Wednesday, October 30, 2019

Small business Assignment Example | Topics and Well Written Essays - 1000 words - 1

Small business - Assignment Example This report discusses Entrepreneurial mind sets are difficult to define, but they are within the realm of psychological dispositions which are entrenched in customs and worldviews. According to Dweck (2006), there is a distinction between a fixed mindset and a growth mindset, and personalities in the former believes that intelligence is inherent while the latter acknowledges that success and results depend on effort. In business, a growth mindset can bring more value than a fixated mindset, a mental tool that empowers one to initiate change. This is the entrepreneurial trait approach and according to this model, an entrepreneur is often defined within certain traits, often an interaction with the inner self manifest in the manner I which they control, plan, Set goals; take risk, decision making and independence. In literature, a focus on the difference between and an entrepreneur and one who lacks such skills have been brought to the fore. Brockhaus (1980) empirical study noted that an entrepreneur brings value addition to the business through risk taking propensity, a trait lacking in the majority of the population he studied. ChelL (2008) asserts that an entrepreneur is driven by the need for achievement, a locus of control, the social constructionism theory. With such a drive and push in the business environment, of priority to such a personality would to find innovative ways to bring change to the business. According to Storey (2011) optimism and chance theory best explains the mindset of an entrepreneur. According to the theory, entrepreneurs are not attracted to the conventional way of conducting normal business, rater they pounce on a chance to bring different perspectives to the normal ways of business. According to Mcgrath & Macmillan (2009)Â  an entrepreneurial mind set typically goes for the goals and stops functioning by the ground rules. The writers distinguishes a manager from an entrepreneur and notes that the former

Sunday, October 27, 2019

Organizational Direction of British American Tobacco Nigeria limited

Organizational Direction of British American Tobacco Nigeria limited The purpose of this report is to discuss current organisational direction of British American Tobacco Nigeria Limited (BATNL) and explore competitive business plan for BAT Nigeria with strategic dimensions ranging from 2009 to 2012. The body of the document offers an analysis of the external, transactional and the internal environment of the company. Subsequently, the report considers the companys core competencies and its key competitors, in order to deliberate courses of action that will enable BAT Nigeria to achieve a sustainable competitive advantage. The recommendations aim to enhance BAT Nigerias existing competencies, this will add value to all the stakeholders. Disclaimer: This report only considers British American Tobacco Nigeria Limited as a legal business entity and does not intend to endorse consumption of tobacco products in any form. 2. Executive summary This report aims to critically analyze the option that will ensure that British American Tobacco Nigeria Limited (BATNL) remain market leader by sustaining its competitive advantage in a highly competitive industry. Becoming no.1 in the market is hard work, but maintaining that position is far more difficult. In the light of this, I have critically examined the plausible scenarios and arrived at an option which will strengthen BATNLs current market position. The company today is facing the uphill task of dealing with threats from new market entrants, operational limitations caused by limited international suppliers, lack of availability of locally sourced sun cured tobacco, stricter legislative restrictions and challenges to further increase market share. This report suggests to management an option of forming a system of consistent market dominance and build sustainable competitive advantage. The option consists of an action plan which includes forward and backward integration of supply chain, capacity utilization and development of Nigerian production facilities as an export Hub to West and Central African countries. The backward integration of supply chain involves sourcing the Virginia tobacco from a wider international supplier base in order to prevent raw material out of stock (OOS) situation of super premium, premium and international VFM (Value For Money) brands. Similarly, local sourcing of sun cured Tobacco for VFM production should be expanded by involving larger numbers of small rural farmers in BATNLs business sphere in order to meet raw material requirements for the continuously growing demand of the VFM segment. The forward integration includes developing a wider and more efficient distribution network by means of integrating identified front end strategic customers into electronic distribution system and by providing financial assistance. The strategic location of the country can be exploited so as to establish it as an export hub to other West and Central African countries. It would ensure cost saving advantages to the group, especially in terms of cheaper labour, freight and import taxes. Securing forward and backward integration along with both the manufacturing factories in Nigeria acting as export centres, would make it feasible to proceed with capacity utilization, thus reaping the benefits of economies of scale. In the current scenario, it is going to be very hard to increase share of the existing pie, so the endeavour should be to augment the size of the whole pie rather than poach on the share of competitors. Migration from other brands seems a largely uphill task considering the large market size BATNL enjoys now. To enhance sales, the modus operandi should be concentrated towards capturing the increment in the market as a whole. The incorporation of the above discussed ideas would ensure a sustained competitive advantage, with the aim of increasing rent. 1. Organisational Strategic Aims and Objectives: 1.1 Current Strategic Aims and Objectives: In the early 1990s, BAT decided to grow our business by focusing solely on tobacco a decision which regularized and transformed the Group. In 1995, BAT set itself the credible vision of regaining leadership of the global tobacco industry and established a strategy to get there. In this section summarises the key elements of BATNLs strategy which group believes can enable it to continually build a sustainable business in tobacco industry. Ultimate Strategic Aim Achieve Leadership of the Tobacco Industry BATNLs vision is to achieve leadership of the tobacco industry in order to create long term shareholder value. Leadership is not an end in itself, but a company that leads its industry, is the preferred partner for key stakeholders and is seen to have a sustainable business, should be valued more highly. Company defines leadership in both a quantitative and qualitative sense. Punitively, it seeks volume leadership among our international competitors and in the longer term, value leadership. BATNL recognises that its success will depend on adult consumers and that, therefore, we must be consumer driven.   But the hard, quantitative measures do not in themselves address all the things it must do as a company. Taking a long term view, focusing on the quality of its business and how it work. As a result, qualitatively, company seeks to be recognised as industry leaders and to be the partner of first choice for governments, NGOs, investors and potential employees. BATNL pledges to do this by continuing to demonstrate that it is a responsible tobacco Group, with a sustainable business, outstanding people and superior products.  Ã‚   In order to deliver company vision, BATNLs strategy for creating shareholder value has four elements Growth, Productivity, Responsibility and Winning Organisation. 1.2 Component Parts to achieve Ultimate Strategic Aim 1.2.1- Winning Organisation: To deliver company vision it must have the right people and the right working environment. That is the essence of BATNLs Winning Organisation strategy. By the right people, group mean outstanding people those with the ability and desire to drive and deliver competitive advantage and superior performance. Company endeavour to attract, develop and retain high calibre talent. BATNL also puts emphasis on making it an organisation that is constantly learning. This learning culture shares knowledge quickly, learns from its mistakes and replicates success formulas quickly. To be a winning organisation British American Tobacco must also be a great place to work. This requires an open, confident culture that encourages change and innovation, is shaped by companys Guiding Principles, inspiring its people to perform to their best and importantly, enjoy their work. Finally, Winning Organisation strategy requires that company develops leaders, at all levels in the organisation, with a clear vision for the business, who foster innovation, and can align, energise and enable their teams to contribute to the building of our global enterprise (B) Growth: BATNL seek to increase its volume and value share of the West African tobacco market through both organic growth and mergers and acquisitions. For organic growth, company is concentrating on the key strategic segments of the market that offer the best prospects for long term growth, including Premium and International Brands. BATNL continues to focus on the growth of its Global Drive Brands as well as being prepared to exploit opportunities for profitable volume growth in Value for Money and Low Price Segments.   Company also wish to sustain or develop strong positions in priority markets simply defined as the largest and most profitable ones. BATNL believes that it is important to continue to develop and utilise innovative, differentiated products and to offer its consumers added value from its brands. (C) Productivity: BATs overall approach to productivity is about using its global resources to increase profits and generate funds for reinvesting in its business. Today, all companies are trying to cut costs. BATs approach is integrated aiming to establish a lower cost base while improving the quality of products and the speed they get to the market, as well as our effectiveness in terms of how it can deploy its people and capital. As a Group BATNL is focused on its consumers, marketing is a large part of what it does and company is working to ensure it effectively and efficiently deploy its marketing resources.  Ã‚  Ã‚   In order to maintain a strong balance sheet, capital effectiveness is an important part of its productivity strategy and includes a focus on inventory levels, utilising its assets, financing and other uses of capital. (D) Responsibility: BATNL continues to balance its commercial objectives with the expectations of a broad range of stakeholders, thus ensuring a sustainable business. Company communicating with all stakeholders about its Business Principles, which explain the way we expect its businesses to be run in terms of responsibility, and demonstrating how group is following them. Companys three Business Principles, Mutual Benefit, Responsible Product Stewardship and Good Corporate Conduct are each underpinned by a number of Core Beliefs. In the regulatory arena, BAT continues to promote sensible tobacco regulation that: balances the preferences of consumers with the interests of society establishes an open minded and objective approach to harm reduction as a policy Ensures that its businesses can compete and prosper. BAT manufactures products that can be harmful to the health of its consumers and have publicly stated its aim to reduce this harm to meet both consumer needs and societal expectations. Company proposes to do this by: the progressive reduction in the tar and toxins in its products the successful launch of a new generation of tobacco products with critical mass appeal that are recognised by scientific and regulatory authorities as posing substantially reduced risks to health. 1.3. Factors Affecting the Strategic Plan 1.3.1- Contextual Environment  [1]   Nigeria gained independence in 1960 but since the first military coup in 1966, Nigeria has been ruled by military for over 35 years up until 1999. Since then democratically elected civilian governments are ruling Nigeria. Under the new constitution adopted in 1999, a strong presidency appoints a federal executive council, comprising government ministers and ministers of the state from each of Nigerias 36 states. Although the 36 governments enjoy greater autonomy than under the former military administration they remain dependent on the federal government for funding. This set up creates a system of distributed power centres, with the highest authority lying with the president, making lobbying with political powers a complicated issue. Estimated GDP for 2006 is $116.7 billion whereas economic growth rate is believed to be 5.4%. This economic performance is severely offset by high rate of inflation (8.7%). Since 1999 under the rule of Peoples Democratic Party (PDP) National Economic Empowerment and Development Strategy (NEEDS) has boosted non-oil sector growth and improved macro-economy. Increased government spending on roads and ongoing efforts to reform and attract investments into the power sector could improve infrastructure modestly. Only minimal progress is likely with port reform. Both these aspects would have a positive effect on BAT Nigerias supply chain. Corporate profits except for oil companies are taxed at 30%. VAT on tobacco product is 7.5% whereas for other commodity product its charged at 5%. In governments effort to curb smoking, promotion of cigarette sales through billboards has become illegal since January 1st 2004. Federal government is under further pressure from whom and other NGOs to put a ban on tobacco products promotion through electronic and print media. In addition, various pressure groups are raising concerns against tobacco farming as it renders land unusable for cultivation of other crops. 1.3.2- Transactional environment Nigeria has a total population of 140 million and out of these only 2.9 million adults smoke, it indicates a huge growth potential for Tobacco industry. Given the scenario, though BAT Nigeria is catering to very comprehensive range of markets and consumer segments, further avenues for increasing market penetration of companys products have been identified through various analysis. The present market size of AFS is only 14% which explicitly shows growth potential. To grow and capture this segment, requirement for development of brands targeted especially to Adult Female Smokers (AFS) is identified. On the other hand, according to strategic group analysis premium brands have a need to expand their geographical reach and increase market penetration. Super premium product line should be prevented against brand dilution and their market presence should be enhanced with the help of specialized channels of HoReCa. On critically evaluating product offerings extended by the BAT Nigeria across different segments, few potential offerings for A class, B, C and D segments  [2]  were recognized like, pipe tobacco and cigar, limited editions and flavoured and VFM brand variants, respectively. Supply chain of BAT Nigeria has a weak link in procurement part of Virginia tobacco due to limited number of international suppliers (especially from Argentina and Brazil). Whereas, local procurement of sun cured tobacco has limitations of inadequacy of land conducive to tobacco farming, partial segment of farmers involved in tobacco farming and threats from pressure groups. With recent acquisition of Gallaher Group by Japan Tobacco Inc., JTI has the second largest market share in Nigeria (14.4%), after BAT Nigeria (85.1%). Still we perceive the major threat to BAT Nigeria coming from Philip Morris Inc. (PMI). Looking at the history of PMIs entry to new markets, they capture major share of the market within 3 years, like in Benin. Though, global drive brand for PMI is Marlboro Lights, PMI is expanding its roots in Nigerian market indirectly through Kraft Foods, subsidiary of its corporate parent Altria Inc. The competitor analysis  [3]  shows that key strength of BAT Nigerias products against other competitors and especially PMI, as perceived by the customers, lies in their availability. 2. Stakeholders Influence and Progress towards Strategic Aim 2.1- Core Resources  [4]   In 2009 BAT group reported  £1896m of profit, attributable to shareholders equity. This explicitly indicates financial strength of the BAT group. As operations of BAT Nigeria are directly funded by parent corporate body, access to adequate finances, as compared with other competitors, puts BAT Nigeria in the elite club of organizations with formidable financial resources. Since BAT signed Memorandum of Understanding (MoU) in November 2000 with the federal government, it has enjoyed status of most favoured company and leveraged rapport with the government in establishing local production facilities in Zaria and Ibadan. These state of the art production units are quite unique resource to BAT Nigeria, considering that no other tobacco company has cigarette factory in Nigeria. Further, BAT Nigeria has strengthened its portfolio of core resources by investing funds and efforts in developing dedicated supply chain intermediaries. 2.2- Core Competencies  [5]   Though the MoU expired in April 2007 with end of PDP presidency, strong relationship with the government has been instrumental in developing country wide distribution network and in increasing domestic tobacco farming. BAT Nigeria has improved efficiency and integration of distribution network by implementation of SAP (ERP module) and Siebel (CRM module). Integrated electronic supply chain with local access to raw material is the core competence of BAT Nigeria. Under this process and with continuous efforts to exercise CSR, BAT Nigeria has developed a sound social relationship and local knowledge. Benefits of BAT Foundation have been exploited to meet these strategic requirements. Apart from these local factors, BAT Nigeria has benefited from legacy and technological expertise of parent. Thus, process evolved quality of BAT products is been key source of competency. 3.1: Futuristic Strategic Position: Way to Sustainable Competitive Advantage  [6]   After analysing contextual transactional environment, core resources and competencies of BAT Nigeria, I propose an option which comprises of recommendations for strengthening upstream and downstream supply chain  [7]  , capacity utilisation, developing Nigeria as export hub to west African countries and exploiting BAT foundation in mutually beneficial way (to BAT Nigeria and stakeholders), in order to provide BAT Nigeria with a sustainable competitive advantage. While suggesting the options compatibility, suitability, acceptability and feasibility of recommendations with BAT Nigerias current business model and low exposure to risk has been considered. Production of international brands of Premium and VFM cigarettes is based on Virginia tobacco imported from Argentina and Brazil. Reliance of production of international Super premium, Premium and VFM brands on foreign suppliers subjects upstream supply chain to political, economical and ecological factors evolving in exporting nations. To counter power vested in international suppliers and remove raw material quantitative bottleneck, supplier base of Virginia tobacco should be increased by importing the same quality Virginia from alternative source countries like Cuba, Mexico, Puerto Rico and Venezuela. Tobacco export being major trade activity of these countries, international tobacco trade regulations are quite liberal and no major hurdle could be seen in setting up trade channels. Geographic location of alternative source nations would not impose any significant extra freight charges. For local brands of VFM cigarettes cultivation of sun cured tobacco needs to be increased. In this process, firstly, BATNL should lobby with the government to pass Land Use Decree, to facilitate farmers in gaining possession of land. Secondly, with ownership of land and providing the farming community with help in taking mortgage loans, latest farming technologies and better tobacco seeds, farmers can be driven to come in a legal two way contract with BAT Nigeria, in regard to secure local cultivation and supply of sun cured tobacco and promising buying guarantee in return. 3.2: Justifying the strategic option As analysed by competitor analysis, in consumers perception, apart from poor availability, value offered by PMIs products is at par or better than that of BATs products. Thus, to sustain BATNLs existing system of dominance, it is of paramount concern to have a wide, efficient, dedicated and controlled distribution network. Apart from strategic tie-ups with Global Brand Nigeria Ltd. (GBNL) and Global Apex Ltd., downstream members of distribution channel need to be integrated with electronic distribution platform of SAP and Siebel (CRM). Financial and technological assistant to channel intermediaries in this regard would benefit BATNL in two ways: higher channel control efficiency and financial binding of down stream channel members to BATNL. The SWOT analysis  [8]  highlighted that BATNLs current practice of cash sales is its Achilles heel. To prevent competitors from breaking logistics net of BATNL, BATNL would have to forgo privilege of cash sales and start giving credit facili ties to wholesalers and distributors. Further, and as underpinned by mobility barriers  [9]  analysis, to hold on to market share as high as 85.1%, the premium brands are the key and should be pushed deep into nation with associated promotional activities and rewards/rebates attributed to selling channel. At the same time, super premium brands should be prevented against brand dilution and their image of brand ambassadors should be continued further. For proliferation of super premium brand products, upmarket specialised HoReCa  [10]  channel showed substantial potential for growth. The current problem of low co-operation from HoReCa owners, realising the dependency of BATNL on them for promotional purposes, can be overcome by offering them half yearly or annual contract of brand association, instead of event based approach. To motivate rural small-holder Nigerian farmers interest in the tobacco farming and business with BATNL, BATN Foundation needs to concentrate on issues pertaining to lack of access to modern agricultural machineries, training on new agricultural practices and innovations, production credit, fair and transparent marketing opportunities. Currently, both local production facilities are not utilized up to their full capacities, partly due to relatively less demand in comparison with full production capacity and rest due to bottlenecks in supplies of raw tobacco. Together with improvement in the supply of raw tobacco (international and local), developing Nigeria as export hub to cater neighbouring West and Central African countries would assist BATNL in building up sustainable competitive advantage by gaining economies of scale (capacity utilization), and becoming regional power in tobacco industry. Appendix 1 EMBED PowerPoint.Slide.8 Appendix 2 Appendix 3 Appendix 4 Appendix 5 Appendix 6 Appendix 7 Appendix 8 Appendix 9 Appendix 10

Friday, October 25, 2019

School, Education, Wisdom and My Life :: Personal Narrative, Autobiographical Essay

School, Education, Wisdom and My Life One day in class, I was asked what I "know about", and how what I "know about", relates to me today, in my life, as I am living it. Well, this is an account of whether or not I know anything at all. If I do know something, I'll make clear of how it is connected with me. If I come to the conclusion that I don't know anything at all, then I'll write about something else, if I know what I'm writing about. I shall base this narrative around me, starting from birth, and concluding it with the now and present. This I know I'll do because I have told you I will. And I try not to lie. On an early evening of October the fifth, 1978, I, John Moren was born to an average, eight pound, five ounce body. How do I know this? First, I have hospital records to prove it, and second, I do not believe my parents would lie to me about something so monumental, such as my birth. At this time in my life, if someone were to ask me if I knew anything, I wouldn't know who they were, who I was, where I was, or what that gibberish was that was coming out of that hole in their face. I also wouldn’t know what a face or hole was. Starting off well, wouldn't you say? I was then transported off somewhere with some people, but I was happy because whatever it was that I was wearing stank of something ripe and everyone kept making funny faces. After countless hours of repetition, I finally came to realization that one of these huge beasts was mama, and the other was dada. The next couple of years, I am told, were spent learning how to walk, learning how to talk, learning how to peeâ₠¬ ¦. Well, I always knew how to pee, but it was always in my pants. Among these amazing astonishment’s, I learned how to get into trouble, and get out of it with my charming eyes and goo-goo ga-ga’s. So at this point in my life, I knew a couple of things, but I didn’t know why I knew them. It just helped out. I soon started hearing things about school and was told I'd be there for a Long time. YA HOO! In my mind, I was thinking of a place where they sent all kids to be branded and molded into something suitable for the real world.

Thursday, October 24, 2019

Pride and Poverty Essay

â€Å"It is a beggars pride that he is not a thief† (Japanese Proverb). In today’s economy people are shameless and would rather be on welfare and disability than get a job and earn a living. Pride has been discarded, and poverty has become normal. People in today’s society would rather lie and steal then make an honest living that they are proud of. However in Frank McCourt’s memoir Angela’s Ashes pride and poverty go hand in hand. During the time this memoir was taking place many families were very poor and didn’t have many possessions. One thing they could always hold dear was their pride. â€Å"The master says it is a glorious thing to die for the faith and Dad says it is a glorious thing to die for Ireland† (McCourt 113). This is important because from a young age children were taught to be proud of who they were and what they believed in. They were also raised in an era where it was almost assumed that every adult person either was an alcoholic or smoked cigarettes. It was â€Å"the norm†. Not because of an addiction but as a status quo or for relaxation during hard times. â€Å"A puff of the fag is the only comfort we have in the world† (McCourt 64). As Mam’s friend, Nora, says this Mr. Quinlivan he gets angry because he understands that all of the women at the St. Vincent De Paul have families at home starving but they can still find money to buy cigarettes. Pride is truly a huge part of the memoir. Frank clearly shows this in his writing: â€Å"Even the poorest of the poor don’t go out on Christmas Day picking coal off the road. There’s no use asking Dad to go because he will never stoop that low and even if he did he won’t carry things through the streets† (McCourt 99). This shows that even as a young child Frankie understands that even though his family isn’t â€Å"the poorest of the poor† his parent’s lifestyle force him and his brothers to humilify themselves and humbly do things to survive. Frankie gets frustrated at his parents when he gets older and starts to realize they can spend so much money on cigarettes and alcohol but they never have enough food in the house. â€Å" There may be a lack of tea or bread in the house but Mam and Dad always manage to get the fags† (McCourt 138). Even though the McCourt family doesn’t have any money Mam sends Malachy to the store to get cigarettes on their family’s tab. Throughout the book Mam and Dad spend a lot of money on cigarettes and alcohol and it isn’t necessarily for an addiction but for a getaway of sorts.

Wednesday, October 23, 2019

Heuristics

Heuristic can be defined as a method of argument in which postulates or assumptions are made that remain to be proven or that lead the arguers to discover the proofs themselves. Examples could be an educated guess or common sense. Educated guess because a person considers what they have observed in the past, and applies that history to a situation where a more definite answer has not yet been decided. Common sense because it is practical approaches that right and wrong nswers seem relatively clear cut.One out of three examples is the representativeness. Also considered the rule of thumb; when people are asked to Judge the probability that an object or event A belongs to class or process B, probabilities are evaluated by the degree to which A is representative of B, that is, by the degree to which A resembles B. Are used mainly in algorithms which is a program that doctors use to diagnose their patients by putting n their symptoms and following the questions and leads to more question s until the computer can say what is issue is and how to cure it.Two out of three examples is the availability. This is defined as a cognitive heuristic in which a decision makes relies upon knowledge that is readily available rather than examine other alternatives or procedures. This example shapes the way we view our world. The probability does make a difference in availability whether it be lives, whether or statics. Three out of three examples is the anchoring and adjustment.Anchoring and adjustment is what people use to make quantitative estimates. The primary effect and anchoring may combine, for example in regards to a Jury opinion can be swayed by an anchor by the first opinion. First impressions are everything but people are better at relative thinking than absolute thinking. Relative thinking is more conclusive because the truths are altered and absolute thinking is more of a common sense thing in todays functioning society.