Question 3: Are the Company’s Prices and Costs Competitive?
One of the most telling signs of whether a company’s business position is strong or precarious is whether its prices and costs are competitive with industry rivals.
Price-cost comparisons are especially critical in a commodity-product industry where the value provided to buyers is the same from seller to seller, price competition is typically the ruling force and lower-cost companies have the upper hand.
Two analytical tools are particularly useful in determining whether a company’s prices and costs are competitive and thus conducive to winning in the marketplace:
value chain analysis and benchmarking.
Core Concept
The higher a company’s costs are above those of close rivals, the more competitively vulnerable it becomes.
The Concept of a Company’s Value Chain
The value chain consists of two broad categories of activities:
a.
Primary activities: foremost in creating value for customers
b.
Support activities: facilitate and enhance the performance of primary activities
Figure 4.3, A Representative Company Value Chain, depicts the linked set of value creating activities.
Core Concept
A company’s
value chain identifies the primary activities that create customer value and the related support activities.
Why the Value Chains of Rival Companies Often Differ
A company’s value chain and the manner in which it performs each activity reflect the evolution of its own particular business and internal operations, its strategy, the approaches it is using to execute its strategy, and the underlying economics of the activities themselves.
Because these factors differ from company to company, the value chain of rival companies sometimes differs substantially – a condition that complicates the task of assessing rivals’ relative cost positions.
The Value Chain System for an Entire Industry
Accurately assessing a company’s competitiveness in end-use markets requires that company managers understand the entire value chain system for delivering a product or service to end-users, not just the company’s own value chain.
Core Concept
A company’s cost competitiveness depends not only on the costs of internally performed activities (its own value chain) but also on costs in the value chain of its suppliers and forward channel allies.
Suppliers’ value chains are relevant because suppliers perform activities and incur costs in creating and delivering the purchased inputs used in a company’s own value chain.
Forward channel and customer value chains are relevant because:
3.
a. The costs and margins of a company’s distribution allies are part of the price the end user pays
b. The activities that distribution allies perform affect the end user’s satisfaction
Figure 4.4, A Representative Value Chain for an Entire Industry, explores a value chain for an entire industry.
Activity-Based Costing: A To.
Strategic management chapter 5 and 6 note for bba viiSanjeev Bhandari
The document discusses evaluating company resources and competitive capabilities. It identifies various types of strengths a company can have, including skills, physical and organizational assets, intangible assets, and competitive capabilities. Strengths are evaluated based on how hard they are to copy, how long they last, and how superior they are to competitors. Weaknesses and deficiencies are also identified. The document discusses identifying market opportunities and threats to a company. It evaluates assessing whether a company's costs are competitive through tools like strategic cost analysis and value chain analysis. Reasons for cost differences between companies are provided. The document defines strategic options like generic strategies, grand strategies, low-cost strategy, differentiation strategy, best-cost strategy, focus strategy, and various
Chapter 5 Supplementary NotesThe Five Generic Competitive Strate.docxbartholomeocoombs
Chapter 5 Supplementary Notes
The Five Generic Competitive Strategies
Chapter Overview
Chapter Five describes the five basic competitive strategy options – which of the five to employ is a company’s first and foremost choice in crafting overall strategy and beginning its quest for competitive advantage.
Introduction
By
competitive strategy we mean the specifics of management’s game plan for competing successfully – how it plans to position the company in the marketplace, its specific efforts to please customers, and improve its competitive strength, and the type of competitive advantage it wants to establish.
Core Concept
A
competitive strategy concerns the specifics of management’s game plan for competing successfully and achieving a competitive advantage over rivals.
A company achieves
competitive advantage whenever it has some type of edge over rivals in attracting buyers and coping with competitive forces. There are many routes to competitive advantage, but they all involve
giving buyers what they perceive as superior value. Delivering superior value – whatever form it takes – nearly always requires performing value chain activities differently than rivals and building competencies and resource capabilities that are not readily matched.
The Five Generic Competitive Strategies
There are countless variations in the competitive strategies that companies employ, mainly because each company’s strategic approach entails custom-designed actions to fit its own circumstances and industry environment.
The biggest and most important differences among competitive strategies boil down to:
List of Market Segments for the Retail Clothing Market
Differentiating Your Brand in the Digital World
1. Whether a company’s market target is broad or narrow
1. Whether the company is pursuing a competitive advantage linked to low costs or product differentiation
These two factors give rise to five competitive strategy options for staking out a market position, operating the business, and delivering values to customers.
Five distinct competitive strategy approaches stand out:
1. A
low-cost provider strategy: striving to achieve lower overall costs than rivals and appealing to a broad spectrum of customers, usually by underpricing rivals.
1.
A broad differentiation strategy: seeking to differentiate the company’s product/service offering from rivals’ in ways that will appeal to a broad spectrum of buyers
0. A
best-cost provider strategy: giving customers more value for the money by incorporating good-to-excellent product attributes at a lower cost than rivals; the target is to have the lowest (best) costs and prices compared to rivals offering products with comparable attributes
0.
A focused or market niche strategy based on lower cost: concentrating on a narrow buyer segment and outcompeting rivals by se.
Developed by Porter to get a bird's eye view of an organization's operation.
A value chain is a chain of activities for a firm operating in a specific industry.
Reveals opportunities to add value by improving cost, responsiveness to customers, efficiency, quality, reliability and integrity.
This document provides an overview of cost advantage and strategic cost analysis. It defines cost advantage as when a company can produce a product or service at a lower cost than competitors. Companies can gain cost advantage through access to low-cost materials, efficient processes/technologies, or low distribution/sales costs. The value chain framework is used to analyze a firm's costs and identify opportunities to lower the cumulative cost of activities versus competitors. Key aspects of cost analyzed include behavior, drivers, dynamics, and determining relative costs of competitors. Ways to gain and implement a sustainable cost advantage are controlling cost drivers, reconfiguring the value chain, and following steps for strategic cost analysis.
The document discusses various frameworks for analyzing a company's strategic capabilities, including its resources, competencies, core competencies, and thresholds and distinctive capabilities. It also covers tools for diagnosing strategic capabilities such as benchmarking, value chain analysis, value networks, and activity system mapping. Finally, it discusses managing strategic capabilities through internal and external development, ceasing non-core activities, and monitoring outputs and benefits.
Value chain analysis provides a framework to analyze the internal activities and costs of a company and how they contribute to competitive advantage. It involves breaking a company down into strategically relevant activities and examining the costs and value of each. This helps identify opportunities to lower costs or increase customer value through changes to activities. Conducting a value chain analysis involves setting up activity classifications, analyzing costs and customer value per activity, and using the insights to inform strategic decision making around activities.
The document discusses two approaches for using value chain analysis (VCA) to gain competitive advantage: cost advantage or differentiation advantage. For cost advantage, the five steps are: 1) identify activities, 2) establish costs, 3) identify cost drivers, 4) identify links between activities, and 5) identify cost reduction opportunities. For differentiation advantage, the three steps are: 1) identify customer value activities, 2) evaluate differentiation strategies, and 3) identify sustainable differentiation. The document provides details on each step for the cost advantage approach.
Business Policy Check Up 2Competitive Advantage One Describ.docxhumphrieskalyn
Business Policy Check Up 2:
Competitive Advantage One: Describe one of the general forms of competitive advantage (cost leadership, differentiation, innovation, diversification) that the firms in your industry appear to be pursuing.
2. Explain how this competitive advantage applies to firms in your industry using the B-C framework. Please be explicit about Benefit, Cost and Price aspects of the framework.
Identify the specific type(s) of approach(es) (see Exhibits 2-5 to 2-12 in Ch 2) that the firms seem to be using to pursue this general form of competitive advantage.
References: Identify the sources for what you wrote in answers 1-3. Note: Most of you will need to add new references to get better information about your industry and its players. Be sure to use the same format as last time with respect to putting reference numbers within parentheses.
Competitive Advantage Two: Describe a different general form of competitive advantage (e.g., cost leadership, differentiation, etc.) that the firms in your industry also appear to be pursuing.
Explain how this competitive advantage applies to firms in your industry using the B-C framework.
Identify the specific type(s) of approach(es) (see Exhibits 2-5 to 2-12 in Ch 2) that the firms seem to be using to pursue this general form of competitive advantage.
References: Identify the sources for what you wrote in answers 5-7.
What is/was the hardest part of figuring out what competitive advantages the firms in your industry are pursuing?
Creating Value: Chapter 2-1 2011 All Rights Reserved
CChhaapptteerr 22 CCoommppeettiittiivvee
AAddvvaannttaaggee
Arguably, the most important role of a CEO and his or her senior management
team is creating, maintaining and extending their organization’s competitive advantage.
As described in Chapter 1, pursuit of competitive advantage is the goal of the strategic
management process. Through an iterative process of setting the aims of the firm,
crafting and implementing viable strategies, and constantly evaluating and controlling
firm performance, senior management has the potential to allow their firm to ‘win’
against competitors and shape the firm’s broader environment.
In this chapter, the focus turns to what ‘winning’ means to a firm. The first
section focuses on the concept of added value. Based on the recent work in game
theory, the added value concept provides a useful way of looking at how firms create
value. The second section explores four types of competitive advantages that flow from
and create added value. It draws on the B-C framework to explain how the various
competitive advantages translate into real benefits for a firm. As part of this second
section, detailed examples of business designs focused on various forms of competitive
advantage are provided.
Competitive Advantage
Creating Value: Chapter 2-2 2011 All Rights Reserved
ADDED VALUE
According to Adam Brandenburger and Barry Nalebuff, in order to maximize its ...
Strategic management chapter 5 and 6 note for bba viiSanjeev Bhandari
The document discusses evaluating company resources and competitive capabilities. It identifies various types of strengths a company can have, including skills, physical and organizational assets, intangible assets, and competitive capabilities. Strengths are evaluated based on how hard they are to copy, how long they last, and how superior they are to competitors. Weaknesses and deficiencies are also identified. The document discusses identifying market opportunities and threats to a company. It evaluates assessing whether a company's costs are competitive through tools like strategic cost analysis and value chain analysis. Reasons for cost differences between companies are provided. The document defines strategic options like generic strategies, grand strategies, low-cost strategy, differentiation strategy, best-cost strategy, focus strategy, and various
Chapter 5 Supplementary NotesThe Five Generic Competitive Strate.docxbartholomeocoombs
Chapter 5 Supplementary Notes
The Five Generic Competitive Strategies
Chapter Overview
Chapter Five describes the five basic competitive strategy options – which of the five to employ is a company’s first and foremost choice in crafting overall strategy and beginning its quest for competitive advantage.
Introduction
By
competitive strategy we mean the specifics of management’s game plan for competing successfully – how it plans to position the company in the marketplace, its specific efforts to please customers, and improve its competitive strength, and the type of competitive advantage it wants to establish.
Core Concept
A
competitive strategy concerns the specifics of management’s game plan for competing successfully and achieving a competitive advantage over rivals.
A company achieves
competitive advantage whenever it has some type of edge over rivals in attracting buyers and coping with competitive forces. There are many routes to competitive advantage, but they all involve
giving buyers what they perceive as superior value. Delivering superior value – whatever form it takes – nearly always requires performing value chain activities differently than rivals and building competencies and resource capabilities that are not readily matched.
The Five Generic Competitive Strategies
There are countless variations in the competitive strategies that companies employ, mainly because each company’s strategic approach entails custom-designed actions to fit its own circumstances and industry environment.
The biggest and most important differences among competitive strategies boil down to:
List of Market Segments for the Retail Clothing Market
Differentiating Your Brand in the Digital World
1. Whether a company’s market target is broad or narrow
1. Whether the company is pursuing a competitive advantage linked to low costs or product differentiation
These two factors give rise to five competitive strategy options for staking out a market position, operating the business, and delivering values to customers.
Five distinct competitive strategy approaches stand out:
1. A
low-cost provider strategy: striving to achieve lower overall costs than rivals and appealing to a broad spectrum of customers, usually by underpricing rivals.
1.
A broad differentiation strategy: seeking to differentiate the company’s product/service offering from rivals’ in ways that will appeal to a broad spectrum of buyers
0. A
best-cost provider strategy: giving customers more value for the money by incorporating good-to-excellent product attributes at a lower cost than rivals; the target is to have the lowest (best) costs and prices compared to rivals offering products with comparable attributes
0.
A focused or market niche strategy based on lower cost: concentrating on a narrow buyer segment and outcompeting rivals by se.
Developed by Porter to get a bird's eye view of an organization's operation.
A value chain is a chain of activities for a firm operating in a specific industry.
Reveals opportunities to add value by improving cost, responsiveness to customers, efficiency, quality, reliability and integrity.
This document provides an overview of cost advantage and strategic cost analysis. It defines cost advantage as when a company can produce a product or service at a lower cost than competitors. Companies can gain cost advantage through access to low-cost materials, efficient processes/technologies, or low distribution/sales costs. The value chain framework is used to analyze a firm's costs and identify opportunities to lower the cumulative cost of activities versus competitors. Key aspects of cost analyzed include behavior, drivers, dynamics, and determining relative costs of competitors. Ways to gain and implement a sustainable cost advantage are controlling cost drivers, reconfiguring the value chain, and following steps for strategic cost analysis.
The document discusses various frameworks for analyzing a company's strategic capabilities, including its resources, competencies, core competencies, and thresholds and distinctive capabilities. It also covers tools for diagnosing strategic capabilities such as benchmarking, value chain analysis, value networks, and activity system mapping. Finally, it discusses managing strategic capabilities through internal and external development, ceasing non-core activities, and monitoring outputs and benefits.
Value chain analysis provides a framework to analyze the internal activities and costs of a company and how they contribute to competitive advantage. It involves breaking a company down into strategically relevant activities and examining the costs and value of each. This helps identify opportunities to lower costs or increase customer value through changes to activities. Conducting a value chain analysis involves setting up activity classifications, analyzing costs and customer value per activity, and using the insights to inform strategic decision making around activities.
The document discusses two approaches for using value chain analysis (VCA) to gain competitive advantage: cost advantage or differentiation advantage. For cost advantage, the five steps are: 1) identify activities, 2) establish costs, 3) identify cost drivers, 4) identify links between activities, and 5) identify cost reduction opportunities. For differentiation advantage, the three steps are: 1) identify customer value activities, 2) evaluate differentiation strategies, and 3) identify sustainable differentiation. The document provides details on each step for the cost advantage approach.
Business Policy Check Up 2Competitive Advantage One Describ.docxhumphrieskalyn
Business Policy Check Up 2:
Competitive Advantage One: Describe one of the general forms of competitive advantage (cost leadership, differentiation, innovation, diversification) that the firms in your industry appear to be pursuing.
2. Explain how this competitive advantage applies to firms in your industry using the B-C framework. Please be explicit about Benefit, Cost and Price aspects of the framework.
Identify the specific type(s) of approach(es) (see Exhibits 2-5 to 2-12 in Ch 2) that the firms seem to be using to pursue this general form of competitive advantage.
References: Identify the sources for what you wrote in answers 1-3. Note: Most of you will need to add new references to get better information about your industry and its players. Be sure to use the same format as last time with respect to putting reference numbers within parentheses.
Competitive Advantage Two: Describe a different general form of competitive advantage (e.g., cost leadership, differentiation, etc.) that the firms in your industry also appear to be pursuing.
Explain how this competitive advantage applies to firms in your industry using the B-C framework.
Identify the specific type(s) of approach(es) (see Exhibits 2-5 to 2-12 in Ch 2) that the firms seem to be using to pursue this general form of competitive advantage.
References: Identify the sources for what you wrote in answers 5-7.
What is/was the hardest part of figuring out what competitive advantages the firms in your industry are pursuing?
Creating Value: Chapter 2-1 2011 All Rights Reserved
CChhaapptteerr 22 CCoommppeettiittiivvee
AAddvvaannttaaggee
Arguably, the most important role of a CEO and his or her senior management
team is creating, maintaining and extending their organization’s competitive advantage.
As described in Chapter 1, pursuit of competitive advantage is the goal of the strategic
management process. Through an iterative process of setting the aims of the firm,
crafting and implementing viable strategies, and constantly evaluating and controlling
firm performance, senior management has the potential to allow their firm to ‘win’
against competitors and shape the firm’s broader environment.
In this chapter, the focus turns to what ‘winning’ means to a firm. The first
section focuses on the concept of added value. Based on the recent work in game
theory, the added value concept provides a useful way of looking at how firms create
value. The second section explores four types of competitive advantages that flow from
and create added value. It draws on the B-C framework to explain how the various
competitive advantages translate into real benefits for a firm. As part of this second
section, detailed examples of business designs focused on various forms of competitive
advantage are provided.
Competitive Advantage
Creating Value: Chapter 2-2 2011 All Rights Reserved
ADDED VALUE
According to Adam Brandenburger and Barry Nalebuff, in order to maximize its ...
The document discusses Michael Porter's concepts of competitive advantage and value chain analysis. It explains that firms can achieve competitive advantage through cost leadership or differentiation. Value chain analysis involves identifying activities that contribute to these strategies and analyzing the sources of competitive advantage. Primary and support activities are discussed along with cost drivers and how to control costs to achieve a cost advantage. Differentiation strategies are also covered, including identifying sources of differentiation and determining how to create buyer value through differentiation.
The document discusses key concepts related to gaining competitive advantage through effective logistics and supply chain management. It defines logistics, supply chain management, and supply chain networks. It then explains the concepts of competitive advantage, cost advantage, and value advantage. Cost advantage can be achieved through economies of scale, supplier relationships, lean manufacturing, efficient logistics, inventory management, and automation. Value advantage involves meeting customer needs through product features, price, brand, customer experience, innovation, and convenience. The 3Cs model of competitive advantage focuses on customers, competitors, and a company's internal capabilities.
The document discusses key concepts related to gaining competitive advantage through effective logistics and supply chain management. It defines logistics, supply chain management, and supply chain networks. It then explains that competitive advantage can be achieved through cost advantage or value advantage. Cost advantage involves strategies like economies of scale, lean manufacturing, and efficient transportation to lower costs. Value advantage focuses on meeting customer needs better than competitors through product features, brand reputation, customer experience, and innovation. The 3Cs model of competitive advantage emphasizes understanding customers, competitors, and leveraging a company's internal capabilities for a sustainable edge.
Michael Porters Competitive Advantage 6110guest98c5db
The document discusses Michael Porter's concepts of competitive advantage and value chain analysis. It explains that firms can achieve competitive advantage through cost leadership or differentiation. Value chain analysis involves identifying activities that contribute to these strategies and analyzing the sources of competitive advantage. Primary and support activities that make up a firm's value chain are described. Cost leadership is achieved by controlling cost drivers through optimizing activities in the value chain. Differentiation is achieved by emphasizing unique sources of differentiation in the value chain to create value for buyers.
This document summarizes an approach called customer value accounting that combines traditional marketing techniques to evaluate customer perceived value of products. It discusses how the approach integrates importance-performance analysis, engineering economics, and conjoint analysis. It provides an example analyzing room air cleaners that combines cost-in-use data with performance scores on key attributes to estimate the monetary worth differences between products based on their relative performance. The goal is to understand customer perceived value in order to set rational prices based on value rather than just costs.
The document discusses developing a strategic sourcing plan for oil country tubular goods (OCTG) suppliers for BP. It outlines key factors to consider like customer requirements, supplier capabilities, and cost effectiveness. It also discusses the benefits of single versus multiple sourcing, criteria for evaluating suppliers, developing strategic supplier relationships, and managing suppliers that do not meet standards. The document provides a detailed analysis of sourcing strategies and supplier evaluation methods to help BP develop an optimal sourcing plan for OCTG suppliers.
The document discusses value chain analysis, including its key aspects and how to conduct one. It describes the activities in Porter's value chain framework, including primary and support activities. It provides tips for writing a good value chain analysis, such as analyzing each activity's contribution to competitive strategies. Sources of information and limitations of the model are also reviewed.
The document describes an activity-based management implementation model. It outlines the key steps in the ABM model including identifying and classifying activities, assessing the value of activities, establishing performance measures, assigning resource costs, and calculating activity rates. It then discusses topics that will be covered in subsequent weeks including cost allocation, value chain analysis, and sales profitability analysis. The learning objectives for week 3 focus on understanding cost allocation criteria, discussing why costs differ across customers, and identifying broader relevant costs across the value chain.
This document discusses analyzing an organization's resources and capabilities. It addresses two main issues: how resources can deliver value added and profits, and which resources provide competitive advantage. The analysis considers both value added, by exploring how an organization transforms inputs into outputs, and competitive advantage, by finding special resources that enable it to compete sustainably. Key questions relate to identifying an organization's resources and capabilities, their importance in strategy, improving competitive advantage, and other important company resources.
The Price comparison to competition (updated 2023).docxintel-writers.com
Price comparison to competition
is a crucial aspect of business strategy and marketing. It involves analyzing and evaluating the prices of products or services offered by a company in relation to its competitors in the marketplace. By understanding the pricing landscape, businesses can make informed decisions to set competitive prices that attract customers while maintaining profitability.
some key points to discuss regarding price comparison to competition:
1. Market Research: To conduct an effective price comparison, businesses need to gather comprehensive market research data on competitors’ pricing strategies. This involves studying the prices of similar or substitute products, identifying price trends, and analyzing pricing models used by competitors.
2. Differentiation: Price comparison helps businesses identify their unique selling proposition and positioning in the market. By comparing prices, businesses can evaluate their products or services’ value proposition and differentiate themselves from competitors based on factors such as quality, features, customer service, or brand reputation.
3. Competitive Advantage: Price comparison provides insights into the competitive landscape and helps businesses identify their competitive advantage. It allows them to assess whether they offer products or services at a lower price, higher quality, or with additional value compared to competitors. Understanding this advantage helps businesses position themselves effectively to attract customers
The document discusses different business-level strategies including cost leadership strategy, differentiation strategy, focused strategies, and integrated cost leadership/differentiation strategy. It explains that core competencies provide competitive advantage and strategies must exploit these to satisfy customer needs. Cost leadership is achieved through low cost production while differentiation provides unique value. The strategies can be used to address threats from competition and suppliers/buyers.
1. The chapter examines how firms understand other firms as customers by learning how they rely on supplier networks, integrate purchasing with other functions, and make purchase decisions.
2. There are three main purchasing orientations - buying, procurement, and supply chain management - that have different priorities like reducing costs, improving quality, and building long-term supplier relationships.
3. Understanding a customer's purchasing orientation helps suppliers provide value. Purchasing also works closely with other functions and firms through cross-functional teams and activities that develop supply resources, improve existing offerings, and contribute to new product development.
Business analysis tips as per Gabrielle Rusignuolo are helpful in our growth of business. These business analysis tips are beneficial for promoting our business and take it at top most.
Customer Value Analysis: How Customers Make Purchase DecisionsEndeavor Management
The document discusses how Customer Value Analysis (CVA) can help companies understand what factors are most important to customers when making purchase decisions. CVA involves identifying key buying factors through research, determining how well companies perform on those factors, and analyzing price perceptions. It allows direct comparison of competitors on important customer criteria to guide business strategy and resource allocation. CVA provides insights into where to focus quality improvements and marketing efforts to increase customer satisfaction and market share relative to others.
This document summarizes key concepts around developing competitive advantage from the textbook "Principles of Marketing" by Philip Kotler and Gary Armstrong. It discusses the importance of competitor analysis, identifying different competitive strategies like cost leadership, differentiation, and focus. It also outlines different competitive positions such as market leader, challenger, follower, and nicher. The document emphasizes the need to balance customer and competitor orientations to become a truly market-centered organization.
This document provides an overview of business models, strategies, and IT systems in digital organizations. It discusses four types of business models: market, operational, financial, and competitive. It also covers various competitive strategies such as cost leadership, differentiation, and developing competitive advantages. Additionally, it summarizes key concepts around IT systems including functional business systems, enterprise systems, and the role of IT in creating competitive advantages through activities like business process reengineering.
IN THIS SUMMARY
The Price Advantage, written by Walter Baker, Michael Marn, and Craig Zawada, outlines how to initiate and maintain appropriate pricing in order to effectively increase profits. By taking advantage of minor price increases, a company can significantly increase its profits. The authors not only demonstrate how to accomplish successful pricing but also explain how to avoid common pricing mistakes, such as emotional price wars or missed opportunities in postmerger or lifecycle pricing. The marketplace rewards businesses with superior products and services. The price advantage creates pride within a company because its customers knowingly pay more for services and products they believe are superior and worth the cost. Taking responsibility for price management is essential in today’s market due to downward pressures on price levels. Otherwise, percentage points of price and opportunities for profit can slip away.
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http://www.bizsum.com/summaries/price-advantage
This document summarizes key concepts from Chapter 2 on strategy analysis. It discusses the importance of analyzing a firm's strategy to understand risks, profitability, and competitive advantages. It also covers Porter's five forces framework for industry analysis, competitive and corporate strategy analysis. Specific examples analyze the European airline industry and IKEA's strategy of low-cost differentiation.
Allison Rogers
Professor Koenig
COMM 3313
October 12th, 2018
How My Race Has Impacted My Life
I. Introduction
a. How being white has affected my life in many ways
i. Positive factors from experience
ii. Negative factors from experience
iii. How this has impacted my communication
iv. Are my communication skills stronger or weaker from these experiences?
II. Positive factors from experience
a. Job market is more available to me
a. Opportunities come in simpler form to me
III. Negative factors from experience
a. Assumptions of me being white thinking my life is a breeze from others
b. The unfairness I see every day makes me feel guilty for being white
IV. How this has impacted my very own communication
a. I see things from a general point of view
b. I try my best to be personal when communicating.
c. I remember that we are all human beings who deserve equality.
V. Are my communication skills stronger or weaker?
a. Stronger – My experiences growing up have helped me communicate with everyone equally.
VI. Conclusion
a. The boundaries my race sets me in
b. The opportunities I have because of my race.
Works Cited
Orbe, M. P., & Harris, T. M. (2015). Interracial communication theory into practice. Los Angeles, CA: Sage.
https://www.psychologytoday.com/us/blog/listen/201803/being-white-in-age-color
https://www.tolerance.org/magazine/fall-2018/what-is-white-privilege-really
https://money.cnn.com/2016/04/13/media/whiteness-project/index.html
https://everydayfeminism.com/2015/11/lessons-white-privilege-poc/
https://www.bustle.com/articles/146867-how-white-privilege-affects-8-people-of-color-on-a-day-to-day-basis
Allison Rogers
Professor Koenig
COMM 3325
October 20th, 2018
Research Paper Conceptual Document:
“The Meaning of July Fourth for the Negro” by Frederick Douglas
1. What is the event or rhetorical moment I will be analyzing and why. Give a brief summary.
· I will be analyzing a speech by Fredrick Douglas that he gave on July 5th in 1852 called, “The Meaning of July Fourth for the Negro”. I chose this speech because I first read this speech this past spring semester in my gender studies class and it was so well written and worded that it literally just brought me to tears with so much emotion behind it. I want to analyze how Douglas put this together and his rhetorical process that he used in order to touch so many people with his words.
2. What methods of evaluation will I be looking for?
· The methods of evaluation I will be looking for in this speech are the following:
(I) The speech objective
(II) The audience and context of the speech
(III) The speeches context and structure
(IV) The delivery skills and techniques he used
(V) Intangibles
3. 8 sources:
· https://www.artofmanliness.com/the-meaning-of-july-fourth-for-the-negro-by-frederick-douglas/
· http://masshumanities.org/files/programs/douglass/speech_abridged_med.pdf
· http://redandgreen.org/speech.htm
· https://www.pbs.org/wgbh/aia/part4/4h2927.html
· https://liber.
Allen 1Kiah AllenProfessor HirschENG1018 Feb. 2018Defo.docxsimonlbentley59018
Allen 1
Kiah Allen
Professor Hirsch
ENG101
8 Feb. 2018
Deforestation
The Amazon forest alone creates 20% of the worlds oxygen. It has decreased by 17% in the past 50 years because of deforestation (conserve-energy-future.com). Forest’s in general only cover 30% of the world (conserve-energy-future.com ). Deforestation is killing the trees that produce oxygen, without it humans can’t survive. Deforestation should be prohibited because large plants such as trees recycle air.
If deforestation is such a problem, why does it happen? Deforestation extracts the forest of its resources. It turns the forests into farms, ranches, or urban areas. The wood from trees are used for building or could be sold as fuel. Another big cause of deforestation is quarry’s. Quarry’s take up a lot of land, and once the quarry is abandoned is almost impossible to fix. Hydropower requires dams to be built. Dams create an enormous amount of flooding, which kills thousands of trees. The increase of population is also a cause of deforestation. The more people that are on earth the more land and resources we demand.
If deforestation continues it will have a huge negative impact on our air supply. Everyday a piece of the forests is being destroyed. The more trees that are being destroyed the less oxygen can be produced. Trees use photosynthesis to covert carbon dioxide into oxygen. Photosynthesis is the main producer of oxygen, and respiration and decay remove it. Urban areas have less oxygen then rural areas, because they don’t have many plants. Throughout history oxygen levels have been steadily decreasing. Once the oxygen levels hit 7% the air is too low to support human life (thenaturalhealthplace.com). Finding ways to apply reforestation would help increase oxygen.
There are many ways to apply reforestation to reverse the harm that’s been don’t to the world. One way is to plant trees. There are some cities who have made vertical forests. They plant trees and plants that surround the building. Going paperless would help as well. Since technology has advanced, paper isn’t really needed as often. Recycling and buying recycled products will help as well. The more that people recycle there will be less demand for natural resources and trees. Reforestation will help to reduce the concentration of carbon dioxide in the air.
Deforestation does have a huge negative impact on our world, but there are quite of bit of positive too. The positive effects of deforestation are that it does gives humans space to grow. With growth comes civilizations which means more jobs and revenue. Deforestations also gives us more food and resources to satisfy our needs. It means a more comfortable life for humans. The consequences of deforestation is not worth the temporary comfort that humans get from it.
Deforestation is a serious problem to maintain life on this planet. The decrease in oxygen could eventually mean the end to human kind. If we don’t do anything abo.
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Similar to Question 3 Are the Company’s Prices and Costs CompetitiveOne o.docx
The document discusses Michael Porter's concepts of competitive advantage and value chain analysis. It explains that firms can achieve competitive advantage through cost leadership or differentiation. Value chain analysis involves identifying activities that contribute to these strategies and analyzing the sources of competitive advantage. Primary and support activities are discussed along with cost drivers and how to control costs to achieve a cost advantage. Differentiation strategies are also covered, including identifying sources of differentiation and determining how to create buyer value through differentiation.
The document discusses key concepts related to gaining competitive advantage through effective logistics and supply chain management. It defines logistics, supply chain management, and supply chain networks. It then explains the concepts of competitive advantage, cost advantage, and value advantage. Cost advantage can be achieved through economies of scale, supplier relationships, lean manufacturing, efficient logistics, inventory management, and automation. Value advantage involves meeting customer needs through product features, price, brand, customer experience, innovation, and convenience. The 3Cs model of competitive advantage focuses on customers, competitors, and a company's internal capabilities.
The document discusses key concepts related to gaining competitive advantage through effective logistics and supply chain management. It defines logistics, supply chain management, and supply chain networks. It then explains that competitive advantage can be achieved through cost advantage or value advantage. Cost advantage involves strategies like economies of scale, lean manufacturing, and efficient transportation to lower costs. Value advantage focuses on meeting customer needs better than competitors through product features, brand reputation, customer experience, and innovation. The 3Cs model of competitive advantage emphasizes understanding customers, competitors, and leveraging a company's internal capabilities for a sustainable edge.
Michael Porters Competitive Advantage 6110guest98c5db
The document discusses Michael Porter's concepts of competitive advantage and value chain analysis. It explains that firms can achieve competitive advantage through cost leadership or differentiation. Value chain analysis involves identifying activities that contribute to these strategies and analyzing the sources of competitive advantage. Primary and support activities that make up a firm's value chain are described. Cost leadership is achieved by controlling cost drivers through optimizing activities in the value chain. Differentiation is achieved by emphasizing unique sources of differentiation in the value chain to create value for buyers.
This document summarizes an approach called customer value accounting that combines traditional marketing techniques to evaluate customer perceived value of products. It discusses how the approach integrates importance-performance analysis, engineering economics, and conjoint analysis. It provides an example analyzing room air cleaners that combines cost-in-use data with performance scores on key attributes to estimate the monetary worth differences between products based on their relative performance. The goal is to understand customer perceived value in order to set rational prices based on value rather than just costs.
The document discusses developing a strategic sourcing plan for oil country tubular goods (OCTG) suppliers for BP. It outlines key factors to consider like customer requirements, supplier capabilities, and cost effectiveness. It also discusses the benefits of single versus multiple sourcing, criteria for evaluating suppliers, developing strategic supplier relationships, and managing suppliers that do not meet standards. The document provides a detailed analysis of sourcing strategies and supplier evaluation methods to help BP develop an optimal sourcing plan for OCTG suppliers.
The document discusses value chain analysis, including its key aspects and how to conduct one. It describes the activities in Porter's value chain framework, including primary and support activities. It provides tips for writing a good value chain analysis, such as analyzing each activity's contribution to competitive strategies. Sources of information and limitations of the model are also reviewed.
The document describes an activity-based management implementation model. It outlines the key steps in the ABM model including identifying and classifying activities, assessing the value of activities, establishing performance measures, assigning resource costs, and calculating activity rates. It then discusses topics that will be covered in subsequent weeks including cost allocation, value chain analysis, and sales profitability analysis. The learning objectives for week 3 focus on understanding cost allocation criteria, discussing why costs differ across customers, and identifying broader relevant costs across the value chain.
This document discusses analyzing an organization's resources and capabilities. It addresses two main issues: how resources can deliver value added and profits, and which resources provide competitive advantage. The analysis considers both value added, by exploring how an organization transforms inputs into outputs, and competitive advantage, by finding special resources that enable it to compete sustainably. Key questions relate to identifying an organization's resources and capabilities, their importance in strategy, improving competitive advantage, and other important company resources.
The Price comparison to competition (updated 2023).docxintel-writers.com
Price comparison to competition
is a crucial aspect of business strategy and marketing. It involves analyzing and evaluating the prices of products or services offered by a company in relation to its competitors in the marketplace. By understanding the pricing landscape, businesses can make informed decisions to set competitive prices that attract customers while maintaining profitability.
some key points to discuss regarding price comparison to competition:
1. Market Research: To conduct an effective price comparison, businesses need to gather comprehensive market research data on competitors’ pricing strategies. This involves studying the prices of similar or substitute products, identifying price trends, and analyzing pricing models used by competitors.
2. Differentiation: Price comparison helps businesses identify their unique selling proposition and positioning in the market. By comparing prices, businesses can evaluate their products or services’ value proposition and differentiate themselves from competitors based on factors such as quality, features, customer service, or brand reputation.
3. Competitive Advantage: Price comparison provides insights into the competitive landscape and helps businesses identify their competitive advantage. It allows them to assess whether they offer products or services at a lower price, higher quality, or with additional value compared to competitors. Understanding this advantage helps businesses position themselves effectively to attract customers
The document discusses different business-level strategies including cost leadership strategy, differentiation strategy, focused strategies, and integrated cost leadership/differentiation strategy. It explains that core competencies provide competitive advantage and strategies must exploit these to satisfy customer needs. Cost leadership is achieved through low cost production while differentiation provides unique value. The strategies can be used to address threats from competition and suppliers/buyers.
1. The chapter examines how firms understand other firms as customers by learning how they rely on supplier networks, integrate purchasing with other functions, and make purchase decisions.
2. There are three main purchasing orientations - buying, procurement, and supply chain management - that have different priorities like reducing costs, improving quality, and building long-term supplier relationships.
3. Understanding a customer's purchasing orientation helps suppliers provide value. Purchasing also works closely with other functions and firms through cross-functional teams and activities that develop supply resources, improve existing offerings, and contribute to new product development.
Business analysis tips as per Gabrielle Rusignuolo are helpful in our growth of business. These business analysis tips are beneficial for promoting our business and take it at top most.
Customer Value Analysis: How Customers Make Purchase DecisionsEndeavor Management
The document discusses how Customer Value Analysis (CVA) can help companies understand what factors are most important to customers when making purchase decisions. CVA involves identifying key buying factors through research, determining how well companies perform on those factors, and analyzing price perceptions. It allows direct comparison of competitors on important customer criteria to guide business strategy and resource allocation. CVA provides insights into where to focus quality improvements and marketing efforts to increase customer satisfaction and market share relative to others.
This document summarizes key concepts around developing competitive advantage from the textbook "Principles of Marketing" by Philip Kotler and Gary Armstrong. It discusses the importance of competitor analysis, identifying different competitive strategies like cost leadership, differentiation, and focus. It also outlines different competitive positions such as market leader, challenger, follower, and nicher. The document emphasizes the need to balance customer and competitor orientations to become a truly market-centered organization.
This document provides an overview of business models, strategies, and IT systems in digital organizations. It discusses four types of business models: market, operational, financial, and competitive. It also covers various competitive strategies such as cost leadership, differentiation, and developing competitive advantages. Additionally, it summarizes key concepts around IT systems including functional business systems, enterprise systems, and the role of IT in creating competitive advantages through activities like business process reengineering.
IN THIS SUMMARY
The Price Advantage, written by Walter Baker, Michael Marn, and Craig Zawada, outlines how to initiate and maintain appropriate pricing in order to effectively increase profits. By taking advantage of minor price increases, a company can significantly increase its profits. The authors not only demonstrate how to accomplish successful pricing but also explain how to avoid common pricing mistakes, such as emotional price wars or missed opportunities in postmerger or lifecycle pricing. The marketplace rewards businesses with superior products and services. The price advantage creates pride within a company because its customers knowingly pay more for services and products they believe are superior and worth the cost. Taking responsibility for price management is essential in today’s market due to downward pressures on price levels. Otherwise, percentage points of price and opportunities for profit can slip away.
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http://www.bizsum.com/summaries/price-advantage
This document summarizes key concepts from Chapter 2 on strategy analysis. It discusses the importance of analyzing a firm's strategy to understand risks, profitability, and competitive advantages. It also covers Porter's five forces framework for industry analysis, competitive and corporate strategy analysis. Specific examples analyze the European airline industry and IKEA's strategy of low-cost differentiation.
Allison Rogers
Professor Koenig
COMM 3313
October 12th, 2018
How My Race Has Impacted My Life
I. Introduction
a. How being white has affected my life in many ways
i. Positive factors from experience
ii. Negative factors from experience
iii. How this has impacted my communication
iv. Are my communication skills stronger or weaker from these experiences?
II. Positive factors from experience
a. Job market is more available to me
a. Opportunities come in simpler form to me
III. Negative factors from experience
a. Assumptions of me being white thinking my life is a breeze from others
b. The unfairness I see every day makes me feel guilty for being white
IV. How this has impacted my very own communication
a. I see things from a general point of view
b. I try my best to be personal when communicating.
c. I remember that we are all human beings who deserve equality.
V. Are my communication skills stronger or weaker?
a. Stronger – My experiences growing up have helped me communicate with everyone equally.
VI. Conclusion
a. The boundaries my race sets me in
b. The opportunities I have because of my race.
Works Cited
Orbe, M. P., & Harris, T. M. (2015). Interracial communication theory into practice. Los Angeles, CA: Sage.
https://www.psychologytoday.com/us/blog/listen/201803/being-white-in-age-color
https://www.tolerance.org/magazine/fall-2018/what-is-white-privilege-really
https://money.cnn.com/2016/04/13/media/whiteness-project/index.html
https://everydayfeminism.com/2015/11/lessons-white-privilege-poc/
https://www.bustle.com/articles/146867-how-white-privilege-affects-8-people-of-color-on-a-day-to-day-basis
Allison Rogers
Professor Koenig
COMM 3325
October 20th, 2018
Research Paper Conceptual Document:
“The Meaning of July Fourth for the Negro” by Frederick Douglas
1. What is the event or rhetorical moment I will be analyzing and why. Give a brief summary.
· I will be analyzing a speech by Fredrick Douglas that he gave on July 5th in 1852 called, “The Meaning of July Fourth for the Negro”. I chose this speech because I first read this speech this past spring semester in my gender studies class and it was so well written and worded that it literally just brought me to tears with so much emotion behind it. I want to analyze how Douglas put this together and his rhetorical process that he used in order to touch so many people with his words.
2. What methods of evaluation will I be looking for?
· The methods of evaluation I will be looking for in this speech are the following:
(I) The speech objective
(II) The audience and context of the speech
(III) The speeches context and structure
(IV) The delivery skills and techniques he used
(V) Intangibles
3. 8 sources:
· https://www.artofmanliness.com/the-meaning-of-july-fourth-for-the-negro-by-frederick-douglas/
· http://masshumanities.org/files/programs/douglass/speech_abridged_med.pdf
· http://redandgreen.org/speech.htm
· https://www.pbs.org/wgbh/aia/part4/4h2927.html
· https://liber.
Allen 1Kiah AllenProfessor HirschENG1018 Feb. 2018Defo.docxsimonlbentley59018
Allen 1
Kiah Allen
Professor Hirsch
ENG101
8 Feb. 2018
Deforestation
The Amazon forest alone creates 20% of the worlds oxygen. It has decreased by 17% in the past 50 years because of deforestation (conserve-energy-future.com). Forest’s in general only cover 30% of the world (conserve-energy-future.com ). Deforestation is killing the trees that produce oxygen, without it humans can’t survive. Deforestation should be prohibited because large plants such as trees recycle air.
If deforestation is such a problem, why does it happen? Deforestation extracts the forest of its resources. It turns the forests into farms, ranches, or urban areas. The wood from trees are used for building or could be sold as fuel. Another big cause of deforestation is quarry’s. Quarry’s take up a lot of land, and once the quarry is abandoned is almost impossible to fix. Hydropower requires dams to be built. Dams create an enormous amount of flooding, which kills thousands of trees. The increase of population is also a cause of deforestation. The more people that are on earth the more land and resources we demand.
If deforestation continues it will have a huge negative impact on our air supply. Everyday a piece of the forests is being destroyed. The more trees that are being destroyed the less oxygen can be produced. Trees use photosynthesis to covert carbon dioxide into oxygen. Photosynthesis is the main producer of oxygen, and respiration and decay remove it. Urban areas have less oxygen then rural areas, because they don’t have many plants. Throughout history oxygen levels have been steadily decreasing. Once the oxygen levels hit 7% the air is too low to support human life (thenaturalhealthplace.com). Finding ways to apply reforestation would help increase oxygen.
There are many ways to apply reforestation to reverse the harm that’s been don’t to the world. One way is to plant trees. There are some cities who have made vertical forests. They plant trees and plants that surround the building. Going paperless would help as well. Since technology has advanced, paper isn’t really needed as often. Recycling and buying recycled products will help as well. The more that people recycle there will be less demand for natural resources and trees. Reforestation will help to reduce the concentration of carbon dioxide in the air.
Deforestation does have a huge negative impact on our world, but there are quite of bit of positive too. The positive effects of deforestation are that it does gives humans space to grow. With growth comes civilizations which means more jobs and revenue. Deforestations also gives us more food and resources to satisfy our needs. It means a more comfortable life for humans. The consequences of deforestation is not worth the temporary comfort that humans get from it.
Deforestation is a serious problem to maintain life on this planet. The decrease in oxygen could eventually mean the end to human kind. If we don’t do anything abo.
All workings, when appropriate, must be shown to substantiate your.docxsimonlbentley59018
All workings, when appropriate, must be shown to substantiate your answers.
Question 1 [14 marks]
Financial statement disclosures
You are the financial accountant for Superstore Ltd, and are in the process of preparing its financial statements for the year ended 30 June 2018. Whilst preparing the financial statements, you become aware of the following situations:
1. On 1 July 2017, the directors made a decision, using information obtained over the last couple of years, to revise the useful life of an item of manufacturing equipment. The equipment was acquired on 1 July 2015 for $800,000, and has been depreciated on a straight-line basis, based on an estimated useful life of 10 years and residual value of nil. Superstore Ltd uses the cost model for manufacturing equipment. The directors estimate that as at 1 July 2017, the equipment has a remaining useful life of 6 years and a residual value of nil. No depreciation has been recorded as yet for the year ended 30 June 2018 as the directors were unsure how to account for the change in the 2018 financial statements, and unsure whether the 2016 and 2017 financial statements will need to be revised as a result of the change.
2. In June 2018, the accounts payable officer discovered that an invoice for repairs to equipment, with an amount due of $20,000, incurred in June 2017, had not been paid or provided for in the 2017 financial statements. The invoice was paid on 12 July 2018. The repairs are deductible for tax purposes. The accountant responsible for preparing the company’s income tax returns will amend the 2017 tax return, and the company will receive a tax refund of $6,000 as a result (30% x $20,000). No journal entries have been done as yet in the accounting records of Superstore Ltd, as the directors are unsure how to account for this situation, and what period adjustments need to be made in.
3. Superstore Ltd holds shares in a listed public company, ABC Ltd, which are valued in the draft financial statements on 30 June 2018 at their market value on that date - $600,000. A major fall in the stock market occurred on 10 July 2018, and the value of Superstore’s shares in ABC Ltd declined to $250,000.
4. On 21 July 2018, you discovered a cheque dated 20 April 2018 of $32,000 authorised by the company’s previous accountant, Max. The payment was for the purchase of a swimming pool at Max’s house. The payment had been recorded in the accounting system as an advertising expense. You advise the directors of this fraudulent activity, and they will investigate.
Assume that each event is material.
Required:
i) State the appropriate accounting treatment for each situation. Provide explanations and references to relevant paragraphs in the accounting standards to support your answers. Where adjustments to Superstore Ltd’s financial statements are required, explain which financial statements need to be adjusted (ie. 2016, 2017, 2018 or 2019).
ii) Prepare any note disclosures and adjusting j.
All yellow highlight is missing answer, please answer all of t.docxsimonlbentley59018
1) The play Anna in the Tropics explores the impact of literature on a family of Cuban cigar rollers in 1920s Florida. As their new lector reads Tolstoy's Anna Karenina aloud each day, the characters find their lives profoundly changed as themes like tradition vs modernity, gender roles, infidelity, and jealousy are awakened.
2) The play illustrates the machismo of Cuban culture, where men's affairs are accepted but women are punished for the same behavior. This double standard leads to tensions and tragedy as the characters emulate the scandals in the novel.
3) Ultimately, the lector's reading of Anna Karenina arouses passions that cannot be contained, as jealousies
All models are wrong. Some models are useful.—George E. P. B.docxsimonlbentley59018
All models are wrong. Some models are useful.
—George E. P. Box (1919–2013)
Statistician
Describing and explaining social phenomena is a complex task. Box’s quote speaks to the point that it is a near impossible undertaking to fully explain such systems—physical or social—using a set of models. Yet even though these models contain some error, the models nevertheless assist with illuminating how the world works and advancing social change.
The competent quantitative researcher understands the balance between making statements related to theoretical understanding of relationships and recognizing that our social systems are of such complexity that we will always have some error. The key, for the rigorous researcher, is recognizing and mitigating the error as much as possible.
As a graduate student and consumer of research, you must recognize the error that might be present within your research and the research of others.
To prepare for this Discussion:
Use the Walden Library Course Guide and Assignment Help found in this week’s Learning Resources to search for and select a quantitative article that interests you and that has social change implications.
As you read the article, reflect on George Box’s quote in the introduction for this Discussion.
For additional support, review the
Skill Builder: Independent and Dependent Variables
, which you can find by navigating back to your Blackboard Course Home Page. From there, locate the Skill Builder link in the left navigation pane.
By Day 3
Post a very brief description (1–3 sentences) of the article you found and address the following:
1. Describe how you think the research in the article is useful (e.g., what population is it helping? What problem is it solving?).
2. Using Y=
f
(X) +E notation, identify the independent and dependent variables.
3. How might the research models presented be wrong? What types of error might be present in the reported research?
Frankfort-Nachmias, C., & Leon-Guerrero, A. (2018).
Social statistics for a diverse society
(8th ed.). Thousand Oaks, CA: Sage Publications.
· Chapter 1, “The What and the Why of Statistics” (pp. 1–21)
Wagner, W. E. (2016).
Using IBM® SPSS® statistics for research methods and social science statistics
(6th ed.). Thousand Oaks, CA: Sage Publications.
· Chapter 1, “Overview”
Dietz, T., & Kalof, L. (2009).
Introduction to social statistics: The logic of statistical reasoning
. West Sussex, United Kingdom: Wiley-Blackwell.
Introduction to Social Statistics: The Logic of Statistical Reasoning, 1st Edition by Dietz, T.; Kalof, L. Copyright 2009 by John Wiley & Sons - Books. Reprinted by permission of John Wiley & Sons - Books via the Copyright Clearance Center.
·
Chapter 1, “An Introduction to Quantitative Analysis” (pp. 1–31)
Dietz, T., & Kalof, L. (2009).
Introduction to social statistics: The logic of statistical reasoning
. West Sussex, United Kingdom: Wiley-Blackwell.
Introdu.
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Class Tetris5044ObjectApplicationTetris5044public class Tetris5044
extends Application
The main application class; for internal use only.
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ALL WORK MUST BE ORIGINAL, CITED, IN APA FORMAT & WILL BE SUBMITTED .docxsimonlbentley59018
ALL WORK MUST BE ORIGINAL, CITED, IN APA FORMAT & WILL BE SUBMITTED TO TURN-IT-IN. THIS IS A DISCUSSION POST. DUE DATE IS SUNDAY, 06/21/22 @ 2PM EASTERN STANDARD TIME.
Discussion Question #2:
If you had the authority, what steps would you take to secure America's digital infrastructure?
.
ALL WORK MUST BE ORIGINAL, CITED IN APA FORMAT AND WILL BE SUBMITTED.docxsimonlbentley59018
ALL WORK MUST BE ORIGINAL, CITED IN APA FORMAT AND WILL BE SUBMITTED TO TURN IT IN. MINIMUM WORD COUNT IS 1500 NOT INCLUDING THE TITLE PAGE. DUE DATE IS MONDAY 06/22/20 @ 12 NOON EASTERN STANDARD TIME.
Assignment:
1. The first sentence of Chapter 2 reads, “The saying that ‘people receive the kind of policing they deserve” ignores the role power plays in the kind, quality, and distribution of police service.” Discuss what this sentence means in the context of contemporary policing in the United States.
2. Beginning in 1929, August Vollmer, as head of the National Commission on Law Observance and Enforcement, established 10 principles vital in reforming the police. Discuss the importance of the principles in providing the underpinnings for modern policing.
3. Explain how technology has affected communities of interest in the United States.
4. Explain the contributions of the Chicago School in studies of the community.
.
All views expressed in this paper are those of the authors a.docxsimonlbentley59018
This document summarizes a paper about the political and economic crisis in Greece. It discusses how Greece's political system has been dominated by two major parties, New Democracy and PASOK, which used patronage networks and expanded the public sector for political gain. This led to a bloated bureaucracy, weak reforms, and increasing debt. The economic crisis made Greece's long-term problems with its political system and public finances come to a head. The document examines the causes and management of the crisis as well as its political impacts.
All Wet! Legacy of Juniper Utility has residents stewingBy Eri.docxsimonlbentley59018
All Wet!
Legacy of Juniper Utility has residents stewing
By Erin Foote Marlowe
·
·
Last Friday, a collection of men and women sat in Marion Palmateer's plush Southeast Bend living room and told a story of frustration, talking over one another and becoming increasingly angry about their understanding of the legacy of Juniper Utility and what it means to them.
These folks who gathered on Palmateer's soft white couch and chairs consider themselves the modern-day victims in the more- than-a-decade-old saga of Juniper Utility Co., a water service provider formerly owned by housing developer Jan Ward in Southeast Bend. In 2002, it was condemned by Bend for what the city said was risk of catastrophic failure.
Money and "authority" are at the core of the story now for this group, as opposed to the low water pressures of a decade ago—a problem that became so egregious that, by 2001, it became a challenge to take a shower or fill a washing machine. Water lines routinely broke down.
The people in Palmateer's living room, "a loose collection of individuals," as they call themselves, are residents of neighborhoods formerly served by Juniper Utility, including Timber Ridge, Mountain High, Tillicum Village and Nottingham Square. They are frustrated with a history they felt they had no control over but is now costing them in water bills they believe will cost them thousands more per year than they ever expected.
In 2004, homeowners association representatives from their neighborhoods signed an agreement with the city that said the owners of the roughly 700 homes of the neighborhoods would pay 100 percent of the costs associated with providing water to the neighborhoods, including making improvements to the system.
But this group of residents feels the agreement wasn't in their best interest and they had no say in the decision. An HOA board member at the time said a ballot was not sent out to homeowners for approval and, because there was no vote of homeowners, these frustrated residents believe this 2004 agreement could be illegal. Further underscoring the issue, it appears the agreement was never recorded with the county clerk's office. So, when these new people bought houses in these neighborhoods, the tab for paying to upgrade the water system didn't show up in their title searches.
"Think of the banks that lent against it," said Dan Kehoe, a resident of Mountain High who has taken a lead role in challenging the agreements between the HOAs and the city. "That's called bank fraud and people go to jail for it."
But although frustrations over this agreement are evidently fresh for these residents, it would appear that the issue should be moot because in 2011 the HOAs and the city reached a new agreement—one that should reduce costs for residents.
"We moved them from a bad agreement to a good agreement," said city of Bend Finance Director Sonia Andrews. "From something that would cost them a lot to something that would be more reasonable."
Each homeowne.
All three of the Aristotle, Hobbes, and Douglass readings discussed .docxsimonlbentley59018
All three of the Aristotle, Hobbes, and Douglass readings discussed power in different ways. How is power related to justice? How should it be shifted in order to better serve all citizens? Please reflect on this idea of power and refer to at least two of the three philosophers listed.
Note: You should write enough to make your point, but can aim form 6-8 sentences or so (but there is no minimum or limit).
.
All rights reserved. No part of this report, including t.docxsimonlbentley59018
All rights reserved. No part of this report, including
the trends presented in this report, may be
reproduced or transmitted in any form or by any
means whatsoever (including presentations, short
summaries, blog posts, printed magazines, use
of images in social media posts) without express
written permission from the author, except in the
case of brief quotations (50 words maximum and
for a maximum of 2 quotations) embodied in critical
articles and reviews, and with clear reference to
the original source, including a link to the original
source at http://eventmb.com/Event-Trends-2018.
Please refer all pertinent questions to the publisher.
COPYRIGHT
TABLE OF
CONTENTS
:: 2 COPYRIGHT
5 INTRODUCTION
7 MACRO TRENDS AFFECTING THE EVENT INDUSTRY. A FORECAST.
8 10 Trends in EVENTTECH
Julius Solaris
23 10 Trends in VENUES
Pádraic Gilligan
35 10 Trends in EVENT MARKETING AND SOCIAL MEDIA
Becki Cross
54 10 Trends in DESTINATIONS
Julius Solaris and Pádraic Gilligan
65 10 Trends in EVENT EXPERIENCE
Roger Haskett
80 10 Trends in EVENT DECOR AND STYLING
Kate Patay, CPCE
91 10 Trends in DESTINATION MANAGEMENT COMPANIES (DMCS)
Cindy Y. Lo, DMCP
102 ABOUT THE AUTHORS
105 CMP CREDITS
105 CREDITS AND THANKS
105 DISCLAIMER
AD
http://eventmb.com/2A6WKga
The event industry is navigating through the strongest wave of change of
the past 10 years. Never before has this industry experienced this level
of transformation in so many aspects of the event planning process.
Attendees, suppliers and event planners have to deal with ‘new’ and
‘different’ on many levels.
As a segue from last year’s report, we are again looking at the five major
areas impacted by this change:
G TECHNOLOGY
G EVENT MARKETING
G VENUES
G DESTINATIONS
G EVENT DESIGN
We are also looking at two new categories of trends:
G EVENT STYLING
G DESTINATION MANAGEMENT COMPANIES
(DMCS)
The spend for these items represent a massive input for the industry and we
feel times are mature enough to analyze developments on a yearly basis.
:: INTRODUCTION
10 EVENT
TRENDS FOR
2018
Julius Solaris
10 Event Trends for 2018
:: 5
AD
http://eventmb.com/2iVmZfW
MACRO TRENDS AFFECTING THE
EVENT INDUSTRY. A FORECAST.
There are common themes you will find in the following categories of
trends. We refer to these as macro trends. They are inherent to the
economic, political, social and technological developments happening
around us. Here are the most significant affecting the event industry:
G Sexual Harassment. With the explosion worldwide of the #metoo
movement and the very public charges against many celebrities,
politicians and people of influence, it seems it is finally time for the event
industry to reflect on sexual harassment. Many reports have popped up
of events being at the ideal stage for harassment or violence to happen.
As a result there is increased pressure to step up the measures to protect
attendees against perpetrators. A mo.
All PrinciplesEvidence on Persuasion Principles This provides som.docxsimonlbentley59018
All PrinciplesEvidence on Persuasion Principles: This provides some guidance how much confidence you can place on the principles Analyzed by J. Scott Armstrong on December 8, 2010; re-analyzed by Elliot Tusk on May 26, 2011Common senseReceived wisdomNo evidenceExpert opinionNon-experimental evidenceSingle experimentSome experimental evidenceMuch experimental evidenceCommentsSUMNumberPrinciple1INFORMATION1.1Benefits1.1.1Describe specific, meaningful benefits111.1.2Communicate a Unique Selling Principle (USP)1111.2News1.2.1Provide news, but only if it is real111.2.2If real news is complex, use still media11.3Product or service1.3.1Provide product information that customers need11.3.2Provide choices11.3.3When there are many substantive, multi-dimensional options, organize them and provide guidance11.3.4Make the recommended choice the default choice11.3.5Inform committed customers that they can delete features, rather than add them11.3.6To reduce customer risk, use a product-satisfaction guarantee11.4Price1.4.1State prices in terms that are meaningful and easy to understand111.4.2Use round prices111.4.3Show the price to be a good value against a reference price11.4.4If quality is not a key selling point, consider advertising price reductions11.4.5Consider partitioned prices when the add-on prices seem fair and small relative to the base price11.4.6To retain customers, consider linking payments to consumption11.4.7Consider separating payments from benefits- if the payments are completed before the benefits end11.4.8State that the price can be prepaid if it might reduce uncertainty for consumers111.4.9Use high costs to justify high prices11.4.10When quality is high, do not emphasize price11.4.11Use high prices to connote high quality111.4.12For inexpensive products, state price discounts as percentage saved; for expensive products, state price discounts as dollars saved- or present both11.4.13Minimize price information for new products11.4.14Consider bundling prices of features or complementary products or services if they are desirable for nearly all customers11.4.15Advertise multi-unit purchases for frequently purchased low-involvement products if it is also in the consumers' interest11.5Distribution1.5.1Include information on when, where and how to buy the product111.5.2Feature a sales channel when it is impressive11.5.3Use the package to enhance the product11.5.4If a product is desirable, specify delivery dates rather than waiting times11.5.5Tell customers they can achieve benefits over a long time period if you want to reduce the use of an offer- and vice versa12INFLUENCE2.1Reasons2.1.1Provide a reason12.1.2For high-involvement products, the reasons should be strong12.2Social Proof2.2.1Show that the product is widely used12.2.2Focus on individuals similar to the target market112.3Scarcity2.3.1State that an attractive product is scarce when it is true12.3.2Restrict sales of the product112.4Attribution2.4.1Attribute favorable behavior and traits.
All papers may be subject to submission for textual similarity revie.docxsimonlbentley59018
All papers may be subject to submission for textual similarity review to Turnitin.com for the detection of plagiarism
those are the two quistions
What are the disadvantages of Henrietta in particular and her colleagues, pursuing careers in astronomy during this time period? Choose one scene and describe how character relationships and the outcome of the play would change if the central characters were male instead of female.
--
I don't have the book , i need someone who can have it and answer the two questions
silent sky by lauren gunderson
answer 2 questions in 4 pages double space
.
All of us live near some major industry. Describe the history of an .docxsimonlbentley59018
The document asks about an industry in the city where one lives or a nearby city, asking how it has changed over the last 50 years and what cultural changes drove those changes, and what the future of the industry may be.
All of Us Research Program—Protocol v1.12 IRB Approval Dat.docxsimonlbentley59018
All of Us Research Program—Protocol v1.12
IRB Approval Date: 23 October 2019
Protocol Title All of Us Research Program 1
Principal Investigator(s) Joshua Denny, M.D., M.S.
Vanderbilt University Medical Center
+1 615 936-5033
Sponsor National Institutes of Health (NIH)
Primary Contact John Wilbanks
Sage Bionetworks
+1 617 838-6333
Protocol Version Core Protocol v.1.12 pre02
Date 16 October 2019
IRB reference AoU IRB Protocol # 2017-05
IRB Approval date v1.5: May 20, 2017
v1.6: Feb 13, 2018
v1.7: Mar 28, 2018
v1.8: Jul 11, 2018
v1.9 Oct 19, 2018
v1.10 Mar 05, 2019
v1.11 Aug 12, 2019
v1.12 Oct 23, 2019
1 Precision Medicine Initiative, PMI, All of Us, the All of Us logo, and “The Future of Health Begins
with You” are service marks of the U.S. Department of Health and Human Services.
All of Us Research Program—Protocol v1.11 pre02
IRB Approval Date
2
Program Leadership and Governance
Leadership
The All of Us Research Program (AoURP) is a large collaborative initiative sponsored by the
National Institutes of Health (NIH). The research program functions as a consortium of awardees
from multiple institutions. Its governance involves representation from each awardee and
participant representatives. The consortium also includes the program director and project
scientists/specialists from NIH. Each awardee has responsibilities commensurate with expertise. See
Table 0–1: Program Unit Awardees for a list of NIH-funded awardees and contact Principal
Investigators (PIs).
Dr. Joshua Denny of Vanderbilt University Medical Center serves as the Principal Investigator on
behalf of the consortium.
Governance
The Steering Committee (SC) is the primary governing body of AoURP. The SC recommends
strategic directions for the program and oversees planning, coordination, and implementation of the
program’s overall operations. Its 50 voting members include PIs from each awardee as designated
in the notice of award; representation from NIH, comprising of the deputy director and chief
officers of AoURP; representation from community partners and participants (see section 3.1); and
additional representation as needed to ensure balanced representation of stakeholders. The
governance also includes an Executive Committee (EC) which is a small governing body composed
of 17 members, that ensures the program is effectively meeting its objectives and mission. The EC
proposes solutions to challenges and provides the Director with strategies, options, and information
to aid in programmatic decisions. The Director has discretion to delegate specific decisions to the
EC. Membership of the EC is determined by the Director and reflects the awardees within the
consortium with balanced interests to ensure effective deliberation.
The Steering Committee may appr.
All participants must read the following article ATTACHED Agwu.docxsimonlbentley59018
The document outlines a study examining the strategic management of benefits and challenges of HR outsourcing. It discusses how outsourcing has become a dominant strategy for organizations to focus on core competencies and reduce costs. While outsourcing can provide benefits like cost savings, it also presents challenges such as loss of expertise and low employee morale. The study analyzes these opportunities and difficulties of outsourcing HR processes from the perspective of driving enterprise goals and organizational culture.
ALL of the requirements are contained in the attached document. T.docxsimonlbentley59018
ALL
of the requirements are contained in the attached document. The Veronica case study is attached also.
To prepare:
Review "Working With Survivors of Human Trafficking: The Case of Veronica." Think about how one might become an ally to victims of human trafficking . Then go to a website that addresses human trafficking either internationally or domestically.
Post
a brief description of the website you visited (Websites contained below). Explain how you might support Veronica and other human trafficking victims incorporating the information you have found. Explain how you can begin to increase your awareness of this issue and teach others about human trafficking victims. Describe opportunities to get involved and become an ally to those who have been trafficked. Identify steps you can take to begin to support this group.
.
All five honorees cared greatly about the success of Capella lea.docxsimonlbentley59018
All five honorees cared greatly about the success of Capella learners and most were heavily involved in bettering their communities and others. Dr. Ford in particular fulfilled this desire by helping others to help themselves. Describe how you plan to use your education to better your community or help others to help themselves, and how receiving this scholarship will help you in doing so? 250-750 word essay
All of our honorees brought great personal and professional successes to their work environment. What would you consider one of your greatest professional successes? How did your success benefit your organization and its people? 250- 750 word essay
Respond to Tawnya and Noeme post
Creating the ideal marketing plan requires many steps and gathering data. “Knowing the needs of the customer and having a clearly articulated mission will help to target the message to an audience who will be most interested in the service that is being provided” (Sciarra, Lynch, Adams, & Dorsey (2016) p. 340). To find these needs, a needs assessment can be done. After gathering the results, a plan can start to form. Creating a Strength, Weakness, Opportunities, and Threats chart (SWOT) will give you a broader view on how to target your population.
“The first step in conducting SWOT analysis is to identify your stakeholders and data that has already been collected” (Sciarra, (2016) p. 340). Your stakeholders will guide you into the right direction for a plan of action. Looking at the type of population including the children, families, and staff members will give you the data to create your SWOT. Moving forward with the data, now to breakdown your SWOT data analysis and create a marketing plan. Strengths; reviewing this section will give you an objective overview of any changes needing to be made. Strengths can consist of staff, location, cliental, and possibly opportunities. If there are areas of weakness this gives us the ability to make changes. Moving forward with those changes leads us to Weakness, do we see a pattern of areas? What can we do to upgrade or change these areas we have identified? Moving on next to Opportunities, what options do we have beyond what we have now? Is there room for growth both financially and structurally? Finally, Threats to evaluate. Are we looking at opening a facility next door to two other highly rated centers that may cause us competition and difficulty building a successful business? Is there a possibility that the area is losing population and economic strength? Gathering the data and taking a step back and reviewing all the pro’s and con’s will give us a bigger picture when deciding which way to market our audience.
Taking a look at the strengths from all the gathered data will give you a good direction to follow for reaching protentional public relations opportunities. For an example, location, your childcare facility has a prime location in your town and your coming up on your grand opening soon. Planning an.
All of the instructions will be given to you in a document. One docu.docxsimonlbentley59018
The document provides instructions for creating a summary, noting that guidelines are in one document and a sample is in another to help guide the process and make it easier. It recommends placing the section titled "Significant assessment findings during days of care" in a table, as well as any medications, and notes an attached NANDA Nursing Diagnosis can help with identifying "Risk for" conditions.
हिंदी वर्णमाला पीपीटी, hindi alphabet PPT presentation, hindi varnamala PPT, Hindi Varnamala pdf, हिंदी स्वर, हिंदी व्यंजन, sikhiye hindi varnmala, dr. mulla adam ali, hindi language and literature, hindi alphabet with drawing, hindi alphabet pdf, hindi varnamala for childrens, hindi language, hindi varnamala practice for kids, https://www.drmullaadamali.com
This presentation was provided by Steph Pollock of The American Psychological Association’s Journals Program, and Damita Snow, of The American Society of Civil Engineers (ASCE), for the initial session of NISO's 2024 Training Series "DEIA in the Scholarly Landscape." Session One: 'Setting Expectations: a DEIA Primer,' was held June 6, 2024.
Executive Directors Chat Leveraging AI for Diversity, Equity, and InclusionTechSoup
Let’s explore the intersection of technology and equity in the final session of our DEI series. Discover how AI tools, like ChatGPT, can be used to support and enhance your nonprofit's DEI initiatives. Participants will gain insights into practical AI applications and get tips for leveraging technology to advance their DEI goals.
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UPRAHUL
This Dissertation explores the particular circumstances of Mirzapur, a region located in the
core of India. Mirzapur, with its varied terrains and abundant biodiversity, offers an optimal
environment for investigating the changes in vegetation cover dynamics. Our study utilizes
advanced technologies such as GIS (Geographic Information Systems) and Remote sensing to
analyze the transformations that have taken place over the course of a decade.
The complex relationship between human activities and the environment has been the focus
of extensive research and worry. As the global community grapples with swift urbanization,
population expansion, and economic progress, the effects on natural ecosystems are becoming
more evident. A crucial element of this impact is the alteration of vegetation cover, which plays a
significant role in maintaining the ecological equilibrium of our planet.Land serves as the foundation for all human activities and provides the necessary materials for
these activities. As the most crucial natural resource, its utilization by humans results in different
'Land uses,' which are determined by both human activities and the physical characteristics of the
land.
The utilization of land is impacted by human needs and environmental factors. In countries
like India, rapid population growth and the emphasis on extensive resource exploitation can lead
to significant land degradation, adversely affecting the region's land cover.
Therefore, human intervention has significantly influenced land use patterns over many
centuries, evolving its structure over time and space. In the present era, these changes have
accelerated due to factors such as agriculture and urbanization. Information regarding land use and
cover is essential for various planning and management tasks related to the Earth's surface,
providing crucial environmental data for scientific, resource management, policy purposes, and
diverse human activities.
Accurate understanding of land use and cover is imperative for the development planning
of any area. Consequently, a wide range of professionals, including earth system scientists, land
and water managers, and urban planners, are interested in obtaining data on land use and cover
changes, conversion trends, and other related patterns. The spatial dimensions of land use and
cover support policymakers and scientists in making well-informed decisions, as alterations in
these patterns indicate shifts in economic and social conditions. Monitoring such changes with the
help of Advanced technologies like Remote Sensing and Geographic Information Systems is
crucial for coordinated efforts across different administrative levels. Advanced technologies like
Remote Sensing and Geographic Information Systems
9
Changes in vegetation cover refer to variations in the distribution, composition, and overall
structure of plant communities across different temporal and spatial scales. These changes can
occur natural.
How to Manage Your Lost Opportunities in Odoo 17 CRMCeline George
Odoo 17 CRM allows us to track why we lose sales opportunities with "Lost Reasons." This helps analyze our sales process and identify areas for improvement. Here's how to configure lost reasons in Odoo 17 CRM
The simplified electron and muon model, Oscillating Spacetime: The Foundation...RitikBhardwaj56
Discover the Simplified Electron and Muon Model: A New Wave-Based Approach to Understanding Particles delves into a groundbreaking theory that presents electrons and muons as rotating soliton waves within oscillating spacetime. Geared towards students, researchers, and science buffs, this book breaks down complex ideas into simple explanations. It covers topics such as electron waves, temporal dynamics, and the implications of this model on particle physics. With clear illustrations and easy-to-follow explanations, readers will gain a new outlook on the universe's fundamental nature.
A review of the growth of the Israel Genealogy Research Association Database Collection for the last 12 months. Our collection is now passed the 3 million mark and still growing. See which archives have contributed the most. See the different types of records we have, and which years have had records added. You can also see what we have for the future.
A workshop hosted by the South African Journal of Science aimed at postgraduate students and early career researchers with little or no experience in writing and publishing journal articles.
How to Add Chatter in the odoo 17 ERP ModuleCeline George
In Odoo, the chatter is like a chat tool that helps you work together on records. You can leave notes and track things, making it easier to talk with your team and partners. Inside chatter, all communication history, activity, and changes will be displayed.
Question 3 Are the Company’s Prices and Costs CompetitiveOne o.docx
1. Question 3: Are the Company’s Prices and Costs Competitive?
One of the most telling signs of whether a company’s business
position is strong or precarious is whether its prices and costs
are competitive with industry rivals.
Price-cost comparisons are especially critical in a commodity-
product industry where the value provided to buyers is the same
from seller to seller, price competition is typically the ruling
force and lower-cost companies have the upper hand.
Two analytical tools are particularly useful in determining
whether a company’s prices and costs are competitive and thus
conducive to winning in the marketplace:
value chain analysis and benchmarking.
Core Concept
The higher a company’s costs are above those of close rivals,
the more competitively vulnerable it becomes.
The Concept of a Company’s Value Chain
The value chain consists of two broad categories of activities:
a.
Primary activities: foremost in creating value for
customers
b.
Support activities: facilitate and enhance the
performance of primary activities
Figure 4.3, A Representative Company Value Chain, depicts the
linked set of value creating activities.
Core Concept
2. A company’s
value chain identifies the primary activities that create
customer value and the related support activities.
Why the Value Chains of Rival Companies Often Differ
A company’s value chain and the manner in which it performs
each activity reflect the evolution of its own particular business
and internal operations, its strategy, the approaches it is using
to execute its strategy, and the underlying economics of the
activities themselves.
Because these factors differ from company to company, the
value chain of rival companies sometimes differs substantially –
a condition that complicates the task of assessing rivals’
relative cost positions.
The Value Chain System for an Entire Industry
Accurately assessing a company’s competitiveness in end-use
markets requires that company managers understand the entire
value chain system for delivering a product or service to end-
users, not just the company’s own value chain.
Core Concept
A company’s cost competitiveness depends not only on the
costs of internally performed activities (its own value chain) but
also on costs in the value chain of its suppliers and forward
channel allies.
Suppliers’ value chains are relevant because suppliers perform
activities and incur costs in creating and delivering the
purchased inputs used in a company’s own value chain.
Forward channel and customer value chains are relevant
because:
3.
a. The costs and margins of a company’s distribution allies are
part of the price the end user pays
b. The activities that distribution allies perform affect the end
user’s satisfaction
Figure 4.4, A Representative Value Chain for an Entire
Industry, explores a value chain for an entire industry.
3. Activity-Based Costing: A Tool for Assessing a Company’s
Cost Competitiveness
The next step in evaluating a company’s cost competitiveness
involves disaggregating or breaking down departmental cost
accounting data into the costs of performing specific activities.
Traditional accounting identifies costs according to broad
categories of expense. A newer method, activity-based costing,
entails defining expense categories according to the specific
activities being performed and then assigning costs to the
activity responsible for creating the cost.
Table 4.3: The Differences between Traditional Cost
Accounting and Activity-Based Cost Accounting: A Supply
Chain Activity Example, provides an illustrative example of the
difference between traditional cost accounting and activity-
based accounting.
Perhaps 25% of the companies that have explored the feasibility
of activity-based costing have adopted this accounting
approach.
Illustration Capsule 4.1: Estimated Value Chain Costs for
Recording and Distributing Music CDs through Traditional
Music Retailers, shows representative costs for various
activities performed by the producers and marketers of music
CDs.
Benchmarking: A Tool for Assessing Whether a Company’s
Value Chain Costs are in Line
Benchmarking is a tool that allows a company to determine
whether the manner in which it performs particular functions
and activities represent industry “best practices” when both cost
and effectiveness are taken into account.
Core Concept
Benchmarking has proved to be a potent tool for learning which
4. companies are best at performing particular activities and then
using their techniques or “best practices” to improve the cost
and effectiveness of a company’s own internal activities.
Benchmarking entails comparing how different companies
perform various value chain activities.
The objectives of benchmarking are:
a. To identify the best practices in performing an activity
b. To learn how other companies have actually achieved lower
costs or better results in performing benchmarked activities
c. To take action to improve a company’s competitiveness
whenever benchmarking reveals that its costs and results of
performing an activity do not match those of other companies
The tough part of benchmarking is not whether to do it but
rather how to gain access to information about other companies
practices and costs.
Core Concept
Benchmarking the costs of company activities against rivals
provides hard evidence of a company’s cost-competitiveness.
Sometimes benchmarking can be accomplished by collecting
information from published reports, trade groups, and industry
research firms and by talking to knowledgeable industry
analysts, customers, and suppliers.
Making reliable cost comparisons are complicated by the fact
that participants often use different cost accounting systems.
The explosive interest of companies in benchmarking costs and
identifying best practices has prompted consulting organizations
to gather benchmarking data, do benchmarking studies, and
distribute information about best practices without identifying
sources. Having an independent group gather the information
and report it in a manner that disguises the names of individual
companies permits participating companies to avoid disclosing
competitively sensitive data to rivals and reduces the risk of
ethical problems.
Illustration Capsule 4.2, Benchmarking and Ethical Conduct,
lists some guidelines with regard to benchmarking and ethical
5. conduct.
Strategic Options for Remedying a Cost Disadvantage
Value chain analysis and benchmarking can reveal a great deal
about a firm’s cost competitiveness.
There are three main areas in a company’s overall value chain
where important differences in the costs of competing firms can
occur: a company’s own activity segments, suppliers’ part of
the industry value chain, and the forward channel portion of the
industry chain.
Remedying an Internal Cost Disadvantage
When the source of a firm’s cost disadvantage is internal,
managers can use any of the following eight strategic
approaches to restore cost parity:
1. Implement the use of best practices throughout the company,
particularly for high-cost activities
2. Try to eliminate some cost-producing activities altogether by
revamping the value chain
3. Relocate high-cost activities to geographic areas where they
can be performed more cheaply
4. See if certain internally performed activities can be
outsourced from vendors or performed by contractors more
cheaply than they can be done internally
5. Invest in productivity-enhancing, cost-saving technological
improvements
6. Find ways to detour around the activities or items where
costs are high
7. Redesign the product design so that it can be manufactured or
assembled quickly and more economically
8. Try to make up the internal cost disadvantage by achieving
savings in the other two parts of the value chain system
If a firm finds that it has a cost disadvantage stemming from
costs in the supplier or forward channel portions of the industry
value chain, then the task of reducing its costs to levels more in
line with competitors usually has to extend beyond the firm’s
6. own in-house operations.
Remedying a Supplier-Related Cost Disadvantage: Supplier-
related cost disadvantages can be attacked by pressuring
suppliers for lower prices, switching to lower-priced substitute
inputs, and collaborating closely with suppliers to identify
mutual cost-saving opportunities.
Remedying a Cost Disadvantage Associated with Activities
Performed by Forwarding Channel Allies: There are three main
ways to combat a cost disadvantage in the forward portion of
the industry value chain:
a. Pressure dealer-distributors and other forward channel allies
to reduce their costs and markups so as to make the final price
to buyers more competitive with the prices of rivals.
b. Work closely with forwarding channel allies to identify win-
win opportunities to reduce costs.
c. Change to a more economical distribution strategy, including
switching to cheaper distribution channels or perhaps
integrating forward into company-owned retail outlets.
Translating Proficient Performance of Value Chain Activities
into Competitive Advantage
A company that does a first-rate job of managing its value chain
activities relative to competitors stands a good chance of
leveraging its competitively valuable competencies and
capabilities to a sustainable competitive advantage.
Core Concept
Performing value chain activities in ways that give a company
the capabilities to either outmatch the competencies and
capabilities of rivals or else beat them on costs are two good
ways to secure competitive advantage.
Figure 4.5, Translating Company Performance of Value Chain
Activities into Competitive Advantage, shows the process of
translating proficient company performance into a competitive
advantage.
7. **Five Tests of a Good Corporate Strategy
1.
A Unique
Value Proposition Compared to Other Organizations
A distinctive mix of products or services to a defined set of
customers. The company’s strategy must enable it to deliver a
different value proposition, or set of
benefits, from those offered by competitors.
You want to answer the question: What value do they
bring to the customer?
2. A Different, Tailored Value Chain
To establish a sustainable competitive advantage, a company
must perform different
activities or processes than rivals or perform similar
activities or processes in different ways
. You want to answer the question: What Does a
company do to add additional features or services to add value?
3. Clear Trade-Offs
A sustainable strategy must involve “trade-offs.” The company
must forgo some product features, services, or activities in
order to be unique
. You want to answer the questions: what does a
company choose to do or not do compared to competitors?
4. Activities that Fit Together & Reinforce Each Other
An effective strategy involves
fit across different activities in the value chain, so that
the company’s activities are mutually reinforcing. The way a
company’s product is designed, for example, can reinforce the
efficiency of how it provides after –sale service.
You want to answer the question: What other activities
tie to other activities that lead to synergy or help each other?
5. Continuity over time
A sound strategy involves continuity of direction. A clear
8. strategy makes change more rapid and effective
. You want to answer the question: What does the
company have or do that allows it to continue its success?
CASE STUDY RULES - PLEASE READ
Important Rules for All Case Studies (SCROLL TO THE
BOTTOM):
·
Write as if you are writing to management (title each
section, be succinct, write to be impactful NOT for length)
·
Do not use any outside research whatsoever.
·
All research is contained within the case PDF. Please
provide your own, original analysis.
·
Any use of outside research, discussion with anyone
(including classmates) will result in a failing grade
·
Case studies are from the perspective of the information
in the case. If you know in real life what Burberry ended up
doing you cannot use this information.
You are only to use information in the case to
perform analysis or make recommendations.
·
References should be made to material taken from the
case. (if you cite the case, mention the citation as you would
any source that is not your own ideas).
Content Rules - papers will be reduced a full grade level for any
of the following:
·
Limits on covering Covid-19 / Pandemic impacts on
strategy
·
· You will usually be asked to make a minimum 3 strategic
9. recommendations in most assignments.
The pandemic is NOT to be a core part of your strategic
analysis UNTIL AFTER you have provided 3 examples that
examine the business without regards to the pandemic.
· IF you choose to make Covid a central point, it will
need to be your 4th recommendation (3 recs need to be
non-pandemic related)
· The reason / the "Why": While the pandemic has clearly had
global impact, it is vital you learn to analyze businesses,
markets and strategies without only looking at the pandemic
alone. The pandemic is a somewhat rare event and we want to
make sure we exercise other forms of situational and strategic
analysis as well.
· Grade impact: You will
lose as much as a full grade level if your analyses all
hinge on the pandemic alone.
·
ASSUME Influencer & Celebrity strategies are already
being pursued by the company in the case - DO NOT cover them
in your case or make them recommendations. mentioning
them without research and market insights is the worst form of
leadership… therefore they are
NOT allowed unless specifically directed.
·
If you want to use them, ask in advance and let’s decide
if there’s a strategic reason backing their use
·
If they are specifically requested then they will be
relevant to your answers and encouraged
· The reason / the "Why": Students have tended to simply use
influencers or sustainability as suggested business strategies
10. with no research or data backing them. Analyzing the impacts of
sustainability is encouraged IF you are willing to do the
research to back it up.
·
ASSUME sustainability is already a strategy being
pursued by the company - DO NOT cover them in your paper
· These cases are evidence-based analyses. There is little to no
coverage of sustainability in these cases therefore there is no
evidence. Recommending "sustainability" without evidence or
planning amounts to "Greenwashing" - which is damaging and
discouraged.
·
DO NOT USE FIRST PERSON (I, me, myself) in class
writings. They will result in immediate loss of a grade level
·
· The reason / The "Why": We are here to write as future
leaders so let’s "level up" our discourse such that we
communicate at the most senior level possible.
· SPECIAL TIP: The focus of this class is always…. always…
always start with the consumer (namely customer
segments) and creating value for them.
· Value creation is always our goal
· ALWAYS FOCUS ON SEGMENTS... become "customer
obsessed"
· Remember -
demographics are not segments - we want to include
everyone who shares the same drive and passion and
demographics alone will rarely, if ever, capture those drivers.
(see video for more commentary)
EXPLAINER - Case Studies: How to write management
recommendations
This class endeavors to have you write through the lens of a
senior manager who leads by
11. · Examining the evidence
· Asking relevant questions (our frameworks & case questions
help you do this)
· Committing analyses (wherein you will uncover gaps and
missed opportunities)
· Making recommendations that are based on your analyses
By this time many students have unnecessarily sacrificed points
because they are writing a "typical college paper" that doesn't
live up to the above, failing to fulfill the requirements (just
complete what was asked) and most of all… making generic
recommendations.
In this case generic recommendations refers to advice that is not
managerial, evidence-based or rooted in your own analyses.
Example case in point:
If your friend Sara says she wants to feel healthier,
generic advice would be for you to say, "Sara, you should eat
right and exercise". Worse, generic advice would be to say
"Sara, you should start running". There's zero evidence
collected or analysis given.
Collecting evidence could simply start with understanding what
she means by "feel healthier". This could mean a multitude of
things. Let's say for example Sara shares that during her last
doctor visit she learned she was in poor muscular health. Now
we are gathering evidence.
Perhaps now we can learn her activities to uncover any other
causal factors. As we ask relevant questions we may find she
has a balanced diet but still has a vitamin deficiency and does
not supplement and that she is an active runner and hiker. She
also suffers from lower back pain.
Hopefully by now you realize "eat right and exercise" or "start
12. running" are terrible, if not harmful, pieces of generic advice.
She already has a balanced diet and runs often. You ask if she
has considered other activities such as yoga and weightlifting
and if she would be willing to look into supplements if her
doctor approves.
She is open to other activities and has no physical restrictions,
food allergies or other medical restrictions. You know because
you had a framework to ask about lifestyle & activities, diet,
supplements and medicine.
By now hopefully you get how a leader should think. Surely the
examp[le could go deeper but it's merely for demonstration
purposes.
Advice to Sara may be, "Given your reported back pain and
muscular health concerns as well as your running activities it is
clear you are active but have not engaged in other available
exercises that stress stretching. These may have a positive
impact on your lower back as well as general muscular health.
You may want to look into yoga. Also, your vitamin deficiency
may be contributing to your muscular health and there are
supplements and additional foods that could be added to your
diet that your doctor or a nutritionist can recommend. These
iterations may have a 360-degree impact on your health."
This is how you want to make recommendations. With evidence,
analysis and thoughtfulness. On many papers there has been
what I call "word salad" - pretty words like "be innovative",
"sustainability", "get younger" (with customers) - while offering
no evidence or presenting none of these in analysis yet making
them recommendations.
With the case study all the evidence is the case. No research
needed. You commit the analysis and based on your own
analyses you will make recommendations.
13. Before you go… Pro tip: Title each section of the paper based
on the way I've laid out the questions for you - make it like a
report to management. If you learn to write this way it is more
succinct and readable
Hopefully by the end of this class when a friend says "where
should we go to eat" you annoy the hell out of them with
questions so you can determine the correct course of action. =)
The assigned case studies must have a cover page with the
following information:
Case Title Page
Winter 2020
BUMT 3720: Management Strategy
A Strategy Assessment of (Name of your assigned firm) and the
case #
By: Your first and last name (s)
For: Prof. London Monty
Date/time: Date you completed the assignment and time your
class meets
This case was prepared by Senior Lecturer Donald Sull and Cate
15. By August 2018, Musk’s enthusiasm had turned to misery, laid
bare in a New York Times article entitled
“Elon Musk Details ‘Excruciating’ Personal Toll of Tesla
Turmoil.”2 Working up to 120 hours a week
and sleeping on the factory floor, Musk was closely supervising
the production of the Model 3. He
described Tesla as being in a state of “production hell.” The
company had paused production in late
February and again in April to work out bottlenecks in its
highly automated factory, staffed with over
1,000 robots.3
During a call with equity analysts in May 2018, Musk’s misery
was palpable. He became testy,
characterizing a question about the company’s capital
requirements as “boring.”4 But it was a legitimate
question. In the second quarter of 2018, the company recorded a
net loss of $743 million on revenue of
$4 billion. Analysts estimated that the company needed to
produce at least 5,000 units a week to turn a
profit in 2018.5 Some wondered whether Tesla would run out of
cash by the end of the year.6 (See the
Tesla Financials tab in the Tesla case workbook for additional
financial data.)
TESLA’S ENTRY INTO THE U.S. AUTO INDUSTRY
Donald Sull and Cate Reavis
May 1, 2019 2
In The New York Times article, Musk remarked, “The worst is
over from a Tesla operational
standpoint.”7 The company was finally producing 5,000 Model
16. 3s a week after missing the original
production goal by more than six months.8 As he worked to get
production ramped up before the
company’s cash ran out, Musk admitted on Twitter to one
mistake: “Yes, excessive automation at Tesla
was a mistake. To be precise, my mistake. Humans are
underrated.”9
Investors and auto industry experts were split on Tesla’s future.
Some believed that Tesla would create
value by disrupting the traditional automobile industry, all
while achieving its stated mission to
accelerate the world’s transition to sustainable energy. Skeptics
disagreed. “Tesla,” according to one
prominent investor, “without any doubt, is on the verge of
bankruptcy.”10
The Traditional Automobile Industry
Industry Overview
The new passenger car marketa in the United States was worth
about $270 billion at the retail level in
2016.11 While the industry experienced a sharp downturn
during the 2008 Great Recession, sales had
rebounded by 2013 as the U.S. economy swung into recovery.
With higher disposable incomes and
easier access to credit, Americans, including Millennials born
after 1980, flocked to dealerships. By
2016, the market’s momentum had slowed. Sales (by value and
volume) were expected to remain flat
until 2021 (Exhibits 1a and 1b). The average sales price of a
new car was $35,500 (Exhibit 2).
Americans were buying big cars. Of the nearly 7 million new
cars sold in the United States in 2016,
17. 60% were pickups and SUVs.12 However, industry analysts
expected demand for small cars to comprise
20% of new car model launches by 2023, compared to 15%
between 2008 and 2017 (Exhibit 3). Some
also predicted that by 2025 nearly 60% of new vehicles (trucks
and buses included) sold in the United
States would offer some form of alternative propulsion (e.g.,
EVs, hybrids, and fuel cellb cars).13
Automakers
In 2018, three U.S. automakers accounted for nearly 46% of the
U.S. car industry’s market share by
volume. General Motors (GM) led the market with a 17.9%
share, followed by Ford with 14.7%, and
Chrysler with 12.9% (Exhibit 4).14 Toyota was the leading non-
U.S. manufacturer with 13.5% by
volume. Tesla held a 0.2% market share. (See the Competitors
tab in the Tesla case workbook for
additional financial data.) Automakers, who were sometimes
referred to as original equipment
manufacturers or OEMs, had historically earned low returns on
their investments. The operating
margins (operating income as a percentage of sales) of GM,
Ford, and Chrysler were 7.4%, 6.4%, and
3.2%, respectively.
a Passenger cars include sedans, hatchbacks, SUVs, 4x4s, and
other related vehicles that have four wheels and have no more
than eight seats
in addition to the driver’s seat.
b A fuel cell car is a type of electric vehicle that uses a fuel cell
instead of or together with a battery. A fuel cell uses hydrogen
and oxygen
to produce electricity.
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OEMs faced significant barriers to exit. The automotive sector
employed nearly 3 million people in the
United States – nearly 1 million in manufacturing and 2 million
in retail – and politicians at the federal,
state, and local levels were keen to protect those jobs.15 The
automakers’ resources, including factories
and brands, were highly specialized and could not be easily
redeployed to other uses. Not one of the
“Big Three” U.S. manufacturers had left the market, even
during the 2008 Great Recession when their
manufacturing capacity utilization fell below 33% (Exhibit 5).
Both Chrysler and GM declared
bankruptcy in 2009. The federal government rescued GM, and
Chrysler was acquired by Italy-based
Fiat. Within two years, GM had returned to profitability,
although it continued to earn low returns on
investment.
Customers demonstrated little brand loyalty when it came to the
cars they bought. Eighty percent
switched brands when trading in a car and buying a new one.
Customers of Toyota’s luxury brand
Lexus were the most loyal; but even among Lexus owners, only
30% replaced their trade-in with
another Lexus. Replacement rates for other luxury brands were
lower, considerably so for some:
Mercedes-Benz, 28%; BMW, 24%; Porsche, 22%; Audi, 16%;
19. and Jaguar, 12%.16
Wall Street was not convinced that the traditional automotive
OEMs were well positioned to respond
to significant industry shifts brought on by startups like Tesla
and technology companies with deep
financial pockets like Google and Apple. New entrants were
investing heavily in EVs, autonomous
driving, and mobility services – technologies and services that
enabled goods and people to move
around more freely.17 As the industry moved from selling cars
to providing mobility services, the
sources of industry revenues and profits were projected to shift
(Exhibits 6a and 6b).18
New Entrants
The barriers to entering the auto industry were high. New
entrants had to contend with creating brand
loyalty, building manufacturing capabilities and factories,
developing a dealer network, and attaining
the capital requirements to develop and build a new car, which
could be as much as $6 billion and take
up to six years.19 Research and development (R&D)
expenditure for OEMs based in the United States
was about 5% of revenue. Six automakers were among the
world’s most valuable brands, including
Toyota with an estimated brand value of $45 billion, Mercedes-
Benz ($34 billion), BMW ($31 billion),
Honda ($26 billion), Audi ($14 billion), and Ford ($14
billion).20 Exhibit 7 shows how much the ten
largest OEMs spent on capital expenditure, R&D, and
acquisitions between 2006 and 2016.
While there had been no domestic entrants at scale in the United
States since the 1920s, there had been
20. entry by non-US manufacturers. Japanese (Toyota, Honda)
followed by Korean (Hyundai, Kia)
automakers entered at the lower end of the market in price
starting in the early 1980s and moved up to
higher-end brands (e.g., Lexus) once they had established a firm
foothold. In 2018, OEMs
headquartered outside the United States were producing more
cars in the United States than GM, Ford,
and Chrysler combined.21 Companies like Toyota, Daimler,
BMW, and Nissan were building and
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Donald Sull and Cate Reavis
May 1, 2019 4
expanding factories and workforces across the southern and
southwestern regions of the United States.
Daimler was investing $1 billion in its Alabama-based plant,
which produced 286,000 cars in 2017,
and BMW was spending $600 million to expand its South
Carolina plant, which produced 370,000
cars.22 Toyota’s four U.S. factories, which together produced
nearly 2 million cars in 2017, were about
to become five after the company announced in January 2018
that it would be building a $1.6 billion
shared factory with Mazda in Alabama, which would result in
4,000 new jobs.23
Suppliers
Globally, over 11,000 companies supplied automobile
manufacturers with parts (tires, batteries) and
systems (braking, electrical). These suppliers ran 60,000
21. production facilities and employed 7 million
people worldwide. The $2.2 trillion global automotive supply
business was highly fragmented. The top
five players - Robert Bosch, Continental, Magna, Denso, and ZF
Friedrichshafen - accounted for 8.1%
of revenue.24 (See the Suppliers tab in the Tesla case workbook
for additional data on suppliers.)
There were three tiers of suppliers. Tier 1 suppliers (e.g.,
Robert Bosch) sold components and sub-
systems that integrated multiple parts, such as a steering
system, directly to OEMs.25 Tier 1 suppliers
had deep technical capabilities that allowed them to diversify
beyond the automotive industry.26 More
than 40% of Bosch’s revenue, for example, came from the
company’s non-automotive business. The
company sold solutions that integrated smoke detectors, climate
control, and appliances into what it
called a “smart home” system.
Tier 2 suppliers sold parts such as interior trim, bumpers, wires,
and cables to Tier 1 suppliers. Like
their Tier 1 counterparts, many Tier 2 suppliers sold to
customers in multiple industries.27 Tier 3
suppliers sold undifferentiated raw materials such as steel or
rubber to OEMs and to Tier 1 and Tier 2
suppliers. On average, a car manufacturer had hundreds of
suppliers. Ford, for example, purchased 80%
of its parts from 100 suppliers.28 Automotive suppliers were
typically more profitable than automakers
(Exhibit 8).
Tier 1 suppliers were investing in new technologies in
preparation for a future dominated by electric
vehicles, which would require far fewer parts. An internal
combustion car consisted of up to 30,000
22. discrete parts while an EV had about one-third as many
components.29 This contrast was clearly evident
when comparing the engines. An internal combustion engine
(ICE) required hundreds of moving parts
while the induction engine used in EVs had only a few. ICE cars
had anywhere from six to 10 gears
while EVs had one.30
Tier 1 suppliers were expected to capture a larger portion of a
vehicle’s value by selling subsystems,
such as advanced driver assistance systems and infotainment
systems that enhanced safety and the
driver’s experience.31 Suppliers of new technology and
software were predicted to capture 11% of
profits by 2030, up from 4% in 2015.32 In addition, because
they provided the majority of fuel-saving
technology in R&D and production capacity, Tier 1 suppliers
were reaping the benefits of new fuel
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economy standards and renewable fuel standards. One industry
analyst predicted that between 2014
and 2025, automakers would spend $110 billion on fuel-saving
technology, of which $90 billion would
be paid to suppliers. 33
Customers
Car Buyers In 2018, there were 113 million registered passenger
cars in the United States.34
23. Average vehicle retention was at an all-time high of 11.6
years.35 Most of these cars spent 95% of their
time parked. Approximately 75% of workers in the United
States commuted alone by car.36
Millennials, a generation of 75 million people, had a lower rate
of car ownership than previous
generations at their age. One study found that 92% of 20–24
year-olds had a driver’s license in 1983, a
rate that had dropped to 77% by 2014.37 While the 2008 Great
Recession delayed their entrance into
the car-buying market, Millennials were the fastest-growing
segment of car buyers, and J.D. Powers
predicted that by 2020 they would make up 40% of new car
purchases. Compact cars and some
crossovers were their cars of choice. Before entering a
dealership, they spent significant time on the
internet researching makes and models, and conferring with
acquaintances on social media.38
According to a study by Autotrader, they spent an average of 17
hours researching vehicles before
making a purchase.39 As one industry observer noted:
“Millennials buy cars more pragmatically. Maybe
they missed that moment when you deeply fall in love with cars,
or a car, or personal autonomous
transportation. And they are forever going to be more on the
pragmatic car-as-commodity, car-as-
appliance part of the equation.”40
Millennials’ parents were also starting to think differently about
car ownership. According to a 2015
Zipcar study, Baby Boomers - those born between 1946 and
1964 - were moving to the city in large
numbers to take advantage of shorter commutes and the cultural
experiences urban life offered.41 Eighty
seven percent of the study’s respondents said that having a
24. shorter commute was an important part of
urban life while 65% said that getting around without a car was
a key attribute of urban living.42 Many
relied on ride-hailing services as customers as well as a source
of income. A 2015 Uber study
determined that 39% of its drivers who drove over 30 hours per
week were 50 years and older.43
In making purchasing decisions, a survey of over 2,000 car
buyers ages 18–64 found that safety, fuel
efficiency, and high quality were the most important buying
factors, whereas spaciousness, price, and
brand were ranked least important (Exhibit 9). For Millennials,
the top five desired features when
looking for a car were navigation systems, satellite radio,
Bluetooth, MP3 players, and mobile
integration.44
Dealerships In 2018, there were over 18,000 new car
dealerships in the United States, down from
nearly 22,000 in 2007.45 Sales of new cars accounted for
roughly 30% of a dealership’s profits (dealers
earned approximately 2% of the purchase price of a new car in
profit).46 Dealerships made between
45% and 60% of their profits through servicing cars and
supplying replacement parts, although those
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profits were expected to decrease significantly with EVs that
required less service and fewer repairs.47
25. A 2016 study found that dealers steered customers away from
EVs by not displaying them
prominently, not having an EV available for a test drive, not
mentioning available tax credits and
rebates, or not having basic knowledge about EVs.48
Dealers were losing their allure with car buyers. The majority of
American car buyers disliked going
to the dealer and having to negotiate price with well-trained
salespeople. A survey of 100,000 car
consumers by Accenture found that 75% would consider buying
their car online, thereby bypassing the
dealer altogether.49 Cox Automotive, an automotive industry
marketer and research provider, predicted
that up to 10% of cars would be purchased online in 2019.50
Millennials were being credited with
moving the car-buying process online.51 In addition to their
reluctance to buy a car from a dealership,
Millennials were also reluctant to work at one because of long
hours, unstable pay, and the haggling
with consumers that was required - auto dealers experienced a
50% annual turnover among their
Millennial employees.52
The Changing Face of Mobility
In 2018, several changes were fundamentally reshaping the
automobile industry. These trends included
a shift toward EVs due to climate change concerns; a growing
number of people moving to cities and
choosing to be carless; the rapid growth of autonomous driving;
and the rise of alternative
transportation, including car-sharing and car-hailing services
(Zipcar, Uber, Lyft), urban bike rentals
(Zagster, Lime), and electric scooter-sharing services (Bird,
Lime). Some consumers viewed a car less
as a mode of transportation, and more as a “computer on
26. wheels.”53 Automakers, in response, were
attempting to recast themselves as software-fueled “experience
providers.”54
Electrification In 2017, roughly 200,000 EVs were sold in the
United States, a 25% increase over
2016 sales, putting the total number on the road at roughly
760,000.55 The Nissan LEAF was the first
mass-market electric vehicle to be sold in the United States. It
debuted in late 2010 with a price tag of
$32,780, or $25,280 after a $7,500 federal income tax credit.
The car’s 24-kilowatt hour (kWh) battery
had a range of 100 miles. The LEAF experienced a bumpy
rollout, and missed sales projections - 2012
sales were half of the projected 20,000 units56 - which led
Nissan to lower prices to boost sales.
Government subsidies to consumers were helping to drive EV
adoption, which provided the scale
required for EVs to become economically viable for
manufacturers.57 Buyers of EVs were entitled to a
$7,500 federal tax credit up until December 31, 2018. Between
January 1 and June 30, 2019, the credit
would decrease to $3,750 and then to $1,875 until December
2019. A number of states offered
additional tax credits or rebates to EV buyers, including
California ($2,500), Connecticut ($3,000), and
New York ($500 for EVs over $60,000 and $2,000 for those
under $60,000).58
The most expensive part of an EV is the lithium-ion battery.
The battery pack on Chevrolet’s Bolt EV
cost $10,000–$12,000, accounting for 33% of the final price of
the car.59 Fortunately for EV
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manufacturers, battery prices had fallen 80% between 2010 and
2017 (Exhibit 10). Batteries on EV
models varied in their capacity (based on kWh), the time it took
to charge the battery (about 35 hours
to completely charge a Nissan LEAF using 110V and 7.5 hours
with 220V), and range (how many
miles could be driven per charge).60 The price of electricity in
the United States averaged $0.11 per
kWh.61 Over 60% of battery sales were shared by three
companies: Panasonic (Japan), BYD (China),
and LG Chem (South Korea).62
GM and Ford were preparing to introduce multiple EV models.
GM entered the EV market with the
Chevy Bolt in early 2017, six years after launching the hybrid
Chevy Volt. GM planned to offer a fleet
of 20 electric vehicle models by 2023, including electric
SUV/light trucks, a segment which Tesla was
also expected to enter.63 The company, in partnership with
Honda, was also investing in proprietary
battery and fuel cell technologies.64
Ford entered the EV market in 2012 with an electric version of
the Focus. In early 2018, the company
announced that, over the following four years, it would be
phasing out most of its passenger internal
combustion models to focus on light trucks and EVs.65 It was
investing $11 billion and planned to roll
out 24 hybrids and 16 EVs, including a 300-mile range
Mustang-inspired SUV, by 2022.66
28. Toyota, which lagged behind its competitors in rolling out EVs,
planned to have 10 EV models by the
early 2020s. In late 2017, the company announced it was in
talks with battery maker Panasonic to form
a joint venture in Japan to make batteries for EVs.67 BMW
launched its first EV, the i3, in 2015. Its EV
crossover, the iX3, with a range of 250 miles, would arrive in
2021. Recognizing a future need for easy
access to batteries, in 2018, the company signed a $1.1 billion
contract with China-based CATL, to
build a battery factory in Europe.68
With electrification came the need for public charging stations.
In order for consumers to feel
comfortable about switching to EVs and avoid “range anxiety,”
they needed reassurance that the public
charging infrastructure was in place when away from their home
charging outlet. There were 16,000
public charging stations and 43,000 individual charging
connectors in the United States compared to
112,000 gas stations.69 Building and maintaining charging
stations was unprofitable, and different
stakeholders, including automakers, power companies, third-
party charging companies, and
governments, debated who should be responsible for these
stations.70
Since 2015, BMW and Nissan had partnered with EVgo, the
nation’s largest public direct current (DC)
fast-charging operator, to build a network of fast-charging
stations, which were publicly available for
all EV drivers. A fast-charging station could add 60 to 100
miles of range in just 20 minutes.71 As part
of its diesel emissions settlement with the U.S. government,
Volkswagen would be installing 2,000
29. fast-charging stations in 17 U.S. cities by 2019.
Utilities were beginning to eye the EV charging infrastructure
market, and several were running pilots
and experimenting with different business models. As industry
watchers noted, it was the duty of
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utilities to serve the public interest.72 Industry experts warned
about the stress EVs might put on the
electric grid if owners charged their cars at home during peak
hours (early evening). Some believed
additional fossil fuel-fired plants would need to be built to meet
the demand unless drivers could charge
their cars during off-peak hours or by using renewable power
sources such as solar.73
Autonomous Driving There was debate about how long it would
take until the first fully automated,
self-driving vehicle would be on the road. (See Exhibit 11 for
five autonomous levels ranging from
“hands on” to “steering wheel optional.”) Some industry
observers believed driverless cars, which were
equipped with either LiDAR, a laser technology that uses light
waves, or radio wave technology to
transmit information on a car’s surroundings, would become
fairly commonplace by 2020.74 Others
weren’t as optimistic and believed it could be decades before
consumers trusted autonomous vehicles
and were ready to replace their current cars.75
30. Several companies were testing different levels of autonomous
vehicles with mixed success. Tesla,
Uber, and Waymo (a subsidiary of Google’s parent company
Alphabet Inc.) had all experienced crashes
that resulted in serious injuries and, in some cases, fatalities.76
While Tesla experimented on its own
cars, Uber and Waymo tested their self-driving technology on
Toyotas and Fiat Chryslers.77 Like
Waymo and Uber, Apple looked to OEMs to supply the vehicles
for their autonomous vehicle initiative.
Apple was equipping Lexus SUVs with LiDAR, radar sensors,
and many cameras. By May 2018, Apple
was testing 45 cars, more than the number being tested by
Waymo and Uber.78
GM, which received a $2.3 billion investment from SoftBank
for its self-driving division GM Cruise
Holdings, was the most active of the car manufacturers in
testing autonomous vehicles. The company’s
test fleet of 180 autonomous EVs was providing taxi-like
services for company employees in San
Francisco. (A human was on board in all vehicles during the
testing phase.) Industry observers predicted
that either GM or Waymo would win the race to bring the first
fully autonomous vehicle to market.79
Self-driving cars, many believed, would make traveling by car
safer by eliminating human error and
distraction.80 In addition to safer roads, driverless cars would
enable ride sharing, thereby reducing
private car ownership. As one industry observer noted, “In the
past, cars were primarily about driving
and secondarily about content consumption. With autonomous
cars, that prioritization will be reversed.
Fully automatic cars will be battery-powered living rooms on
31. wheels.”81 The speed of adoption to self-
driving cars would depend on regulations - only 6% of the
largest cities had language about
autonomous vehicles in their long-term transportation plans82 -
and consumer acceptance.83
Connectivity With a growing segment of society craving
continual connection with the world around
them, car manufacturers were investing in digital connectivity.
As defined by the automotive practice
of consulting firm PricewaterhouseCooper (PwC), a “connected
car” had access to the internet and a
variety of sensors that were able to send and receive signals,
sense the environment around them, and
interact with other vehicles or entities, such as in-home virtual
assistants like Alexa.84 The key elements
of a connected car were adaptive driver assistance systems,
infotainment, human-machine interfaces
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(e.g., touchscreen or any device enabling continuous
communication between driver/passengers and
the car/outside world85), and vehicle services (e.g., safety and
vehicle management services, over-the-
air software updates).86
As cars became more connected, R&D investment by OEMs was
expected to move from hardware (the
car itself) to software solutions integrated into the vehicle, a
shift that would require automakers to hire
32. more software engineers.87 A McKinsey & Company report
estimated that the United States alone
would require up to 100,000 additional software engineers to
work in its automotive industry.88
The profits automakers reaped in the future would depend on
the type of connectivity “packages” that
OEMs sold with their cars.89 The CEO of LeEco, a Chinese
conglomerate, noted in an interview that
he would eventually be able to offer his company’s electric car,
the LeSEE, for free, earning money
from the myriad services the company sold to customers.90
How OEMs would profit from connected
cars, and whether they would try to do so by building, buying,
or partnering, was not clear. As PwC put
it, “The risk is that they [OEMs] will become mere
manufacturers of increasingly commoditized
vehicles - dumb pipes on wheels - through which the truly
valuable connected and mobility services
pass.”91
Connected car revenue was expected to surge from $53 billion
in 2017 to $156 billion by 2022 (Exhibit
12). In 2017, premium models captured nearly two-thirds of the
connected car revenue. But a shift was
expected to take place and by 2022 the mass-market vehicles,
such as the Ford Focus and Honda
Accord, were expected to account for 50% of revenue. Seventy-
five percent of connected car packages
would be sold as part of smaller, less expensive cars, and the
prices for the packages would be lower.92
Prices and services included in connected car packages varied
considerably among OEMs as did the
level of price transparency. GM’s OnStar Safety and Security
Plan, which included automatic crash
33. response, stolen vehicle assistance, and navigation, was $24.99
a month after a six-month free trial.93
Toyota’s Safety Connect – a standard feature on all models that
provided emergency assistance, stolen
vehicle locator, and crash notification – was $8 a month after a
three-year free trial. Navigation services
were sold separately with the basic service costing $24.99 a
year after a free trial.94
Alternatives to Private Car Ownership Some industry observers
believed that electrification,
autonomous driving, and connectivity would alter, but not
fundamentally change, the traditional
business model of selling cars that OEMs had pursued for
decades. Others argued that consumers’
views of transportation were fundamentally shifting. Owning
cars would give way to a “mobility-as-a-
service” model, whereby consumers would purchase the
mobility they needed, when they needed it. In
this scenario, consumers would buy miles rather than
vehicles.95 A 2017 transportation study by a
Stanford University economist predicted that by 2030, 95% of
U.S. passenger miles could be served by
on-demand autonomous electric vehicles and that there would
be an 80% drop in private car ownership
in the United States by the same year.96
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The shift to mobility-as-a-service was expected to be most
34. pronounced for consumers living in cities,
while private car ownership would remain the preferred means
of mobility in rural areas.97 Private car
ownership would become less important than the flexibility to
choose the best transportation solution
for a given purpose.98 In the future, through a mobile app,
someone in need of transportation might be
able to “order” a small car to commute to work, an SUV to take
the family and dog hiking on the
weekends, and a van to transport multiple kids to a soccer game.
PwC predicted there would be 22%
fewer vehicles on U.S. roads by 2030 and those that were in use
would drive more miles and have
shorter lifecycles. As an industry analyst from McKinsey &
Company put it: “The bad news is that the
traditional business models and the traditional technologies
have peaked. The good news is that for
players who are able to move successfully into this new world,
there is a whole new world of revenues
and profit pools.”99
The shift away from private car ownership was already being
seen in certain cities.100 Between 2015
and 2016, the number of households without a car in Chicago
rose from 26.5% to 27.5% and in Atlanta
from 15.2% to 16.4%.101 Many people in urban areas were
opting to get from point A to point B via
public transportation, car-sharing services, and bike (including
electric bikes) and electric scooter (e-
scooter) sharing. Investors were betting that these alternative
modes of transportation would continue
to grow. In May 2018, e-scooter startup Bird, founded in mid-
2017, raised $300 million at a $2 billion
valuation.102 Bird charged riders $1 to unlock a scooter and
$0.15 a minute to ride. Bike and scooter
rental operator Lime, founded in January 2017 and also valued
35. at $2 billion,103 charged $1 ($0.50 for
students) to rent a pedal bicycle for half an hour, and their e-
bikes and e-scooters cost $1 to unlock and
$0.15 a minute to ride. Both Bird and Lime faced operational
setbacks in the spring and summer of
2018 when they received cease and desist orders from the City
of San Francisco and clashed with
officials in smaller urban centers like Denver and Nashville
after they started operating without
obtaining the proper permits.104
A number of OEMs were acquiring or working with entities that
catered to consumers who did not
want to buy a car. GM acquired a 9% share in Lyft with its $500
million investment in January 2016 in
hopes of creating an autonomous, on-demand vehicle network.
Toyota was collaborating with Uber to
create new leasing options for Uber drivers.105 Meanwhile,
Alphabet and Uber were both investors in
Lime’s latest round of funding,106 and in late June 2018, Lyft
acquired Motivate, operator of New
York’s City Bike, Boston’s Blue Bikes, among others, for an
undisclosed sum.107
Tesla Enters the Automotive Industry
Engineering entrepreneurs Martin Eberhard and Marc
Tarpenning founded Tesla in 2003 in Palo Alto,
California. Elon Musk, who had earned $165 million from the
sale of his stake in PayPal in October
2002, led the Series A round of funding of $7.5 million in 2003
and became chairman of the board in
2004. None of the company’s original leadership team had a
background in the automotive industry. In
2007, Tesla experienced cost overruns on its first EV, the
Roadster, and by the end of the year had had
three CEOs, including co-founder Eberhard. Musk, who by that
36. point had invested $55 million in Tesla,
TESLA’S ENTRY INTO THE U.S. AUTO INDUSTRY
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appointed himself CEO in October 2008 saying, “That’s part of
the reason I decided to take over as
CEO. I have so many chips on the table. I need to steer the boat
completely.”108
Tesla’s nine-person board included several members with close
ties to Musk’s various business
interests: the CEO of Solar City (Musk’s cousin), the CFO of
Solar City, and two directors of Musk’s
rocket company SpaceX.109 The company had witnessed the
departure of several key managers in 2018,
including the VP of engineering and two high-ranking engineers
who worked on the company’s
automated production line. Tesla had roughly 34,000 employees
worldwide, including 10,000 who
worked in the company’s manufacturing plant in Fremont,
California, and 1,000 at its battery and motor
Gigafactory in Nevada.
The company went public in June 2010 at a price of $17 per
share, and by August 2018, the stock was
trading at $335 share, putting its market capitalization higher
than GM’s. (There had been no stock
splits.) Tesla recorded its first profitable quarter ($11 million in
net income) in March 2013 and booked
profits a second time in October 2016, but posted losses for
every other quarter. (See the Tesla financial
37. tab in the Tesla case workbook.) Many investors were skeptical
of Tesla’s long-term viability, and bet
that its stock would drop in price.110
Tesla’s Master Plan
Tesla’s strategy was spelled out in the Master Plan that Musk
posted on the company’s website in 2006,
which included the following: “Almost any new technology
initially has high unit cost before it can be
optimized and this is no less true for electric cars.... The
strategy of Tesla is to enter at the high end of
the market, where customers are prepared to pay a premium, and
then drive down market as fast as
possible to higher unit volume and lower prices with each
successive model.”
Tesla entered the car market by focusing on a niche market –
luxury electric vehicles that traditional
automakers had ignored, and succeeded in winning market share
from other luxury gas-fueled models.
(See the Luxury car tab in the Tesla case workbook.) Each Tesla
model, however, was late to market,
experienced various technology glitches and quality issues, and
missed sales projections.111
The two-seat Roadster was Tesla’s first car. As described by
Car and Driver, the Roadster was “not
just a car, but one of the strongest automotive statements on the
road.”112 Retailing for $100,000 and
able to hit 60 miles per hour in just four seconds, the electric
sports car made its retail debut two years
later than promised due to production delays. Tesla outsourced
key components of the car to a couple
of global suppliers, but struggled to manage the suppliers and
integrate the components. By the time
38. Tesla stopped making the Roadster in 2012, it had sold 2,500
units.
For the Model S sedan, which launched in 2013, Tesla kept
design and assembly in-house and produced
a large number of components as well, rather than sourcing
them from suppliers. By early 2018, nearly
225,000 Model S sedans had been sold. In 2017, the Model S
sales nearly matched the combined sales
TESLA’S ENTRY INTO THE U.S. AUTO INDUSTRY
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of the BMW 6 and 7 series and the Mercedes-Benz CLS and S
class. In 2013, the Model S won Motor
Trend’s car of the year award, and two years later was declared
“the best-performing car that Consumer
Reports has ever tested.”113
Tesla also claimed that the lifetime costs of operating a Model S
were lower than for a comparable
vehicle. One analysis comparing the five year cost of owning a
Model S to a BMW 6 Series found the
Tesla required $3,000 in fuel versus $8,000 for the BMW, was
more expensive to insure ($14,000
versus $10,000 for the BMW), and that maintenance cost
approximately $3,000 for both cars.114 In
2015, the company introduced the $80,000 Model X, a midsize
luxury crossover with falcon wing doors
that opened upward. Nearly 81,000 Model X crossovers had
been sold by early 2018.
39. The Model 3 was Tesla’s first attempt at scaling to mass
production. The lowest priced model, which
had a range of 220 miles, cost $27,500 (after deducting a $7,500
federal tax credit); an upgraded model
with a battery range of 310 miles started at $44,000. The Model
3’s competitors included the Nissan
LEAF ($29,990, battery range of 151 miles) and the Chevy Bolt
($37,495, battery range of 238
miles).115 By summer 2017, Musk announced over 500,000
customers had put down $1,000 to reserve
a Model 3.116 However, by mid-2018, nearly 25% of these
deposits had reportedly been refunded.117
By the first week of September 2018, Tesla had manufactured
almost 85,000 Model 3s, and was
estimated to be producing over 4,800 per week.118
“Production Hell”
The Model 3 was designed to be easy to manufacture, with
8,000 parts, or 25% fewer components than
its predecessors. While the typical automaker outsourced the
majority of its components, Tesla, by
some accounts, made up to 80% of the Model 3’s components
in-house in a dedicated casting foundry
in California, a tool and die plant in Michigan, the Gigafactory,
and the second floor of the Fremont
plant.119 According to Tesla’s former VP of production, the
company made its own battery, power
electronics, drive-train systems, cables, displays, and fuses, and
was “more vertically integrated than
any car company since the heyday of the Ford [River] Rouge
plant in the late 1920s.”120
Tesla’s decision to vertically integrate was in part due to the
hard lessons learned during the
manufacturing process of previous models. Seat production,
40. which had originally been outsourced for
the Models S and X to an Australian seat manufacturer, was one
example. Musk was dissatisfied with
the seats’ quality and comfort. In addition, voluntary recalls
involving the seat belts on the Model S
and a faulty locking mechanism on the second-row seats on the
Model X led the carmaker to move seat
manufacturing in-house.121 Tesla’s move perplexed some
analysts. “Is that really the core competency
of an auto company?” one asked.122 Most OEMs outsourced
seat manufacturing to specialists due to
high labor and design costs.123
The Model 3’s battery and motor were manufactured at Tesla’s
Gigafactory, which opened in 2016.
The idea behind the factory came to CTO JB Straubel back in
2012 upon realizing that Tesla’s plan to
sell 500,000 cars a year by 2020 would require the world’s
entire 2012 output of lithium-ion batteries.124
TESLA’S ENTRY INTO THE U.S. AUTO INDUSTRY
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To scale, Tesla would need to produce its own batteries.
Located in the Nevada desert, the $5 billion
factory, which was built in partnership with Panasonic, was the
largest manufacturing plant in the world
with a footprint of 5.5 million square feet, equivalent to 35
Costco stores. The plant was manufacturing
3,000 battery packs a week. Each battery pack contained 2,170
cylindrical cells (each one slightly
longer and thinner than a C battery) in a pack weighing 1,054
41. pounds.125 Musk noted that the company
had reduced the time it took to make a battery pack from seven
hours to less than 17 minutes.126 He
also indicated in early June 2018 that the company expected to
achieve a battery cell cost of $100 per
kWh by the end of the year. GM was spending $145 per kWh for
batteries purchased from LG Chem
for the Bolt.127
The Model 3 was manufactured 240 miles to the west of the
Gigafactory at Tesla’s 5.3 million square
foot manufacturing plant in Fremont, California. The 50-year-
old plant was previously run by GM and
then by a joint venture between GM and Toyota. At its height,
the plant produced up to 500,000 cars a
year. Tesla bought the factory from Toyota in 2010 for $42
million and invested nearly $1.3 billion in
expanding its footprint for the Model 3 production and in
creating a highly automated production line.
Musk envisioned an “alien dreadnought” factory that used
artificial intelligence and robots to build cars
faster than any human assembly line.128 Workers would be
used to maintain and fix the robots and
machines. Ninety-five percent of the Model 3’s production line
was automated.129 Musk explained:
“The true problem, the true difficulty, and where the greatest
potential is, is building the machine that
makes the machine. In other words, it’s building the factory.
I’m really thinking of the factory like a
product.”130
When introducing new car models, automakers spent up to six
months testing the production line by
building vehicles with lower-grade equipment and prototype
tools designed to be scrapped once all the
manufacturing kinks were worked out.131 For the Model 3,
42. Tesla chose to skip “beta” production in an
attempt to save time and money.132 When production began,
the automated line was not complete. Some
Model 3 parts were being assembled by hand, off of the
automated assembly line, including the welding
of huge pieces of steel.133 There were issues with the quality of
components, and one Tesla engineer
estimated that 40% of parts made or received at the Fremont
plant required rework.134 The company
was making tweaks to the production process even as cars were
“rolling off the line.” Musk’s desire
for full automation before perfecting the production process
first was puzzling to some. One industry
consultant noted, “The Japanese style of production is to try and
limit automation initially as it is
expensive and statistically inversely correlated to quality. The
approach is to get the process right first,
then bring in the robots.”135
Sales and Service
Tesla not only had to make the Model 3, but also had to sell
them, ensure that customers had places to
charge, and service them when required. Unlike other car
manufacturers that relied on independent
dealers to sell and service their cars, Tesla sold its cars through
company-owned stores where
salespeople earned a salary instead of a commission. According
to its website, the company owned 111
TESLA’S ENTRY INTO THE U.S. AUTO INDUSTRY
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43. stores in 26 states and Washington, D.C. The company’s ability
to expand its store footprint had been
hampered by the dealership lobby, which argued Tesla was
breaking decades-old franchise laws that
prevented car makers from selling directly to consumers.
Independent dealers had succeeded in at least
partially banning Tesla’s direct sales model in several states,
including Connecticut, Wisconsin, Texas,
and Michigan.136
In early 2019, Tesla owned and operated over 1,300 charging
stations and nearly 11,000
“Superchargers” (charge points) exclusively for drivers of Tesla
vehicles to recharge their batteries
when on the road. A driver could get 170 miles of range after 30
minutes of using the Supercharger at
a cost of $0.24 per kWh ($0.06 a mile for a Model 3).137 In
comparison, a Nissan LEAF driver, using
an alternative fast-charging station (known as CHAdeMO),
would get between 75 and 100 miles of
range in the same amount of time.138 According to Musk,
thousands of new stations were in the
permitting or construction phase, and the company was “open”
to letting other automakers use the
supercharging network so long as they shared in the cost of
usage.139
Tesla had 76 service centers across the United States and about
half of them were co-located with stores.
Because Tesla’s EVs had fewer parts, there was less need for
physical repairs. A lot of fixes and
improvements could be done without having to find a service
center. Tesla updated its vehicles via Wi-
Fi, and could continually improve a vehicle’s performance post-
sale (e.g., improving acceleration and
44. braking capabilities). Indeed, by sending periodic software
updates, Tesla planned to incrementally
transition its cars to become increasingly more autonomous,
eventually not requiring a driver at all.140
Master Plan, Part Deux
In 2016, Musk unveiled his Master Plan, Part Deux, which
included the development of a completely
self-driving (Level 5) vehicle that, when not in use, could be
used by others. Musk explained: “So there
will be a shared autonomy fleet where you buy your car and you
can choose to use that car exclusively.
You can choose to have it used only by friends and family… or
other drivers who are rated five star.
You can choose to share it sometimes but not other times.
That’s 100 percent what will occur. It’s just
a question of when.”141
On a May 2018 earnings call, Musk said that the autonomous
ride-sharing platform would probably be
ready to launch by the end of 2019 and that getting regulatory
approval would be the company’s biggest
challenge.142 One automotive analyst speculated that it could
add somewhere between $2 billion and
$6 billion in revenue for Tesla and that a Tesla owner could
make up to $6,900 a year, after paying
Tesla a 10% cut, and factoring in energy, insurance,
maintenance, and non-cash depreciation.143
Conclusion
Many believed Musk had succeeded in spurring innovation in
what had been a traditionally slow-to-
change industry. In imagining a world without Tesla, one board
member mused, “What would the world
45. look like? I have this sinking suspicion it wouldn’t look that
different than 10 years ago. A bunch of
TESLA’S ENTRY INTO THE U.S. AUTO INDUSTRY
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hybrid cars. A bunch of noise about hydrogen vehicles. You
know, I don’t think the world would look
anything like today – where entire nations are saying, ‘We’re
going to stop making gas cars.’”144
But the question remained: Could Tesla not only survive but
also thrive in the automotive industry over
the next few years?
TESLA’S ENTRY INTO THE U.S. AUTO INDUSTRY
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Exhibit 1a U.S. New Cars Market by Value
Exhibit 1b U.S. New Cars Market by Volume
Source: “New Cars in the United States,” MarketLine,
September 2017.
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
49. Segment July 2018 Transaction Price (Avg.)
Compact Car $20,412
Compact SUV/Crossover $28,365
Electric Vehicle $36,948
Entry-Level Luxury Car $42,211
Full-Size Car $35,038
Full-Size Pickup Truck $48,644
Full-Size SUV/Crossover $61,557
High-Performance Car $92,798
High-End Luxury Car $98,360
Hybrid/Alt. Energy Car $26,969
Luxury Car $59,519
Luxury Compact SUV/Crossover $44,524
Luxury Full-Size SUV/Crossover $88,038
Luxury Mid-Size SUV/Crossover $55,118
Mid-Size Car $25,424
Mid-Size Pickup Truck $33,125
Mid-Size SUV/Crossover $37,844
Minivan $34,635
Sports Car $31,650
Subcompact Car $15,026
Subcompact SUV/Crossover $24,008
Van $34,902
Average Price $35,359
*Kelley Blue Book average transaction prices do not include
applied
consumer incentives.
Source: Kelley Blue Book.
50. TESLA’S ENTRY INTO THE U.S. AUTO INDUSTRY
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Exhibit 3 U.S. New Car Market by Segment, 2008–2023
Sources: https://www.statista.com/statistics/287744/new-car-
model-launches-on-the-us-market-by-segment/; Merrill Lynch;
Bank of America.
Exhibit 4 U.S. Car Manufacturer Market Share (by %, March
2018)
Source: http://www.wsj.com/mdc/public/page/2_3022-
autosales.html#autosales (accessed June 12, 2018).
17.9
14.7
13.5 12.9
9.8
8.6
3.7 3.5 3.1 2.3 2 1.9 1.9 1.2 0.9 0.2
GM Fo
rd
To
yo
ta
53. 35%
40%
%
o
f
N
ew
C
ar
M
od
el
s
TESLA’S ENTRY INTO THE U.S. AUTO INDUSTRY
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Exhibit 5 Automobile Manufacturing Capacity Utilization
Source: Board of Governors of the Federal Reserve System
(https://fred.stlouisfed.org/series/CAPUTLG33611SQ#0,
accessed
July 7, 2018).
Exhibit 6a Car Market Value Chain, 2015–2030
0
57. 20%
30%
40%
50%
60%
Percent of Revenue
TESLA’S ENTRY INTO THE U.S. AUTO INDUSTRY
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Exhibit 6b Car Market Value Chain, 2015–2030
Source: Richard Vierecki, Dietmar Ahlemann, et al. “Connected
Car Report 2016,” Strategy& (PwC), September 26, 2016.
Exhibit 7 Combined Capital Spending, R&D, and M&A of Top
10 OEMs (in US$ billions)
63. May 1, 2019 22
Exhibit 10 Price of Lithium-ion Batteries
Size of batteries: Nissan LEAF = 40 kWh, Chevrolet Bolt = 60
kWh, Tesla = 85 kWh
Source: Nicolas Zart, “Batteries Keep on Getting Cheaper,”
CleanTechnica, December 11, 2017.
2010 2011 2012 2013 2014 2015 2016 2017 2025
Series1 1000 800 642 599 540 350 273 209 100
0
200
400
600
64. 800
1000
1200
$/
kW
h
Lithium-ion Battery Prices
TESLA’S ENTRY INTO THE U.S. AUTO INDUSTRY
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Exhibit 11 Five Levels of Automation
Level 0: No Automation
System capability: None. • Driver involvement: The human at
the wheel steers, brakes, accelerates,
and negotiates traffic. • Examples: A 1967 Porsche 911, a 2018
Kia Rio.
Level 1: Driver Assistance (aka “hands on”)
System capability: Under certain conditions, the car controls
either the steering or the vehicle speed,
but not both simultaneously. • Driver involvement: The driver
performs all other aspects of driving and
has full responsibility for monitoring the road and taking over if
the assistance system fails to act
appropriately. • Example: Adaptive cruise control.
65. Level 2: Partial Automation (aka “hands off”)
System capability: The car can steer, accelerate, and brake in
certain circumstances. • Driver
involvement: Tactical maneuvers such as responding to traffic
signals or changing lanes largely fall to
the driver, as does scanning for hazards. The driver may have to
keep a hand on the wheel as a proxy
for paying attention. • Examples: Audi Traffic Jam Assist,
Cadillac Super Cruise, Mercedes-Benz
Driver Assistance Systems, Tesla Autopilot, Volvo Pilot Assist.
Level 3: Conditional Automation (aka “eyes off”)
System capability: In the right conditions, the car can manage
most aspects of driving, including
monitoring the environment. The system prompts the driver to
intervene when it encounters a scenario
it cannot navigate. • Driver involvement: The driver must be
available to take over at any time.
• Example: Audi Traffic Jam Pilot.
Level 4: High Automation (aka “mind off”)
System capability: The car can operate without human input or
oversight but only under select
conditions defined by factors such as road type or geographic
area. • Driver involvement: In a shared
car restricted to a defined area, there may not be any driver
involvement. But in a privately owned Level
4 car, the driver might manage all driving duties on surface
streets and then become a passenger as the
car enters a highway. • Example: Google’s now-defunct Firefly
pod-car prototype, which had neither
pedals nor a steering wheel and was restricted to a top speed of
25 miles per hour.
Level 5: Full Automation (aka “steering wheel optional”)
System capability: The driverless car can operate on any road
66. and in any conditions a human driver
could negotiate. • Driver involvement: Entering a destination. •
Example: None yet, but Waymo –
formerly Google’s driverless-car project – is now using a fleet
of 600 Chrysler Pacifica hybrids to
develop its Level 5 technology for production.
Source: “Path to Autonomy,” Car and Driver, October 2017.
TESLA’S ENTRY INTO THE U.S. AUTO INDUSTRY
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Exhibit 12 Estimated Connected Car Revenues by Product
Package
Source: Dietmar Ahlemann, Alex Koster, et al., “Growth in a
Commoditizing Market,” Strategy& (PwC), September 26, 2016.
$18
$58$14
$55
$21
$43
$0
$20
68. Con
nec
ted
ser
vic
es
Aut
ono
mou
s dr
ivin
g
Safety
TESLA’S ENTRY INTO THE U.S. AUTO INDUSTRY
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Endnotes
1 “Tesla Unveils Model 3,” YouTube, May 31, 2016
(https://youtu.be/Q4VGQPk2Dl8m, accessed May 4, 2018).
2 David Gelles, James B. Stewart, et al., “Elon Musk Details
‘Excruciating’ Personal Toll of Tesla Turmoil,” The New York
Times, August
16, 2018.
3 Neal E. Boudette, “Inside Tesla’s Audacious Push to Reinvent
69. the Way Cars Are Made,” The New York Times, June 30, 2018.
4 John Melloy, “Highlights of Elon Musk’s Strange Tesla
Earnings Call,” CNBC, May 3, 2018.
5 Paulo Santos, “Tesla: The Model 3 at 5,000/Week Is Not
Enough for Profitability,” Seeking Alpha, May 3, 2018.
6 Matthew DeBord, “Tesla’s Second Quarter Earnings Are
Expected to Be Terrifyingly Bad…,” Business Insider, July 28,
2018.
7 David Gelles, James B. Stewart, et al., “Elon Musk Details
‘Excruciating Personal Toll of Tesla Turmoil,” The New York
Times, August
16, 2018.
8 Chris Isidore, “Tesla Races to Fulfill Its Model 3 Promise,”
CNN, June 29, 2018.
9 Leon Poultney, “Hey Tesla, How Hard Can It Be to Actually
Make a Car?” Wired UK, April 22, 2018.
10 Grace Donnelly, “Why This Chief Investment Officer Thinks
Tesla Is ‘on the Verge of Bankruptcy,’” Fortune, March 27,
2018.
11 “New Cars in the United States,” MarketLine, September
2017.
12 Ibid.
13 Ray Telang and Brandon Mason, “All Eyes on Shared
Mobility,” Strategy& (PwC), November 9, 2017.
14 http://www.wsj.com/mdc/public/page/2_3022-
autosales.html#autosales, accessed July 12, 2018.
15 Bureau of Labor Statistics
(https://www.bls.gov/iag/tgs/iagauto.htm#about, accessed
August 17, 2018).
16 “Which Car Brands Have the Most (and Least) Loyal
Owners?” Priceonomics, July 16, 2018.
17 Ted Serbinski, “Defining Mobility for the Automotive
Industry,” Techstars, April 14, 2016.
18 Dietmar Ahlemann, Evan Hirsh, et al., “Connected Car
Report, 2016,” Strategy& (PwC), September 26, 2016.
19 Terry Shea, “Why Does It Cost So Much for Automakers to
70. Develop New Models?” AutoBlog, July 27, 2010; Don Sherman,
“How a Car
Is Made,” Car and Driver, November 18, 2015.
20 “The World’s Most Valuable Brands,” Forbes
(https://www.forbes.com/powerful-brands/list/#tab:rank,
accessed September 2, 2018).
21 Ken Roberts, “Insult to Injury: Foreign Manufacturers Now
Making More Cars in U.S. than U.S. Companies,” Forbes,
January 22, 2018.
22 “Daimler to Invest $1 Billion in Alabama Plant, Create over
600 Jobs, Reuters, September 21, 2017; Anna B. Mitchell,
“Tariffs Rattle
South Carolina’s Manufacturing Supply Chain,” Greenville
News, June 25, 2018.
23 Adrienne Roberts and John D. Stoll, “Toyota Plant Puts
Foreign Car Makers on Path to Pass Detroit in U.S. Production,”
The Wall Street
Journal, January 11, 2018.
24 Ediz Ozelkan, “Global Auto Parts & Accessories
Manufacturing,” IBISWorld, April 2018.
25 David Silver, “The Automotive Supply Chain, Explained,”
Medium, May 30, 2016.
26 Rich Parkin, Reid Wilk, et al., “2017 Automotive Industry
Trends: The Future Depends on Improving Returns on Capital,”
Strategy&
(PwC), 2017.
27 “OEMs, Tier 1, 2 & 3 – The Automotive Supply Chain,”
Amatech (https://www.amatechinc.com/resources/blog/tier-1-2-
3-automotive-
industry-supply-chain-explained, accessed August 2, 2018).
28 J.B. Maverick, “Who Are Ford’s Main Suppliers?”
Investopedia, December 12, 2017.
29 “Global Auto Parts & Accessories Manufacturing,”
IBISWorld, April 2018.
30 “EV vs ICE: The Technicalities,” Teq Charging, August 4,
2017.
71. 31 “Automotive Revolution – Perspective Towards 2030,”
McKinsey & Company, January 2016.
32 Richard Vierecki, Dietmar Ahlmann, et al. “Connected Car
Report 2016,” Strategy& (PwC), September 26, 2016.
33 Alan Baum, “What’s Driving the U.S. Auto Industry’s
Financial Performance,” Ceres, August 7, 2017.
34 https://www.statista.com/statistics/192998/registered-
passenger-cars-in-the-united-states-since-1975/, accessed May
22, 2018.
35 Jeremy Gelbart, “You May Not Live Long Enough to Ride a
Driverless Car,” Newsweek, April 1, 2017.
36 “New Cars in the United States,” MarketLine, September
2017.
TESLA’S ENTRY INTO THE U.S. AUTO INDUSTRY
Donald Sull and Cate Reavis
May 1, 2019 26
37 Michael Sivak and Brandon Schoettle, “Recent Decreases in
the Proportion of Persons with a Driver’s License across All
Age Groups,”
The University of Michigan, Transportation Research Institute,
January 2016.
38 Amanda Silvestri, “Who Says They Don’t Like Cars?” New
York Daily News, February 27, 2017.
39 “The Next Generation Car Buyer: Millennials,” Autotrader,
2013.
40 “Demographic Shifts: Shaping the Future of Car Ownership,”
[email protected], February 21, 2017.
41 “Zipcar Releases New Independent Study on ‘Urban
Boomers,’” Zipcar press release, May 18, 2015.
42 “Defining the Urban Boomer,” presented by Zipcar, research
72. conducted by KRC Research, May 13, 2015
(https://www.slideshare.net/Zipcar_PR/zipcar-urban-
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Donald Sull and Cate Reavis
May 1, 2019 27
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Donald Sull and Cate Reavis
May 1, 2019 28
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122 Ibid.
123 Ibid.
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139 Brent Kenwell, “Tesla’s Supercharger Network Is
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140 Jon Gertner, “Tesla’s Dangerous Sprint into the Future,”
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141 Fred Lambert, “Tesla Network,” Electrek, May 1, 2017.
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143 “Tesla’s Ride Sharing Network Could Be a Game-changer,”
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144 Jon Gertner, “Tesla’s Dangerous Sprint into the Future,”
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