Recent orders
Evaluation Option Strategic Plan Part 1
Evaluation Option: Strategic Plan Part 1 STR/GM 581University of PhoenixEvaluation Option: Strategic Plan Part 1Introduction
IKEA is a Swedish based global company founded by Ingvar Kamprad in 1940’s. At the age of seven, Ingvar started buying matches in bulk from Stockholm and sold it in individual packages at a very low price. After realizing he can make a decent profit from re-selling, he started to do the same with flower seeds, Christmas trees, pencils, and pens. His childhood experience on retailing is what led him to build a company that offers wide variety of functional and stylish home furniture pieces at an affordable price. Today, IKEA is a successful global mass-market retailer of household goods and furniture operating in 42 different countries and a total number of 70,000 employees catering to 410 million shoppers per year (Innovation Leaders, 2001).
The IKEA mission statement is “to create a better everyday life for the many people and to offer a wide range of well designed, functional home furnishing products at prices so low, that as many people as possible will be able to afford them. The IKEA brand is the sum total of the emotional and rational values that consumers associate with the IKEA trademark and the reputation of our company” (IKEA, 2010).
Team B selected New Zealand as the country for expanding business operations. The New Zealand population of is 4,327,944 and 66% of this population is between 15-64 years of age. The Ethnic Groups are composed of 56.8% Europeans, 8% Asians, 7.4% Maori, 4.6% Pacific Islander, 9.7% Mixed, and 13.5% Other (Index Mundi, 2012).
This papers aims to identify which two strategic options is best recommended for IKEA and what are the competitive advantages these strategic options create for the global expansion of operations to New Zealand.
Strategic Options
The first strategic option IKEA should consider is to create a joint venture with an already established New Zealand company. According to “Strategic Alliances and Joint Ventures” (2012), “a joint venture involves a potentially long term investment of funds, facilities and resources by two or more companies to a combined venture, which benefits all companies”. In the case of IKEA, the strategic option of creating a joint venture is to easily establish a marketing and distribution presence in New Zealand.
The advantages of a joint venture include sharing the risks with a partner to offset of exposure in the market. Access to the partner’s distribution networks can also be an advantage allowing the company to gain recognition faster than if going it alone. If IKEA can find a partner that will complement their strengths, it allows IKEA to focus to focus on their core business: building furniture. Tapping into the New Zealand target market may be difficult in the beginning but a joint venture with a good partner makes it accessible.
International joint ventures can be tricky and complicated. The risk is that if the partnership is a bad one, the affair can get expensive quickly. Therefore, as a part of this strategic option, IKEA must engage both New Zealand export and marketing consultants. When they find a company that they want to do a joint venture with, IKEA must have them researched. International firms, like banks, lawyers and accountants should all be called upon when the company is being evaluated. The Ministry of Foreign Affairs and Trade can be consulted to understand the New Zealand political situation.
During our discussion Team B agreed that the more transferable advantages IKEA has, and the more dominant these advantages, the easier it is to globalize. Building on that concept the second strategic option the Team will be implementing is the Cost Leadership strategy. The company’s mission statement is built around low cost; this will help greatly and the company will gain competitive advantage in New Zealand if implemented properly. Cost Leadership will also help once the company enters the market against the threat of its competitors, the threat imposed can be reduced through pricing strategies that low-cost firms like IKEA can engage in and through their relative effect on the performance of a low-cost firm and its higher-cost rivals (Jay Barnet, 2007).
IKEA will gain sustained competitive advantage in New Zealand because cost strategy is rare and costly to imitate, either through direct duplication or substitution. The firms design its furniture, thus removing the threat of suppliers and with it differentiated features that appeal to its target customers, including in store playrooms for children, wheelchair for customers use and extended hours they will be able to attract new customers.
Competitive Advantage
Conclusion
References:
IKEA. (2010). Retrieved on September 14, 2012 from http://www.ikea.com/au/en/
Index Mundi. (2012). Retrieved on September 14, 2012 from http://www.indexmundi.com/new_zealand/demographics_profile.html
Innovation Leaders. (2001). Retrieved on September 14, 2012 from http://fp05-527.web.dircon.net/ikea_company_profile.html
Strategic alliances and joint ventures. (2012). Retrieved on September 16, 2012 from http://www.nzte.govt.nz/develop-knowledge-expertise/Export-guide/Ways-of-entering-a-new-market/Pages/Strategic-alliances-and-joint-ventures.aspx
http://www.actuarisk.be/files/IkeaSite.pdf
Discuss bizarre behaviors.
Psychosis
Student’s name
Affiliation
Course
Date
Explain schizophrenia.
Schizophrenia is a severe chronic and disabling mental disorder that is characterized by a breakdown in brain and deprived emotional reactions. The most common symptoms include; lack of emotion, delusions like paranoia, hearing of other voices that other people do not hear, disorganized when thinking as well as lack of motivation (Thomas, 1988).
Diagnosis depends on pragmatic behaviors and the person’s described experiences.
Discuss bizarre behaviors.
Bizarre behavior is strange/ abnormal/weird behavior .Psychologically it is a mental disorder normally a psychotic one like schizophrenia. People with schizophrenia show bizarre behaviors such as gorging on food from trash and weird clothing. Researcher’s states that harmful emotions like shame and embarrassment, hopelessness are the main causative factors to bizarre eating behaviors.
Depression in the context of a mental disorder
Major/clinical/unipolar/ recurrent depression disorder is a mental disorder that is characterized by a persistence and persuasive low mood which is associated by low self esteem and a loss of pleasure in mostly enjoyable activities. Depressive disorder is a hindering condition that harmfully affects a person’s school life, family, work eating habits and sleeping habits as well as health in general. The source of depression is alleged to be psychosocial, environmental, biochemical and genetic (Brent, Poling & Goldstein, 2011).
Behavioral symptoms of someone who is depressed
Depression is a natural disorder that is characterized by one having insomnia, hopelessness, sadness, irritability, insomnia, fatigue, weight change, feelings of guilt, difficulty concentrating, and loss of interest in usual activities. Depression can cause thoughts of one wanting to commit suicide, agitation, and anxiety and panic attacks. Some may go looking for ways to escape the situation they may prefer to take alcohol or drugs.
Emotional and mental symptoms of a subject with depression
Thoughts of committing suicide and death, the person’s types of thoughts differ from some wish they were dead, and the world was better without them. Others come up with precise plans to hurt themselves. : Lack of concentration and sleep or sleeping more. One may lose appetite or adds weight. Some withdraw from family and even from work. One becomes forgetful and feels cranky (Miller, 2009).
What are some of the major risks with depression?
A person’s risk factors of developing depression include; Family history for instance in bipolar disorder; medical conditions such as diabetics increases the risk ;Hormonal and stress factors increases a person’s risk to have depression. Substance abuse is also another risk factor. Psychologists consider that depression is caused by a mixture of social factors, psychological, and biological. Thus a person’s lifestyle choices, coping skills and relationships are determine more than genetics. However, there are certain risk factors that make one more exposed to depression. They include ;Loneliness; Financial strain; Lack of social support; Early childhood trauma or abuse; Recent stressful life experiences; Alcohol or drug abuse; Family history of depression; Marital or relationship problems; Unemployment or underemployment and Health problems or chronic pain.
Discuss the suicidal type of depression
A person may feel suicide is the only option to escape pain and suffering. He may start giving out his will or giving away his favorite items and has an in appropriate way to say goodbye. The person speaks suicidal statements and has developed a plan and set time for attempt. He might have had previous attempts. He might be reckless in all he does to cause accidents or homicide and even abuse drugs (Brent, Poling & Goldstein, 2011).
Interrogator handles suicide threats from a depressed person
An interrogator should examine the patient and see if he has symptoms that reflect his stage of depression. As an interrogator it is easy to recognize the warning signs. The interrogator should recommend a therapy and counseling together with family and friends support. The therapy depends on the type of depression a person is undergoing through. The therapy teaches the patient on how to handle different scenarios so the he can overcome depression. The interrogator will help the patient to explore his internal world and get near to the real causes and triggers of his depression which is hidden from the consciousness. Bright lights are used to treat several types of depression but most commonly seasonal affective disorder is associated to the lower levels of sunlight in the winter and autumn. The person should be given Antidepressants together with the physiotherapy and counseling (Avenue, 2009).
Danger signs noticeable to evaluate the risk of suicide
An interrogator should look signs like Self-inflicted injuries, for instance cuts, head banging’s and burns. The interrogator should listen to the words the patient speaks of since they have an indirect meaning such as, “I’m going for a very long trip”, or “I want to sleep and I don’t want to ever wake up”.
Steps to take in a risk of a subject committing suicide
Listening to what the patient has to say.
Keep an ear out for indication that they might be thinking to commit suicide
Ask what they are thinking of doing. Maybe to harm themselves
Understand what the problem they are encountering
recognize that many people thinking to commit suicide believe their life is not in their control
Ask the person what is preventing him from committing suicide
Help him to weigh options
convince him on choosing life
make a plan to keep him secure
Follow him through on everything he does
Get some help from experts
Reference
Thomas, S. (1988). Schizophrenia: The sacred symbol of psychiatry. (Illustrated ed., Vol.
Chapter 2, pp. 21-28). United States of America: Syracuse University Press.
Avenue, W. (2009, 6 23). American association of sociology [Web log message]. Retrieved from http://www.suicidology.org/c/document_library/get_file?folderId=232&name=DLFE-157.pdf
Brent, D. A., Poling, K. D., & Goldstein, T. R. (2011).Treating depressed and suicidal
Adolescents: A clinician’s guide. (pp. 43-80). New York: Guilford Press.
Miller, C. A. (2009). Nursing for wellness in older adults. (Illustrated ed., Vol. chapter 15, pp.
305-310). United States of America: Lippincott Williams & Wilkins.
currency exchange
Name
Professor
Course
Date
Currency exchange
Introduction
While currency refers to a generally accepted medium of exchange, currency exchange is the course of action international traders converts one currency for another currency. This depends on the prevailing exchange rates in the market. The rate at which one currency is exchanged with another is dependent on a number of factors. This is the reason why the currency exchange rates keep on fluctuating. However, it is necessary to note that most of the factors in play, in currency exchange rates, are majorly economical. This means that the prevailing currency exchange rates is influenced by e invisible hands (Atkeson, & Burstein, 2031)
Significance of currency exchange
The fluctuation in the exchange rates is of much importance than stable currency exchange rate because of the fundamental befits such as unpredictability of the system and stability of economies. If the currency exchange rates were easy to predetermine or fixed, most economies would be unstable because that will be free economy in which would undermine most developing countries. It is noteworthy that the exchange rates be varied and dynamic to stabilize then investment market. A fixed exchange rate would simply allow for economic crisis. It also pertinent to note that a dynamic exchange rate is essential for a strong economy and economic development of a country because, s fixed or pegged exchange rate would make a country’s currency overvalued. An overvalued currency makes it hard for a country to convert its currency to another currency. Take for example, the case of Great British pounds and Zimbabwean currency.
How to convert us dollars to Japanese YEN
The currency is exchange rates vary from time to time as mentioned before. Atkeson, & Burstein, (2071), base this on factors such as the economy of the country and the trends. However, to convert one currency into another, the currency exchange rate is multiplied by the value of the currency. For example to convert USD into JPY, one multiplies the USD by the prevailing equivalent value of the USD, in JPY.
The prevailing currency exchange rate for the US Dollar against Japanese yen is as shown bellow
Mid-market rates: 2012-02-07 20:34 UTC
1.00 USD = 76.7968 JPY
US Dollar Japanese Yen1 USD = 76.7968 JPY 1 JPY = 0.0130214 USD
This shows that if the value of the house in Japan is 7million JPY; the amount is divided by 76.7968 JPY to get the value of the house in USD. Nevertheless, the economic value of the house is changed into USD by multiplying the value of the house in JPY to USD by multiplying the amount by 0.0130214USD. The USD is worth more in value consider the strength, this means that if one has the USD and would like to convert it into JPY he will have more money than someone with the JPY converting to USD did. As shown below:
Value of the plot in japan7000000 JPY
7,000,000.00 JPY = 91,126.26 USD
Japanese Yen US Dollar1 JPY = 0.0130180 USD 1 USD = 76.8165 JPY
While banks are responsible for the transaction due to security and money laundering reasons, it is advisable that people have a rough knowledge of the prevailing market value of any currency at any one time. These currency exchange rates are readily available over the internet and updates are real time. It is advisable to take the foreign currency to banks in the country of interest and or visit the forex exchange companies for conversion (Burnside, Kleshchelski, and Rebelo 6723)..
How to convert payroll into the prevailing currency
Trends
A number of factors determine the prevailing pay one is entitled. For example, factors such as; the academic qualifications, experience, knowledge, and competence of the employee are worth considering. Once the employee is selected, the payroll should be above or equal to the pay grade setting the country of interest. Once this company has arrived at the standard pay grade and has determined the amount to pay, the company has to convert the money into an equivalent local currency. Because, for a US company operating in Japan, the local employee in Japan may feel that the pay is low, so it is advisable to convert the currency to a local equivalent amount a]while paying the workers. However, international companies should pay more than the local companies due to logistical reasons should. The trend is instrumental in assessing the value of the currency or pay considering the respective stasis of the pecuniary system maintained by the respective countries
Economy and exchange rate risk
The employer should also consider the economy of the country he is trading in before setting the amount to pay the workers. For example, if he establishes a business in developed country, the payroll should be set on then currency of the country, however, for a developing country, he can set the payroll on the country of origin (the US) or the local currency depending on the country with a strong currency.
Conclusion
While the pegged system is advantageous based on the inherent characteristics, the floating system promises much in terms of stability of the economies. It also helps in the elimination of the market panic and economic crises. Therefore, it is advisable to maintain a floating exchange rate to help in managing the investment market.
Works cited
Atkeson, A. and A. Burstein: Pricing-to-Market, Trade Costs, and International Relative Prices,” American Economic Review, 98, 1998{2031}. (2008). Print
Burnside, A., I. Kleshchelski, and S. Rebelo: Do Peso Problems Explain the Returns to the Carry Trade?” CEPR Discussion Papers 6873, C.E.P.R. Discussion Papers. (2008). Print.