Running head DOCTORAL QUALIFYING EXAMINATION PAGE 1DOC.docx

Running head: DOCTORAL QUALIFYING EXAMINATION
PAGE 1
DOCTORAL QUALIFYING EXAMINATION PAGE
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Doctoral Qualifying Examination
Doctoral Qualifying Examination
Introduction
The Doctorate program in business administration for first year
of University focuses on the introduction of the various
concepts of leading change, marketing strategy and consumer

behavior, finance for managers, a management strategy for
performance, business intelligence and global economics. This
paper mainly includes all the evidence of the concepts which
are learned in the four courses of my first year such as leading
change, business intelligence and information systems,
management strategy for performance, marketing strategy and
consumer behavior in the order it has been given.
Part I: Portfolio of CLA 2’s
CLA 2 Introduction: Course #1
Throughout the Leading change course we were introduced to
the concepts of managing change, images of change
management, why change? Contemporary pressures and drivers,
vision and the direction of change, change communication
strategies, organization development and sense-making
approach, sustaining change versus initiative decay. This CLA2
paper offers proof of ability as IT Manager implement change in
the organization. As agile transformation Leader in leading
change and providing vision and sense of direction of change.
This course has provided the ability to implement change in
agile transformation and develop change management strategy
by successful implementation of the change through entire
enterprise level. Change is inevitable in the business world.
Leading change is not an easy task and most of the change
management processes have failed in the recent past due to
various reasons. Effective team leaders are prerequisite in
ensuring that the change is achieved within the stipulated time.
Generally, leaders must cultivate the skills for assimilating
change, providing expectedness and assist others to understand
the integral risks, advantages, and reasons behind a certain
change. The history of leading change which can be traced from
1960-2012 will be discussed in this paper. Moreover, various
leadership styles and how they impact change in organizations
will also be incorporated. Change process cannot be achieved
without resistance in the workplace and this is also taken care
of. Motivations for change are essential because they play
fundamental roles in achieving changes. Furthermore, leading

change as an individual is not easy since it requires much
competence and skills. Lastly, success factors of implementing
change process and its benefits are of great importance in
organizations.
BUS 735 CLA 2
Change is inevitable in the business world and it takes place
probably on daily basis. Change in the business world is
currently being compared to taxes and deaths which cannot be
avoided at all costs. People are very significant elements when
it comes to transforming change organizations since they are the
pioneers of change. Transforming organizations is a
cumbersome task and may take much time depending on how
the group responds to the proposed change. Managers play a
pivotal role as far as leading change is concerned in
organizations. Vision is prerequisite for leading change and it’s
proactive rather than reactive. Leading other people through a
particular change effectively is a significant leadership aptitude
since it allows companies to hasten the change initiatives.
Generally, leaders must cultivate the skills for assimilating
change, providing expectedness and assist others to understand
the integral risks, advantages, and reasons behind a certain
change. These factors ensure that people express full
engagement towards the delivery of change enterprises. The
history on leading change, leadership style and leading change,
organized resistance to change, the motivation of change,
leading change as individuals and challenges of the change
management process is a significant component of leading
change.
History
The history of leading change has its roots in the 1960s.
Numerous change management processes and models are
attributed to grief studies. In the 1960s, consultants noted a
correlation between grieving amongst workers in an
organization and matters connected to health. The weeping
emanated from loss of departments and jobs. Copious change
models attempted to capture the entire array of human emotions

as staffs lamented transitions related to jobs. Everett Rogers,
the author of diffusion of innovations maintains that change
should be comprehended in communication and time context. In
addition, the impact it has on participants must be considered.
Cummings and Worley (2014) maintain that placing folks at the
center of change thinking is very crucial to developing the
change management concept. Rogers projected the descriptive
adopter which explained how people responded to changes in
organizations. In the 1980s, Julien Philips managed to publish a
change management model despite the abundant time which was
consumed before the change management nobles understood
what he meant. According to Robert Marshak, the six big
consulting and accounting firms adopted the work of initial
change pioneers like Don Harrison and Daryl Conner.
Therefore, they contributed profoundly to the legitimization of
the entire change management industries after branding the
reengineering amenities as change management.
In the 1990s, Daryl conner invented the new term “burning
platform” which was explained in his book, managing at the
speed of change. The conner partners in 1994 focused on the
adoption methods and human performance that would make sure
that technological innovations were embraced and adopted in
the best manner and within the shortest time possible. The
conner partners were thriving and this affirmed the significance
of absorbing and adopting such technologies. Linda Anderson in
the book beyond change management expresses the year 1980s
and 1990s as fundamental in leading change (Boone, 2015).
Numerous top leaders were fed up by the escalating
dissatisfaction emanating from the catastrophes of not only
creating but also implementing certain changes in organizations.
Therefore, in the 2000s, introduced the change leader role
which took the responsibility of the social side of the
modification.
In 2010, Australia began recognizing change management as a
formal ability through Christina dean’s work, which established
national academic programs and competency standards from

diploma to master’s level. Various change consultants have
severally reported successes with agile and lean principles in
reply to the continued reports of large scale failures in various
parts of the globe. Kotter argues that time changes at a quicker
rate than leading change (Cummings & Worley, 2014). Some of
the principles/models which were being applied in the 1990s
have currently being rendered meaningless. In 2012, Kotter
made tremendous efforts to make his eight steps process model
relevant by adding numerous ideas to the initial thinking.
Despite his efforts to ensure that the model retained relevance,
it still reigns as the backbone of leading change account.
Nonetheless, the greatest milestone in the history of leading
change was achieved between the 1960s and 2010. This is the
time when the most critical changes pertaining to leading
change were made. Moreover, technological inventions were
embraced and applied in several organizations. Their
incorporation has been attributed to various benefits being
enjoyed in the 21st century.
Leadership style and leading change
Leadership styles are very significant as far as leading change is
concerned. The leadership style adopted by the management in
the process of advocating for change acts as the determinant of
if the change initiative will be accepted or denied. Effective
change leaders must be well versed of the leadership style
required to achieve the anticipated change in companies or
organizations. Most leaders fail in the process of leading change
since it’s not an easy process. There are four major important
themes on styles of leadership which can be utilized to
effectively achieve change in organizations (Appelbaum et al.,
2015). The themes constitute of good management only is not
enough. The focus has to be directed on the people to make it
more productive than when it’s centered on the tasks. The right
balance needs to be struck between people and task orientation.
The management should exercise flexibility when it comes to
the adoption of leadership styles suitable for achieving change.
Besides, leadership is demand is the other crucial theme. The

leadership style applied in this situation must address the deep
worries of the people. The style of leadership should also
concentrate on the high needs and values of the people, and
offers to mean to them. Thirdly, the people-centered leadership
style is very necessary to achieve the change. The main
significance of this approach is addressing the fears and
anxieties of the people.
The approach touches on the uncertainties of the previous
environment. It also concentrates on the effects and
repercussions of a particular approach. It is irrefutable that
folks do not work appropriately while facing emotional
turbulence. A calm environment for their emotions is very
essential because it provides a suitable environment for them to
perform as expected, thus achieving the objectives (Cameron &
Green, 2014). Apparently, any effective leader must recognize
the unexpressed and unconscious fears of his or her people.
Thereafter, the leader must work round the clock to address the
concerns disturbing the people. This step is vital because it
creates a calm and focused workforce which can work tirelessly
towards achieving the set goals. In addition, such a workforce is
usually motivated and is likely to support the anticipated
organizational/managerial changes. Failure to identify and
address such concerns may have big repercussions on the
organization. Moreover, it is very important to appreciate the
emotional dimensions of each leadership style. Boone (2015)
says leaders need to understand that emotions are fundamentally
contagious, thus, they should control their emotional states lest
they want to nurture contagious energy which may affect the
company negatively. The style and content of the leader’s
communication should match with the emotional reality of the
followers. By establishing the connections, it becomes quite
easy to shape both the direction and sense of purpose of the
people. Above all, motivation becomes much easy for the
leader. The trait, behavioral, contingency, power and influence
theories are the most common traits of leaders in the 21st
century. The leaders have totally varying aspects and they

approach leading change quite differently. In addition, their
roles towards change are dissimilar based on the aspects of the
leaders. At times it might be to influence, other times it may be
guiding or commanding the people. The aspects of a leader
highly determine if the prerequisite change will be achieved.
Values such as assertiveness, empathy, and integrity are very
crucial to any leader.
Organization resistance to change
Poor management of change at the workplace stands out as the
main reason for resistance in organizations. If the management
is poor, then the strategy of implementing the change is
definitely poor. In addition, job insecurity usually looms during
organizational changes because many employees are not sure if
they will be displaced by the changes or not. Moreover, peer
pressure can strongly and successfully fight changes in an
organization (Appelbaum et al., 2015). Peer pressure is amongst
the worst reasons for the resistance. Nobody would be glad to
be considered a failure. Similarly, workers may resist change
because they are afraid of failing after the changes are
implemented. For instance, the introduction of new technologies
can affect the performance of normal workers. Organizational
politics which are on the rise in numerous organizations and
they are strongly being criticized. They work to the
disadvantage of the company and they can easily trigger the
resistance to changes.
Leading change as an individual and reaching employee base
Leading change as an individual is not easy since it entails
empowering and engaging the employees. Failure to incorporate
the two factors may make the change unsuccessful. It is very
crucial if we work towards becoming successful change leaders
(Al-Haddad & Kotnour, 2015). Effective change leaders have
the obligation of guiding the process from the time it
commences to the end. So as to lead a change successfully, it is
very essential to initiate the process, strategize on it and
execute the set strategy. Boone (2015) argues reaching the
employee base is very crucial because it converts the process of

leading change to a simple one. Considering the types of
workers present and determining the communication channels
appropriate is necessary.
Motivations of Change
Motivation entails recognition of a problem, looking for a way
of changing it, commencing and sticking to the strategy. It has a
significant impact on the realization of change. When the
employees are frustrated and demotivated, no change can be
achieved. It is quite hard to motivate the workers since copious
times they are motivated by themselves (Mehta, 2016).
However, leaders have the capacity to create an environment
where folks can motivate themselves. For example, employees
can motivate themselves based on the allowances provided to
them. For the leaders to motivate the employees successfully,
they ought to understand the motivational needs of both the
group and individual. For instance, leaders can offer bonuses
for workers who hit the sales target every month. Once this is
done, it becomes quite simple to improve the motivation of the
employees. The Maslow and Herzberg theories can be very
essential in establishing what exactly motivates people.
Challenges of a change management process
Despite various change management projects failing, there are
six key success factors in the change management process. First
is having a group which strongly believe that change is
necessary. Secondly, the people set to undergo the change must
have a key reason for embracing the anticipated change (Bloom
et al, 2014). Thirdly, people must comprehend how the change
may distress them. Fourthly, the communication must be done
enough to prepare them in advance. In addition, the message can
be repeated numerous times to remind them. The change leaders
must be honest regarding the change; sugarcoating is not
necessary at all. Lastly, the utilization of project management
skills and processes is very essential, since they play a pivotal
role in communicating and planning (Matos Marques &
Esposito, 2014). The main benefit of implementing change
management is enhancing the smooth transition of activities and

provides a template to staffs which helps them adopt the
changes easily. In addition, it assists in managing the various
costs of change and minimizes the resistance related to change.
Moreover, the time required to implement the change is
reduced. Besides, it makes planning and executing effective
communication strategy easy. The last benefit is reducing the
anxiety and stress linked to the change.
To wind up, change is inevitable in the business world. Leading
change is not an easy task and most of the change management
processes have failed in the recent past due to various reasons.
Effective team leaders are prerequisite in ensuring that the
change is achieved within the stipulated time. Generally,
leaders must cultivate the skills for assimilating change,
providing expectedness and assist others to understand the
integral risks, advantages, and reasons behind a certain change.
The history of change management can be traced from the 1960s
to 2012. Leadership style is very crucial in change management
since it determines if the results will be obtained or not. At
times, an organization will be resistance to change based on
various reasons. Poor management and peer pressure are some
of the reasons why change is denied in organizations. Moreover,
motivations of change are essential during change management
and people can be best motivated by themselves. Lastly, there
are various benefits of implementing change successfully in
organizations.
Summary and Conclusion
The research of this paper concludes that various aspects of
leading change. Change is inevitable in any organization in the
21st century. Leading change process is an involving task which
requires most of the project management skills. The biggest
milestones in the history of leading change were achieved from
1960s to 2012. The leadership style employed by a leader highly
determines if the change will be achieved or not. Poor
communication, planning and peer pressure are some of the key
reasons for resisting change in organizations. Motivations for
change are fundamental in change process and the Maslow’s and

Herzberg theories can help in determining what motivates
people. Lastly, there are six key factors which can make the
process of implementing change a success.
Relationship between leading change and business intelligence
and information systems Changes in an organization are
essential for business success to be achieved. Leadership in an
organization is the core activity that leads to productive changes
to be made in an organization ("Leading Change in Business
Intelligence by Maureen Clarry - BeyeNETWORK," 2019). For
the management of an organization to make an essential change
related to an organization, they have to get information sources
necessary in making the relevant decisions. Business
intelligence is the tool that provides organizational management
with the relevant business data necessary in decision making
processes. Appropriate and effective decision making can only
be achieved in the condition that the leadership structure of a
given organization is well defined thus facilitating decision
making process related to the business and its success.
Management Information Systems (MIS) are very essential in an
organization since they can provide Business performance
reports which are raw data necessary for making effective
decisions related to the specific organization, the raw data from
MIS is also crucial in making significant management changes
which are very essential for business success to be achieved.
MIS systems also facilitate active employee’s communication
channels, and ease of managing a large group of an organization
employs ("Leading Change in Business Intelligence by Maureen
- Bey NETWORK," 2019). A practical example can be driven by
Apple Inc., where the success of the company was achieved in
the care scenario of involving quality managers and business
intelligence tools in their organization. The CEO of Apple Inc
Steve Jobs was able to use business information data that had
been stored in the company's databases to make quality
decisions, which lead to the apple business success. Business
intelligence and information systems can help a given
organization to acquire raw data from their clients and

employees; the new information collects the organization to
make necessary changes required to satisfy their employees and
their customers essential for business success.
In this course, we were introduced to the concepts of
Management Information Systems, Business Driven MIS,
Business Intelligence, Five Force Models of Evaluating Industry
Attractiveness, Challenges of Business, Collaboration inside
and outside organization, Sustainable Technologies, MIS,
Disaster Recovery Plan, Business Continuity Plan, Portability,
Reliability, Scalability and Cloud Computing. This course has
provided me the ability to understand the Business Intelligence
and Information System concepts and implement them in my
realtime scenario at my workplace where in we have incorporate
cloud computing and using Salesforce we have managed the
data in the cloud for Marketing and Sales related information.
This course has given me ability to possess extensive
knowledge in area of business intelligence and also helped to
implemented in the workspace setting effectively.
BUS 725 CLA 2
Business Intelligence
The research in this paper investigate and also audits the
showcasing of various technique for the customer practices.
Diverse focusing on the techniques that are dependent on
Business intelligence & information systems, Business-driven
MIS, Client relationship management, Information security, E-
commerce which are examined in this paper including the
exploration on key players in the Business intelligence industry
and focusing on my realtime experience at Apple and how the
key player have focused on the various aspects of Business
intelligence in their companies success.
Business-driven MIS
Management information system (MIS) can simply be
understood as computerized databases which helps store a wide
spectrum of data such as financial and human resource data in a
well-organized manner (Uhl & Gollenia, 2016). The MIS is

programmed in such a way that special reports can be generated
and insights drawn from the data. Business-driven MIS means
maintenance of these databases that help a business progress or
achieve its goals. This happens given that the MIS helps to
furnish managers with the performance report, avail accurate
data necessary for decision making, better management and
even aid in communication just a few roles to mention.
Business-driven MIS has incredibly or played a crucial role in
the growth of Apple Inc. first and foremost the Business-driven
MIS has helped in communication and efficient management of
a large number of employees who work in tee firm. Apple Inc.
human resource department uses MIS to communicate the
employees. The department is able to send generic emails to all
the intended employees and even short messages which the
employees receive through their mobile phones. This means that
a message, notice, memo announcement or anything can reach
the employees in a matter of seconds regardless of their number
and location. Effective communication is key to the growth of
any firm given that it helps in relaying instructions, guidelines
and communicating the targets placed for every worker. Having
employees who are goal oriented, have clear instructions about
their jobs chances are that productivity will be high. This hence
informs one of the reasons that Apple Inc. has been
experiencing constant growth over the last decade.
The other importance of business-driven MIS is that it helps to
measure the achievement of goals with the aim of showing
every unit manager in an organization his or her progress and
performance. This benefit has been realized in Apple Inc.
whereby lazy managers are fired while hardworking executives
are promoted to more senior positions. A good example is the
Firm’s CEO whose selection was informed by MIS. Timothy
Donald Cook who is the Current Apple Inc. CEO was an
industrial manager at the firm prior to his promotion. Tim
Cook’s excellent performance led to his appointment as the
CEO a position previously held by the Apple founder that is
Steve Jobs. MIS enables this given that it helps to store data of

previous years or seasons, avail the current data as well as the
estimates or target variables such as sales units that were placed
before the year began. With this kind of data, its possible to see
whether a manager is able to meet the set goals or if he is even
able to surpass the targets.
Information security
Information security is one crucial aspect of every organization.
Information security entails a set of measures and strategies
necessary for preventing, detecting as well as countering any
threats on an organization’s information (Uhl & Gollenia,
2016). The aim of information security is to maintain integrity,
confidentiality as well as the availability of data only to the
authorized persons only. Data is a vital asset of a business and
it lands on wrong and unauthorized hand it can be stolen,
manipulated, deleted and other malicious things for the benefit
of the unauthorized party. An example is that one can steal the
identity of an employee so as to access other vital information
like banks accounts and details which can be used to transfer
funds. Another example is that access to a firm’s accounts such
as social media accounts can damage the reputation of a firm
since If accessed misleading information can be posted from the
accounts. On its evident information security is important in a
business. Information can either be in soft copy that is stored in
electronics such as computers and on the internet or can
otherwise be in hardcopy that is stored in books and files just a
few to list. Apple Inc. has ensured that both hardcopy and soft
copy information is secured. To start with is the hardcopy
information which mainly stored in the firm’s data centers. The
company employed a heavy security detail to guard the centers
24hours in a day. The security personnel is also well trained and
well remunerated to prevent them from any temptation of
allowing access into the data centers to unauthorized persons.
Secondly, the firm’s data centers are only accessed by a limited
number of people whose identity is captured. To enter through
the doors of the data centers one is required to use his
fingerprints for the doors to open. This implies that if your

fingerprints or identity is not captured in by the company entry
is denied.
To secure its soft copy information Apple Inc. has a department
led by chief information security officer called George
committed to secure the data (Nonaka & Kenney, 2017). The
department is responsible for carrying out a risk assessment and
risk management of data. The department also does set develop
information security policies to be used by the company. An
example of measures that the encrypting the company’s
information. This makes it hard for malicious people to read and
get the information. The other strategies are like the use of
passwords policies whereby employees are advised on how to
create passwords, use of firewalls to deny access to certain
online information and use of anti virus. These measures have
helped to keep the company’s information secure but more
innovative ways need to be developed to provide more security
given that technology is evolving fast and at some point, the
measure may be obsolete.
Business Intelligence Strategies
Business intelligence simply refers to ways, technologies
and tools that a business uses to gather, analyze and also
present the data to gain business insights. Collection and
analysis of data by a firm is vital for the growth of any company
given that first and foremost it helps in making informed
decisions. Secondly, data collected from the customers help the
business realize the market trends and identify the existing
market gap as well as needs (Chen, Chiang & Storey, 2012).
The general benefits a company which has business intelligence
accrues is getting a competitive advantage in the market and
being able to generate new sources of revenues.
Apple Inc. used business intelligence to develop the popular I
watch. This was after realizing that there has been an increased
demand for electronic gadgets necessary for health management.
The data was collected from the iPhone database which showed
many clients bought the iPhone since I helped them in managing
their physical exercises for example running. The insight

developed from the data was that if consumers would appreciate
a cheaper and smaller gadget which would help them manage
their physical exercises to keep them fit. It from the insight that
Apple developed the smart watch which is popularly known as
iWatch. There is a wide spectrum of benefits that apple inc.
have accrued from the watch among them being increased
revenue. Secondly, it evident that business intelligence is vital
for noting marketing trends.
The other way that Apple Inc. collect data for analysis is
through the collection of customers’ email addresses and the use
of pay per click ad advertisement method. The pay per click
method helps, in particular, to inform the company the number
of clients who view it add online and the effectiveness of the
method. This is crucial for the marketing department since the
department is able to make decisions about the best
advertisement methods it will employ using the data. This
proves that business intelligence has played a key role in
decision making of the company.
Information Systems
Information systems can be understood as interrelated
components which comprise things such as hardware, software
and data which work together to enable, collection,
coordination, analysis, storage and retrieval on demand for
information. There are various kind of information systems such
as transaction processing, decision information and decision
support information system just a few to mention.
Apple Inc. has been using information system since its
inception and it is one of the company’s pillars. Firsts and
foremost the Apple Inc. has been able to sell its products online
such as the iPad and iPod successfully courtesy of transaction
information system. This particular information system enables,
display, modification, collection, processing as well as
canceling of a transaction. This implies that one can purchase
an iPod online from the company’s online store from the
comfort of his or her home using either a computer or
smartphone. The other avenue information systems have prove

to be inseparable with the business is in its iTunes business.
iTunes is one of the largest avenues for purchasing digital
media such as music. The success has been brought about by
information systems which enables the business collet client’s
views and other important information which the company use
to decide how to improve the iTunes.
Data management
Data management entails acquisition, storage, processing,
validation as well as providing security for the data. The aim of
data management is to have timely access to reliable
information. Furthermore, information management is essential
given that it helps simplify and provide quality information
from which insights can be gotten from.
Apple Inc. has used data management to develop customer
loyalty it and to better customer engagement. The company
acquires, stores and analyses the customers’ feedback who uses
and buys it products. It from these review, comments and
feedback that is able to improve the quality of its products. A
good example was when the company developed the Mac PC.
The development came about as a result of Macintosh success
but which was accompanied by tones of reviews. The customers
wanted a friendlier graphical user interface which was not the
case with Macintosh. The second avenue data management is
essential especially to managers is the maintenance of resources
data. This is, for example, human resource data. Apple inc.
manages its employees' portfolio through data management.
This makes it easy to carry out some tasks such as payment of
salaries to the over 100, 000 employees in less than an hour.
Business Tools
There is a wide array of business tools that are used to improve
the performance of an organization and how it's controlled.
Examples of the tools include but not limited to planning,
record and control tools. Business tools are essential in the
sense that for example if they aid in planning it means that they
lower the cost of forecasting or save time that could else be
used to manually analyze data so that to forecast and plan how

to achieve the targets.
Apple Inc. uses an array of business tools to ease some of its
operations. These tools are fortunately its own products. The
company equips its employees as per their needs with Mac, iPad
and iPhones. These gadgets have incredible features of
gathering and analyzing data. Moreover, the gadgets can make
good use of applications that help in planning. By doing so the
company is poised to experience continuous growth.
Networking
Business networking entails forming a mutually beneficial
relationship with customers and other organizations. There are
several benefits that a business which networks get. Some of
them are increased visibility, meeting new potential clients,
converting other organization into your customers and sharing
knowledge with the other business.
Apple Inc. has been keen to tap on these benefits. The firm has
formed a mutual relationship with Nike which is a reputable
sportswear producing company. Apple has collaborated with
NIKE to make the NIKE-iPod sports kit (Nonaka & Kenney,
2017). The kit helps runner monitor how they run on two
websites that are the iTunes and Nike+. This relationship has
worked for the benefit of apple Inc. which have gotten an
increased market for its iPods.
E-commerce
In this digital era, e-commerce has gained a lot of popularity
and acceptance. A lot of business transactions are carried
online. Apple Inc. revenues are driven by e-commerce. The
company makes an average of $5billion from iTunes (Apple Inc
Donohoe, McGill & Outslay, 2012) sells music and movies
online which earns it this high revenue. The other products the
company has and conducts e-commerce through them are iBooks
and Appstore. Clients can purchase books online from the
iBook. Additionally, customers can buy priced application
simply on the app store.
Client Relation Management (CRM)
Customer relationship management means the techniques and

strategies employed by a firm to enhance its customer relations,
manage the relations and even maintain customer relations
(Mascarenhas, Kesavan & Bernacchi, 2016). Customer relations
are important to a business given that they determine whether
there will be a brand switching or brand loyalty. Given that
firms chase brand loyalty the management is obliged to devise
ways through which to foster good customer relations.
Apple Inc. enjoys a notable brand loyalty courtesy of its good
customer relations. One of the ways that Apple ensures good
customers relations is by training its sales representative found
in its stores. This ensures that apart from purchasing iPhone
clients are well handled and educated on the importance of
having an apple product. Secondly, the company has always
been asking for feedback from customers after serving them.
Thirdly, after purchasing and registering an Apple Inc. product
the company does stop there, the customer receives emails
pertaining to the product which also help manage customer
relations (Mascarenhas, Kesavan & Bernacchi, 2016). Lastly, is
the online presence of the firm. Apple Inc. has official
Facebook and Twitter accounts whereby it responds to clients’
queries and questions at any time they arise.
The research of this paper concludes how the various concepts
of the business-driven MIS, e-commerce, costumer relationship
management, information systems, tool business, networking,
data management and business intelligence strategies are
applied in the realtime scenarios focusing on key player like
Apple and how they have effectively implemented them for
successful business model demonstration of imagining the
future that introduces the driving force for the activity.
Relationship between business intelligence and management
strategy for performance
Leadership styles and structure is useful in making quality
decisions related to the specific organization or business,
leadership is the core in converting raw business data provided
by business intelligence tool into meaningful data that will lead

to business success ("How to Build an Effective Business
Intelligence (BI) Strategy and Strengthen Your Business,"
2019). Effective management strategy is essential for the
organization to increase its performance efficiency. Effective
management strategy in an organization can be attained in only
a business utilizes business intelligence tools. Internal
management is very essential in facilitating external growth of
an organization. Business intelligence tools in combination with
management information systems will help an organization to
design and build better management styles that will lead to an
organization success due to effective decision making
approaches achieved from the appropriate management strategy
adopted by the organization.
Business Intelligence will provide management information
relating to an organization employees management; if the
employees are well organized and engaged in the daily
operation of the business, then the business success will be
achieved at ease ("How to Build an Effective Business
Intelligence (BI) Strategy and Strengthen Your Business,"
2019). Management for performance will enhance effective
decision making strategies to be upheld. Business intelligence
tools will help an organizational business to successfully build
management approaches that will positively impact to the
employees and the prime organization customers. Business
intelligence tool will provide relevant data about organizational
behavior, effective leadership, and management styles that will
positively lead to the organization growth.
Management strategy for performance courses introduces on
concepts of how an organization effectively builds a strategy to
develop high performance of an organization and the how the
impact of those effective organizational strategies depend on
various factors such as employees and the customers (Mark,
2005). The major learning concepts of this course are
management strategy for performance, leadership styles,
motivation aspects, decision making also its impact on

organizational growth and success.
BUS 730 CLA 2
Management Strategy for Performance
IT project management involves process planning and
process mapping, coordinating of both human resources,
physical assets, and financial resources around that various
milestones a projects that falls under information technology.
Project manager adopt a leadership role which integrate avid
decision making and team management competencies in the
realization of IT project goals. Although coordination and
planning are the major role of a project major, in the context of
IT firms, the critical role is project leadership, decision making,
and motivation.
Leadership tools applicable in IT projects include emotional
intelligence, authority, scarcity, social proof (role modeling),
among others. Below are some of the concepts of management
strategy for performance which are being applied these days.
Leadership
Leadership is the process of directing, organizing and
managing teams. A leader is in charge of people and activities
in a certain organization or task. Many leadership theories argue
between leaders being born and made. A leader can be either
born or shaped or influenced by the society. The main function
of leaders is to lead or co-ordinate teams to ensure goals and
objectives are met. A leader defines how competent a team will
and be and also determines its success. A competent leader in
IT will manage teams to ensure projects such as software
developments are completed on time and that everybody is
doing their assigned role. A leader is in command and has the
power and authority to exercise power and also use that power
to manage subordinate employees under them.
The Functions of Leadership in IT project management
A good leader in IT projects organizes, directs and
organizes his or her teams to produce good results. A good
leader needs to understand people working under him or her to
know how to handle them. A good leader ought to know every

team’s personality and how to handle them under different
working environments.
Leadership Styles
There exists a variety of leadership styles sat the disposal
of leaders depending with the situation at hand. They include
Autocratic, Democratic and Laissez-Faire.
Change Leadership
This is also referred to transformational leadership. This is
where a new leader comes up with new strategies to run an
organization, firm or project that was performing poorly by
implementing new rules. This form of leadership is applicable
where management was poorly done and there is a need to
change rules and regulations. Leaders in IT should incorporate
this form of leadership in new teams which were badly
organized in the past. It is effective for change and progresses.
Factors that determine which leadership style to use in IT
projects
Leadership style to be used may depend on the following.
Some projects need creativity and others are driven by supplies.
Leadership style can also be based on scenarios such as the
culture of teams, where in the values, norms and responsibilities
which employees are exhibiting and types of task that is being
done and does it require a lot of monitoring and supervision.
Motivation
Motivation refers to the positive energy that ignites
commitment and consistency focused in achieving of the desired
objective. Motivation is reinforcing existing energy or
incorporating new will in someone. A leader needs to know and
learn motivation to be able to uplift the will of his or her
employees. Motivation is essential in all stakeholders but when
leaders lack motivation the team lacks direction and will to
accomplish their goals. Motivating a team is not an easy task as
you have to understand the weaknesses and strengths of the
individuals so as to know where they need motivation. IT

projects require patience as a virtue that emanates from intrinsic
motivation. A reward system in form of bonuses, promotions,
recommendations and awards are a form of induced motivation
in IT project management.
Different types of motivation which can be used like external
motivation, which is described as motivation induced in form of
social learning, observation and role modeming. In IT projects,
it can be induced through doing excellent and timely projects
where employees can emulate. One can also be a good role
model and set an example to other teams. Intrinsic motivation is
kind of motivation that comes from within. It is motivation
arising from oneself depending on personality traits. Strong
willed people often motivate themselves. A leader should
encourage his team to be strong willed. Ways to motivate a team
in IT projects can be by doing activities such as reward teams
which submit competent and excellent projects, outline clear
objectives and expectations of each member, encourage healthy
competition among others, understand each individual and their
abilities,ensure clear guidelines are given and clear penalties
for work poorly done and also engage your team in most aspects
to foster good relations and see mission and vision are
constantly reminded to stakeholders.
Importance of motivation
Increased performance-This is to ensure teams give outstanding
performances in their activities. It will eventually lead to
success in meeting the objectives of the firm such as employee
welfare-when employees are motivated, they will perform their
duties effectively which will foster a good rapport with the
management, loyalty at workplace when employees are
motivated, they will be determined to meet their objectives
which will eventually make them feel as part of the firm hence
being loyal.
How a project manager applies motivation and leadership
Information technology has evolved overtime as
technology keeps changing. IT firms are increasing daily and
new leaders are being chosen every time to lead teams in

achieving the set objectives. There is a lot of creativity needed
in the sector and leaders need to be equipped with vast
knowledge on team management. There is also a lot of pressure
exerted on the leaders by stakeholders and a leader should be
able to work under pressure. This will include: Leading with
others in mind, taking and accepting different opinions and
ideas and working together with teams and solving conflicts in a
professional manner. Motivation can be done through the
following ways like providing Incentives i.e rewards,
Challenging duties, Parties for the employees, Promotions and
List of fame for some organizations.
Decision Making
Decision making is the process of diagnosing problems,
identifying alternative solutions to solve the problem, choosing
the best fit solution to the issue and implementing the chosen
decision. Making good decisions can be regarded a skill. A
project manager in IT will face challenging situations that
require skills in making decisions. Some of the situations that
will require decision making include; making new policies for
teams, deciding which method to tackle a particular problem
such as system maintenance among others. Leaders make
decisions in their everyday lives which can be termed as either
poor decisions or good decisions depending on the result. Being
in the IT department, there exists a range of risks which are
related to IT projects and the decision making skills. Decision
making is a sequential process that entails a lot of steps. The
first step in making a decision is making a diagnosis. This can
include problems you have identified with the IT department or
with stakeholders. The second step is brainstorming, which is
the best alternatives. In this stage, one lists all the possible
solutions without ruling out or eliminating any alternative.
After listing all the alternatives, one selects the best fit
solution. A research is advisable before choosing the solution.
As a team leader, it is wise to engage your teams. Finally a
diction is made and the responsible teams are ready to start
implementing the solution (Nelson, 2007).

Decision Making in IT sector
In the IT field, there will be instances that will require
decision making. Some decisions can be made by a leader
himself without involving other stakeholders such as promoting
industrious employees and choosing team leaders. However,
some decisions are major and they hugely impact the
organization hence the team’s contribution is required. This
might be with the aid of the following decision making tools
like SWOT analysis, Pareto analysis, Cost benefit analysis and
feasibility study which helps in making effective decisions as
decision making is key to any manager as it determines the
nature of results in an organization as well as acts as a measure
of competence of the leader. Decisions are made in several
situations and the most critical one being during crisis or while
facing a risk in an organization. Adams, J. Hayes, J. and
Hopson, B. (1976)
The above skills are essential in leadership despite the field of
specialization. A leader determines how productive the team
will be. Employees look up on their leaders when performing
their leaders. A leader who is not in control is not revered by
his or her team. In IT, leaders determine the pace which teams
will follow. Incompetent leaders and managers result to poor
performance. One should use the three skills in shaping their
leadership skills. It is important to guide a team well as that
culture a leader instills in employees is passed on to future
employees. Omission of leadership skills will send the whole
team into chaos. Failure of engaging stake holders in making
decisions will result to poorly made decisions that may lead to
collapsing of a company. Lack of motivation will lead top poor
results and lack of productivity... In IT fields, all the three
aspects are necessary to ensure of long term projects in IT such
as software development and short term projects such as system
upgrade.
Relationship between management strategy and marketing
strategy

Strategic management marketing strategic planning which
are two aspects that are related to each other (2019). Marketing
Strategy planning is very vital within a business organization,
and it falls in the criteria of strategic planning. Directly
marketing strategic plan is the process by which an n
organization management body aligns the capabilities of their
organization depending on the strength of the respective
Business organization to thrive and come up with the current
business environment. Successful business organizations have
greater understanding and skills related to marketing concepts
and techniques which are majorly facilitated by effective
management tailored with the given organization (2019).
Management strategies revolve in the criteria that an individual
Business organization can implement a marketing approach that
emphasis on three critical principles which are a competitive
advantage, environmental sustainability and customer wellness
focus.
The managerial process is in most cases the one involved
in marketing strategic planning since administrative
involvement will lead to the practical analysis of the
Organizations competitive situations which leads to the
management designing and implementing an appropriate
marketing strategy that will impact to the organization
achieving their targeted goals, aim and objectives(2019). Large
companies mostly use essential strategic tools such as
measuring their market strengths and weaknesses and
accompanied market threats when undertaking marketing
analysis and when formulating a practical marketing approach
to use ("Corporate Strategy & Marketing Strategy", 2019).
Hence its clear to say that management strategy and marketing
strategy are related since an organization have to analyses its
market strengthens and weakness and use the analyzed data to
formulate a marketing strategy which will enhance the
efficiency of the organization in achieving its success
("Corporate Strategy & Marketing Strategy”, 2019).
It's clear to note that strategic management is essential when

designing and implementing a Business marketing strategy. For
a business to be a success and be able to thrive in the available
competitive market it has to adapt and implement a marketing
structure is the most appropriate one in that case scenario.
Managerial activities are essential when analyzing market
analyses since administrative involvement have the capabilities
of determining strengths and weakness related to an adapted
marketing strategy and can formulate a marketing strategy that a
given organization will benefit from in the competitive business
environment. Marketing strategy is a core determinant of
business success, and hence, it is advisable for Business and
organization’s to adopt an effective marketing strategy to
embed it in their business operation for progress to be achieved.
Marketing strategy & consumer behavior course,
introduced to the concepts of consumer behavior and marketing
strategy, cross cultural variation, The changing american
society, demographics and social stratification, subcultures,
changing american society, group influences on consumer
behavior, product positioning, motivation, personality and
emotion, attitudes and influencing attitudes, self concepts and
lifestyles, situational influences.
This course has provided me the ability to understand the
different aspects of marketing and consumer behavior and has
provided ability to implement them in the real time scenario by
coming up strategy to implement marketing solutions and
effective consumer behavior to see the consumer behavior
patterns and strategies to increase sales and perform effective
marketing for increased profits.
BUS 720 CLA 2
A consumer can be described as the ultimate user of service or a
product. In the consumer market, buyers of all goods and
services for all kinds of utility, whether personal or family are
included (Wendy, 2019). Consumer behavior describes how and
why different consumers make the purchase decisions they do.

It is the duty of marketers to try and understand such factors so
that they can appropriately produce good and service in line
with the people’s needs. Marketers and business owners have to
apply the science of evaluation in order to influence customers
and make more sales and achieve brand loyalty.
In order for experts to predict consumer behavior, they have to
look at the process of decision making of a consumer before
making a purchase. According to research, markers at times lack
enough time to influence customer behavior especially when
take a little amount of time to make purchases without covering
all the products displayed in a certain market. On-the spot
purchases with no prior intention account for about 59 percent
of the goods bought especially in supermarkets, something
marketers are still struggling to figure out.
Customer behavior can be influenced by giving buyers an
acceptable kind of motive. Interpreting consumer behavior
involves finding out what kind of good or service would attract
a certain kind of person. In a bid to feel good about themselves
in terms of health and appearance. Consumers can be enticed by
marketers to make purchases of products that are labelled
behind a legitimate reason. Sensory stimuli is part of the
marketing strategies and consumers often find food that look
good tasty. Marketers take advantage of this fact.
Products and Services
Consumer Behavior and Selection of Different Products and
Services
Consumers purchase goods and services bases on their
individual factors as well as their personal needs. Mostly, the
consumer’s choice of goods and services may appear rational
but in real sense, there is a reason behind every purchase
consumer make. Besides utilitarian purposes, consumers may
also purchase goods based on physical and biological factors or
even issues to do with love, emotions, social institutions, values
and goals. Personalities and prestige among others are also
factors that determine the consumer behavior.
Influence of different Culture and its values that influence

customer behavior
Among the fundamental determinants of a person’s behavior or
their want, culture is one of them. According to research, social,
culture and sub-culture classes play a vital role in determining
the purchasing behavior of a certain consumer (Ahmed,2014).
The operation of culture is usually within set boundaries for
personal behaviors hence the operation of other institutions is
influenced. However, a lot of behavior is not necessarily
affected by culture since a larger percentage of human behavior
is acquired through growth and not innate.
Besides setting limitations within which many people think and
behave because the rest of the members of the society assume
that it is right by nature, consumer behavior is also affected by
the uniformity and diversity level within a given culture.
Cultures with collectivist ideology place a greater value in
acquiring uniformity while cultures that are individualistic in
nature are inclined towards diversity. In states like UK and
USA, people make consumptions based on their personal tastes
and preferences hence their decisions can be labelled as more
individualistic. Some cultures like the United States place high
value in hygienic products while others like China don’t.
Cross-cultural Influences
Culture contains attitudes, goals, beliefs, behaviors, rules and
customs. Markets also have a role to comprehend the diverse
cultural meanings and their differences from one society to
another. It is imperative to closely examine cross cultural
meanings and determine how these differences impact
consumers (Torobu, 2014). In the near future, it will be crucial
for consumer researchers as well as managers to cross-cultural
behavior influences the purchasing behavior due to the dynamic
change in the world as countries are becoming more cross-
cultural. After attending a power and influence
program, one participant observed that it is not easy to
influence people but influence can be achieved by employing
the right style of influence in the appropriate situation (Yang,
2016). This will help to establish more productive relationships

and get better results. Avenues for high chances of influence
can be created through educating project managers on how ton
reach common grounds when planning and running projects,
flexibility in a bid to gain trust from clients and executives and
finally networking with relevant people who may help out in
case one is stuck.
Digital Marketing
Looking at today’s market landscape, digital marketing has
become the in thing for business owners and traditional online
advertising methods have become a thing of the past and quite
annoying. Business owners therefore have to be up to the task
and keep a track of the online trends in order to stay ahead of
the market curve in this digital error (Jeremy, 2018).
Prioritizing blogging for your business as well as frequently
contacting customers and search engines managers goes a long
way in creating a space in the digital market. Energy should
also be directed in email distribution since they are taken more
seriously and can serve a huge population of consumers.
Engaging your audience in technological marketing resources
such as webinars and podcasts gives you an extra mile in the
digital world as your consumers will be informed all the time of
the emerging trends and most importantly, your products.
Aspects of Digital Marketing
Retail Industry
The main purpose of digital marketing is to find and keep
customers of an established business. The business owner
should give the consumers a reason to get products and services
from them and not from other businesses (Francis, 2018). There
are several business tactics that can help one to promote a retail
business. Search of the local market campaigns is one of the
ways to promote a retail business since one has to get in the
game of digital marketing. If possible, one can create a website
for their business.
Discovering and creating content for one’s business woven
together with your business expertise can help one to promote a
business. It is also important to get engaged and keep in touch

with your retail customers. Running your business through
social media platforms that incorporate most of your customers
is a great strategy which may also include customer support
through messages. Joining local networks and business groups
with strategic partners can take a retail business to greater
levels. Offering delivery services to your customers will expand
the retail business in the long run.
Realtime example of consumer behavior
Identifying and controlling a consumer’s attitude and behavior
remains to be one of the toughest challenges faced by
companies. Internet base research tools are less likely to suffer
the flaws of qualitative surveys and insights because online
interactions can capture customer feedback almost immediately
after the experience and there are less chances of biasses
(MacDonald, 2012). For instance, in the recent years, big
companies like Microsoft and PepsiCo among others have
introduced real-time experience tracking (RET) technology
which enable the to track the marketing decisions.
Concepts applied in work
environments/recommendations
When a workplace is stagnant and dull, this will definitely
affect the productivity of a person It is normal for an
employee’s motivation to be extinguished since routine and
monotony are inevitable (John,2015). It is however possible to
improve productivity as well as the working environment hence
increase productivity.
One needs to identify motivation killers at the work place and
get rid of them or just avoiding their company. Motivation of
employees is vey important since unmotivated employees may
not be enthusiastic to complete the allocated tasks. Badges and
rankings can be used for the same. Stating the goals and
expectations of a company clearly encourages employees to
work fast and achieve the set goal.
In conclusion, the field of marketing and business is going
through a period of digital revolution. Increasing population is

also leading to more implementation of companies and hence
the working population is struggling to maintain their jobs. The
competitive number of business also calls for more advanced
and appealing product and services specifically designed to
fulfill consumers’ needs which are different, complicate and
dynamic.
Part II: Applied Learning Question Response
Redbox Strategic Planning
High-tech advancement allows people to meet their need for
expediency. High-tech in whole has emerged as part of the daily
community life. Entertainment productions are growing and
adapting to high-tech becoming extra accessible. Broadcasting
of entertainment comes in several different forms. The essay
will discuss Redbox, strengths, weakness, opportunities, and
threats (SWOT). Redbox is a reliable approach to view and rent
Blue-ray Discs, audiovisual games and DVDs through a preset
kiosk or automated device aligned for streaming films (Dixon,
2013). Stalls discovered at a convenient location, fast food café
and grocery stores. Every particular Redbox kiosk holds about
600 Blu-ray Discs, games or DVDs. The price fluctuates
depending on what a person wants.
New Strategic Plans and Recommendations for Competing in
the Future
In order for Redbox to stay in competition in the future, it has
to employ new ideas and strategy. Cost is an essential factor in
addition to a strategic partnership. Therefore, Redbox needs to
apply low price supplier advantage as well as calculated
corporations that will motivate a good number of rental films.
For it being a high-class renter of $1per day old and new DVD
films. Clients who break up the Redbox instructions and stay

with the film after some days experience $25 late payment fee
and the owner of the account can keep the movie. Also, Redbox
to provide only touch screens to choose and rent shows
inaccessible areas, especially in high traffic locations such as
McDonald (Hitt, Ireland & Hoskisson 2012). With this strategy,
Redbox marketing kiosks will be all over in the continentals.
Another competitive advantage is Redbox to partner up with a
corporation that has a low-cost approach, together with other
production companies. Such as Lionsgate, Universal Studios,
Paramount, Sony, 20th Century Fox and Warner Bros that will
facilitate stronger brand acknowledgement to develop buyer
awareness for Redbox.
Significant Research to Support and/or Justify Your Plans and
Recommendations
With Redbox digital, it will give Redbox another shot for online
films. It will provide the consumers with a new experience of
streaming service. Redbox should not stop searching for a way
to improve their customer's experience. Because for almost ten
million customers, Redbox is their home for first-hand release
rentals minus any subscriptions. As such, Redbox needs to carry
out a regular test of possible fresh offerings, which will be of
benefit for both Redbox and the market, as part of their current
commitment to offering additional significance.
In several ways, streaming service would not be a new thing to
the customers. In addition to Redbox digital, a customer is in
control and able to rent TV show episodes as well as movies for
streaming or buy digital copies (Roettger, 2016). Through this
Redbox, users will discover a digital content collection as a
label on the Redbox site, near an existing panel for games and
movies; thus, the company need to follow through the plans
offered. Thus making Redbox general desirability and future
predictions built on (SWOT) analysis that is:
Strengths – lack of monthly payment, small cost, old and new
DVDs, free will to take back videos, suitable locality for any
Redbox kiosk and user-friendly accessible reservations.
Weakness – an expensive corporation with studios and limited

video selection. With the business's strategy and commercial
model not freely adjustable to internet conveyance of rental
shows makes Redbox aggressive vulnerable to developing
consumer first choice for internet conveyance and reasonable
VOD supplier's leads to a massive resource weakness and
inexpensive obligation for the future.
Opportunities – online downloads or video streaming, growing
to video game production expansion into more foreign republic
markets.
Threats – Netflix and DVD length
For future predictions built on Redbox's SWOT evidence it is
good-looking for now however there is prospect room for
development in incomes and functioning profits as the industry
requirement change to internet provision of rental films and
reasonable efforts of VOD can entice more consumers to their
pay-per-view conveyance ideal.
A Plan to Mitigate Some of the Effects of Porter's Five (5)
Competitive Forces
According to Ferri, (2013) the Porter's five forces
representations are
Competitive rivalry – industry rivalry is a representation
analysis of the strength of the competition in current time in the
market area; it decides the figure of existing competitors, as
well as what each can do. There are many corporations in the
world like Kryo digital and others that is why industry rivalry
aid in fixing the cost rate of the corporation and direct
opposition.
The threat of replacement – these forces study how informal it
is for customers to change from one corporative production to
another of the opposition due to the look art of the figure of
rivals, how they relate in price and quality.
Negotiating power of buyers – negotiation power is because in
the section to the budget in that if low-cost options are
available.
Negotiating power of suppliers – negotiating power of supplier
fluctuates from the type of suppliers in the movie industry.

Threats of new competitors – risks of fresh competitors into the
industry are due to the power of the hindrances to the admission
and the outcome answers of the present competitors.
A Plan for Implementation
Redbox has three major target market sections, family viewer,
non-internet savvy person and the casual viewer (David &
David, 2013). For casual viewer target market section, Redbox
markets towards them. They in advantage with a program of no
monthly agreement fee different from their competitor Netflix.
The casual viewer does not rent adequate games or films to
justify the payment. They appreciate the convenience of the
area of the Redbox for the comfort of renting for demanding
dads and moms.
Conclusion
This paper is evidence of the learning of various concepts from
the Doctor of Business Administration year 1program which
included, managing an organization to increase the
performance, leading the change and marketing strategies to
increase business revenue. Besides these managerial topics, the
author has also learned how important it is to have proper
information via business intelligence for a successful turnover
of the business

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innovation management: A case study comparing Canon, Inc.
and Apple Computer, Inc. Journal of Engineering and
Technology Management, 8(1), 67-83.
Nonaka, I., & Kenney, M. (2017). Towards a new theory of
innovation management: A case study comparing Canon, Inc.
and Apple Computer, Inc. Journal of Engineering and
Technology Management, 8(1), 67-83.
Personal Change London, Martin Robertson
Reyes, C. V. (2018). Energy Integration in South America and
Global Geopolitics. In Regionalism, Development and the Post-
Commodities Boom in South America (pp. 147-164). Palgrave
Macmillan, Cham. Retrieved from
https://worldview.stratfor.com/article/geopolitics-brazil-
emergent-powers-struggle-geography
Roettger, J. (2016). Redbox plans to launch a new streaming
service 'Redbox digital'. Variety. Retrieved from
https://variety.com/2016/digital/news/redbox-digital-streaming-
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Schlemper, M. B., Stewart, V. C., Shetty, S., & Czajkowski, K.
(2018). Including Students’ Geographies in Geography

Education: Spatial Narratives, Citizen Mapping, and Social
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Retrieved from https://www.geopoliticalmonitor.com/how-oil-
and-primary-exports-impact-brazils-economic-fortunes/
Torobu, J. (2014). Cultural and Cross-Cultural Influences.
Prezi. Retrieved from
https://prezi.com/m/rkl_hlgnk9gs/cultural-and-cross-cultural-
influences/
Uhl, A., & Gollenia, L. A. (2016). Digital enterprise
transformation: A business-driven approach to leveraging
innovative IT. Routledge.
Vyas, S., & Kumaranayake, L. (2016). Constructing socio-
economic status indices: how to use principal components
analysis. Health policy and planning, 21(6), 459-468. Retrieved
from https://www.heritage.org/index/country/brazil
Wendy. Mason. (2019). Consumer Behavior. Reference for
Business. Retrieved from
https://www.referenceforbusiness.com/management/comp-
De/Consumer-Behaviour.html
the material one: What they don't tell you about
entrepreneurship | Mark Leruste | TEDxCardiff
https://www.youtube.com/watch?v=f6nxcfbDfZo
the material 2: The single biggest reason why start-ups succeed |
Bill Gross
https://www.youtube.com/watch?v=bNpx7gpSqbY
the material 3: ppt
. Format for Writing Assignment
For each module that the writing task is assigned respond to the
following questions:

1. What are the three most important takeaways/lessons from
the material provided in this module? (100 words or more).
2. How is the material provided in this module is helping your
grow as a student and as an individual, in general? (100 words
or more).
3. What was your favorite idea that you came across in the
material provided in this module? (100 words or more).
4. Drawing on the material that was provided what else would
you like to know? What other related questions/ideas/topics
would you like to explore in the future? (100 words or more).
Public Entrepreneurs and Privatization
*
Public entrepreneurism (municipal capitalism): where the public

sector takes either a strong partner or even a leading partner
role
We will look at:
State and national examples of an entrepreneurial strategy
Local examples
Positive: San Diego’s Ballpark, Victoria Gardens (text),
Hospitality Lane (not detailed)
Mixed success: San Bernardino 66ers Stadium
Failure: initial redevelopment of Carousel Mall (2004-2007)
*
Adoption of policies that focus on developing high-growth new
firm and technologies
Not a case-by-case strategy (rather it is policy driven)
A “demand-side” approach
Typical tools:
business and innovation assistance centers,
technology and business parks,
venture financing companies,
one-stop business information centers,
micro-enterprise programs,
technology transfer programs,
workforce development programs,
export promotion programs, etc.
*
*

State of Nevada: Gambling – no state tax
States of Delaware: ease of incorporation
Nevada, South Dakota, and Wyoming – no corporate tax
Countries of Malta, Cuba, Brazil – generic pharmaceuticals
CORPORATE CENTERS
Hong Kong: International Financial & Trade Center
Dubai: world business hub (innovative real estate projects,
hotels, and sports events)
Cayman Islands: International Financial Center
Bahamas: tourism, a growing foreign corporate center
*
*
When governmental development activities move from
managerialism to entrepreneurialism.
Actively partnering with the private sector in launching
“homegrown” economic development projects (e.g., public
private partnerships)
Frequently being a leading player during the economic
development process
Focusing on return-on-investment
Willing to adopt higher levels of risk than in the past
*
*

sports facilitiesconvention centersaquariums festival
marketplacesspecialty museums
Potential problems
substitution effects
leakages in the economy
flagship projects are often extremely expensive and “oversold”
*
*
When conversion of unimproved areas and simple land
intensification is planned, it is usually called economic
development. When the area being developed is blighted,
however, it is generally called redevelopment.Normally
property that is already of high value is re-purposed without
government assistance, and so is not normally considered
economic development per se. However, occasionally “good”
neighborhoods will be aided by government in upgrading to
very good neighborhoods in a process known as gentrification.
This is particularly common in historic areas.
Unsafe or unhealthy buildings, e.g., possess serious building
code violations, faulty or inadequate utilities, etc.Factors that
prevent or substantially hinder the economically viable use of
buildings or lots, e.g., lack of parking, inadequate size,
etc.Adjacent or nearby uses that are incompatible and prevent
economic use.Subdivided lots of irregular form or shape, or
inadequate size.Land that is in multiple ownership (Beatty et

al., 1994, pp. 29-30).
Source: http://www.answers.com/topic/urban-blight-jpg
*
Depreciated or stagnant property values.Abnormally high
business vacancies, abnormally low lease rates, high turnover
rates, abandoned building, or vacant lots.Lack of necessary
commercial facilities, including grocery stores, drugstores or
banks.Residential overcrowding, an excess of bars, liquor
stores, or other businesses that cater exclusively to adults, that
could lead to problems of public safety and welfare.A high
crime rate (Beatty et al., 1994, p. 30).
Source: http://www.redevelopment.com/norby/ch07.htm
*
Needed new ballpark for Padres“Burned” before by
Chargersalso needed redevelopment in the area (southern part of
Gaslamp District and to the west and south of it)a variety of
players interested:
CCDC
City of San Diego
Port Authority
Padres
Private sector (thru JMI realty)
*
*

Competition for new ball parks was intense in the 1990s
Bad deal with Chargers 1995: 60m deal that went to 78. City
ended up being responsible to buy unsold tickets--which came
to be very expensive; led to public outrage
Area south of downtown not assisted by other redevelopment
efforts--it was the area’s turn
CCDC: Centre City Development Corporation (city’s quasi-
public downtown redevelopment arm) TIF
Port Authority [government corporation] owned the Convention
Center; Controls land
Padres: National League,
Ballpark
Public: SD $225, CCDC $51, Port $21
Private $115 (largely out of future ballpark related revenues--
naming rights, concessions, parking, luxury suites)Ancillary
development: (hotels, offices, retail, etc.)
Private: $450
*
*
Actual ballpark:
Proposed Actual
SD: 206 225
CCDC: 76.4 51 (City Center Development Corp)
Port: 21 21
Private: 146 total: 294
Petco Park

Blurring the line between public and private
Public sector responsible for building a sports facility that will
profit a private entity (the Padres) almost exclusively
Private sector (JMI Realty) responsible for ancillary
development that will generate revenues to public sector (the
city and CCDC)
Each party working on behalf of the other with explicit contract
listing the terms, dates, and form of the projects
Project also requires occasional privatization of public space to
generate revenue for private section … i.e. Padres will privatize
the “Park at the Park” on event days and sell concessions and
apparel in this space
*
Baseball Stadium
Background
The need of a new stadium
Fierce competition among jurisdictions for sports team
Previous loss of a team to a new stadium in Rancho Cucamonga
Chamber of Commerce aggressively promoting a new stadium
The project:
$18m funded by tax allocation bonds
Lease agreement: profit to team owner and expense to public
None of the original predicted spillover materialized
High maintenance cost
Epilogue: ultimately signed over to private sector owners at a

large loss; today, moderately successful as an island of activity
*
--We will use SB for our examples: tough row to hoe because it
has not had natural dynamics leading to redevelopment (as we
saw in coastal cities)
stadium: poor deal but at least functioning, discuss how much
spillover there has been (little); originally expenses were
manipulated so that there was little profit to share; renegotiated
in 2002 with the renaming but still financially weak:
--Chamber member: expectation: annual attendance of over
200,000; spillover effect (restaurant, downtown)
--$18m funded by tax allocation bonds (1996), higher than
projection $13m
Lease agreement: profit to team owner and expense to public,
Initial 10 year lease gave team owners parking fees, 2/3 of net
profits from all concessions including non-sporting events, City
received certain percentage of net profits from ticket sales,
stadium cost controlled by team owners who charge very high
--None of the original predicted economic impacts materialized
Surrounded by Vacant lots
High maintenance cost: simply maintaining the facility costs the
EDA $30,000 per year until turned over private sector owners
--Turned over to Arrowhead (Arrowhead Credit Union Park);
turned over to San Manuel Tribe and renamed San Manuel
Stadium in 2012

*
Multiplex theater (CineStar) in San Bernardino in 2004-2005 to
2007
$8.3m by EDA with $7m secured by CDBG
$3.6m by developer’s finance company
Superficial and disjointed “market analysis”
Attendance
Technology issues
Foreclosed in 2007
Buying back by RDA in just two years at 1.4 million dollar
loss—a market failure and financial loss
Epilogue: Eventually sold to Regal Cinemas who made it a self-
contained financial success; currently unable to provide
spillover
*
Privatization
Definition: “the practice of delegating public duties to private
organizations”
Public duties can include:
Government functions
Government services
Government facilities

Privatization refers to the practice that government delegates
public duties to private sector organizations. Such public duties
may include:
government functions, such as prisons, HR, accounting,
planning,
government services, such as waste collection, cable services,
social services
and government owned facilities, including airport, train
station, stadiums, highways, and so on.
*
The process by which governments remove, reduce, or simplify
restrictions on business and individuals in order to (in theory)
encourage the efficient operation of markets.
Positive example
Deregulation of the airline industry in the 1970s
Negative example
California energy crisis
One form of privatization is deregulation, which refers to the
process by which governments remove, reduce, or simplify
restrictions on business and individuals in order to (in theory)
encourage the efficient operation of markets. Deregulation has
been often pursued by government as an economic development
strategy. The impact of deregulation is often mixed. There are
positive examples, such as the deregulation of the airline
industry in the 1970s. However there are also negative
examples, such as the California energy crisis in the 1990s.
Detailed descriptions of the examples can be found in your
assigned reading for this class.
Privatization goes beyond economic development purpose.

There are many forms of privatization not aiming at economic
development, but they provide opportunities for firms to do
business with government.
*
The hiring of private-sector firms or nonprofit organizations to
provide goods or services for the government.
e.g., Defense contractsContracting out is the predominant form
of privatization in the US.
The most popular form of privatization in the United States is
contracting out, the hiring of private-sector firms or nonprofit
organizations to provide goods or services for the government.
For example, defense contracts from government have largely
encouraged the development of the arms industry in the nation.
In addition to military products and service, government also
contracts out many services, such as waste collection, human
service, social services, and so on.
*
Example of contracting out: the City of Riverside
Asset Sale: the transfer of ownership of government assets,
commercial-type enterprises, or functions to the private sector.
e.g., GovSales
Franchises: a concession or privilege government grants to a
private organization to conduct business in a particular market

or geographical area
e.g., Highway 91 Express Lanes; Cable franchise
Example of the franchise fees collected by a small city
Asset sale is the transfer of ownership of government assets,
commercial-type enterprises, or functions to the private sector.
Asset sale was very important as a tool of privatization in many
countries in the past, such as the UK, Russia, and China, but in
the US, it is much less important as the US does not have a lot
of state-own enterprises like those countries.
Franchise is a concession or privilege government grants to a
private organization to conduct business in a particular market
or geographical area. For example, your city may grant
franchise the cable service to one firm, making it the privileged
provider of such service in the jurisdiction.
*
Government Corporations: separate legal entities that are
created by Congress, generally with the intent of conducting
revenue-producing commercial-type activities, and that are
generally free from certain government restrictions related to
personnel and procurement.
e.g., Community Development Financial Institutions Fund;
Overseas Private Investment Corporation (OPIC); Federal
Deposit Insurance Corporation (FDIC); Amtrak
Grants (or subsidies): a sum of money (or a privilege or rights)
government gives to private organizations to encourage their
involvement in accomplishing public purposes
e.g., the funding of low-income housing, or tax subsidies, R&D
grants or tax credits.

Forms of Privatization (GAO 1997)
There are also government corporations, which are often created
by Congress to conduct commercial activities. For example, the
Community Development Financial Institutions Fund, a wholly
owned government corporation within the U.S. Department of
the Treasury, promotes economic revitalization and
development in distressed urban and rural communities
throughout the United States. The overseas private investment
corporation helps US firms invest in less developed countries
and areas. The Federal Deposit Insurance Corporation was
created to maintain the stability of and public confidence in the
nation's financial system. All these organizations operate like a
business but serve a government function.
Grants (or subsidies) are a sum of money government gives to
private organizations to encourage their involvement in
accomplishing public purposes, such as funding for low-income
housing, tax subsidies, R&D grants, and so on.
*
Lease: the arrangement of government granting the temporary
possession or use of (lands, facilities, etc.) to private
organizations, usually for compensation at a fixed rate and with
service and profit restrictions.
e.g., Los Angeles World Airports (LAWA) is the City of Los
Angeles department that owns and operates a system of three
airports: Los Angeles International (LAX), LA/Ontario
International (ONT) and Van Nuys (VNY). It rents space to the
various airlines.

Lease is the arrangement of government granting the temporary
possession or use of (lands, facilities, etc.) to private
organizations, usually for compensation at a fixed rate and with
service and profit restrictions. For example, airport is often
owned by government, but is leased to airlines.
Public-Private Partnerships or PPP, which was introduced
previously is also a form of privatization that often involve the
private sector in the development, financing, ownership, and
operation of a public facility or service.
*
Public-Private Partnerships: (sometimes referred to as a joint
venture) a contractual arrangement formed between public- and
private-sector partners that can include a variety of activities
that involve the private sector in the development, financing,
ownership, and operation of a public facility or service.
*
Approximately 2 M Section 8 vouchers.
Voluntarism refers to the activities conducted through either a
formal agency volunteer program or a private nonprofit service
organization. Some of you might have volunteered in some
public services, such as national park service, library service,
community service, and so on.

Vouchers are government financial subsidies given to
individuals for the purchase of specific goods or services from
the private or public sector. Food stamps, housing vouchers,
school vouchers are the common examples.
*
The single most important characteristic that separates the
public and private sectors —
SOVEREIGNTY:
Coercive power
Power to go to war
Immunity from suit except by their permission
Power to disavow debts
Right to establish the rules for protection and transference of
property (eminent domain)
Indivisibility
Government privatizes a variety of public duties, however could
all government duties be delegated to private companies?
Definitely not. Some scholars point out that privatization cannot
go beyond any duties related to sovereignty, which is the single
most important characteristic that separates the public and
private sectors. As a sovereign state, government is subject to
no other authority. It posses coercive power, the power to go to
war, the immunity from suit except by their permission, power
to disavow debts, and the right to establish the rules for
protection and transference of property (such as the eminent
domain). A sovereignty is also indivisibility.
*
Additional factors to consider
National security (e.g., CIA, embassies)

Public safety
Accountability issues
Management capacity
Possibility of corruption
In addition, privatization may also raise many undesirable
issues, such as threats to national security or public safety,
accountability issues, management issues, as well as the
opportunity for corruption.
*
Purpose.
This circular establishes federal policy for the competition of
commercial activities.Policy.
The longstanding policy of the federal government has been to
rely on the private sector for needed commercial services.
To ensure that the American people receive maximum value for
their tax dollars, commercial activities should be subject to the
forces of competition.
The Office of Management & Budget, which oversees the
operation of the executive branch, promulgated the Circular A-
76 to establish guidelines for privatization, especially
contracting out. The policy emphasizes federal government’s
reliance on the private sector for needed commercial services
and encourages government agencies considering contracting
out commercial activities.
*

Commercial Activities
A commercial activity is a recurring service that could be
performed by the private sector and is resourced, performed,
and controlled by the agency through performance by
government personnel, a contract, or a fee-for-service
agreement.
The commercial activities are recurring services that could be
performed by the private sector and are resourced, performed,
and controlled by the agency through performance by
government personnel, a contract, or a fee-for-service
agreement.
*
An inherently governmental activity:
is an activity that is so intimately related to the public interest
as to mandate performance by government personnel. Inherently
governmental activities:
require the exercise of substantial discretion in applying
government authority and/or in making decisions for the
government
normally fall into two categories:
The exercise of sovereign government authority or the
establishment of procedures
The processes related to the oversight of monetary transactions
or entitlements.
However, the Circular also specifies that there are inherently
government activities should not be privatized. Those
Inherently Governmental activities require the exercise of
substantial discretion in applying government authority and/or
in making decisions for the government. They normally fall into

two categories:
The exercise of sovereign government authority or the
establishment of procedures and
The processes related to the oversight of monetary transactions
or entitlements.
*
Discussion questions:
What are the potential advantages and disadvantages of
privatizing correction services?
If you are a manager in the CCA, what are the major concerns
for your company?
If you are a public manager in a correction agency which has
contracted with CCA, what are your major concerns with this
relationship?
What are the social implications of privatizing correction
services?
Stop the video at 11:07
*
Economic development has grown as the role of government has
grown.
Different approaches may be suitable for different situations:
industrial recruitment, entrepreneurial strategies, and
privatization strategies. These strategies are affected by
ideology and implementation.
Reasonable people can disagree about the ideal mix of strategies
because of their beliefs.
Additionally, the success of any approach (or mix of
approaches) is highly dependent on the quality of
implementation of the partners involved. The quality of the

conceptualization of economic development, its practicality, the
long-term leadership, the balance of managerial competence
among the partners, and even luck are key factors that influence
the ultimate success of initiatives.
*
*

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