materials to ensure adequate supply. Business buyers also are affected by technological, political, and competitive developments in the environment. Culture and customs can strongly influence business buyer reactions to the marketer's behavior and strategies, especially in the international marketing environment. The business marketer must watch these factors, determine how they will affect the buyer, and try to turn these challenges into opportunities.   Organizational FactorsEach buying organization has its own objectives, policies, procedures, structure, and systems. The business marketer must know these  organizational factors  as thoroughly as possible. Questions such as these arise: How many people are involved in the buying decision? Who are they? What are their  evaluative criteria? What are the company's polici es and limits on its buyers? Interpersonal FactorsThe buying center usually includes many participants who influence each other. The business marketer often finds it difficult to determine what kinds of  interpersonal factors  and group dynamics enter into the buying process. Participants may have influence in the buying decision because they control rewards and punishments, are well liked, have special expertise, or have a special relationship with other important participants. Interpersonal factors are often very subtle. Whenever possible, business marketers must try to understand these factors and design strategies that take them into account. Individual FactorsEach participant in the business buying decision process brings in personal motives, perceptions, and preferences. These individual factors are affected by personal characteristics such as age, income, education, professional identification, personality, and attitudes toward risk. Also, buyers have different buying styles. Some may be technical types who make in-depth analyses of competitive proposals before choosing a supplier. Other buyers may be intuitive negotiators who are adept at pitting the sellers against one another for the best deal. D. The Business Buying ProcessThere are eight stages of the business buying process. Buyers who face a new-task buying situation usually go through all stages of the buying process. Buyers making modified or straight rebuys may skip some of the stages. We will examine these steps for the typical new-task buying situation. a. Problem RecognitionThe buying process begins when someone in the company recognizes a problem or need that can be met by acquiring a specific product or service. Problem recognition can result from internal or external stimuli. Internally, the company may decide to launch a new product that requires new production equipment and materials. Or a machine may break down and need new parts. Perhaps a purchasing manager is unhappy with a current supplier's product quality, service, or prices. Externally, the buyer may get some new ideas at a trade show, see an ad, or receive a call from a salesperson who offers a better product or a lower price. In fact, in their advertising, business marketers often alert customers to potential problems and then show how their products provide solutions. b. General Need DescriptionHaving recognized a need, the buyer next prepares a general need description that describes the characteristics and quantity of the needed item. For standard items, this process presents few problems. For complex items, however, the buyer may have to work with others—engineers, users, consultants—to define the item. The team may want to rank the importance of reliability, durability, price, and other attributes desired in the item. In this phase, the alert business marketer can help the buyers define their needs and provide information about the value of different product characteristics. c. Product SpecificationThe buying organization next develops the item's technical product specifications, often with the help of a value analysis engineering team. Value analysis is an approach to cost reduction in which components are studied carefully to determine if they can be redesigned, standardized, or made by less costly methods of production. The team decides on the best product characteristics and specifies them accordingly. Sellers, too, can use value analysis as a tool to help secure a new account. By showing buyers a better way to make an object, outside sellers can turn straight rebuy situations into new-task situations that give them a chance to obtain new business. d. Supplier SearchThe buyer now conducts a supplier search to find the best vendors. The buyer can compile a small list of qualified suppliers by reviewing trade directories, doing a computer search, or phoning other companies for recommendations. Today, more and more companies are turning to the Internet to find suppliers. For marketers, this has leveled the playing field—smaller suppliers have the same advantages as larger ones and can be listed in the same online catalogs for a nominal fee: The newer the buying task, and the more complex and costly the item, the greater the amount of time the buyer will spend searching for suppliers. The supplier's task is to get listed in major directories and build a good reputation in the marketplace. Salespeople should watch for companies in the process of searching for suppliers and make certain that their firm is considered. e. Proposal SolicitationIn the proposal solicitation stage of the business buying process, the buyer invites qualified suppliers to submit proposals. In response, some suppliers will send only a catalog or a salesperson. However, when the item is complex or expensive, the buyer will usually require detailed written proposals or formal presentations from each potential supplier. Business marketers must be skilled in researching, writing, and presenting proposals in response to buyer proposal solicitations. Proposals should be marketing documents, not just technical documents. Presentations should inspire confidence and should make the marketer's company stand out from the competition. f. Supplier SelectionThe members of the buying center now review the proposals and select a supplier or suppliers. During supplier selection, the buying center often will draw up a list of the desired supplier attributes and their relative importance. In one survey, purchasing executives listed the following attributes as most important in influencing the relationship between supplier and customer: quality products and services, on-time delivery, ethical corporate behavior, honest communication, and competitive prices. Other important factors include repair and servicing capabilities, technical aid and advice, geographic location, performance history, and reputation. The members of the buying center will rate suppliers against these attributes and identify the best suppliers. As part of the buyer selection process, buying centers must decide how many suppliers to use. In the past, many companies preferred a large supplier base to ensure adequate supplies and to obtain price concessions. These companies would insist on annual negotiations for contract renewal and would often shift the amount of business they gave to each supplier from year to year. Increasingly, however, companies are reducing the number of suppliers. There is even a trend toward single sourcing, using one supplier. With single sourcing there is only one supplier to handle and it is easier to control newsprint inventories. Using one source not only can translate into more consistent product performance, but it also allows press rooms to configure themselves for one particular kind of newsprint rather than changing presses for papers with different attributes. Many companies, however, are still reluctant to use single sourcing. They fear that they may become too dependent on the single supplier or that the single-source supplier may become too comfortable in the relationship and lose its competitive edge. Some marketers have developed programs that address these concerns. g. Order-Routine SpecificationThe buyer now prepares an order-routine specification. It includes the final order with the chosen supplier or suppliers and lists items such as technical specifications, quantity needed, expected time of delivery, return policies, and warranties. In the case of maintenance, repair, and operating items. h. Performance ReviewIn this stage, the buyer reviews supplier performance. The buyer may contact users and ask them to rate their satisfaction. The performance review may lead the buyer to continue, modify, or drop the arrangement. The seller's job is to monitor the same factors used by the buyer to make sure that the seller is giving the expected satisfaction. We have described the stages that typically would occur in a new-task buying situation. The eightstage model provides a simple view of the business buying decision process. The actual process is usually much more complex. In the modified rebuy or straight rebuy situation, some of these stages would be compressed or bypassed. Each organization buys in its own way, and each buying situation has unique requirements. Different buying center participants may be involved at different stages of the process. Although certain buying process steps usually do occur, buyers do not always follow them in the same order, and they may add other steps. Often, buyers will repeat certain stages of the process. E. Institutional and Government MarketsSo far, our discussion of organizational buying has focused largely on the buying behavior of business buyers. Much of this discussion also applies to the buying practices of institutional and government organizations. However, these two nonbusiness markets have additional characteristics and needs. In this final section, we address the special features of institutional and government markets. a. Institutional MarketsThe institutional market consists of schools, hospitals, nursing homes, prisons, and other institutions that provide goods and services to people in their care. Institutions differ from one another in their sponsors and in their objectives. Many institutional markets are characterized by low budgets and captive patrons. For example, hospital patients have little choice but to eat whatever food the hospital supplies. A hospital-purchasing agent has to decide on the quality of food to buy for patients. Because the food is provided as a part of a total service package, the buying objective is not profit. Nor is strict cost minimization the goal—patients receiving poorquality food will complain to others and damage the hospital's reputation. Thus, the hospitalpurchasing agent must search for institutional-food vendors whose quality meets or exceeds a certain minimum standard and whose prices are low. Many marketers set up separate divisions to meet the special characteristics and needs of institutional buyers. . Government MarketsThe government market offers large opportunities for many companies, both big and small. In most countries, government organizations are major buyers of goods and services. Government buying and business buying are similar in many ways. But there are also differences that must be understood by companies that wish to sell products and services to governments. To succe ed in the government market, sellers must locate key decision makers, identify the factors that affect buyer behavior, and understand the buying decision process. Government organizations typically require suppliers to submit bids, and normally they award the contract to the lowest bidder. In some cases, the government unit will make allowance for the supplier's superior quality or reputation for completing contracts on time. Many companies that sell to the government have not been marketing oriented for a number of reasons. Total government spending is determined by elected officials rather than by any marketing effort to develop this market. Government buying has emphasized price, making suppliers invest their effort in technology to bring costs down. When the product's characteristics are specified carefully, product differentiation is not a marketing factor. Nor do advertising or personal selling matter much in winning bids on an open-bid basis. Key TermsBusiness Markets:The  business market  includes firms that buy goods and services in order to produce products and services to sell to others. Straight Re-buythe buyer reorders something without any modifications. Modified Re-buy  the buyer wants to modify product specifications, prices, terms, or suppliers. New Task Buying  A company buying a product or service. Users  are members of the organization who will use the product or service. In many cases, users initiate the buying proposal and help define product specifications. Influencers  Often help define specifications and also provide information for evaluating alternatives. Technical personnel are particularly important influencers. Buyershave formal authority to select the supplier and arrange terms of purchase. Decidershave formal or informal power to select or approve the final suppliers. Gatekeeperscontrol the flow of information to others. |