The Economies Of Scale Marketing Essay

The Economies Of Scale Marketing Essay Economies of scale is a economic term that illustrating a business model where the long run average cost curve declines as production increase. In another way, it also can explain as the reduction in average cost per output resulting from additional output production. Economies of scale can be distinct in two types, which are internal and external economies of scale. Internal economies of scale can achieve when a company can increase its production with decline of average cost while external economies of scale occur outside the firm but within an industry. For example, when an industrys scope of operations expands with certain factors will result a reduction in cost for those companies working within that particular industry then it can be achieve. External economies of scale will benefit all the companies within that particular industry. Research and Development Nestle has delivered significant improvements in operational efficiency over many years. Its manufacturing strategy follows what is the best serves its consumer and consumer needs. In order to achieve the economies of scale, Nestle is involved in every stage of production chain for providing growers with technical advice, maintaining the supply chain, researches and development, advising quality issue and others. For example, Nestle has its own researches and development (RD) department with total spending $70 million as long-term investment on it. Product innovation is becoming a necessary for a company because of it brings the awareness of companys situation and competition heated up in market. Therefore, Nestle need the RD to wring out efficiencies to slash the costs and boost the output production. In response, Nestle had set a vision is called One Nestle which it introduced common processes, standards, and system across the enterprise. It used System Application Products (SAP) software to automate and integrate all the operations, procurement, production, distribution, and customer care. Automation extent its contributions toward productivity and improvement and this innovation of technology maintain the efficient scale of production. As a result, Nestle achieved unprecedented economies of scale in its business (Ansari, Ali, Dogar, Shafique, and Bukhari, n.d.). Specialization Moreover, economies of scale can achieve by specialization in Nestles labors. Increased specialization in used of labors has high possibility of expanding size of its business. Workers can use full time to do their task at which they have specific skills. This can reduce the time consuming with lower the production costs than the skilled workers to spent more time and costs in unskilled tasks. With the expertise of labors, Nestle can produce different types of high quality products to meet customers needs and wants (Ansari et al., n.d.). For instance, customers nowadays are more health conscious. Therefore, Nestle has employed the labors that expert in the nutrition, health-wellness, and environment friendly aspects to produce health conscious products. The products with medical benefits can be known as functional foods or nutraceuticals can bring big growth to Nestle with cost saving when production efficiency by expertise workers (Benady, 2005). Popurlarly Positioned Products (PPPs) Furthermore, Popurlarly Positioned Products (PPPs) are an important strategy and the main growth drivers to Nestle in recent year. PPPs focused on providing high quality and nutritional food products at affordable cost to emerging consumers. With this strategy, PPPs achieved 8 percent increase in annual sales which equivalent to USD 8 billion in year 2009. This strategy can achieve that profitable return by Nestle because it relies on local sourcing, local manufacture, and local distribution to minimize the costs. Nestle business are using the range of local distribution such as street markets, door-to-door distributors and mobile street vendors to expand its business opportunity not only in developed but also distribute its products to emerging countries. With wisely used of locally distribution, this can lead Nestle to cost savings by lowering the transportation, import or export costs of the products without reducing the profit earned and amount of outputs produced (Nestle PPP Str ategy, 2010). 2.2 Economies of Scope Economies of scope is describing the cost advantage that received by a company due to produce a complementary variety of goods rather than specializing in the production or producing a single product. Economies of scope also can achieve when a company can produce a given level of output of each product line more cheaper than separate firms that specify in producing a single product at given level. This can occur from jointly utilization of inputs and lead to reductions in per unit costs. This shows that company has potential cost savings from joint production. Joint co-operation Economies of scope are an important in Nestles growth strategy. Nestle rely on its marketing expertise and well-established position to expand its range of products. The economies of scale can achieve by Nestle because its production system shares across many with different product lines (Delios and Singh, 2005). Besides, Nestle also had joint co-operation with others companies to produce more quality with expanding in product lines. For example, Coca-Cola and Nestle formed Coca-Cola Refreshments to expand companies position in ready-to-drink tea category. The products that produced by jointly companies of Nestle and Coca-Cola are such as Nestea, Nescafe ready-to-drink products, Tian Yu Di tea and Yang Guang tea. Besides, Nestle has also formed joint venture with US food company General Mills to produce and market breakfast cereal worldwide. With the joint production to other firms, Nestle not only can improve the expertise and quality of products but also save costs to take longer t ime and costly on RD development on new products. This strategy can lead Nestle to achieve economies of scope but also economies of scale (Girard, 2005). Umbrella brand In addition, another important reason for Nestle to achieve economies of scope is it used marketing through an umbrella brand. Nestle promotes its products in formed of professional magazines including statements of physicians and professors, official brand label, small flyers, advertising through electronic mechanism and a clear umbrella brand Nestle web page. All of the information that published by Nestle is to convince buyers to purchase its health-wellness and qualified products. Nowadays, Nestle kept on doing is integrating their logo in several brands in supporting advertisements, appearing as a seal of quality and web page. A good example of Nestle used umbrella brand marketing is Maggi, which its advertisement poster consumers first see Maggi as a brand but also can see Nestle as the responsible copyright brand at the bottom left-hand corner. The new flavor of Maggi brand products can easier to introduce to public with well-known brand of Nestle. The reputation of Nestle cre ates the credibility of customers to purchase the products while Nestle also can save costs to develop and maintain its brands ((Klopping, 2011). Advertisement Furthermore, Nestle also used marketing strategy by combining two advertisements to promote certain products. For instance, Maggi instant products and Thomy cooking oil or sauces are complemented each others in used. With combining two advertisements can save costs while if Nestle promoted its own brands separately will cause Nestle to spent more to promote in two different advertisements. Nestle used the strong advertisement marketing to create high brand awareness to itself and make it sell 2.5 billion products a year. This make Nestle achieve economies of scope by reducing of costs in advertising and increase the sales of its products to public (Klopping, 2011). 2.3 Learning Curve 2.3.1 The Boston Consulting Group (BCG) The BCG Matrix is a business method created by Bruce Henderson for Boston Consulting Group in the late 1960s. This method based on the product life cycle theory that usually used to analyzing their business units or products lines. This matrix also has significant contribution until today for strategic management used by companies by providing a composite picture of the strategic position of each separate business within a company. Therefore, the management can determine the strengths and the needs of all sectors of the firm. Under this matrix, it has two dimensions, which are market share and market growth. From the 2 dimensions, BCG charts can divide into four types of scenarios: Stars, Cash Cows, Question Marks, and Dogs. The products that categories into BCG Matrix figure can refer to Appendix Figure 1 (Birdi, Kapoor and Sood, n.d.). Stars The Stars is a market that having high market share with high growth. It is an optimum situation from all scenarios and leader in the business. However, this scenario requires an increased investment to maintain continuous growth because if the market growth decline as the market share maintain at same level will cause it fall to Cash Cows. Nestle beverages are the Stars in Nestle business because of high quality with new designs of products and make it become popular to customers. Most of the customers rather consume high quality product even more expensive due to they pay more consideration on health care nowadays. Through the number of repeat buyers is high in case of Nestle beverages, the rate of increase among the new buyers is also growing (Nestle BCG Matrix, 2010). Cash Cows The Cash Cows is the situation where the market growth is low and market share is high. This scenario has generated high profit margins and a lot of cash flow but the growth is very slow. Therefore, it only requires low placement and promotion of investments. Baby food products are the Cash Cows under Nestle business because Nestle has quite a long hold in its market share with its sales increasing on a continuous basis. Nestle company has also to promote and to put it forward to become products as stars (Nestle BCG Matrix, 2010). Question Marks The Question Marks is the scenario that has high market growth but low shares. It has high demand to generate high growth but low returns due to low market share. The question mark business is more risky because it only have low share. However, it can become a star if it can increase the market share or deliver cash. If fail, the growth stops and will cause the business drop to Dogs. The breakfast cereals are the example product of Nestle under Question Marks. This product has high market growth but low market share, therefore, Nestle has to make decisions on whether which of the product should stay or phase out in market to remain competitive advantage and can successfully improved it (Nestle BCG Matrix, 2010). Dogs The last scenario is Dogs, which the worst situation under BCG matrix due to the market share and growth is low. It has to avoid or eliminate because it only can generate little profit. Delivery cash or liquidate are the solutions to avoid present in this scenario. Pharmaceutical products are one of Nestle product that under Dogs because it only consist low share business with low growth market. The main reason is it never considered competitors by other pharmaceutical product manufacturers. Therefore, Nestle Company needs to think the solutions for improving on this product (Nestle BCG Matrix, 2010).

Those Winter Sundays

Those Winter Sundays Historical Context/Info about Author: Robert Hayden grew up in a poor African-American section of Detroit known as Paradise Valley. At a young age, his parents separated and his mother could no longer afford to keep him so he was sent to live with a foster family. His adoptive father was a strict Baptist and manual laborer and while he was a stern man, he always attempted to care for and nurture Hayden’s love of literature. Summary: The poem, composed in 1962, is a tribute to Hayden’s stepfather in an effort to express both his gratitude for all the hard work he had done for him as well as the regret that he feels for not appreciating him more during his lifetime. The poem’s power is emphasized through the technique of using flashbacks from his childhood and juxtaposing them against the knowledge and newfound respect he now has as a man. This short, simple poem touches on topics such as family relationships, coming of age, and sacrifice for loved ones. Literary Devices Used: Symbolism & Imagery – Those Winter Sundays has many symbols and imagery that are well utilized in order to convey Hayden’s message. He refers to his stepfathers â€Å"cracked hands†, which in this case, is used to symbolize the hard work this father was willing to go through for the love of his family. Another symbol present in the poem is his â€Å"polished good shoes† which is another symbol used to express the indirect nature of a fathers love. Even though he was strict and withdrawn he would take the time to make sure that his son would have a better life than he had. Syntax/Structure- In order to emphasize the labored existence of his father, the author repeatedly uses the â€Å"c† sound, which kind of adds the element of pain. Examples of this alliteration include, cracked, banked, thanked, and chronic. The overall structure of the poem also attributes to the underlying tone. It is constructed very simply which may help to express the simplicity of the love between a father and son. They did not lead an extravagant lifestyle and his father didn’t do go out of his way in order to show affection towards his son, but the point was he did what needed to be done even if it was hard, without calling for any appreciation and that was enough to show his love for his family. The poem also ends with a rhetorical question, â€Å"What did I know, what did I know of love’s austere and lonely offices? which helps to show the regret and change in heart the man has had through his own personal growth. Tone- the poem’s tone shifts in the beginning from a cold, harsh tone to a warmer comforting tone by the seventh line. Although by line nine the poem’s tone shifts again to a negative uncomfortable tone. The cold, harshness of the tone described in the first stanza reflects through the coldness of the house, the Father’s cracked achy hands and the fact that no one has ever thanked him. This fluctuation of tone indicates the uncertainty the son feels about his father and whether or not he truly does care for him, which of course as a man he realizes he always had.

Biology Osmosis Observation

Biology laboratory work: Osmosis observation Measuring the dependence of net mass gain in potato pieces on concentration of sugar solution By Jonas Kulikauskas Siauliai Didzdvaris Gymnasium Hypothesis: The more sugar in solution, the more potato mass will decrease. Aim: To see how potato mass will change at different concentration solution. Research question: How the mass of potato will change at different concentration solutions? Variables: Dependent: solution concentration.Independent: sugar concentration in potatoes. Controlled: time, potato form. Apparatus: 1. 5 plastic cups 2. Distilated water 3. Potato 4. Knife 5. Clock 6. Electronical scales (Â ±0,05) 7. Bag of sugar 8. Measuring cylinder 9. Tap water Method: Peeling down the potato and cutting it into 1cm3 cubes (25 cubes) Weighing potatoes on the scales Putting different amount of sugar into five plastic cups (1st no sugar 2nd 6,8g 3rd 13,7g 4th 20,5 5th 27,4g) Adding 100ml of water to each of the cups Mixing the sugar with waterPutting in 5 potatoes into each cup Waiting 20 minutes Pulling out the potatoes, drying them up and putting on the scales Writing down new mass. Amount of sugar in solutionSolution concentration %Cup numberMass of five cubes before(Â ±0,05g)Mass of five cubes after (Â ±0,05g) 0g0%15,8g6g 6,8g6,37%25,1g5,2g 13,7g12,05%35,5g5,3g 20,5g17. 01%45,6g5,4g 27,4g21,51%55,5g5,3g Graph: While the concentration is from 0% to 6,37% the net mass gets bigger, later on from 12,05% to 21,51% the net mass gets smaller.When the concentration is from 0% to 6,37% the net mass change is positive, when from 17. 01% to 21,51% – negative. Conclusion: The potato lost more mass as it was submerged in bigger concentration solutions because the bigger concentration difference is, the osmosis will occurs more intensively. Evaluation: I think that laboratory work went pretty well, I managed to see the differences in potato mass change and make a conclusion of it. Next time I should write down origi nal numbers and not rounded ones to give more accurate results.

Ted Bundy Was So Psychotic - 1625 Words

Early Life Ted Bundy was born Theodore Robert Cowell on November 24, 1946 in Burlington, Vermont. His mother was Eleanor Louise Cowell and his real fathers identity has never been discovered. Because of this Bundy lived with his grandparents in Philadelphia for three years with his mother; this was because of the social stigma of birth outside wedlock. People described Bundy’s grandfather Samuel Cowell was a bully and bigot who was a giant racist who beat his wife, but for some reason Ted Bundy has said that he respected and clung to his grandfather. This could be a reason why Ted Bundy was so psychotic; I believe he learned some of his behavior from his aggressive and dangerous grandfather. Bundy’s mother’s sister who was living with them; recalls times where she would wake up from a nap and there would be knives all over the bed and Ted was standing next to the bed just smiling. In 1951 Ted and his mother moved to Tacoma, Washington where Ted’s mother me t his soon to be step dad Johnny Culpepper Bundy. Johnny and Louise married later the same year and Johnny adopted Ted as well; this is where Ted Bundy got his last name. Ted Bundy stayed distant from Johnny Bundy and when Ted was older, he stated to friends and his girlfriend at the time that Johnny was not his real father and did not really like him. While living in Tacoma, Bundy would search trash cans and open cars for pictures of naked women, read violent crime novels and detective magazines for sexual violence andShow MoreRelatedSerial Killers Essay985 Words   |  4 Pagesnecessarily will have the behavior of a serial killer. In this paper, I will attempt to show the difference between the psychopath and the psychotic. Explain how the environment, upbringing, and treatment of serial killers led them to become who they are today. 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