8 Key Element for a Business Model

E-commerce: business. technology. society. E-commerce E commerce Business. Technology. Society gy y Kenneth  C. Laudon Copyright  © 2011 Pearson Education, Ltd. Chapter 5 Business  Models  for  E? commerce Copyright  © 2007Pearson Education, Ltd. 2011 Pearson Education, Inc. Slide 1-2 E-commerce Business Models Business  model d l Set  of  planned  activities  designed  to  result  in  a   Set of planned activities designed to result in a profit  in  a  marketplace Business  plan Describes  a  firm s  business  model Describes a firm’s business modelE commerce  business  model E? commerce business model Uses/leverages  unique  qualities  of  Internet  and   Web W b Slide 2-3 8 Key Elements of Business Model 1. 2. 3. 4. 5. 6. 7. 8. Value  proposition Revenue  model Market  opportunity Market opportunity Competitive  environment Competitive  advantage Market  strategy Market strategy Organizational  De velopment Management  team Slide 2-4 1. Value Proposition Why  should  the  customer  buy  from  you? h h ld h b f ? Successful  e? ommerce  value   S f l l propositions: Personalization/customization Reduction  of  product  search,  price  discovery  costs Facilitation  of  transactions  by  managing  product   delivery Slide 2-5 2. Revenue Model How  will  the  firm  earn  revenue,  generate   p profits,  and  produce  a  superior  return  on   p p invested  capital? Major  types: Advertising  revenue  model g Subscription  revenue  model Transaction  fee  revenue  model Transaction fee revenue model Sales  revenue  model Affiliate  revenue  model Slide 2-6 3. Market Opportunity What  marketspace  do  you  intend  to   h k d d serve  and  what  is  its  size?Marketspace:  Area  of  actual  or  potential  commercial  value   in  which  companyà ‚  intends  to  operate in which company intends to operate Realistic  market  opportunity:  Defined  by  revenue   potential  in  each  market  niche  in  which  company  hopes  to   potential in each market niche in which company hopes to compete Market  opportunity  typically  divided  into   M k t t it t i ll di id d i t smaller  niches Slide 2-7 4. Competitive Environment Who  else  occupies  your  intended   h l d d marketspace? p Other  companies  selling  similar  products  in  the  same   marketspace Includes  both  direct  and  indirect  competitors Influenced  by: Influenced by:Number  and  size  of  active  competitors Each  competitor s  market  share Each competitor’s market share Competitors’  profitability Competitors pricing Competitors’  pricing Slide 2-8 5. Competitive Advantage Achieved  when  firm: h d h f Produces  superior  pro duct  Ã‚  or Produces superior product or Can  bring  product  to  market  at  lower  price   than  competitors th tit Important  concepts: p p Asymmetries First? mover  advantage Fi t d t Unfair  competitive  advantage Leverage Slide 2-9 6. Market Strategy How  do  you  plan  to  promote  your   products  or  services  to  attract  your   products or services to attract your target  audience?Details  how  a  company  intends  to  enter  market and  attract  customers Best  business  concepts  will  fail  if  not  properly   marketed  to  potential  customers k d i l Slide 2-10 7. Organizational Development What  types  of  organizational  structures   within  the  firm  are  necessary  to  carry  out   within the firm are necessary to carry out the  business  plan? Describes  how  firm  will  organize  work Typically  divided  into  functiona l  departments As  company  grows,  hiring  moves  from  generalists  to   As company grows hiring moves from generalists to specialists Slide 2-11 8.Management Team What  kinds  of  experiences  and   background  are  important  for  the   background are important for the company’s  leaders  to  have? Employees  are  responsible  for  making  the  business  model   work Strong  management  team  gives  instant  credibility  to   outside  investors Strong  management  team  may  not  be  able  to  salvage  a   weak  business  model,  but  should  be  able  to  change  the   model  and  redefine  the  business  as  it  becomes  necessary Slide 2-12 Insight on Business Online Grocers: Finding and Executing the Right Model g g Class Discussion Slide 2-13 Categorizing E-commerce Business ModelsNo  one  correct  way We  categorize  businessà ‚  models  according  to: We categorize business models according to: E? commerce  sector  (B2C,  B2B,  C2C) Type  of  e? commerce  technology;  i. e. m? commerce Type of e commerce technology; i e m commerce Similar  business  models  appear  in  more  than   one  sector Some  companies  use  multiple  business   Some companies use multiple business models;  e. g. eBay Slide 2-14 B2C Business Models: Portal Search  plus  an  integrated  package  of  content   and  services Revenue  models:   d l Advertising,  referral  fees,  transaction  fees,  subscriptions g p Variations:Horizontal  /  General Vertical  /  Specialized  (Vortal) Vertical / Specialized (Vortal) Pure  Search Slide 2-15 Insight on Technology Can Bing Bong Google? Class Discussion Slide 2-16 B2C Models: E-tailer Online  version  of  traditional  retailer Revenue  model:  Sales Variations: Virtual  merchant Virtual merchant Bricks? and? clicks Catalog  merchant C t l h t Manufacturer? direct Low  barriers  to  entry Slide 2-17 B2C Models: Content Provider Digital  content  on  the  Web News,  music,  video Revenue  models:   Revenue models: Subscription;  pay  per  download  (micropayment);   advertising;  affiliate  referral  fees Variations:Content  owners Syndication S di i Web  aggregators Slide 2-18 B2C Models: Transaction Broker Process  online  transactions  for  consumers Primary  value  proposition—saving  time  and  money Revenue  model:   R d l Transaction  fees Industries  using  this  model: Financial  services Travel  services Job  placement  services Slide 2-19 B2C Models: Market Creator Create  digital  environment  where  buyers   and  sellers  can  meet  and  transact Examples:   Priceline eBay y Revenue  model:  Transaction  fees Revenue model: Transaction fee s Slide 2-20 B2C Models: Service Provider Online  services e. g. Google:  Google  Maps,  Gmail,  etc. Value  proposition   Value propositionValuable,  convenient,  time? saving,  low? cost  alternatives  to   traditional  service  providers t diti l i id Revenue  models: Revenue models: Sales  of  services,  subscription  fees,  advertising,  sales  of   marketing  data marketing data Slide 2-21 B2C Models: Community Provider Provide  online  environment  (social   network)  where  people  with  similar   interests  can  transact,  share  content,  and   , , communicate   E. g. Facebook,  MySpace,  LinkedIn,  Twitter Revenue  models: R d l Typically  hybrid,  combining  advertising, subscriptions,  sales,  transaction  fees,  affiliate  fees Slide 2-22 B2B Business Models Net  marketplaces E? istributor E procurement E? procurement Exchange Industry  consortium Industry cons ortium Private  industrial  network Private industrial network Single  firm Industry? wide Industry wide Slide 2-23 B2B Models: E-distributor Version  of  retail  and  wholesale  store,   , MRO  goods  and  indirect  goods Owned  by  one  company  seeking  to  serve   many  customers Revenue  model:  Sales  of  goods Example:  Grainger. com Slide 2-24 B2B Models: E-procurement Creates  digital  markets  where   participants  transact  for  indirect  goods B2B  service  providers,  application  service  providers  (ASPs) B2B service providers application service providers (ASPs)Revenue  model: Service  fees,  supply? chain  management,  fulfillment   services Example:  Ariba Slide 2-25 B2B Models: Exchanges Independently  owned  vertical  digital   p y g marketplace  for  direct  inputs Revenue  model:  Transaction,  commission  fees Revenue model Transaction commission fees C eate po e u co pet t o bet ee Create  powerful  competition  between   suppliers Tend  to  force  suppliers  into  powerful  price   T d f li i f l i competition;  number  of  exchanges  has   dropped  dramatically d dd ll Slide 2-26 B2B Models: Industry Consortia Industry? wned  vertical  digital  marketplace   open  to  select  suppliers More  successful  than  exchanges More successful than exchanges Sponsored  by  powerful  industry  players Strengthen  traditional  purchasing  behavior Revenue  model:  Transaction,  commission  fees R d l T ti i i f Example:  Exostar Example: Exostar Slide 2-27 Private Industrial Networks Designed  to  coordinate  flow  of  communication   among  firms  engaged  in  business  together fi di b i h Electronic  data  interchange  (EDI) Single  firm  networks Most  common  form   M t f Example:  Wal? Mart’s  network   for  suppliersIndustry? wide  networks Often  evolve  out  of  industry  associations   Often evolve out of industry associations Example:  Agentrics Slide 2-28 Other E-commerce Business Models Consumer? to? consumer  (C2C) eBay,  Craigslist Peer? to? peer  (P2P) Peer to peer (P2P) The  Pirate  Bay,  Cloudmark M? commerce: Technology  platform  continues  to  evolve Technology platform continues to evolve iPhone,  smartphones  energizing  interest  in  m? commerce   pp apps Slide 2-29 Insight on Society Where R U? Not Here! Class Discussion Slide 2-30 E-commerce Enablers: Gold Rush ModelE? commerce  infrastructure  companies   p have  profited  the  most: Hardware,  software,  networking,  security E? commerce  software  systems,  payment  systems Media  solutions,  performance  enhancement CRM  software CRM software Databases Hosting  services,  etc. Slide 2-31 How Internet & Web Change Busi ness E? commerce  changes  industry  structure   g y by  changing: Basis  of  competition  among  rivals Barriers  to  entry y Threat  of  new  substitute  products Strength  of  suppliers Bargaining  power  of  buyers Bargaining power of buyers Slide 2-32 Industry Value ChainsSet  of  activities  performed  by  suppliers,   manufacturers,  transporters,  distributors,  and   f di ib d retailers  that  transform  raw  inputs  into  final   products  and  services   Internet  reduces  cost  of  information  and   Internet reduces cost of information and other  transactional  costs Leads  to  greater  operational  efficiencies,   lowering  cost,  prices,  adding  value  for   lowering cost prices adding value for customers Slide 2-33 E-commerce & Industry Value Chains Figure  5. 4 Slide 2-34 Firm Value Chains Activities  that  a  firm  engages  in  to   create inal  products  from  raw  inputs Each  step  adds  value Effect  of  Internet: Eff fI Increases  operational  efficiency p y Enables  product  differentiation Enables  precise  coordination  of  steps  in  chain E bl i di ti f t i h i Slide 2-35 E-commerce & Firm Value Chains Figure  5. 5 Slide 2-36 Firm Value Webs Networked  business  ecosystem   Uses  Internet  technology  to  coordinate  the   value  chains  of  business  partners l h i fb i Coordinates  a  firm’s  suppliers  with  its  own   C di t fi ’ li ith it production  needs  using  an  Internet? based   supply  chain  management  systemSlide 2-37 Internet-Enabled Value Web bl d l b Figure  5. 6 Slide 2-38 Business Strategy Plan  for  achieving  superior  long? term   returns  on  the  capital  invested  in  a   business  firm   business firm Four  Generic  Strategies 1. Di fferentiation   2. Cost 3. Scope 4. 4 Focus Slide 2-39 Chapter 6 E-commerce Marketing Copyright  © 2010 Pearson Education, Ltd. 2011 Pearson Education, Inc. Slide 6-40 Netflix N fli Strengthens and Defends Its Brand Class Discussion Slide 6-41 Consumers Online: Internet Audience & Consumer Behavior Around  70%  (82  million)  U. S. ouseholds  have   Around 70% (82 million) U S households have Internet  access  in  2010 Growth  rate  has  slowed Intensity  and  scope  of  use  both  increasing d f b h Some  demographic  groups  have  much  higher   Some demographic groups have much higher percentages  of  online  usage  than  others   Gender,  age,  ethnicity,  community  type,  income,  education Slide 6-42 Consumers Online: Internet Audience & Consumer Behavior Broadband  audience  vs. dial? up  audience Purchasing  behavior  affected  by   neighborhood Lifestyle  and  sociological  impa cts Use  of  Internet  by  children,  teens Use  of  Internet  as  substitute  for  other  social  activitiesMedia  choices Traditional  media  competes  with  Internet  for  attention Traditional media competes with Internet for attention Slide 6-43 Consumer Behavior Models Study  of  consumer  behavior Social  science   Attempts  to  explain  what  consumers  purchase   Attempts to explain what consumers purchase and  where,  when,  how  much  and  why  they  buy Consumer  behavior  models Predict  wide  range  of  consumer  decisions Predict wide range of consumer decisions Based  on  background  demographic  factors  and   other  intervening,  more  immediate  variables   h i i i di i bl Slide 6-44 General Model of Consumer Behavior Figure  6. Slide 6-45 Background Demographic Factors Culture:  Broadest  impact Subculture  (ethnicity,  age,  lifestyle,  geography) S b lt ( th i it lif t l h ) Social Reference  groups Direct  Ã‚  reference  groups g p Indirect  reference  groups Opinion  leaders  (viral  influencers) Lifestyle  groups   f l Psychological Psychological  profiles Slide 6-46 Online Purchasing Decision Psychographic  research Combines  demographic  and  psychological  data Combines demographic and psychological data Divides  market  into  groups  based  on  social  class,  lifestyle,   and/or  personality  characteristics and/or personality characteristicsFive  stages  in  the  consumer  decision  process: 1. 2. 3. 4. 5. Awareness  of  need Search  for  more  information Evaluation  of  alternatives Actual  purchase  decision Actual purchase decision Post? purchase  contact  with  firm Slide 6-47 Consumer D i i C Decision Process & P Supporting Communications Figure  6. 3 Slide 6-48 Model of Online Consumer Behavior Decision   process  similar  for  online  and  offline   behavior General  online  behavior  model Consumer  skills Product  characteristics Attitudes  toward  online  purchasing Perceptions  about  control  over  Web  environment p Web  site  featuresClickstream  behavior:  Transaction  log  for   Clickstream behavior: Transaction log for consumer  from  search  engine  to  purchase Slide 6-49 Model of Online Consumer Behavior Figure  6. 4 Slide 6-50 Model of Online Consumer Behavior Clickstream  factors  include: Number  of  days  since  last  visit Number of days since last visit Speed  of  clickstream  behavior Number  of  products  viewed  during  last  visit b f d i dd i l ii Number  of  pages  viewed Supplying  personal  information Number  of  days  since  last  purchase Number  of  past  purchasesClickstream  marketing Clickstream marketing Slide 6-51 Shoppers: B rowsers & Buyers Shoppers:  87%  of  Internet  users 72%  buyers 72% buyers 16%  browsers  (purchase  offline) One? third  offline  retail  purchases  influenced  by   O thi d ffli t il h i fl db online  activities Online  traffic  also  influenced  by  offline  brands  and   shopping pp g E? commerce  and  traditional  commerce  are  coupled: part  of  a  continuum  of  consuming  behavior part of a continuum of consuming behavior Slide 6-52 Online Shoppers & Buyers Figure  6. 5 Slide 6-53What Consumers Shop & Buy Online Big  ticket  items  ($500  plus) Travel,  computer  hardware,  consumer  electronics Expanding   Consumers  more  confident  in  purchasing  costlier  items Small  ticket  items  ($100  or  less) ($ ) Apparel,  books,  office  supplies,  software,  etc. Sold  by  first  movers  on  Web Sold by first movers on Web Physically  small  i tems High  margin  items   Broad  selection  of  products  available Slide 6-54 What Consumers Buy Online Figure  6. 6 Slide 6-55 Intentional Acts: How Shoppers Find Vendors Online pp Search  engines  (59%) S h i (59%) Coupon  Web  sites  (29%) Coupon Web sites (29%) Comparison  shopping  sites  (27%) E? ail  newsletters  (25%) Online  shoppers  are  highly  intentional,   looking  for  specific  products,  companies,   services Slide 6-56 Table  6. 6 Slide 6-57 Trust, Utility, Opportunism in Online Markets Two  most  important  factors  shaping  decision   Two most important factors shaping decision to  purchase  online: Utility:   U ili Better  prices,  convenience,  speed Trust: Asymmetry  of  information  can  lead  to  opportunistic   behavior  by  sellers Sellers  can  develop  trust  by  building  strong  reputations   for  honesty,  fairness,  delivery   Slide 6-58 Basic Marketing Concepts MarketingStrategies  and  actions  to  establish  relationship   Strategies and actions to establish relationship with  consumer  and  encourage  purchases  of   p products  and  services Addresses  competitive  situation  of  industries  and   firms Seeks  to  create  unique,  highly  differentiated   products  or  services  that  are  produced  or  supplied   by  one  trusted  firm Unmatchable  feature  set Avoidance  of  becoming  commodity Slide 6-59 Feature Sets Three  levels  of  product  or  service 1. Core  product e. g. cell  phone g p 2. Actual  product Characteristics  that  deliver  core  benefits Ch t i ti th t d li b fit e. g. wide  screen  that  connects  to  Internet 3. Augmented  productAdditional  benefits Basis  for  building  the  product’s  brand e. g. product  warranty Slide 6-60 Featu re Set Figure  6. 7 Slide 6-61 Products, Brands & Branding Process Brand: Expectations  consumers  have  when  consuming,  or   thinking  about  consuming,  a  specific  product Most  important  expectations:  Quality,  reliability,   Most important expectations: Quality reliability consistency,  trust,  affection,  loyalty,  reputation Branding:  Process  of  brand  creation Branding: Process of brand creation Closed  loop  marketing Brand  strategy Brand  equity Brand eq it Slide 6-62 Marketing A ti iti M k ti Activities: From Products to Brands Figure  6. 8Slide 6-63 STP: Segmenting, Targeting, Positioning Major  ways  used  to  segment,  target  customers 1. 2. 3. 4. 5. 6. Behavioral B h i l Demographic Psychographic h hi Technical Contextual Search Within  segment,  product  is  positioned and  branded  as   a  unique,  high? value  product,  especially  suited  to   q g p p y ne eds  of  segment  customers Slide 6-64 Are Brands Rational? For  consumers,  a  qualified  yes: Brands  introduce  market  efficiency  by  reducing  search  and   decision? making  costs For  business  firms,  a  definite  yes: A  major  source  of  revenue Lower  customer  acquisition  cost Increased  customer  retention Successful  brand  constitutes  a  long? asting  (though  not   necessarily  permanent)  unfair  competitive  advantage Slide 6-65 Can Brands Survive Internet? Brands & Price Dispersion p Early  postulation:   Law  of  One  Price ;  end  of  brands Early postulation: â€Å"Law of One Price†; end of brands Instead: Consumers  still  pay  premium  prices  for  differentiated   products E? commerce  firms  rely  heavily  on  brands  to  attract   customers  and  charge  premium  prices Substantial  price  dispersion Large  differences  in  price  sensitivity  for  same  product Large differences in price sensitivity for same product â€Å"Library  effect† Slide 6-66Revolution in Internet Marketing Technology Three  broad  impacts: Scope  of  marketing  communications  broadened   Richness  of  marketing  communications  increased g Information  intensity  of  marketplace  expanded Internet  marketing  technologies: Internet marketing technologies: Web  transaction  logs Cookies  and  Web  bugs Cookies and Web bugs Databases,  data  warehouses,  data  mining Advertising  networks Customer  relationship  management  systems Slide 6-67 Web Transaction LogsBuilt  into  Web  server  software Record  user  activity  at  Web  site y Webtrends:  Leading  log  analysis  tool Provides  much  marketing  data,  especially  Ã‚   Provides much marketing data especially combined  with: Registratio n  forms R i i f Shopping  cart  database Answers  questions  such  as: What  are  major  patterns  of  interest  and  purchase? After  home  page,  where  do  users  go  first? Second? Slide 6-68 Cookies & Web Bugs Cookies: Small  text  file  Web  sites  place  on  visitor’s  PC  every  time   they  visit,  as  specific  pages  are  accessed Provide  Web  marketers  with  very  quick  means  of   identifying  customer  and  understanding  prior  behavior Flash  cookiesWeb  bugs: Tiny  (1  pixel)  graphics  embedded  in  e mail  and  Web  sites Tiny (1 pixel) graphics embedded in e? mail and Web sites Used  to  automatically  transmit  information  about  user  and   page being viewed to monitoring server page  being  viewed  to  monitoring  server Slide 6-69 Insight on Society g y Every Move You Make, Every Click You Make, Weâ₠¬â„¢ll Be Tracking You , g Class Discussion Slide 6-70 Databases Database:  Ã‚  Stores  records  and  attributes Database  management  system  (DBMS):   Software  used  to  create,  maintain,  and  access  databasesSQL  (Structured  Query  Language): Industry? standard  database  query  and  manipulation  language  used  in   y q y p g g a  relational  database Relational  database: Represents  data  as  two? dimensional  tables  with  records  organized  in   rows  and  attributes  in  columns;  data  within  different  tables  can  be   flexibly  related  as  long  as  the  tables  share  a  common  data  element flexibly related as long as the tables share a common data element Slide 6-71 Relational Database View of E-commerce Customers Figure  6. 12 Slide 6-72 Data Warehouses & Data Mining Data  warehouse:Collects  firm s  transactional  and  custom er  data  in  single   Collects firm’s transactional and customer data in single location  for  offline  analysis  by  marketers  and  site   managers Data  mining: Analytical  techniques  to  find  patterns  in  data,  model   Analytical techniques to find patterns in data model behavior  of  customers,  develop  customer  profiles Query? driven  data  mining Query driven data mining Model? driven  data  mining Rule? based  data  mining l b dd Collaborative  filtering Slide 6-73 Data Mining & Personalization Figure  6. 13 Slide 6-74 Insight on TechnologyThe Long T il Big Hits and Big Misses Th L Tail: Bi Hi d Bi Mi Class Discussion Slide 6-75 Customer Relationship Management ( (CRM) Systems ) y Record  all  contact  that  customer  has  with  firm Generates  customer  profile  available  to  everyone  in firm  with  need  to  Ã¢â‚¬Å"know  the  customer† fi ith d t â€Å"k th t † Customer profiles can contain: ustomer  profiles  can  contain: Map  of  the  customer’s  relationship  with  the  firm Product  and  usage  summary  data Demographic  and  psychographic  data Profitability  measures Contact  history   Contact history Marketing  and  sales  information Slide 6-76Customer Relationship Management System Figure  6. 14 Slide 6-77 Market Entry Strategies Figure  6. 15 Slide 6-78 Establishing Customer Relationship Advertising  Networks Banner  advertisements Ad  server  selects  appropriate  banner  ad  based  on   Ad server selects appropriate banner ad based on cookies,  Web  bugs,  backend  user  profile   databases Permission  marketing Permission marketing Affiliate  marketing g Slide 6-79 How Advertising Network Works e. g. , DoubleClick Figure  6. 16 Slide 6-80 Establishing Customer Relationship (cont’d) Viral  marketingGett ing  customers  to  pass  along  company’s  marketing   message  to  friends,  family,  and  colleagues Blog  marketing Using  blogs  to  market  goods  through  commentary  and   U i bl k d h h d advertising Social  network  marketing,  social  shopping   Mobile  marketing Mobile marketing Slide 6-81 Insight on Business Social Network Marketing: Let’s Buy Together Class Discussion Slide 6-82 Establishing Customer Relationship (cont’d) Wisdom  of  crowds  (Surowiecki,  2004) ( , ) Large  aggregates  produce  better  estimates  and  judgments Examples:   E l Prediction  markets Folksonomies Social  tagging Social taggingBrand  leveraging Slide 6-83 Customer Retention: Strengthening Customer Relationship p Mass  marketing Mass marketing Direct  marketing Micromarketing   Micromarketing Personalized,  one? to? one  marketing  Ã‚   Segmenting  market  on  precise  a nd  timely  understanding  of   Segmenting market on precise and timely understanding of individual’s  needs Targeting  specific  marketing  messages  to  these  individuals Positioning  product  vis? a? vis  competitors  to  be  truly  unique Personalization Can  increase  consumers  sense  of  control,  freedom Can  also  result  in  unwanted  offers  or  reduced  anonymity Slide 6-84Mass Market-Personalization Continuum Figure  6. 17 Slide 6-85 Other Customer Retention Marketing Technics Customization Customer  co? production Transactive  content:   Combine  traditional  content  with  dynamic  information   tailored  to  each  user’s  profile Customer  service FAQs Q Real? time  customer  service  chat  systems Automated  response  systems Automated response systems Slide 6-86 Net Pricing Strategies Pricing Integral  part  of  marketing  strategy I t l t f k ti t t Traditionally  based  on:   Fixed  cost   Variable  costs   Demand  curve Price  discrimination Price discriminationSelling  products  to  different  people  and  groups   based  on  willingness  to  pay Slide 6-87 Net Pricing Strategies (cont’d) Free  and  freemium Can  be  used  to  build  market  awareness Versioning Creating  multiple  versions  of  product  and  selling   essentially  same  product  to  different  market  segments   at  different  prices at different prices Bundling Offers  consumers  two  or  more  goods  for  one  price Off t d f i Dynamic  pricing: Auctions Yield  management Slide 6-88 Channel Management Strategies Channels: Different  methods  by  which  goods  can  be  distributed  and   soldChannel  conflict: When  new  venue  for  selling  products  or  services  threatens   gp or  destroy s  existing  sales  venues E. g. online  airline/travel  services  and  Ã‚  traditional  offline   travel  agencies Some  manufacturers  are  using  partnership   gp p model  to  avoid  channel  conflict   Slide 6-89 Chapter 7: E-commerce Marketing Communications Chapter 7 E-commerce Advertising Copyright  © 2010 Pearson Education, Ltd. 2011 Pearson Education, Inc. Slide 7-90 Video Ads: Shoot, Click, Buy Class Discussion Slide 7-91 Marketing Communications Two  main  purposes:Sales  Ã¢â‚¬â€œ promotional  sales  communications   Branding  Ã¢â‚¬â€œ b di B di branding  communications i i Online  marketing  communications Online marketing communications Takes  many  forms Online  ads,  e? mail,  public  relations,  Web   sites Slide 7-92 Online Advertising li d i i $25  billion,  15%  of  all  advertising Advantages: Internet  is  where  audience  is  moving g Ad  targeting Greater  opp ortunities  for  interactivity Greater opportunities for interactivity Disadvantages: Cost  versus  benefit How  to  adequately  measure  results Supply  of  good  venues  to  display  ads Slide 7-93 Online Advertising from 2002-2014 Figure  7. Slide 7-94 Forms of Online Advertisements Display  ads Rich  media Video  ads Search  engine  advertising Social  network,  blog,  and  game  advertising Social network blog and game advertising Sponsorships Referrals  (affiliate  relationship  marketing) E? mail  marketing g Online  catalogs Slide 7-95 Display Ads Banner  ads Rectangular  box  linking  to  advertiser’s  Web  site IAB  guidelines e. g. Full  banner  is  468  x  60  pixels,  13K e g Full banner is 468 x 60 pixels 13K Pop? up  ads Appear  without  user  calling  for  them Provoke  negative  consumer  sentiment g Twice  as  effective  as  normal  banner  ads Pop? nder  ads:  Open  beneath  browser  window Pop under ads: Open beneath browser window Slide 7-96 Rich Media Ads Use  Flash,  DHTML,  Java,  JavaScript About  7%  of  all  online  advertising  expenditures Tend  to  be  more  about  branding d b b b di Boost  brand  awareness  by  10% Boost brand awareness by 10% IAB  standards  limit  length Interstitials Superstitials Slide 7-97 Video Ads Fastest  growing  form  of  online  advertisement IAB  standards Linear  video  ad Non? linear  video  ad In? banner  video  ad In? text  video  ad Ad placement Advertising  networks Advertising  exchanges Banner  swappingSlide 7-98 Search Engine Advertising h i d i i Almost  50%  of  online  ad  spending  in  2010 Types: Paid  inclusion  or  rank Paid inclusion or rank Inclusion  in  search  results Sponsored  link  areas p Keyword  advertising e. g. Google  AdWords e g Google AdWords Network  keyword  advertising  (context   advertising) d ii ) e. g. Google  AdSense Slide 7-99 Search Engine Advertising (cont’d) Nearly  ideal  targeted  marketing Nearly ideal targeted marketing Issues:   Disclosure  of  paid  inclusion  and  placement   practices Click  fraud   Ad  nonsense   Slide 7-100 Mobile Advertising Half  of  U. S.Internet  users  access  Internet   Half of U. S. Internet users access Internet with  mobile  devices Currently  small  market,  but  fastest   growing  platform  (35%) growing platform (35%) Google  and  Apple  in  race  to  develop   Google and Apple in race to develop mobile  advertising  platform AdMob,  iAd Slide 7-101 Sponsorships & Referrals Sponsorships Paid  effort  to  tie  advertiser s  name  to   Paid effort to tie advertiser’s name to particular  information,  event,  venue  in  a  way   that  reinforces  brand  in  positive  yet  not  overtly   that reinforces brand in positive yet not overtly commercial  manner ReferralsAffiliate  relationship  marketing p g Permits  firm  to  put  logo  or  banner  ad  on   another  firm’s  Web  site  from  which  users  of   th fi ’ W b it f hi h f that  site  can  click  through  to  affiliate’s  site Slide 7-102 E-mail Marketing & Spam Explosion Direct  e? mail  marketing   Low  cost,  primary  cost  is  purchasing  addresses Spam:  Unsolicited  commercial  e? mail Spam: Unsolicited commercial e mail Approx. 90%  of  all  e? mail Efforts  to  control  spam: Technology  (filtering  software)   Government  regulation  (CAN? SPAM  and  state  laws) Voluntary  self? regulation  by  industries  (DMA  ) y g y Volunteer  efforts Slide 7-103Percentage of E-mail That Is Spam Figure 7. 6 Slide 7-104 Online Catalogs Equivalent  of  paper? based  catalogs Graphics? intense;  use  increasing  with  increase   in  broadband  use in broadband use Two  types: 1. 2. 2 Full? page  spreads,  e. g. Landsend. com Grid  displays,  e. g. Amazon Grid displays e g Amazon In  general,  online  and  offline  catalogs   complement  each  other Slide 7-105 Social Marketing â€Å"Many? to? many†Ã‚  model Uses  digitally  enabled  networks  to  spread  ads Blog  advertising   Blog advertising Online  ads  related  to  content  of  blogs Social  network  advertising:   Social network advertising:Ads  on  MySpace,  Facebook,  YouTube,  etc. Game  advertising:   G d ti i Downloadable  Ã¢â‚¬Å"advergames† Placing  brand? name  products  within  games Slide 7-106 Insight on Society g y Marketing to Children of the Web in the Age of Social Networks g Class Discussion Slide 7-107 Behavioral Targeting Interest? based  advertising Data  aggregators  develop  profiles Data aggregators develop profiles Search  engine  queries Online  browsing  history O li b i hi Offline  data  (income,  education,  etc. ) d Information  sold  to  3rd party  advertisers,  who  deliver   ads  based  on  profile Ad  exchanges Privacy  concerns acy co ce s Consumer  resistance Slide 7-108Mixing Off-line & Online Marketing Communications g Most  successful  marketing  campaigns   M t f l k ti i incorporate  both  online  and  offline  tactics Offline  marketing Drive  traffic  to  Web  sites Drive traffic to Web sites Increase  awareness  and  build  brand  equity Consumer  behavior  increasingly  multi? channel 60%  consumers  research  online  before  buying  offline % y g Slide 7-109 Insight on Business g Are the Very Rich Different From You and Me? Class Discussion Sl ide 7-110 Online Marketing Metrics: Lexicon Measuring  audience  size  or  market  share Impressions I i Click? through  rate  (CTR) View? hrough  rate  (VTR) Vi th h t (VTR) Hits Page  views P i Stickiness  (duration) Unique  visitors Loyalty Reach Recency Slide 7-111 Online Marketing Metrics (cont’d) Conversion  of  visitor   Conversion of visitor to  customer Acquisition  rate q Conversion  rate Browse? to? buy? ratio View? to? cart  ratio Vi t t ti Cart  conversion  rate Checkout  conversion  rate   Checkout conversion rate Abandonment  rate Retention  rate Attrition  rate E mail  metrics E? mail metrics Open  rate Delivery  rate Delivery rate Click? through  rate   (e mail) (e? mail) Bounce? back  rate Slide 7-112 Online Consumer Purchasing ModelFigure  7. 8 Slide 7-113 How Well Does Online Adv. Work? Ultimately  measured  by  ROI  on  ad  campaign Highest  click? through  rates:  Searc h  engine  ads,   Permission  e mail  campaigns Permission e? mail campaigns Rich  media,  video  interaction  rates  high Online  channels  compare  favorably  with  traditional Most  powerful  marketing  campaigns  use  multiple   Most powerful marketing campaigns use multiple channels,  including  online,  catalog,  TV,  radio,   newspapers,  stores newspapers, stores Slide 7-114 Comparative Returns on Investment Figure  7. 9 Slide 7-115 Costs of Online Advertising Pricing  modelsBarter Cost  per  thousand  (CPM) Cost  per  click  (CPC)   Cost  per  action  (CPA)   Cost per action (CPA) Online  revenues  only Sales  can  be  directly  correlated Sales can be directly correlated Both  Ã‚  online/offline  revenues Offline  purchases  cannot  always  be  directly  related  to  online   Offli h t l b di tl l t dt li campaign In  general,  online  marketing  more   expensive  on  CPM   In general online marketing more expensive on CPM basis,  but  more  effective Slide 7-116 Web Site Activity Analysis b i i i l i Figure  7. 10 Slide 7-117 Insight on Technology It’s 10 P. M. Do You Know Who Is On Your Web Site? Class Discussion Slide 7-118Web Site †¦ as Marketing Communications Tool g Web  site  as  extended  online  advertisement W b i d d li d i Domain  name:  An  important  role   Domain name: An important role Search  engine  optimization:   Search engine optimization: Search  engines  registration Keywords  in  Web  site  description K d i W b it d i ti Metatag  and  page  title  keywords Links  to  other  sites k h Slide 7-119 Web Site Functionality b i i li Main  factors  in  effectiveness  of  interface Utility Ease  of  use Top  factors  in  credibility  of  Web  sites: Top factors in credibility of Web sites: Design  look Info rmation  design/structure g / Information  focusOrganization  is  important  for  first time  users,  but   Organization is important for first? time users but declines  in  importance Information content becomes major factor attracting Information  content  becomes  major  factor  attracting   further  visits Slide 7-120 Factors in Credibility of Web Sites Figure  7. 11 Slide 7-121 Table  7. 9 Slide 7-122 Chapter 8: Ethical, Social, and Political Issues in E-commerce E commerce Chapter 8 Ethics, Law, E-commerce Copyright  © 2010 Pearson Education, Ltd. 2011 Pearson Education, Inc. Slide 8-123 Ethical, Social, Political Issues in E-commerceInternet,  like  other  technologies,  can: Internet like other technologies can: Enable  new  crimes Affect  environment Threaten  social  values Costs  and  benefits  must  be  carefully   considered,  especially  when  there  are  no   id d i ll h h g g clear? c ut  legal  or  cultural  guidelines Slide 8-124 Model for Organizing Issues Issues  raised  by  Internet  and  e? commerce  can  be  viewed  at  individual,   social,  and  political  levels social and political levels Four  major  categories  of  issues: Four major categories of issues: Information  rights Property  rights Property rights Governance Public  safety  and  welfare Slide 8-125Moral Dimensions of Internet Society M l Di i f I S i Figure  8. 1 Slide 8-126 Basic Ethical Concepts i hi l Ethics Study  of  principles  used  to  determine  right  and  wrong  courses  of   action Responsibility p y Accountability Liability Laws  permitting  individuals  to  recover  damages Due  process Laws  are  known,  understood Laws are known understood Ability  to  appeal  to  higher  authorities  to  ensure  laws  applied  correctly Slide 8-127 Analyzing Ethical Dilemmas l i hi l il Process  for  analyzing  ethical  dilemmas: 1. 2. 3. 3 4. 5. Identify  and  clearly  describe  the  facts Define  the  conflict  or  dilemma  and  identify  the   y higher? rder  values  involved Identify  the  stakeholders Identify the stakeholders Identify  the  options  that  you  can  reasonably   take t k Identify  the  potential  consequences  of  your   options Slide 8-128 Candidate Ethical Principles Golden  Rule Universalism Slippery  Slope Collective  Utilitarian  Principle Risk  Aversion Ri k A i No  Free  Lunch The  New  York  Times  Test The  Social  Contract  Rule Slide 8-129 Privacy & Information Rights Privacy: Moral  right  of  individuals  to  be  left  alone,  free   from  surveillance  or  interference  from  other   individuals  or  organizations Information  privacy p y Subset  of  privacy Includes:The  claim  th at  certain  information  should  not  be   collected  at  all The  claim  of  individuals  to  control  the  use  of  whatever   h l i f i di id l l h f h information  is  collected  about  them Slide 8-130 Privacy & Information Rights (cont. ) Major  ethical  issue  related  to  e? commerce   and  privacy:   d i Under  what  conditions  should  we  invade  the   privacy  of  others? Major  social  issue:   j Development  of  Ã¢â‚¬Å"expectations  of  privacy†Ã‚  and   privacy  norms privacy norms Major  political  issue: Development  of  statutes  that  govern  relations   D l t f t t t th t l ti between  recordkeepers  and  individuals Slide 8-131 Information Collected at E-commerce SitesData  collected  includes Personally  identifiable  information  (PII) Anonymous  information Anonymous information Types  of  data  collected yp Name,  a ddress,  phone,  e? mail,  social  security Bank  and  credit  accounts,  gender,  age,  occupation,   B k d di d i education Preference  data,  transaction  data,  clickstream  data,   browser  type Slide 8-132 Social Networks & Privacy Social  networks Encourage  sharing  personal  details Pose  unique  challenge  to  maintaining   privacy Facebook s  Beacon  program Facebook’s Beacon program Facebook s  Terms  of  Service  change Facebook’s Terms of Service change Slide 8-133 Profiling & Behavioral Targeting ProfilingCreation  of  digital  images  that  characterize  online  individual  and   group  behavior Anonymous  profiles A fil Personal  profiles Personal profiles Advertising  networks Track  consumer  and  browsing  behavior  on  Web T k db i b h i W b Dynamically  adjust  what  user  sees  on  screen Build  and  refresh  profiles  of  consumers Google’s AdWords program Slide 8-134 Profiling & Behavioral Targeting (cont’d) Deep  packet  inspection Business  perspective: Web  profiling  serves  consumers  and  businesses Increases  effectiveness  of  advertising,  subsidizing  free   content Enables  sensing  of  demand  for  new  products  and  services Critics  perspective:Undermines  expectation  of  anonymity  and  privacy Consumers  show  significant  opposition  to  unregulated   collection  of  personal  information Enables  weblining Slide 8-135 Internet & Government Invasions of Privacy Various  laws  strengthen  ability  of  law  enforcement   agencies  to  monitor  Internet  users  without   i i I ih knowledge  and  sometimes  without  judicial  oversight CALEA,  PATRIOT  Act,  Cyber  Security  Enhancement  Act,   Homeland  Security  Act Government  agencies  are  largest  users  of  private   sector  commercial  data  brokers sector commercial data brokers Retention  by  ISPs  of  user  data  a  concern Slide 8-136Legal Protections In  U. S. ,  privacy  rights  explicitly  granted  or   derived  from Constitution   Constitution First  Amendment  Ã‚  Ã¢â‚¬â€œ freedom  of  speech  and  association Fourth  Amendment  Ã‚  Ã¢â‚¬â€œ unreasonable  search  and  seizure F th A d t bl h d i Fourteenth  Amendment  Ã‚  Ã¢â‚¬â€œ due  process Specific  statutes  and  regulations  (federal  and   Specific statutes and regulations (federal and state) Common  law Slide 8-137 Informed Consent U. S. firms  can  gather  and  redistribute   transaction  information  without  individual’s   i i f i ih i di id l’ informed  consent Illegal  in  Europe Informed  consent: Opt? in   Opt out Opt? out Many  U. S. ? commerce  firm s  merely  publish  information   p practices  as  part  of  privacy  policy  without  providing  for   p p yp y p g any  form  of  informed  consent Slide 8-138 FTC’s Fair Information Practices Principles Federal  Trade  Commission: Federal Trade Commission: Conducts  research  and  recommends  legislation  to  Congress Fair  Information  Practice  Principles  (1998): Fair Information Practice Principles (1998): Notice/Awareness  (Core) Choice/Consent  (Core) Choice/Consent (Core) Access/Participation Security Enforcement Guidelines,  not  laws Guidelines not laws Slide 8-139 FTC’s Fair Information Practice PrinciplesNotice/Awareness i / Sites  must  disclose  information  practices  before  collecting  data. Includes Sit t di l i f ti ti b f ll ti d t I l d identification  of  collector,  uses  of  data,  other  recipients  of  data,  nature  of   collection  (ac tive/inactive),  voluntary  or  required,  consequences  of  refusal,  and   steps  taken  to  protect  confidentiality,  integrity,  and  quality  of  the  data Choice/Consent There  must  be  a  choice  regime  in  place  allowing  consumers  to  choose  how   their  information  will  be  used  for  secondary  purposes  other  than  supporting   the  transaction,  including  internal  use  and  transfer  to  third  parties.Opt? in/Opt? out  must  be  available. Consumers  should  be  able  to  review  and  contest  the  accuracy  and   completeness  of  data  collected  about  them  in  a  timely,  inexpensive  process. Access/Participation ccess/ a c pa o Security y Enforcement Data  collectors  must  take  reasonable  steps  to  assure  that  consumer   information  is  accurate  and  secure  from   unauthorized  use. There  must  be  in  place  a  mechanism  to  enforce  FIP principles. This  can  involve  self? regulation,  legislation  giving  consumers  legal   remedies  for  violations,  or  federal  statutes  and  regulation. di f i l ti f d l t t t d l ti Slide 8-140FTC Recommendations: Online Profiling Principle p Notice Recommendation Complete  transparency  to  user  by  providing  disclosure  and  choice  options   on  the  host  Web  site. â€Å"Robust†Ã‚  notice  for  PII  (time/place  of  collection;   before  collection  begins). Clear  and  conspicuous  notice  for  non PII. before  collection  begins). Clear  and  conspicuous  notice  for  non? PII. Opt? in  for  PII,  opt? out  for  non? PII. No  conversion  of  non? PII  to  PII  without   consent. Opt? out  from  any  or  all  network  advertisers  from  a  single  page   consent Opt out from any or all network advertisers from a single page provided  by  the  host  Web  site.Reasonable  provisions  to  allow  inspection  and  correction. Reasonable  efforts  to  secure  information  from  loss,  misuse,  or  improper   access. Done  by  independent  third  parties,  such  as  seal  programs  and  accounting   Done by independent third parties such as seal programs and accounting firms. medical  topics,  sexual  behavior  or  sexual  orientation,  or  use  Social  Security   medical topics sexual behavior or sexual orientation or use Social Security numbers  for  profiling. Slide 8-141 Choice Access Security EnforcementRestricted  Collection Advertising  networks  will  not  collect  information  about  sensitive  financial  or European Data Protection Directive Privacy  protection  much  stronger  inà ‚  Europe  than  U. S. European  approach:   Comprehensive  and  regulatory  in  nature p g y European  Commission’s  Directive  on  Data  Protection   (1998):   (1998): Standardizes  and  broadens  privacy  protection  in  European  Union   countries Department  of  Commerce  safe  harbor  program: For  U. S. firms  that  wish  to  comply  with  Directive Slide 8-142 Private Industry Self-RegulationSafe  harbor  programs: Private  policy  mechanism  to  meet  objectives  of   Pi t li h i t t bj ti f government  regulations  without  government  involvement e. g. Privacy  seal  programs e g Privacy seal programs Industry  associations  include: Online  Privacy  Alliance  (OPA) Network  Advertising  Initiative  (NAI) CLEAR  Ad  Notice  Technical  Specifications Privacy  advocacy  groups Emerging  privacy  protection  business Slide 8-143 Insight on Business Chief Privacy Officers hi f i ffi Class Discussion Slide 8-144 Technological Solutions Spyware,  pop? p  blockers Cookie  managers k Anonymous  remailers,  surfing Anonymous remailers surfing Platform  for  Privacy  Preferences  (P3P):   Comprehensive  technological  privacy  protection  standard Works  through  user s  Web  browser Works through user’s Web browser Communicates  a  Web  site’s  privacy  policy Compares  site  policy  to  user’s  preferences  or  to  other  standards   such  as  FTC’s  FIP  guidelines  or  EU’s  Data  Protection  Directive Slide 8-145 How P3P Works k Figure  8. 2(A) Slide 8-146 Insight on Technology The Privacy T Th P i Tug of War: fW Advertisers Vs. Consumers Class Discussion Slide 8-147 Intellectual Property Rights Intellectual  property:Encompasses  all  tangible  and  intangible  products  of  human   mind Major  ethical  issue: j How  should  we  treat  property  that  belongs  to  others? Major  social  issue: Major social issue: Is  there  continued  value  in  protecting  intellectual  property  in  the   Internet  age? Major  political  issue: How  can  Internet  and  e? commerce  be  regulated  or  governed  to   g g protect  intellectual  property? Slide 8-148 Intellectual Property Protection Three  main  types  of  protection: Copyright Patent Trademark  law Trademark law Goal  of  intellectual  property  law: Balance  two  competing  interests  Ã¢â‚¬â€ public  and   B l t ti i t t bli d privateMaintaining  this  balance  of  interests  is  always   M i t i i thi b l fi t t i l challenged  by  the  invention  of  new   technologies Slide 8-149 Copyright Protects  original  forms  of  expression  (but  not   ideas)  from   being  copied  by  others  for  a  Ã‚   ideas) from being copied by others for a period  of  time Look  and  feel  copyright  infringement  lawsuits Fair  use  doctrine Fair use doctrine Digital  Millennium  Copyright  Act,  1998 First  major  effort  to  adjust  copyright  laws  to  Internet  age Implements  WIPO  treaty  that  makes  it  illegal  to  make,   distribute,  or  use  devices  that  circumvent  technology? ased  protections  of  copyrighted  materials Slide 8-150 Patents Grant  owner  20? year  monopoly  on  ideas  behind  an   invention Machines Man? made  products p Compositions  of  matter Processing  methods Invention  must  be  new,  non? obvious,  novel Encourages  inventors g Promotes  dissemination  of  new  techniques  through   licensing Stifles  competition  by  raising  barriers  to  entry Slide 8-151 E-co mmerce Patents 1998  State  Street  Bank  &  Trust  v. Signature  Financial   Group Business  method  patents Led  to  explosion  in  application  for  e? commerce  Ã¢â‚¬Å"business   L dt l i i li ti f â€Å"b i methods†Ã‚  patentsMost  European  patent  laws  do  not  recognize   M tE t tl d t i business  methods  unless  based  on  technology Examples Amazon’s  One? click  purchasing DoubleClick’s  dynamic  delivery  of  online  advertising Slide 8-152 Trademarks d k Identify,  distinguish  goods  and  indicate  their   source Purpose p Ensure  Ã‚  consumer  gets  what  is  paid  for/expected  to  receive Protect  owner  against  piracy  and  misappropriation Infringement Market  confusion Bad  faith Dilution Behavior  that  weakens  connection  between  trademark   and  product Slide 8-153 Trademarks & Internet CybersquattingAnticy bersquatting  Consumer  Protection  Act  (ACPA) Cyberpiracy Typosquatting Metatagging M i Keywording y g Deep  linking Framing Slide 8-154 Governance Primary  questions Who  will  control  Internet  and  e? commerce? What  elements  will  be  controlled  and  how? What elements will be controlled and how? Stages  of  governance  and  e? commerce g g Government  Control  Period  (1970–1994) Privatization  (1995–1998) Privatization (1995 1998) Self? Regulation  (1995–present) Government  Regulation  (1998–present) Slide 8-155 Who Governs E-commerce & Internet? Mixed  mode  environmentSelf? regulation,  through  variety  of  Internet  policy   and  technical  bodies,  co exists  with  limited   and technical bodies co? exists with limited government  regulation ICANN  :  Domain  Name  System Internet  could  be  easily  controlled,   I t t ld b il t ll d m onitored,  and  regulated  from  a  central   location Slide 8-156 Taxation E? commerce  taxation  illustrates  complexity  of   governance  and  jurisdiction  issues governance and jurisdiction issues U. S. sales  taxed  by  states  and  local  government MOTO  retailing E? commerce  benefits  from  tax  Ã¢â‚¬Å"subsidy† yOctober  2007:  Congress  extends  tax  moratorium  for   an  additional  seven  years an additional seven years Unlikely  that  comprehensive,  integrated  rational   approach  to  taxation  issue  will  be  determined  for   approach to taxation issue will be determined for some  time  to  come Slide 8-157 Net Neutrality Currently,  all  Internet  traffic  treated  equally  Ã¢â‚¬â€œ all  activities  charged  the  same  rate,  no   ll i i i h d h preferential  assignment  of  bandwidth Backbone  providers  would  like  to  charge   differentiated  prices  and  ration  bandwidth 2010,  U. S. ppeals  court  ruled  that  FCC  had  no   authority  to  regulate  Internet  providers Slide 8-158 Public Safety & Welfare Protection  of  children  and  strong   g sentiments  against  pornography Passing  legislation  that  will  survive  court   P i l i l ti th t ill i t challenges  has  proved  difficult Efforts  to  control  gambling  and  restrict   sales  of  drugs  and  cigarettes sales of drugs and cigarettes Currently  mostly  regulated  by  state  law Unlawful  Internet  Gambling  Enforcement  Act Slide 8-159 Insight on Society Internet Drug Bazaar Class Discussion Slide 8-160

International Journal of Business and Management Essay

As one of the most successful fast food chain in the world, throughout the development of McDonald’s, we could easily identify many successful business strategy implementations. In this paper, I will discuss some critical business strategies, which linked to the company’s structure and external environment. This paper is organized as follows: In the first section, I will give brief introduction to the success of McDonald’s. In the second section, I will analyze some particular strategies used by McDonald’s and how these strategies are suitable to their business structure. I will then analyze why McDonald’s choose these strategies in response to the changing external environment. Finally, I will summarize the approaches used by McDonald’s to achieve their strategic goals. Keywords: Strategy, McDonald’s structure Introduction McDonald’s, originated in California, USA, 1954, has become one of the most recognized and respected brands in the world. The success achieved includes that they have established more than 30,000 franchising stores in 119 countries, serving more than 47 million people each day, and generating about $15 billions revenues annually. McDonald’s also continuously enhances its brand imagine through different social activities and the sponsorship of special events and sports i.e. as a major sponsor of the world cup since 1994 and the Champions League football in England from 1996 to 2000.(www.McDonalds.com) How can McDonald’s achieve such success? There are many formulating strategies, which we could use for our analysis of their recipe of success such as Porter’s competitive strategies model, which includes differentiation and low-cost leadership; or Miles and Snow’s ‘strategy typology’, which defined prospector, defender, analyzer, and reactor strategy. Obviously, it is extremely important for McDonald’s to choose the most appropriate strategy to be successful. From my personal point view, to be an Analyzer is the most suitable strategic position for them to develop their business as a whole especially when they facing an extreme complex continuously changing world. As Miles and Snow defined that â€Å"The analyzer tries to maintain a stable business while innovating on the periphery. It seems to lie midway between the prospector and the defender. Some products will be targeted toward stable environment in which an efficiency strategy designed to keep current customers is used. Others will be targeted toward new, mor e dynamic environment, where growth is possible.† (Richard L.Daft) It is also very important to consider how McDonald’s applies these strategies and how their strategies interact with their business structure and the external environment. 1. How McDonald’s business structure influences its strategy? The McDonald’s business structure is based upon a geographic structure. When log on their website, you will be asked to choose the country that you are interested in. Actually, McDonald’s divided its operations into five geographical divisions. (www.McDonalds.com) International Journal of Business and Management November, 2008 As shown in above pie charts that around 65% of McDonald’s restaurants and approximately 75% of its revenues are generated in the United State and Europe. So, to McDonald’s, the most important strategic approach for maintaining its leading position is to keep their major markets at the same time expanding their business into the other emerging markets. However, different consumer groups in different countries may have very different tastes and/or requirements. So each full functional geographic unit of McDonald’s was required to wholly response for producing and marketing its products in that region. Through this regional structure, McDonald’s could not only satisfy the local consumers’ needs in different geographical areas but also pursuing ‘maximum local development’. Actually they produce and market slightly different types of products in different areas, and they even have different prices. As Jim Skinner, the vice-chairmen of McDonald’s illustrated that ‘if you are looking for a command center with one push button that operate our restaurant in every corner of the world, you won’t find it’. However, their philosophy of QSC&V-quality, service, cleanliness and value is same for everywhere. And McDonald’s targets the similar consumer segments that need fast service, affordable price and good standard hygiene. So their main products are similar in most countries, where they provided service, including beef, chicken, bread potatoes and milk. As the consumers in different countries having different foods requirements, McDonald’s keep launching new products for their regional consumers. In this case China and France can be very good examples. 2. McDonald’s in China: In 1990, McDonald’s opened their first store in shenzhen (near HongKong). But before they actually started their business, McDonald’s had already carried out 5 years business research and all sorts of information gathering such as the income level of the Chinese people, the kind of foods they enjoy etc. Moreover, their re-design of the counter, chairs and desks also reflected their considerations of the height and body shape of Chinese people. They made lots of efforts to promote their American burgers, and wanted to repeat the same success in China market as they has done elsewhere. Unfortunately, they are not as successful as KFC, their biggest rival, in China now. There are lots of reasons to explain it, one important issue which has once been ignored by McDonald’s is that Chinese people are more prefer chicken dishes than beef burgers, which are their main products. After identified this problem, McDonald’s has tried to adapt more Chinese tastes by adding more chicken meals into their menu for attracting more customers.(Chinese website) 3. McDonald’s in France: In France, where customers has been resentful of the fast-food chain’s incursion, McDonald’s has boosted it sales by remodeling restaurants i.e. hardwood floors, wood-beam ceilings, comfortable armchairs, and also by adding new menu items such as espresso, brioche and more upscale sandwiches. Actually they have successfully responded to the preferences of the local area. (Richard L.Daft) In the other countries the situation is the same. For example, in Canada, McDonald’s has introduced new Canadian feature breakfast. In Belgium, the McCicken Premiere has been added to the menu. Although McDonald’s has been regarded as the ultimate example of standardization for the world market. 4. How the strategy is influenced by external environment? The external environment can be divided into several sectors. In this section, I will only discuss two important parts: competitors, social concept (healthy problem) and uncertainty situation, which can greatly influence McDonald’s strategies. Then at the last part of this section, I will discuss one particular strategy they used which served for their future development purpose. Competitor: It’s unlikely that McDonald’s can always be No.1. In an annual consumer satisfaction survey, McDonald’s has been scored dead last among fast-food restaurants since 1992. In the fourth quarter of 2002, McDonald’s disclosed its first-ever quarterly loss, one reason why McDonald’s is struggling is that the consumers began to switch to its competitors, such as Burger King, Wendy’s, and Subway. These companies emphasized on offering fresher, hotter, high-quality foods at lower price with faster service. On the other hand, McDonald’s decided to close 719 poorly performing restaurants around world. All of these simply proved that McDonald’s might no longer be competitive in the fast-food market. And if McDonald’s cannot adapt external environment change, they might be gradually diminished and even replaced by other competitors. In order to keep their market share, increasing sales and profits. McDonald’s has to respond to the threat of competitors. In 2003, McDonald’s offered the McGriddles sandwiches in the US and the Canada feature breakfast. Meanwhile, McChicken Premiere and a zesty chicken have been introduced in the UK, France, Italy and Belgium. McDonald’s was trying to satisfy customer’s desire for premium products at affordable prices. Furthermore, McDonald’s is providing more choice with respond to offer ‘ Happy Meal’ to keep the children. For example, Happy meal now including chicken selects, and no-sugar –add fruit drink (juice and low-fat drink) and also to produce McDonald’s coffee which appeals to adult. Those products have been made to attract existing customer and develop new customers.(www.McDonalds) Moreover, in addition to the innovative menu, McDonald’s is also rebuilding and even relocating some of their restaurants to make the environment more attractive. At the same time, McDonald’s is differentiating itself by creating 73 Vol. 3, No. 11 International Journal of Business and Management more relevant experiences such as allowing the customers to access the Internet with the wireless technology platform. This innovative way not only attracts the teenagers, but also perfectly fitting the modern professionals’ requirements. Social problem –healthy issue With the economic development, people’s living standards have increased dramatically these years. People are becoming more concerned about their health issues. It cannot be denied that McDonald’s has attempted to make itself more convenience for the people. However, people also believe that such kinds of fast food are not good for their health. The world health organization‘s report presented that those food not only can cause the obesity of children, but also is part of the reason of causing cancer. Healthy issues became the biggest stumbling block to the development of McDonald’s. Customers were switching to healthier offering, such as Subway’s sandwiches, or KFC’s mashed potato instead of fried potato. McDonald’s has responded to this healthy trend. In order to compete, McDonald’s has added salads and other lighter options into their menu. If a mother comes in, she is not only buy the happy meal for her children, she will also be likely to buy herself a meal too .the lighter options also encourage existing customers to come back more often, because there is a greater variety of choices. Focus on Children No matter how different the tastes and the local needs are, McDonald’s has paid considerable attention to the children in every country. They built ‘happy land’ for them, offering fantastic â€Å"happy meals† with novelty toys to them. Furthermore, McDonald’s has just launched computers with games that were designed to inspire the children’s imagination at the same time shape their personal characteristics. There are three main reasons for McDonald’s to focus on the children: (1) Children are one of the biggest consumers groups to McDonald’s. And McDonald’s has been regarded, as their favorite place to go .The brand culture â€Å"happiness† is known by children. (2) McDonald’s believe that focusing on children can build the stable business, and will provide the best engine to encourage the whole family to come to McDonald’s. For example, one happy meal for a child only cost $ 5 but McDonald’s can produce more new products in addition to happy meal to offer the whole family. (3) By Building a brand loyalty with the children, McDonald’s more likely to be successfully today and in the future. In my opinion, McDonald’s is not just selling the happy meal to children; it is selling the American culture to the children – the enjoyable individual life. Actually this strategy with focused children segment is fully worked for their future development purpose. Whatever how the environment changes this strategy can always develop future generation customers’ loyalty. And the â€Å"happy children† can also bring in the whole â€Å"happy families†. Conclusion To sum up, there is a strong possibility that if the company fails to recognize the new competitions, shifting of consumer interests, and the social trends or innovative technologies, it will loose its market share. Previously, McDonald’s emphasis on adding new restaurants for near 5 years, more than 50% of increase in new restaurants opened. Unfortunately, there was only 2% of increase in the sale of the food. So, in the year 2003 McDonald’s decided to change its focus on increasing sales at existing restaurant and reduced capital spending which allows for a sizeable amount of cash be returned to shareholder. For achieving their objectives, the McDonald’s strategy should be attract more new customers, encourage existing customers to visit McDonald’s more often, build brand loyalty and, ultimately, create enduring profitable growth for the company. References Edstrà ¶m. A., & Galbraith, J.R. (1977). Transfer of managers as a coordination and control strategy in multinational organizations. Administrative Science Quarterly, 22, June, 248-263. Egelhoff, W.G. (1984). Patterns of control in U.S., U.K. and European multinational corporations. Journal of International Business Studies, Fall, 73-83 Fatehi, K. (1996). International Management, New Jersey: Prentice Hall. Geringer, J.M. & Hebert, L. (1989). Control and performance of international joint ventures. Journal of International Business Studies, Summer, 235-253 Hodgetts, R.M., Luthans, F. (1994). International Management, New York: McGraw-Hi Richard L.Daft,(2005).Organization Theory and Design, 8th edition, Thomson ,south-western(Chapter 10) Mead, R. (1994). International Management. Cross Cultural Dimensions, Oxford: Blackwell. http://baike.baidu.com/view/4676.htm

Kotler Principles of Marketing Essay

Objective 1: Define marketing and outline the steps in the marketing process. Objective 2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. Objective 3: Identify the key elements of a customer-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. Objective 4: Discuss customer relationship management and identify strategies for creating value for customers and capturing value from customers in return. Objective 5: Describe the major trends and forces that are changing the marketing landscape in this age of relationships. Objective 1: Define marketing and outline the steps in the marketing process. Marketing is managing profitable customer relationships. Or: Marketing is the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return. Steps in the marketing process: 1. Understanding customer needs 2. Designing customer-driven marketing strategies 3. Designing integrated marketing programs 4. Building customer relationships 5. Capturing value for the firm Figure 1.1 from page 27Create value for customers and build ‘’relationships final step Objective 2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. Five core customer and marketplace concepts: 1. Needs, wants, and demands Needs: Physical need like food, clothing, warmth and safety Wants: Human needs shaped by culture: Americans need food (Big Mac) Demands: When wants are backed by buying power they become demands 2. Market offerings (products, services, and experiences) Consumers’ needs and wants are fulfilled through market offerings; Think of products, services or experiences (such as information) Marketing myopia is focusing too much on the specific products a company offers than to the benefits and experiences produced by these products. Example: Railroads assumed themselves to be in the railroad business rather than in the transportation business. Passengers and freight transportation in general grew, but they choose for cars, trucks, airplanes, etc. making railroad transportation declining. The reason they defined their industry incorrectly was that they were railroad oriented instead of transportation oriented; they were product oriented instead of customer oriented. 3. Value and satisfaction Customer value and satisfaction are key blocks for developing and managing customer relationships. The customer is looking for value and satisfaction and will buy accordingly to the company that offers the best. Expectations shouldn’t be too high or too low. 4. Exchanges and relationships Exchange is the act of OBTAINING a desired object from someone by OFFERING something IN RETURN. Examples are [Political candidate: votes] [Church: members] [orchestra: audience]. 5. Market A market is the set of all ACTUAL and POTENTIAL buyers of a product or service. All below are influenced by major environmental forces. Objective 3: Identify the key elements of a customer-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. –

Global Economy Case Study Example | Topics and Well Written Essays - 2500 words

Global Economy - Case Study Example Dani Rodrik had proposed a new dimension for global economic conditions. There are a lot of factors which contributes towards financial capital and differentiates rich countries from that of poor ones. Economic development and growth is only facilitated through capabilities being accumulated over a longer period of time. This truly encompasses technologies, public institutions and skills. It is not possible for globalization to leverage all such capabilities. They can only be leveraged by nations. East Asian nations have been able to enhance domestic productive capacities before entering into international markets. Reinvigorating requires maintaining a balance between markets and states without losing essence. Financial globalization Dani Rodrik throughout his works has highlighted various aspects affecting globalization process. There lies a major threat with globalization in terms of providing social insurance by national governments. Globalization often results into conflicts between and within nations over social institutions and domestic norms. Domestic democracy plays a vital role in sustaining global capital. However it is often a challenge for such democracy to protect one’s nation from global threats. Culture and technology can only be strengthened through domestic democracy and these factors contribute towards achievement of global capital (Steger 52-55). On the other hand, skilled and unskilled workers during globalization tend to become substitutive and elastic. I certainly feel that globalization has supported many nations to strengthen their position across the globe. There are threats associated with globalization and this has made many countries impose strict regulations or norms while trading with international markets. For instance, some European countries have laws stating that international players need to

Aboriginal perspectives and science Essay Example | Topics and Well Written Essays - 2250 words

Aboriginal perspectives and science - Essay Example The concept of indigenous science is very unfamiliar to most Canadian education systems. The education policies that was developed by the Ontario first nation was to provide a framework that will provide institutions with a strategic policy natural systems context within which Ministry of Education and school boards can work together to improve the academic performance of the non-aboriginal students. As described by Michell, Herman and Yvonne in ``Learning Indigenous science from place`` (pg. 6), ‘Aboriginal perspective of indigenous science is a study of natural system that contributes to a holistic view of the environment and the role of human beings in the environment’. This holistic nature of the indigenous science is composed of physical, intellectual, affective and spiritual domains of learning. For this reason the aboriginal community have wished to incorporate cultural teaching within mainstream or other institutional curricula, but there was a concern that was r aised based on the need to help universities systems to prepare students to choose their careers within scientific discipline. The framework provided in http://library2.usask.ca/native/ library website, also clarifies the roles and relationships of the ministry to Inuit students achieve their education goals and close the gap in academic achievement with the non-aboriginal students. A guideline emerged from a certain research project that aimed at fostering collaboration among a diverse range of group of Aboriginal and non-Aboriginal educators and scientist. The indigenous study has experienced acknowledgement within traditional ways and cultural practices as a method for sharing, learning, and collecting knowledge development and maintenance. The purpose of the group of Aboriginal students, educators and scientist is to begin the conservations to envision, discuss, and to clarify a philosophy and framework of aboriginal science. The aboriginal people of the 21st century have been so diverse such that their personal beliefs and ideologies as to any other cultural and ethnic group makes it important for educators to realize that these people have traditionally held and have maintained unique perspective that is much different from that of non-aboriginal peoples. The implications of the research have been anticipated to nature all learners in science schools regar dless of their cultural background. Aikenhead (2006, Pg. 7), states that the believe of incorporating Aboriginal perspectives in the school of science will help nature students’ and educators’ in understanding and appreciating indigenous knowledge systems that have not that been a major part of many institutions curriculum in the past. The primary connections of indigenous perspectives framework is aiming to accelerate science and literacy learning outcome for indigenous students and increase non-aboriginal students teachers awareness and understanding of the indigenous perspectives. It also acknowledges the contribution of those involved with development of the indigenous perspectives framework which is based on national research findings and collaboration with Aboriginal groups. Discussion Aboriginal people have viewed themselves to be part of intimately connected individuals and therefore they have acted as the guide to the way in which people and visitors in need a re to be helped traditionally. There have been a lot of aboriginal resources that have described and indicated the role of indigenous science. The need to integrate aboriginal perspectives into the science curriculum in most countries is clear and immediate. Aboriginal resources are used to help understand the knowledge of indigenous

A report to identify operational risk failures of the Fukushima Essay

A report to identify operational risk failures of the Fukushima nuclear disaster - Essay Example For the entire extensive fact, it offers what the report cannot completely convey - specifically to a worldwide onlookers - is the approach that reinforced the laxity behind this tragedy. What ought to be acknowledged - very excruciatingly - is that the disaster was "occasioned in Japan." Rendering to ICANPS website, its essential roots are to be established in the entrenched customs of Japanese ethnicity: their reflexive obedience, their hesitance to question authority, their devoutness to abiding with the schedule, their groupism, and their insularity. The TEPCO and government were unsuccessful in preventing the tragedy not because a big tsunami was unexpected, but since they were unwilling to invest effort, money and time in shielding against a natural tragedy reflected as unlikely. The regulatory and utility bodies were excessively self-assured that events a far from the latitude of their suppositions would not transpire and were not conscious that assesses to avoid the severest situation were truly full of cracks. TEPCO had actually pondered in on an assessment concerning earthquake threat and inquired the government to essentially underplay the probability of a tidal wave in the area, an interim report said. The board's report criticized an insufficient legal structure for nuclear disaster management, emergency-command confusion triggered by the TEPCO and government, and conceivable excess interfering on the involvement from prime minister's bureau in the initial phase of the predicament. The board settled that a background of complacency concerning nuclear welfare and poor disaster management steered towards the nuclear catastrophe. This was according to ICANPS official website. Japanese officials overlooked the threats of a nuclear calamity since they believed in the 'myth of atomic safety', such as the idea that serious calamities do not take place at nuclear-powered enclosures in Japan. The essential problem falls in the point that functionalities, to gether with TEPCO (Tokyo Electric Power), and the regime failed to perceive the risk as reality. The interim report also articulated that TEPCO and the government believed the 'idea that severe misfortunes do not ensue at nuclear enclosures in their country'. "Since the administration and the energy utilities, as well as TEPCO, were prejudiced by the security myth, reasoning they would certainly not ever encounter such a severe calamity, they were notable to apprehend that such a catastrophe might occur in actuality. The panel declared in its concluding report that this seemed to remain as the essential problem. TEPCO therefore failed to warm up for sufficient tsunami safeguards or disaster management measures to cope with a base blackout. The board's report revealed that the Fukushima catastrophe arose because persons did not grasp the effect of natural cataclysms seriously. Yotaro Hatamura, an engineer professor at the University of Tokyo who oversaw the commission, expressed in a news session that even although there existed new discoveries about the threat of a tidal wave, TEPCO might not have seen it since people are visionless to anything they do not plan to see. This was according to Asian News International article. The board proposed that post-Fukushima protection steps put in place

Ethical Standards for Behavior in International Negotiations Essay

Ethical Standards for Behavior in International Negotiations - Essay Example The country is adopting and improving its business environment for making its international negotiation process more efficient. The country has no quotas, foreign exchange controls and trade barriers regarding international negotiation. UAE conducts the business around the world. For this reason, the country follows the wide framework of foreign policies. UAE is very much concerned about its commitments. It is one of the important ethical principles of this country. The country tries to maintain peace and stability in its international negotiations (Hooper and Newlands, 2012). The country builds a good relationship with foreign companies and countries for establishing effective negotiation policies. UAE emphasizes on tolerance, modernization while doing international negotiation. The country respects people of different places and religions for developing good relations with other countries. The government of UAE tries to maintain the balance between international environment and com munity. Some government-affiliated bodies contribute a lot to developing a good international environment which will facilitate the negotiation process. The rules and regulations of UAE are developed in such a way which helps the people in becoming a good global citizen. In international negotiation, the people of UAE focus more on words. The country puts a huge effort into following the words said in the negotiation process (Soriano, 2014). The people of UAE directly discuss the topic on which they are holding the meeting of business negotiation. They make sure that some strong benefits are obtained by international negotiation. While negotiating with foreign companies and countries the people of UAE do not get distracted from the objectives of the negotiation. They maintain a specific standard for doing international negotiation. Trust and sincerity are considered as most important factors for doing international negotiation.

Lessons learned from the collapse of bear stearns Essay

Lessons learned from the collapse of bear stearns - Essay Example All the major cause will be expansively presented in this paper. The valuable lessons learnt from the crisis will also be thrown light upon in this paper. Bear Stearns, AIG, Lehmann Brothers, Northern Rock, Goldman Sachs are some elite names that suffered the most because of the economic crisis also known as recession. Lehmann brothers filed for bankruptcy while AIG and a few other elites just hung in there with the skin of their teeth. This economic crisis is still having repercussions on countries like Greece and Spain; the whole of Euro Zone is facing a financial turmoil. There are a few other countries that have been not so severely affected by the same. The crisis triggered off because of unchecked debt, banks kept issuing loans to people who invested heavily in buying assets, several things were taken for granted but when proved otherwise there was hardly a place in the world to hide. Overvaluation in real estate is perhaps the biggest cause of the current economic crisis, it i s better known as the subprime crisis in the US. The likes of Lehmann Brothers and other financial services went bust because they kept issuing credit to the people who thought the property price would increase and they would be easily able to pay off the debt that they are borrowing. It did not turn out that way and there was a short of equity, this is exactly why the financial institutions went bankrupt. The overvaluation is the biggest factor that caused the current economic crisis. Factors like bad income tax practices have added insult to injury, bad mortgage lending also contributed heavily to this current economic crisis. â€Å"The way to address the root cause is to let house prices drop to where an average house is within the means of an average household.   (Or, alternatively, boost the income of the average household to the point that they can afford an average house.   But that's very hard.   Letting houses prices go on falling, although painful for everyone who o wns a house or who has lent money to someone who owns a house, is very easy.)† (Root Cause of the Financial Crisis) Role of Monetary Policy Some of the main plausible reasons that caused the recent financial crisis have been identified in the above sections. According to Brunnermeie (2009), cheap mortgage financing to sub-standard borrowers fuelled the boom in the U.S. housing market. Three factors were primarily responsible for the fall of the housing market in the U.S. (which in essence, constituted a very small segment of the financial market in the country) transforming into a global contagion. First, the â€Å"originate and distribute† banking model, together with the high rate of securitization, led to declining lending standards and made it impossible to re-price the complex structured products. This significantly eroded the confidence level of banks, thereby disrupting the inter-bank markets and credit flow. Second, banks relied heavily on short-term funding sou rces, hence raising the risk of funding. Finally, the ever-growing integration of global financial systems and the increasing interest towards structured financial instruments quickly transmitted the crisis to all the major regions of the world. Gourinchas (2010) focused on the role of monetary policy in the recent financial contagion as well as the role played by exogenous influences, particularly the rising external deficits referred to as ‘Global Imbalances’. According to Gourinchas, both explanations are not satisfactory as the sole

Medical Microbiology - GI Tract, CNS, Urogenital Tract Assignment

Medical Microbiology - GI Tract, CNS, Urogenital Tract - Assignment Example The infections are usually characterized by frequent urge to urinate, painful and general malaise. The UTIs reoccurrence is most common in 40% of the UTI females. The infection occurs with the E.Coli but with a different strain. The key features of Uropathogenic E.Coli are Type I cystitis and Pili pyelonephritits. The use of catheters is the most common health associated infections. Staphylococcus saprophytics: It is considered to be the second most frequent causative agent of acute UTI, particularly in Women. Patients with UTI caused by this agent usually experience symptomatic cystitis. It causes UTIs in sexually active women. Proteus mirabilis: The virulence factor associated with this is proteases, haemolysins, and Biofilm formation. Biofilms are the group of microorganisms growing on the surfaces enclosed as â€Å"slime†. Apart from the UPEC’s, staphylococcus saprophytic, Candida, proteus mirabilis, klebseilla and mycoplasma and urethra plasma organisms are responsible. The diagnosis includes leukocyte esterase test, nitrates test, etc. The juxta position of urinary and genital tracks are more common. Prostatitis and Epididymitis are other related clinical outcomes. Antibiotics are used for the treatment. 1) Although urine contains various salts, and waste products, it usually does not have bacteria in it. However, when________ bacteria gets into the bladder or kidney, it will multiply cause Urinary Tract Infections. 3) Urogenital infections not caused by sexual transmission, namely yeast vaginitis, bacterial vaginosis, and urinary tract infection remain a major medical problem in terms of the number of women afflicted each year. Which of the following microbe is not responsible for the urogenital infections? Sexually transmitted Diseases (STDs) are transmitted by anal and oral routes. The micro organisms are transmitted through the exchange of the body fluids from the infected to susceptible partners. WHO

Diagnosis and treatment of male genitourinary Essay Example for Free

Diagnosis and treatment of male genitourinary Essay 1. What is a physician that specializes in the diagnosis and treatment of male genitourinary conditions called? Urologist 2. What disease causes the kidneys to overcompensate by straining within the remaining nephrons? Chronic Renal Failure 3. What are most kidney stones composed of? calcium-containing crystals 4. What are three types of bladder stones? Calcium, Uric acid, Struvite, and Cystine stones 5. A constriction of the perputial orifice that does not allow for the foreskin to fold back over the glans is called? paraphimosis 6. What is the term for the surgical removal of the uterus? Hysterectomy 7. What is the medical term for an examination/biopsy of the vagina and cervical areas? colposcopy 8. What disease or condition can lead to DUB (Dysfunctional Uterine Bleeding)? Menorrhagia, Metrorrhagia, and Polymenorrhea 9. How many days are used to calculate the EDD? The due date may be estimated by adding 280 days 10.What are the terms that describe the surgical removal of a fetus through an abdominal incision? caesarean section II. Go to http://www.aapc.com and answer the following questions: Q: For the CPCÂ ® certification, what are the specific eligibility requirements We recommend having an associate’s degree. Pay examination fee at the time of application submission. Maintain current membership with the AAPC. New members must submit membership payment with examination application. Renewing members must have a current membership at the time of submission and when exam results are released. All exams will be reported with exact scores and areas of study (65% or less).A CPC must have at least two years medical coding experience (members with an apprentice designation are not required to have two years medical coding experience.) Membership is required to be renewed annually and 36 Continuing Education Units (CEUs) must be submitted every two years for verification and authentication of expertise.

Live Together Before Marriage?

Live Together Before Marriage? Now-a-days it is the trend among the people that they move in before marriage. Either love or attachment plays a vital role in it. But the main concept of men and women living together before marriage is considered as a sin in some religions, or most religions. But as the world is making progress so are the minds of people, changing according with the time. Now an individual before even engagement or marriage moves in and then tries to understand the other person. Sometimes, this is the reason and sometimes it is not depending on the thinking and mentality of people. But it can be a problem for women as well as for men. Now the basic problem is that what a person should do? Whether he should let the change happen, or he shouldnt. A New Woman magazine study by Columbia University discovered that twenty six percent of women reviewed and a slight nineteen percent of men wed the individual with whom they were co-habiting. The mean cohabitant has several partners in a lifetime. Cohabitati on involves no public firm promise, no promise for the future, no authorized statement of love and blame. There is essentially a personal placement founded on an emotional bond. The commitment of dwelling simultaneously is easily a month-to-month rental agreement. There is a statement in The Future Of Marriage by Jessie Bernard in which he stated, One fundamental fact underlies the conception of marriage itself. Some kind of firm pledge should be involved. Merely fly-by-night, feel and go relationships do not specify. According to him the people who get married with a condition of dying with each other possess a reasonably distinct level of firm pledge, thus a quite distinct grade of security, therefore a rather distinct grade of freedom, and as an outcome a rather different grade of joyfulness than those who wed with a condition in their mind that they will last together till their love last. These types of people habitually anticipate the instant when they or their partner gets up one sunrise and discovers the fine emotion that retains them afloat has disintegrated under them. Cohabitation is a dangerous trend that has recently been too readily accepted without much resistance or criticism from society Is cohabitation a sin or not depends on what one means by the word moving in together, in the Bible it is clearly stated that having a sexual relationship before marriage is a sin and in the Bible the word fornication has been used to explain the forbidden deed of living together before marriage and how sexually immoral such an act is. In most of the religions practiced all over the world the concept of cohabitation is prohibited and is considered as a sin for which one cannot be forgiven. Many couples living together are happy internally but due to the guilt inside of committing a sin and the social not acceptance of their relationship disturb their bond and they are in a constant insecure state. America is a State where the society has widely accepted this socially constructed concept of living in together although Christianity does not allow that a man and women should live together before marriage as it results in temptation that leads them to cross every limit and turn into an e nemy of God. Living together means two people with consensus making a decision to go against the will of God for the sake of love or sexual temptation, which can be definitely called a sin. Why a sin? Well because the whole approach undermines the value of a family structure and mainly because almost all the religions do not accept it as a moral deed. Body: A: Is living together before marriage wrong? Cohabitation takes away the charm of marriage and turns it into a compromise if children are involved. Couples that move in together to try out if they can have a happy married life end up in a broken relationship which leaves a long lasting effect on their lifes. The growing trend of living together is wrong because according to various surveys and research reports the cohabitant couples are most likely not interested in marrying each other and even if they do there is a high rate of separation, sexual abuse and mental torture not only for the couple but for the children as well. How would a parent stop his/her daughter from living in with another guy if they have practiced the same act? Children of cohabitant couples have a high tendency of indulging in immoral activities in their young teenage and suffer from physical violence. The people who move in together before marriage are also expected to have extramarital affairs and are not good at commitments. Most importantly it is a re ligious sin and is an act if practiced pushes Gods blessing away from you. It is a physical attraction that leads to instability in life; even many satisfied live in partners end up in the torturing break ups and a constant feeling of fear and resentment. (Don Weston) Some say cohabitation is not wrong, what is the big deal if two people want to live together and share their expenses and responsibilities? The younger generation of today finds living together a very attractive package, one gets to enjoy all the desires without any legality. There is no risk of divorce, many justify it by claiming that moving in together before marriage gives them an opportunity to know each other more closely and decide whether to get involved in a legal relationship or not. With the rapid increase in modernization this trend has been now accepted as a culture in many parts of the United State. B: Why do the Cons outweigh the Pros of living together before marriage? Living in together before marriage for the new generation is like a roller coaster ride for free! Whereas they dont see the side effects of availing this package, the cons are enough for the critics to justify their criticism on living in together. Though many couples prefer moving in together rather than getting into a serious marital relationship which actually shows the level of commitment they share, and the sacred relation of marriage they are scared to get involved in. The more a couple is sexually active before marriage the greater they have a chance to get divorced, because they get over with all the temptation and craze as much as they prolong their living together time period. (Fowler, 2005) Conclusion: Cohabitation is forbidden: The couples who favor cohabitation even if are in majority cannot deny that religiously as well as morally the concept of as a Bible calls it fornication is forbidden by God in nature. The word pornography had been originated from this same word and as it is seen the society considers such websites and acts highly immoral and against their beliefs and religion. The acceptance of this concept by society means they are accepting a trend which will destroy the institution of marriage as well as the responsibility of parents will be questioned as well due to getting involved multiply in such a deed. Although this concept has been growing in Christ but Christianity, Islam, Hinduism and many other religions are strictly forbidden from committing any such deed and if they do so they believe that they will be answerable to God Almighty and even if God forgives; it is not easy to be forgiven by the society for something that is sinful and is forbidden in nature. Work Cited: Grinberg, Emanuella. Report: More women moving in before marriage. 4 April 2013. CNN. 2013 . Gueren, Casey. Are You Ready to Move in Together? 11 April 2013. The Scoop. 2013 . Kaplan, Karen. More Americans are living together before marriage, study finds. 03 April 2013. L.ATimes. 2013 . Murray, Rheana. Half of couples move in before marriage, stay there longer: CDC. 5 May 2013. NYDailyNews. 2013 . Staff, Patch. Study Reported by CDC Reveals More People Now Live Together Before Marriage. 5 April 2013. DuluthPatch. 2013 . Don Weston, L. M. Twenty Good Reasons why not to cohabitant Before Marriage. Kansas City, Missouri: Family Life Ministries- Church of the Nazarene Jim Pettit, PhD coordinator. Fowler, R. (2005) Scriptures on Living Together Before Marriage