Analysis of Employee Empowerment Culture & the Theory of Penetration Pricing

Employee Empowerment Culture

            Today’s employee’s have a desire to have a say in the decisions that they make day in a day out. Management’s shift from primary decision maker to a facilitator is a process known as employee empowerment.  Osborne & Plastrik  (2000) describe employee empowerment as a push of the authority to make decisions down to the frontline employees. Instead of responding to the orders they are given, they achieve results by taking personal responsibility of their duties. “Cultures that support empowerment encourage managers to be catalysts, facilitators, coaches, enablers and developers of others rather than merely decision making authorities” (McCrimmon Ph.D., 2011).

Issues, Outcomes & Analysis

            Whole Foods wanted to boost employee morale and create an overall happier workforce. They decided to implement team interviewing, which calls for a diversified panel of employee’s interviewing applicants. The team member participation empowers the culture at Whole Foods because employee’s feel they have a say in the types of people that are hired by the company. They also promote hiring from within. The results achieved an added benefit in that “the process educates both the interviewers and the candidates by giving insight into all the expectations and challenges of the job” (Shelly, 2011). If I were involved in the management of Whole Foods, I would probably not utilize this technique. I think that it was a very profound move for the company to make as well as a very good idea. My personal management style would leave me wanting more control over the type of people that I was hiring. If a few bad apples were able to penetrate the system, they could potentially end up hiring more like them. The idea is a bit too modern for my taste but it very interesting to consider.

The Theory of Price Penetration

            When a company is trying to introduce goods or services that are new into the marketplace, the theory of price penetration is often implemented. It involves the price of the new product being set lower than the company intends to sell it for in the future. The purpose of the low price is to penetrate the market by securing a significant amount of the market share. Price penetration is usually used when the market of people willing to pay a premium for the product is insignificant in regards to the market share of customers looking for a good deal. One of the most important goals of price penetration is to discourage any competitors from attempting to enter into the market that you are selling in. “A penetration policy is even more attractive if selling larger quantities results in lower costs because of economies of scale” (Hillstrom, 2002). Pricing is the most important element of a company’s business strategy because it is the only factor that produces revenues. All the other elements of the marketing mix represent incurred costs.

Issues, Outcomes & Analysis

            Wal-Mart is always looking for ways to give their revenue a boost. Wal-Mart utilizes penetration pricing on the new products that they offer in their stores. The new products price will beat any other store that you could purchase the product at, and the hope is that you will end up buying other products once you have been drawn into the store (Hainer, 2011). Although they are actually losing money selling you the new product, they usually make up for it many times over by the other sales they make once the customer is through the door. Wal-Mart also uses penetration pricing when they open stores in new geographic markets. They lower prices intending to undersell the local, better established competition in the new area. As their loyal customer basis gradually increases over time, so do their prices. “A recent pricing issue is that of everyday low pricing, where the retailer charges a constant, lower price at all times, with no temporary price discounts. Wal-Mart has led the trend toward everyday low pricing” (Allen, 2001). Wal-Mart has used the theory of penetration pricing as their brand building strategy and they have been very successful in doing so. I think that Wal-Mart has done an exemplary job employing the theory and I wouldn’t have changed a thing had I been part of the management team.

References

Allen, G. (2001, May). Witiger. Retrieved October 28, 2011, from Pricing Objectives: http://www.witiger.com/marketing/pricingobjectives.htm

Hainer, S. (2011). chron. Retrieved October 28, 2011, from Penetration Pricing Examples: http://smallbusiness.chron.com/penetration-pricing-examples-18365.html

Hillstrom, K. (2002). Encyclopedia of Small Business. Retrieved October 27, 2011, from Pricing Penetration: http://www.enotes.com/small-business-encyclopedia/

McCrimmon Ph.D., M. (2011). Leadersdirect. Retrieved October 28, 2011, from Empowerment: http://www.leadersdirect.com/empowerment

Osborne, D., & Plastrik, P. (2000). The Reinventor's Fieldbook. San Francisco: Jossey-Bass.

Shelly, J. (2011, October 2). Human Resource Executive Online. Retrieved October 28, 2011, from Innovative Hiring at Whole Foods: http://www.hreonline.com/HRE/story.jsp?storyId=533341639

Business Plan for Precision Auto Detailing

A business plan is an essential part of any small business because of its ability to guide the company. It charts the future course and defines strategies for achieving the business goals. The business plan defines risk for the owners and establishes a game plan. It also provides management with a base line so that they can track their progress and see whether or not they are on track for achieving specific goals. Business plans are a necessity for any company that intends to attract capital. A business plan focuses on the processes that will be implemented to reach target goals. A business plan increases the chances that a small business has of being successful.

There are several elements that a well written business plan should possess. A business plan should fit the needs of the business and be specific. It should be realistic and implementable. Targets should be set throughout the plan so that the plan is measureable. Management is going to need to have the ability to check and see if everything is on track, and measurable deadlines are one of the best ways of doing that. The plan should lay out with whom different responsibilities lie and define clearly any assumptions being made. Most importantly, a business plan shouldn’t be written and forgotten about. It should be “kept alive by follow up and planning process” (Berry, 2009).

The elements of a business plan should be specific to the business that it is outlining.  According to Scarborough, Wilson, & Zimmerer (2009), the elements that should be considered for the business plan are:

·       an executive summary

·       mission statement

·       company history

·       business and industry profile

·       business strategy

·       description of product and services

·       marketing strategy

·       owners resumes

·       plan of operations

·       pro forma financial statements

·       loan or investment proposal

The best elements for Kyle and Chad to consider would most likely be the background of the company, description of services, business strategy, plan of operations and loan and investment proposals. These elements would share with a potential creditor what it is they do, how it’s been going, what they are proposing and how they plan to carry out their plan. Once a bank has read the business plan, they should know everything Kyle explained to me. Kyle needs to help the banker to understand why he should take a chance on Precision Auto Detailing.

            There are several things lenders are looking for when they first read a business plan. A stable capital base is one of the most important things that a lender wants to see before they will even consider granting a loan to a small business. A statement of cash flow is important for a lender to determine that the small business’s capacity to meet its financial obligations. They want to know what assets you have that can be used a collateral should you be unable to pay back the loan that they give to you. Lastly, Scarborough, Wilson, & Zimmerer (2009) believe lenders look for information on the conditions surrounding the business such as “interest rate levels, the inflation rate, and demand for money” (p. 201).

            When you are finally ready to present your business plan to potential lenders preparation is key. You need to appear well informed and prepared for the endeavor that you are taking on. A well rehearsed 10-15 minute presentation should be developed beforehand that informs the lender of all of the aspects that he is looking for before he can make an informed decision about your loan. The presentation should summarize the background of the small business, the market analysis, why the small business has a competitive edge, the qualifications and experience of management, and a financial analysis that focuses on the lender return on investment. The presenter should be enthusiastic about the venture, use visual aids when possible, speak in layman’s terms, and be prepared for questions.

            While no one can guarantee that a perfectly drawn out business plan and flawless presentation will eventually lead you to the capital you are trying to obtain, it is the best possible way to increase your chances. Preparing a business plan that answers everything that your lender needs to know will make your small business seem much more competent. According to Marte (n.d.), “the business plan needs to show the lender that providing you with a small business loan is a low-risk proposition”. If you have managed to develop a worthwhile concept for a successful small business investors will follow.

References

Berry, T. (2009, February 18). Planning Startups Stories. Retrieved October 20, 2011, from 8 Factors that Make a Good Business Plan: http://timberry.bplans.com/2009/02/some-key-questions-on-business-plans.html

Marte, N. (n.d.). About.com. Retrieved October 20, 2011, from Small Business Loans 101: http://sbinformation.about.com/od/creditloans/a/ucbusinessloan.htm

Scarborough, D., Wilson, D., & Zimmerer, T. (2009). Effective Small Business Management: An Entrepreneurial Approach. Pearson.

Buying a Small Business

The characteristics that Bill possesses that would be beneficial if he decided to take over Hugo’s small business would first be the skill level that his has in his trade. He is very well versed in what the company does and has already established a reputation for himself. Since this is what Bill has been doing all of his life, he is probably one of the best qualified to take over the business when it comes to the quality of the product. Bills positive attitude and drive for perfection would also be good characteristics for someone wanted to enter into the small business world. He seems to value achieving the highest quality over earnings. It is obvious that, since Bill is emailing me for advice on whether or not he should buy the company from Hugo, that he also possesses the beneficial entrepreneurial characteristic of being future oriented.

Bill’s email to me also tells me that he isn’t sure on whether or not buying the company is the best decision for him at this point in his life with the knowledge that he currently possesses. If Bill doesn’t have confidence in his ability to achieve success in this venture, it could be a factor that leads to the ultimate failure of the business (Boniface-Hannon, 2011). Bill also does not have a preference for moderate risk because he is raising three children and spends the majority of the household income on bills related to taking care of them. He would be fiscally unable to take the risk of not bringing home that money each pay day. Those two characteristics alone should be enough to make Bill think twice before agreeing to buy the business from Hugo. If the company went under, he would still owe Hugo money for the next 15 years not to mention the fact that he would no longer have a job. One of the biggest mistakes that a new business owner can make is undercapitalization. Coupled with his inexperience in the business aspect of the company and his lack of business knowledge, Bill would be taking a very substantial risk by agreeing to buy the business from Hugo at this point.

To avoid seeing the business turn to shambles, Bill needs to identify his weaknesses and act accordingly by aggressively compensating for his lack of experience in those areas. Bill would need to hire someone well versed in the financial aspect of the company to help manage resources and understand what different parts of the statement mean to the company’s bottom line. He would also need to establish a team of managers that could also help to advise him on the options he has when trying to deal with management related issues. Bill has a problem with undercapitalization therefore; he needs to make sure that every penny that he spends goes to what would be the most beneficial for the company. Bill should also attempt to negotiate the terms of the sale to include Hugo slowly leaving the business. During his phasing out into retirement, he could show Bill everything there is to know in reference to the business aspect of the company as well as management styles that have worked best for him in the past. Learning the business model from the person who created it, slowly overtime so that Bill has extensive in depth knowledge, would be far superior to any general business class. If Bill can be certain that Hugo is willing to assist in the transition and provide him with all of the necessary knowledge to successfully run a profitable business, the deal that Bill is being offered is an attractive one. In addition, Bill could request Hugo “to stay on in a consulting capacity for a period of time” (Scarborough, Wilson, & Zimmerer, 2009).

It is hard to say what I would do if I were in Hugo’s position. Offering to sell the business to Bill seems like a good idea because he knows that the business will be in good hands and will carry on the reputation that he has worked so hard to build. On the other hand, the attractive offer makes me wonder whether or not Hugo is having difficulty getting rid of the business. If something sounds too good to be true, there's usually a reason for it. Hugo may have already made an effort to sell the company and been unable to. If he had been unsuccessful in selling the business prior to the offer, was it because of the slow economy or are there underlying skeletons on the company’s balance sheet that Bill is unaware of because he has yet to do the proper research. It is imperative that before buying or selling the business, both parties thoroughly investigates the company based on multiple methods of valuation so that they can ensure that they know exactly what they are getting themselves into and assess the risk involved.  Hugo and Bill must realize that a business is only “ultimately worth what the highest bidder is willing to pay with terms and conditions that are most acceptable to the seller” (Scarborough, Wilson, & Zimmerer, 2009). Based on the information that I am aware of so far, I think that the offer Hugo is extending to Bill is an acceptable one. As Hugo, a man looking to go into retirement, a steady flow of income over the next 15 years would be equally as beneficial to me as a lump sum all at once.

Works Cited

Boniface-Hannon, C. (2011). WELCOME MGMT250 01 DCH. Retrieved on October 4, 2011 from https://mycampus.aiu-online.com/pages/MainFrame.aspx?ContentFrame=/Home/Pages/Default.aspx.

Scarborough, N., Wilson, D., & Zimmerer, T. (2009). Effective Small Business Management: An Entrepreneurial Approach. Prentice Hall.

Global Warming: Fact or Fiction?

Both supporting and contradictory evidence exists as to whether global warming is impacted by humans, nature, or inaccurate data. The opposing viewpoints about the impacts of global warming are: (1) naturally occurring temperature variation (humans have no control over it) (2) a product of human influence and (3) a product of contaminated data. Global warming’s potential impacts are environmentally devastating “including higher ocean levels (and)… increased hurricane activity” (Burnett, 1997) however; can be justified as natural occurrences. Added awareness of the global warming has developed from an upsurge in the frequency of extreme weather events attributed to climate change.  The research showing increased average temperature over time has been the catalyst of an ongoing debate as to whether or not people are causing this temperature change to occur and how much worse we can expect it to get.

The theory of “human-caused global warming is often called anthropogenic climate change” (National Geographic News, 2007) and is one of the opposing viewpoints on global warming.  Anthropogenic climate change is thought to be a result of increasing deforestation coupled with the emissions produced by the burning of fossil fuels. Because we are producing more carbon dioxide and decreasing the amount of trees that remove carbon dioxide from the air, excess carbon dioxide accumulates in the Earth’s atmosphere.   It is also widely believed that “methane, which flows from landfills, livestock and oil and gas facilities, is a close second to carbon dioxide in impact on the atmosphere” (The New York Times, 2011). Humans largely contribute to the carbon dioxide levels on Earth and higher carbon dioxide levels lead to higher temperatures. Humans’ being the cause of global warming is a logical conclusion to reach after analyzing this information.

Another one of the opposing viewpoints on global warming is that natural occurrences cause it.  An increase in sea levels over time is a natural occurrence. Evidence supporting this reveals a rise of  “more than 300 feet over the last 18,000 years - far predating any possible human impact” (Burnett, 1997). In any case, Earth has hundreds of million people living within one meter of sea level and countless heavily populated coastal cities that will reap negative effects of rising water levels, and efforts to slow the rise are ideal. An increase in the average global temperature would trigger the melting ice shelves in Greenland and Antarctica so massive, the entire world would substantial increase in sea level. Studies suggest the ice sheets in Greenland will begin to melt with a rise in average temperature of 3 degrees Celsius.   In 2005, “the number of Category 4 and Category 5 hurricanes … almost doubled” (Lovgren, 2006).  Many claim that it is one of the direct results of global warming. Hurricane activity has a tendency to follow a multi-decadal cycle, which makes determining temperatures affect on the number of hurricanes per year difficult. Research shows overall numbers over time have remained constant and unchanged, regardless of data that shows “tropical ocean temperatures have risen by about 0.5 degree C since 1970” (Walsh, 2008). Experts have strongly emphasized “that neither Hurricane Katrina nor any other single event can be linked to global warming” (Lovgren, 2006).

The third opposing viewpoint on global warming is that it isn’t actually happening. The Earth’s average climate temperature has risen “1.4 degrees Fahrenheit (0.8 degree Celsius) around the world since 1880” (National Geographic News, 2007) according to research done by NASA.  Global satellite data is the most reliable method of tracking this change today. “These readings are accurate to within 0.01ºC, and are consistent with data from weather balloons” (Bast, 2003). The technology began recording temperature data nearly 30 years ago. Before satellites, land-based methods were relied on and were often less reliable due to heat contamination generated by nearby urban developments. Satellites have provided scientists with evidence that “show no warming since readings began” (Bast, 2003) in the lower troposphere, which is an area scientists claim immediate impacts of global warming would be reflected.

Global warming has been a topic of debate for over a decade. Some people believe that it is a story built from inaccurate temperature reading. Others debate whether it is cause by humans or nature. Both supporting and contradictory evidence exists as to whether global warming is impacted by humans, nature, or inaccurate data. The most important thing we can do is to stand united in the effort to continue to research and record data that will give us more insight into the cause and impacts of global warming. Is global warming a fact or fiction? You decide. The only certainty is that the topic will continue to be a matter of great debate for years to come.

Works Cited

Bast, J. (2003, February 1). The Heartland Institute. Retrieved October 7, 2011, from February 2003: Eight Reasons Why 'Global Warming' Is a Scam: http://heartland.org/policy-documents/february-2003-eight-reasons-why-‘global-warming’-scam

Burnett, H. S. (1997, May 23). NCPA. Retrieved October 7, 2011, from Myths of Global Warming: http://www.ncpa.org/pub/ba230

Lovgren, S. (2006, May 25). Al Gore's "Inconvenient Truth" Movie: Fact or Hype? Retrieved October 8, 2011, from National Geographic: http://news.nationalgeographic.com/news/2006/05/060524-global-warming.html

National Geographic News. (2007, June 14). National Geographic. Retrieved October 4, 2011, from Global Warming Fast Facts: http://news.nationalgeographic.com/news/2004/12/1206_041206_global_warming.html

The New York Times. (2011, September 30). The New York Times. Retrieved October 7, 2011, from Global Warming: http://topics.nytimes.com/top/news/science/topics/globalwarming/index.html

Walsh, B. (2008, September 8). TIME Science. Retrieved October 7, 2011, from Is Global Warming Worsening Hurricanes?: http://www.time.com/time/health/article/0,8599,1839281,00.html

Forward Outlook on the United States Gross Domestic Product Growth Rate

The U.S. GDP (gross domestic product) is one of the best ways to judge the health of our economy at any given point. My forecast of the U.S. GDP rate going forward is very sluggish. The forecast is based on several different components of the GDP. A brief summary of what GDP is along with a summary of the different components will help you to better understand exactly what the GDP indicates and what it means for you going forward. Recent historical events along with expected conditions in the future are good sources to base what the change in different component aspects may be. Economists use various indicators to measure the output and growth of an economy. The GDP has been coined “the godfather of the indicator world” (Barnes, 2011) because of its aggregate measurement. GDP puts a value on the total market of an economy. The total market is defined by final goods and services produced within the year. When real GDP is referred to, it is talking about the inflation adjusted GDP. It makes comparing growth during different time periods easier. GDP Reports for the United States are released the last day of each quarter by the Bureau of Economic Analysis and “historically averaged about 2.5-3% per year but with substantial deviations” (Barnes, 2011). The amount the GDP rises or falls can be influenced by a change in any of the numerous components that help to make up the number.  The components include total consumption, government spending, investment, and the value of exports less the value of imports. Each component is a different percentage of the GDP, and the higher that percentage, the greater of an affect it has on the overall GDP numbers. Each component is influenced by another set of variables, which is how the GDP is able to encompass such an aggregate measurement of an economies health.

            Consumption makes up the largest part of the U.S. GDP. “It has been in the high 60 to low 70 percent range since the end of the dot com boom”(Ollodar, 2011) in 2000. One of the primary reasons for the steady rise in consumption is due to the steady increase in non-durable goods and services. Just today, The Census Bureau of the Department of Commerce released retail sales numbers of 1.1% which was lower than analysts’ estimates of 1.2% probably due to high unemployment rates. That means that America’s gauge on consumer sentiment is creeping lower still. After thorough research,  I do not predict a decrease or substantial increase in consumption,  which do little to help the growth of the U.S. GDP.

            Government spending will probably be the one component of the GDP that works against its growth the most. With the government trying to reduce the federal deficit, we can not only expect for this number not to grow, we should see a steady decline moving forward. Currently, government spending accounts for around 20% of the U.S. GPD. The U.S. cash deficit accounts for -10.44% of the GDP meaning that if it is ever completely paid back it would take 10.44% of the GDP with it. The national “defense spending, as a percentage of GDP, has trended down … since 1950” (Ollodar, 2011).  All of these factors will be responsible for weighing down the GDP in the future.

            Investment is the next component of the GDP that could give us an indicator of the future growth rate. The investment category is mostly comprised of business inventories and residential investments like home construction. Residential investments made up over 6% of the U.S. GDP preceding the housing bubble. Currently, it makes up 2.5%. Because the long term average of residential investments is 4.7%, we can expect to see a steady increase over time to numbers close to the average. How long that is going to take is the next factor that we have to consider. With the current economic numbers we have been seeing, it is likely that it is going to be a long recovery. On the positive side, I do not predict any further decrease in the residential investment numbers.

            Trade has been a negative percentage of the GDP since the late 1970’s. We have encountered lows of more than -6% of our GDP. Currently, it accounts for around 4% however, increasing oil import are responsible for most of this number. In the short term, we should see an increase in growth rate because we are still coming down off of the spike in oil priced from the beginning of the year. The long term price of oil is a different story. The supply of oil is diminishing which will inevitably lead to an increase in oil prices over time, causing an even greater negative impact on U.S. GDP. Unless we are able to find energy solutions right here is the U.S. (i.e. clean energy) we can almost count on oil hindering the growth rate of the U.S.

            After dissecting each of the different components that make up the majority of the GDP, I am predicting U.S. GDP growth rate to remain steadily slow indefinitely. The U.S. has a lot of changes to address before we see any real sustainable economic growth. The U.S. entering into a recession (two consecutive quarters of negative growth) is possible but unlikely.

           

References

Barnes, R. (2011). Economic Indicators: Gross Domestic Product (GDP). Retrieved October 13, 2011, from Investopedia: http://www.investopedia.com/university/releases/gdp.asp#axzz1afPUlB62

Ollodar, B. (2011, October 10). GDP Component Trends. Retrieved October 14, 2011, from dshort.com: http://www.advisorperspectives.com/dshort/guest/Bruce-Ollodart-111010-GDP-Component-Trends.php

Marketing Opportunities: Home Runs, Singles, and Low Hanging Fruit

Introduction to Marketing Opportunities

A viable marketing opportunity should be justifiable as worthy of pursuit. It is important to determine whether the marketing opportunity is a home run, single, or low hanging fruit. Additionally, it is important to evaluate all marketing opportunities and then come to an informed decision based on your research as to which would be the best idea. Projecting whether the endeavor will reflect positively or negatively upon the company as well as determining how significant of a financial improvement the opportunity will result in is optimal before making any type of commitment.          

Developing New Products

­­­­            When a company like Apple creates a new product, it can almost be guaranteed that people will want to buy it before they are even sure of what it is. That’s because Apple has a long history of surprising people with their endless innovation in their industry. They continually produce must have products. Creating new additions to your product line can be one of the best ways to add substantial increased revenue to your company’s balance sheets. “Introducing items that complement what you already sell can generate new sales and improve customer satisfaction” (Spors, 2011). The right product could turn around any business in the midst of failure. Product development can be a risky venture however. Research and development can tie up a lot of a company’s capital and could prevent them from being able to pay the liabilities that they have already obligated themselves to. If any other good opportunities come along, they may have to pass them up because they have no more money left on the side. If the venture ended out being a bust, and not resulting in any profitable new items for you company, all of the money spent on research and development would have been for nothing and you company would be right back where they started with less capital to allocate for other marketing opportunities.

            A home run is an opportunity that provides a business potentially momentous increase in growth. They require a significant amount of the company’s capital and tend to be rather large in scale. A home run is the riskiest type of marketing opportunity. This type of idea would be classified as a home run venture because it is very risky, takes up a lot of capital, can take a long time to develop and doesn’t have the highest chances of being a success. A new product could create significant return on investment to the business and would be a positive reflection on the company to current investors and customers because it would make them appear to be innovative and poised for growth. If they failed, the opposite would occur. Investors would not see them as positively as they once had because they would be wasting capitals on ideas that they were unable to implement. If successful, it would result in a significant financial improvement. I would not recommend this type of a venture to a company that was not well established and able to dedicate a significant amount of their working capital to a side venture such as product development.

Upgrade the Business’s Technology

If a company like Blockbuster was able to upgrade their technology into something even more high tech than what they were already using, it would almost guarantee that they would be able to more efficiently and effectively create their product. Blockbuster has been stuck in an in-store rut and hasn’t been able to make a successful move to online rentals like Netflix has. Upgrading technology would be known in the business world as a single. Singles come with significantly less risk than homeruns. They usually don’t require as much time and are more inexpensive yet have an attractive return. Charan (2006) explains that singles can increase revenues and “build a growth mind-set throughout the business, so that when the opportunity for a home run does come along, you’ll be better prepared to take advantage of it” (p. 28). Using operational and investigative metrics is the best way to improve the fundamentals of a business. The risks of this type of venture would be that the new technology does not end up being a good fit for the business, in which case they could revert back to what they were previously using. Depending on how much more efficient the technology made the company, it could have a substantial positive impact on the company’s finances because it could enable them to make more products in less time. It would also most likely reflect positively on the company because it shows that they are making strides to improve the way that they do business.

Developing a More Inexpensive Way of Packaging Products

Developing new ways of packaging current products to save money can be a great idea for your bottom line. If Under Armour could find a way to package its products more inexpensively it could save them and there customers money. Anything that makes the cost of selling your product less can be benficial for the consumers that are buying your products because you can get it to them for less. This type idea has very minimal risk and development most likely requires very litle capital. It is known as a low hanging fruit. Goldsmith (1997) quotes Muller, DeBettignies & Co. as saying that “low-hanging fruit is something visible - bad quality, unnecessary overtime, wasted materials -- that we can get our hands on right away, something that doesn't require an accounting degree to understand.” But company always looking for the low hanging fruit and not look elsewhere to further grow their companies are anything but innovative. They spend most of their efforts of trying to save and not thinking out of the box looking for ideas that will grow the company.  Pollick (2003) describes “fruit contained on these lower branches may be not be as ripe or attractive as the fruit on higher limbs, but it is usually more abundant and easier to harvest.”  It can be thought of negatively because a company can be seen understanding that the lower hanging fruit is not very high quality but goes after it anyways.

Analysis, Summary & Conclusion

            I would most strongly recommend Blockbuster utilizing new technology to make their business processes more efficient and effective. It would show that they are making strides to cut costs and positively impact their bottom line without high risk or the disadvantage of having to tie up a lot of the working capital. It also keeps the company from looking like they are doing a lot to grow their company. Upgrading technology would probably be the best bang for their buck because more efficient business processes would save money for both the customer and the consumer without the additional risk of a new product line being unsuccessful. It would result in the greatest financial improvement for the business in the least amount of time.

References

Charan, R. (2006). Profitable Growth is Everyone's Business. New York: Crown Business.

Goldsmith, A. (1997, October 31). Fast Company. Retrieved October 23, 2011, from Here's an Idea That's Not Quite Ripe: http://www.fastcompany.com/magazine/11/cdu.html

Pollick, M. (2003). WiseGeek. Retrieved October 23, 2011, from What is Low Hanging Fruit?: http://www.wisegeek.com/what-is-low-hanging-fruit.htm

Spors, K. (2011, October 12). Enprepreneurs . Retrieved October 23, 2011, from How to Take Your Business to the Next Level: http://www.entrepreneur.com/article/220495

Global Warming: Fact or Fiction

Both supporting and contradictory evidence exists as to whether global warming is impacted by humans, nature, or inaccurate data. The opposing viewpoints about the impacts of global warming are: (1) naturally occurring temperature variation (humans have no control over it) (2) a product of human influence and (3) a product of contaminated data. Global warming’s potential impacts are environmentally devastating “including higher ocean levels (and)… increased hurricane activity” (Burnett, 1997) however; can be justified as natural occurrences. Added awareness of the global warming has developed from an upsurge in the frequency of extreme weather events attributed to climate change.  The research showing increased average temperature over time has been the catalyst of an ongoing debate as to whether or not people are causing this temperature change to occur and how much worse we can expect it to get.

The theory of “human-caused global warming is often called anthropogenic climate change” (National Geographic News, 2007) and is one of the opposing viewpoints on global warming.  Anthropogenic climate change is thought to be a result of increasing deforestation coupled with the emissions produced by the burning of fossil fuels. Because we are producing more carbon dioxide and decreasing the amount of trees that remove carbon dioxide from the air, excess carbon dioxide accumulates in the Earth’s atmosphere.   It is also widely believed that “methane, which flows from landfills, livestock and oil and gas facilities, is a close second to carbon dioxide in impact on the atmosphere” (The New York Times, 2011). Humans largely contribute to the carbon dioxide levels on Earth and higher carbon dioxide levels lead to higher temperatures. Humans’ being the cause of global warming is a logical conclusion to reach after analyzing this information.

Another one of the opposing viewpoints on global warming is that natural occurrences cause it.  An increase in sea levels over time is a natural occurrence. Evidence supporting this reveals a rise of  “more than 300 feet over the last 18,000 years - far predating any possible human impact” (Burnett, 1997). In any case, Earth has hundreds of million people living within one meter of sea level and countless heavily populated coastal cities that will reap negative effects of rising water levels, and efforts to slow the rise are ideal. An increase in the average global temperature would trigger the melting ice shelves in Greenland and Antarctica so massive, the entire world would substantial increase in sea level. Studies suggest the ice sheets in Greenland will begin to melt with a rise in average temperature of 3 degrees Celsius.   In 2005, “the number of Category 4 and Category 5 hurricanes … almost doubled” (Lovgren, 2006).  Many claim that it is one of the direct results of global warming. Hurricane activity has a tendency to follow a multi-decadal cycle, which makes determining temperatures affect on the number of hurricanes per year difficult. Research shows overall numbers over time have remained constant and unchanged, regardless of data that shows “tropical ocean temperatures have risen by about 0.5 degree C since 1970” (Walsh, 2008). Experts have strongly emphasized “that neither Hurricane Katrina nor any other single event can be linked to global warming” (Lovgren, 2006).

The third opposing viewpoint on global warming is that it isn’t actually happening. The Earth’s average climate temperature has risen “1.4 degrees Fahrenheit (0.8 degree Celsius) around the world since 1880” (National Geographic News, 2007) according to research done by NASA.  Global satellite data is the most reliable method of tracking this change today. “These readings are accurate to within 0.01ºC, and are consistent with data from weather balloons” (Bast, 2003). The technology began recording temperature data nearly 30 years ago. Before satellites, land-based methods were relied on and were often less reliable due to heat contamination generated by nearby urban developments. Satellites have provided scientists with evidence that “show no warming since readings began” (Bast, 2003) in the lower troposphere, which is an area scientists claim immediate impacts of global warming would be reflected.

Global warming has been a topic of debate for over a decade. Some people believe that it is a story built from inaccurate temperature reading. Others debate whether it is cause by humans or nature. Both supporting and contradictory evidence exists as to whether global warming is impacted by humans, nature, or inaccurate data. The most important thing we can do is to stand united in the effort to continue to research and record data that will give us more insight into the cause and impacts of global warming. Is global warming a fact or fiction? You decide. The only certainty is that the topic will continue to be a matter of great debate for years to come.

Works Cited

Bast, J. (2003, February 1). The Heartland Institute. Retrieved October 7, 2011, from February 2003: Eight Reasons Why 'Global Warming' Is a Scam: http://heartland.org/policy-documents/february-2003-eight-reasons-why-‘global-warming’-scam

Burnett, H. S. (1997, May 23). NCPA. Retrieved October 7, 2011, from Myths of Global Warming: http://www.ncpa.org/pub/ba230

Lovgren, S. (2006, May 25). Al Gore's "Inconvenient Truth" Movie: Fact or Hype? Retrieved October 8, 2011, from National Geographic: http://news.nationalgeographic.com/news/2006/05/060524-global-warming.html

National Geographic News. (2007, June 14). National Geographic. Retrieved October 4, 2011, from Global Warming Fast Facts: http://news.nationalgeographic.com/news/2004/12/1206_041206_global_warming.html

The New York Times. (2011, September 30). The New York Times. Retrieved October 7, 2011, from Global Warming: http://topics.nytimes.com/top/news/science/topics/globalwarming/index.html

Walsh, B. (2008, September 8). TIME Science. Retrieved October 7, 2011, from Is Global Warming Worsening Hurricanes?: http://www.time.com/time/health/article/0,8599,1839281,00.html

Advertisements With Bad Grammar

The advertisement has an immense amount of grammatical errors in it.  The banner looked in the beginning to have the word cappuccino spelled “capochinu” and the word latte spelled “latel”. To make matters worse, it appears that the business owners that placed the sign on display noticed a few of the banners errors and attempted to make corrections themselves. After the owner had his way with the banner, cappuccino became “capachino” and latte became “late.” Never mind the fact that hot soup is missing a space and has ineffectively been turned its own new word “hotsoup.” The grammatically correct version of the advertisement would probably read:

Hot Coffee Available Here

Cappuccino, Black Coffee, Café Latte, Tea & Hot Soup

Personally, I would never go near a café with something like this in front of it. It makes the business look cheap because they were unwilling to pay to have the changes corrected before putting in out on display. It also makes the owners look completely incompetent because they are incapable of spelling the products that they offer correctly. I would have to assume that this banner is the product of business owners that are not well-versed in English trying to attract tourists. It looks extremely bad and probably dissuades most people from going inside. 

Launching a Business While Still In School

I disagree with the idea that a college student running a business while in school is taking away from his learning experience. I think that it adds to the experience if anything. The student/business owner is getting real life experience that he can bring into the classroom and develop more extensive questions that could help his other classmates as well. I think that there is really no better place to start your small business than when you have the ability to utilize and consult with numerous experts in the field for free! 

The Factors That Entrepreneurs Should Consider Before Choosing a Form of Ownership

The factors that an owner should consider before choosing a form of ownership can be rather extensive. Taxes are one of the most important factors because they can greatly effect the bottom line of a business. Liability exposure and capital requirements are also one of the major factors to take into consideration when decided what type of business you are forming. Others include the amount of control the owner wishes to have, management ability, goals, succession plans for management, and the cost of formation.

Starting a Small Business In a Bad Economy

Even though our economy has been facing turbulent times lately with the new administration in office, I still believe that I would want to start my own small business if I had the capital available. Because of the economic problems that we as a country are facing, new tax cuts are being imposed that help the small business owner. Starting a business now is becoming more and more attractive as the new tax cuts role out. It is becoming easier and more beneficial for someone to be a small business owner because of the steps that the government is taking to try and stimulate the growth of small business in America.