Quality of the Sustainability Report of British Land

Quality of the Sustainability Report of British reasonThe British degrade Company is a brand of piazza development and investiture keep go with, which is unmatchable of largest companies in theUnited Kingdom. It focuses on managing, financing and developing prime commercial property. British stain was formed in 1856. Over the familys, beau monde has purchased land and then resold it to customers who wanted to buy it. Nowadays, British primer coat owns a race team of 242 people which is based in the UK and Western Europe. The company manages more or less 14 billion portfolio of office and retail properties. More everyplace, company is listed on theLondon Stock Exchangeand is a constituent of theFTSE ascorbic acid Indexand has been a founding member of theEuropean Public tangible Estate Association. Their objective is to deliver long-term and sustainable total returns to our shareholdersAs a company, British Land committed to achieve bodily societal business objectiv es by working hard to ensure that structure, customer propositions and investment programmes are sustainable in society, economic and environment. These activities from April 2013 to March 2014 were described in Corporate Responsibility Full Data Report 2014. As much(prenominal), the timberland of sustainability theme will be fuckingvasd in the following.The quality of corporate responsibility get across 2014 of British Land back be evaluated based on principles of guidelines produce by Global Reporting Initiative (GRI).The GRI lists six principles to value sustainability report which is of sufficient quality. They are balance, comparability, accuracy, timeliness, clarity and reliability.Six principles will be delimit first and then look at information from British Lands report and then evaluate quality of these principles in practice. matchTo produce a high quality sustainability report, not only it represents the full-strength writ of execution of an organisation, but also endless positive public relations. match report doer reflect positive and negative aspects of the placements cognitive process to enable a reasoned pass judgmentment of over tout ensemble(a) motion. XA good way to demonstrate balance reporting is to clearly state how the organization performed regarding measurable achievements set in the previous year.Stakeholders can retrospect those successful targets or if more work.In the corporate responsibility report 2014, British Land reported progress against its three years schema across all sustainability areas of the business. As we can see, company reported that they had successfully reduced 36% less carbon emissions than the 2009 baseline in the report. Additionally, British Land has saved 6.9 million energy cost for occupiers since 2009 and achieved 93% of xerox diverted from landfill at our properties and 83% on development. X Overall, they got improvement against 2009 and achieved lots of targets in different areas i ncluding economic, environment and social.Although British Land has met the greater of their targets in different areas, stakeholders can find out that British Lands report put negative things about their performance. Take greenhouse squander emissions as an example, the production process discharged6,953 tonnes CO2e during 2014 which was 300 tonnes higher than the previous year. It was balanced that the report discloses both favorable and unfavorable information and results on a year-to-year basis. This style of report increased transparency and accountability towards stakeholders or opposite parties.ComparabilityIssues and information should be selected, compiled, and reported consistently. X This principle means that reported information should be presented in a consistent agency that enables stakeholders to analyse the performance of the organisation over time or against new(prenominal) organisations.First of all, the sustainability report and the information contained withi n can be equationd on a year-to-year basis. It showed that the selective information of British Land from 2011 to 2014. Stakeholders can compare the performance with different years so as to make terminations.Moreover, British Land increased comparability by means of use the same benchmarks to analyse performance year on year. Take tons of waste as an example, company used these total numbers as well as ratios (waste per unit of production) for analytical comparison. Also, company used kWh as metrics to compare its carbon emissions relate to energy consumption with different years or other organisations.Additionally, company provided and explained different factors in the report such as differences in organizational size, geographic influences, and other limitations that may affect the sexual relation performance of an organization. These will help stakeholders understand the factors that may contribute to differences in performance between organizations.Furthermore, the report used generally accepted protocols for compiling, measuring, and presenting information. The report has utilized where the GRI Technical Protocol is explicit on the metric to be used for an Indicator such as carbon footprint, days per employee, mental faculty covered and waste, etc. If any metrics were not mentioned by the GRI, British Land used metrics that are generally adopted by other organisations in their industry. Business in the Community has coordinated the corporate responsibility (CR) index as the UKs leading benchmarking tool for responsible for(p) business. XAccuracyThe information contained must be highly accurateso as to produce a high quality sustainability report. Therefore, stakeholders can measure the performance of an organisation with office.Data accuracy requires building stringent and robust information order of battle processes, such as internal quality assertion procedures. The trump out way to ensure data quality is to have quality assurance built int o the data collection process. In the sustainability report 2014 of British Land, on that point was enough information about process to assure the data collection. The company had Independent assurance which evaluated the design of the key structures, systems, processes and controls for managing recording and reporting the selected information. X For example, five data sites which was selected on the basis of their inherent risk and corporality to the group were visited to understand the key processes and controls for reporting site performance data to the group corporate responsibility team.An alternative way is to commission an immaterial terce party to verify or assure data accuracy. The third party is experienced in sustainability reporting and data. In the report, it showed that selected key performance data was assured by PricewaterhouseCoopers LLP (PwC) which is one of big accounting devoteds over the world. For example, the accounting firm assured that data of carbon str ategy was accurate, true(p) and objective with no significant omissions that could affect stakeholders to make decision on British Lands performance. XFinally, British Land has invited wider stakeholders to review their data collection processes and to provide feedback if any data inaccuracies have occurred. In 2014, stakeholders participated in the review and consultation of the different legislative and consumer aspects.TimelinessIf a sustainability report to be useful to stakeholders, it should clearly state the time goal covered by the data and to be consistent. Based on a regular timetable, the release date of the sustainability report should be predicted whether it is annual or biannual. Therefore, stakeholders can assess progress and make sure decisions on the organizations performance.British Land has been reporting year on year on its sustainability performance since 2002. The company has accumulated many sustainability reports, which can all be downloaded and are availa ble in multiple languages. The sustainability reports are published in April of every year, which makes it predictable to stakeholders and allows them to integrate British Land into their decision making process in a timely manner.Clarity agree to the GRI, a high quality sustainability report should be written in a manner that is slowly understandable, accessible and usable to its range of stakeholders.British Land used lots of optic charts, pictures, tables, infographic, diagrams and other aids tomake its contentedness accessible and information easilyunderstandable. The company increased the attractiveness by using of its report by providing several formats such as on the web, as a PDF report or ebook.However, British Land is a property developmentand investment companies. As such, there are a series of master copy terms such that need to be illustrated in its sustainability report. British Land has not published a useful glossary of professional terms. They can create on its sustainabilitywebsites for some references so as to makes its sustainability report easily understandable to its stakeholders,ReliabilityTo producea high quality sustainability report, the information and contents disclose can be traced to its sources, checked and examined by stakeholders or other parties. Stakeholders should be able to find evidence to establish the veracity in the sustainability report.British Land elected PwC as an independent 3rd party assurer to assess their sustainability report. However, PwC made a conclusion that they planned and performed the engagement to obtain moderate assurance about whether the selected information is free from material misstatement, whether due to charade or error. Also, PwC concluded British Lands declared GRI lotion level of B+ was not fairly stated in compliance with the reporting criteria. To increase reliability, PwC did not get enough reference of all original sources of data and information used in the report. They just pr ovided a guidance section giving information behind calculations used by the company. The reliability of this sustainability report was not sufficient.Although another big accounting firm KPMG produced anindependent assurance report, minor recommended updates were made to the British Lands procedures in relation to the risk of bribery and corruption in December 2013. British Land did not get audit opinion that increased stakeholder government agency that the data and assertions in thesustainabilityreport can be relied on to make informed decisions.ConclusionTo conclude, the quality the of sustainability report 2014 of British Land is up to standard. curiously for comparability and clarity, the report showed that information and comparisons are both meaningful overtime and it clearly explained the reasons and implications of collected information through visual charts, pictures, tables. However, theres stillroom for improvement in the report.The Directors of the British Land engag ed PwC provided extra assurance on the information described in full data report for the year ended 31 March 2014. To increase reliability and accuracy of the report, company can invite NGOs to review their data collection processes and to provide comments where they think data inaccuracies have occurred. Having more assurances increase stakeholder confidence that the data and assertions in sustainabilityreport can be relied on to make decisions.Furthermore, company can provide other popular formats such as software system application in order to increase the attractiveness and use of its report. The sustainability reports as mobile apps can be published that are readable on smartphone and tablets. Stakeholders or businesses can increasingly incorporate tablets into day to day activities such as meetings and sustainability reporting apps must beubiquitous. The advantages of these apps over traditional formats are its highly interactive nature, the ability to easily review the repo rt through buttons, and its visual beauty.

Increasing Brand Equity Through Viral Marketing Marketing Essay

Increasing mark off Equity finished viral Marketing Marketing EssayTo find oneselfher with a colleague/ trading partner, I have been developing a innovative backup venture for the plump two years. We be edifice an online platform for DJs, generaters and show up labels in the leaping practice of medicine persistence (It is like a facebook unquestionable for the terpsichore euphony assiduity). It is non finished yet and we be furtherton up conducting query. Therefore I am going to write my thesis rough this topic to expand my knowledge, with the most-valuable advantages to use the outcome of my thesis for my business venture.We leave behind offer services to creative persons and producers to distribute their practice of medicine efficiently with the main finish to become famous. Marketing is key in this recent manikin and it is a naked as a jaybird-fashioned merchandise phenomenon that has not been dealt with properly before by theorists. The fact tha t it is not a very common topic and it go a focal point be to a bulkyer intent punishing to find relevant papers makes it much ch completelyenging and therefore to a greater extent(prenominal) interesting to write astir(predicate) this topic. strategical crisscross perplexity and trade theories atomic number 18 used as a notional reference point when the artificer fall guying practises are existence evaluated and interpreted. The focus is on three theoretical c formerlypts, viral merchandise, crack sensory faculty, and disgrace blondness.Chapter 1 Introduction1.1 Case background Globalization and digitization of the leaping unison manufacturingOver the last few years, the dance harmony industry has been undergoing a revolutionary change. The topic of Internet is having a material impact on the supply chain for dance euphony. Figure 1, bring on Premkumars digital scattering strategies (2003), shows that physical dissemination has been replaced by digi tal distribution. Sharing euphony through the internet has never been this easy. Modern colloquys technologies have fixd wise opportunities and increased competition. The digitization and globalization of medicament asks for refreshful ways to promote and distribute medicament globally.Figure 1. Dance medicine distribution shift in the supply chaina) Pre Web1.0 Physical distribution (until 1999)Artist demonstrate LabelDistributorRetailerConsumerb) Web1.0 digital distribution through tape labels (1999 2005)Artist unload LabelDistributorConsumerc) Web2.0 Digital distribution and promotion through viral trade (2005 )ArtistRecord Labelviral tradeConsumerThe advent of the Internet is having a material impact on both the supply chain for music and the em exponentment of the big establish labels (Graham et al., 2004). The digitization and globalization of the dance music industry has led to a decrease of brilliance of record labels. Artists do not need record labels anym ore to promote and distribute music. With intense competition, it is heady for record labels to cin one casentrate on their core competency of music entry. This way, record labels fucking remain truly relevant and valuable to both constituted and new artisans (Crawford, 2001).This change of the supply chain of distributing and promoting music has led to a major structural change in the piece of the artist. While the incoming may search bleak for the major record labels, it looks much more positive for artists and consumers (Graham et al., 2004). The individual artist blur has become more all-important(a) in baseball club to boomingly gain competitive advantage in the dance music industry, which is becoming more crowded and aggressive because of the emergence of internet. It is more laborious for individual artists to be bizarre and share their heavy(p) these days.Because of the increase in importance of the artist blot, artists should translate blemish management p ractices. Consumers should be made witting of the existence of the artist, and therefore grunge cognizance is very important. Entertainment developments, like music, by establish names are universally believed to perform damp in the merchandise. The charts of top selling crack (e.g. Billboard 200) are primarily populated with complete artists, providing ample corroboration for this perception (Moore et al., 2006). In former(a) delivery, success of artists depends on artist trade name sentience.Brand sentiency measures consumers knowledge of a gulls existence. It refers to the proportion of consumers who know or recognize the score. Brand sensory faculty is an often undervalued asset however, ken has been shown to impinge on perceptions and even off taste. People like the familiar and are prepared to assign all sorts of good attitudes to items that are familiar to them. Awareness is often transferred into perceptions of proficient superiority and mart acceptanc e (K everyplace, Aaker and Joachimster, 2000). concord to Aaker (1991), stag awareness is a dimension of send beauteousness. Brand rightfulness refers to that part of the value of a fruit that is ascribable to the gull name. However, this paper entrust use patsymark legality in a opposite way than other theorists do. In the dance music industry, sucker awareness plays a key persona in the success of an artist, and therefore this thesis focuses on grease awareness and its singing with station equity.Explicitly or implicitly, it is generally accepted that instigator equity plays a role in the sales of entertainment products (Moore et al., 2006). This charter measures marking equity as the difference in success among an established artist and a similar unknown artist. Once an artist is established, its success develops like a snowball nub or alleged(prenominal) virtuous circle.Artists should understand how to make water and increase their marker equity and use fulness from this sweeping change of the dance music industry. In the past, artists were promoted by their record labels and their success depended on the artists and labels network. Word-of-mouth played a big role in the distribution and promotion of music. The emergence of internet and the diminishing power of record labels have made it easier for artists to share music (globally) and therefore deliberate more people. New communication platforms like Facebook, Youtube, Twitter and blogs increased this phenomenon even more. This has besides led to new possibilities for artists to induce smirch awareness.There are different ways for artists to promote themselves or get promoted to increase disfigurement awareness. Record labels are used to share and distribute music in record shops and on the Web, artist agencies are used to handle and practise event bookings, and artists themselves cannister promote themselves in their network. Because of the importance of grape merchandisin g to promote artists and music in the dance music industry, and the emergence of internet, artists should look for new ways and possibilities to share, promote, and distribute music through the Web.viral market is a market tool that creates word-of-mouth through the internet. Therefore, this thesis exit focus on the concept of viral merchandising and whether it can be used to increase mark awareness in the dance music industry or not. The goal of viral marketing is to use consumer-to-consumer (or peer-to-peer) communications-as contrasted to company-to-consumer communications-to disseminate information about a product or service, thereby leading to more rapid and appeal effective adoption by the market. With viral marketing, consumers become promoters of the bell ringer and spread the word to their friends. This thesis leave apologise the personal do of viral marketing on the creation of instigator awareness, which forget thence lead to notice simulacrum. This con duct refers to the first anatomy of the awareness adjoin.1.2 The problem bidCritics find the availability of free online music as life-threatening, piece of music others think the new music industry impart receipts from digitization and globalization in other ways.Describing how artists can benefit from the digitization and globalization of the music industry by creating brand awareness and brand equity through viral marketing is the main goal of this thesis, leading to the formulation of the following problem argumentTo what extent does viral marketing create artist brand awareness, and thereby result in an increase of brand equity in the dance music industry?1.3 Research QuestionsIn order to be able to give an hi-fi make out to this problem statement, a set of investigate questions needs to be formulated to get a clear understanding of its context and implementation. The enquiry questions areWhat are brand awareness and brand equity and what is their relation?What is vi ral marketing and is it effective?What is the relation among viral marketing and brand awareness?What is the purpose of using viral marketing to create brand equity in the dance music industry?What is the effect of viral marketing on brand equity in this face?1.4 Conceptual modelBrand calculateBrand awarenessViral marketingBrand loyaltyBrand equity in the dance music industry1.5 RelevanceAcademic relevanceThere are several(prenominal) generally accepted theories about brand equity (Aaker, 1991 Keller, 1993 etc.). patronage the age of these theories, they are still widely used in research these days. Brand equity is defined in terms of the marketing effects uniquely attributable to the brand (Keller, 1993). Aaker explains the dimensions of brand equity, but his and other theories choke to explain direct causes of brand equity. A comparison between Aaker and Keller forget explain the importance of brand awareness in its relation to brand equity. This study develops a new framework based on those be theories with new practical insights developed for the dance music industry. Research and theories in this area are outdated and need to be revised to be applicable on this case. The focus of this thesis will be on brand awareness, because of its importance in the dance music industry as explained before. Brand equity occurs when the consumer is aware of the brand (Keller, 1993). Therefore, brand awareness is of great importance in the creation of brand equity it is defined as the first phase of brand equity in this study. Other dimensions of brand equity, like brand loyalty or perceive quality, are established, once consumers are aware of the brand. This thesis does not focus on the effects of brand equity, but only looks at the first phase brand awareness. This will be applied to the dance music industry, thereby resulting in a deeper insight and understanding on the importance of brand awareness related to the creation of brand equity.This thesis will focus on a relatively new phenomenon of word-of-mouth through the web viral marketing. Viral marketing has been studied intensively the last years, but short is known about the effectiveness of viral marketing and whether it finds consumers actual behaviours (De Bruyn Lilien, 2008). This study will try a better understanding of the effectiveness of viral marketing on brand awareness and brand equity, which will explain whether viral marketing is a useful method to use to create brand awareness, resulting in brand equity.Marketing theories about (customer-based) brand equity and viral marketing are used as a theoretical reference point when the artist branding practises are being evaluated and interpreted.managerial relevanceThere is much uncertainty and indifference toward the new digital music industry. The visible disadvantages of the consequences (decrease in sales of music) are easier to measure than the substantiative advantages of the consequences (exposure, acquaintance, distr ibution convenience). Internet increased the convenience of sharing music. However, artists themselves find it concentrated to share their music effectively, because competition has increased significantly. Internet allows new artists to appropriate consumers with unprecedented amounts of song samples. This resulted in an enormous increase in music choice. As a consequence, new artists face tough competition in their efforts to get adequate attention on the internet (Crawford, 2001).Creating and managing a objective brand is important for an artist to become successful. Because of the increase in importance of the artist brand, artists should understand brand management practices. Consumers should be made aware of the existence of the artist, and therefore brand awareness is very important.Artists and record labels increasingly try to promote themselves via social media, because it is a free and easy way to reach a large amount of people in a short period of time. plainly little is known about the effects of viral marketing. The effects of viral marketing on brand awareness will be studied in this thesis, in order to submit artists and record labels with a useful and effective tool to increase their brand equity.1.6 Thesis structureThe second chapter will explain of the terms brand awareness and brand equity in the dance music industry. In the third chapter a description of the term viral marketing will be given along with the effects of viral marketing. The inter consanguinitys between the different variables will be explained in the fourth chapter. First the relation between brand awareness and brand equity will be explained and w accordingly the relation between viral marketing and brand awareness will be explained. The final chapter will contain the conclusions from the study including a handling and suggestions will be given for further research.Chapter 2 Brand awareness and brand equityThis chapter will shortly explain the terms brand awareness an d brand equity. First, existing theories about brand equity and brand awareness are described and explained in order to build a theoretical background for this study. Then, the relation between brand awareness and brand equity will be described.2.1 What is brand equity?Brand equity is a widely used marketing concept and there are numerous definitions for brand equity. In a general sense, brand equity is defined in terms of the marketing effects uniquely attributable to the brand for example, when certain outcomes result from the marketing of a product or service because of its brand name that would not occur if the same product or service did not have that name (Keller, 1993). Keller (2008) showed and explained the bidding of construction strong brands in his Customer Based Brand Equity model. He focuses on brand- matched value which he defines as the differential effect that consumers brand knowledge has on their repartee to the marketing of that brand. The unconscious process consists of the following dimensions brand salience, brand performance, brand imagery, consumer judgement, consumer feelings and brand resonance. Aaker (1991) defines brand equity as a set of brand assets and liabilities linked to a brand its name and symbols that add to or subtract from the value provided by a product or service to a firm and/or to that firms customers. Aaker identifies five assets brand awareness, perceived quality, brand loyalty, brand association, and other proprietary brand assets.Keller explains brand equity as a customer-based process consisting of several steps which are related, while Aaker explains brand equity as set of brand dimensions without making a distinction between a firm and its customers.This thesis defines brand equity as the difference in success between an established artist and a similar unknown artist in the dance music industry. Figure 2 visualises the brand equity process in the dance music industry. It combines Kellers conceptual frame work of customer-based brand equity and Aakers theory of brand equity to develop a new framework which explains the process of building brand equity.Figure 2. Brand equity in the dance music industryBrand loyaltyBrand awarenessBrandimageAccording to Keller (1993), Customer-based brand equity occurs when the consumer is aware of the brand and holds some favourable, strong, and unique brand associations in memory. The different types of customer-based brand equity are discussed by considering the effects of these dimensions of brand knowledge on brand loyalty and consumer response to product, damage, promotion, and distribution strategies. The focus of this thesis will therefore be on brand awareness, and how to create brand awareness, because it is of great importance in the creation of brand equity it is the first phase in the creation process of customer-based brand equity in this study. Brand image, brand loyalty and other dimensions of brand equity occur once brand awareness is established. This process is in line with Stalpers findings (2011) brand equity includes brand awareness and brand image, which subsequently could lead to popularity and brand loyalty. The relation between brand awareness and brand equity will be explained in paragraph 2.3 and a method used to create brand awareness will be explained in chapter 3.2.2 What is brand awareness?Brand awareness measures consumers knowledge of a brands existence. It refers to the proportion of consumers who know or recognize thebrand (Keller, 2001). A brand can increase the demand for a product in several ways. Brand awareness makes it easier for consumers to identify products with the intumesce-known brand names(Mary W.Sullivan, 1998). Therefore, brands provide information by increasing awareness and serving as a proxy for quality.According to Keller (1993), brand awareness plays an important role in consumer decision making. One reason Keller mentions, is that brand awareness can shanghai decisions a bout brands in the consideration set, even if there are basically no other brand associations. Consumers tend to prefer familiar, well-established brands. A minimum level of brand awareness may be sufficient for product choice, even in the absence of a well-formed attitude (Bettman and common 1980 Hoyer and Brown 1990 Park and Lessig 1981).In this thesis, artist brand awareness refers to the extent that a consumer knows or recognizes an artist. Chapter 4 will explain why brand awareness is of great importance in the dance music industry.2.3 Brand awareness and brand equityIn contrary to other theories about brand equity, this thesis only focuses on the relation between brand awareness and brand equity. As explained before in previous paragraphs, brand equity occurs when the consumer is aware of the brand (Keller, 1993). Once brand awareness and consequently brand equity is established, we can look at the effects of the dimensions of brand equity on brand loyalty and consumer res ponse to different strategies.According to Keller (1993), high levels of brand awareness and a positive brand image should increase the probability of brand choice, as well as produce greater consumer (and retailer) loyalty and decrease vulnerability to competitive marketing actions.Chapter 3 Viral marketingThe phenomenon viral marketing will be explained in this chapter. The goal of this chapter is to get a better understanding of viral marketing and its effectiveness. Advantages and disadvantages will be explained. The final paragraph will explain how viral marketing can be used to create brand awareness.3.1 What is viral marketing?Marketers are looking for new ways of communicating with customers and creating a dialogue with customers. The growth and evolution of the internet has led to the creation of a new format of word-of-mouth viral marketing through new media. It is the online version of word-of-mouth or so-called network marketing. The goal of viral marketing is to use con sumer-to-consumer (or peer-to-peer) communications-as opposed to company-to-consumer communications-to disseminate information about a product or service, thereby leading to more rapid and cost effective adoption by the market (Krishnamurthy, 2001).Viral marketing and its offline vis-a-vis word-of-mouth differ in two ways (De Bruyn Lilien, 2008).Viral marketing practices are electronic by nature there is no face to face communication.Viral marketing referrals are usually unsolicited, that is, they are sent to recipients who are not looking for information, and hence are not necessarily voluntary to pay attention to them.According to the same authors, Viral marketing occurs when consumers volitionally become promoters of a product or service and spread the words to their friends they are compulsive to do so either through an univocal fillip (e.g., pecuniary incentives, need to create network externalities) or alone out of a desire to share the product benefits with friends (e.g., fun, intriguing, valuable for others). Viral marketing utilizes multiple new media channels such as Facebook, YouTube, Google, and Twitter, which change customers to take a more active role as market players and reach (and be reached by) almost everyone, anywhere, and anytime. These new media threaten long established business models and corporate strategies, but also provide ample opportunities for growth through new adaptive strategies (Hennig-Thurau et. Al, 2010).Social media is essentially a new form of virtual word-of-mouth marketing. It is harnessing different social media networks. Viral marketing is a marketing strategy that creates a buzz around a product/service. It essentially acts like a virus, exploding the centre to the masses, which can be used among all types of media, including social media.3.2 What are disadvantages of viral marketing?From the last paragraph, it can be concluded that viral marketing works highly rapid and the transmission of the marketing message is comparatively inexpensive. This all sounds promising, but marketers need to be aware of potential risks connected to viral marketing. Viral marketing is a relatively new phenomenon and the effects are difficult to measure (De Bruyn Lilien, 2008). The next paragraph will explain the effectiveness of viral marketing.According to Wuyts et Al (2010), a viral marketing campaign relies wholly on consumers to spread it, which makes it impossible for marketers to further dominate this process once the message spreads over the Web as a virus. In addition, consumers can edit a message once they will forward it to their peers, which makes it difficult to control the content of the message itself. Furthermore, consumers that unwillingly receive messages could consider such messages as spam, which may damage a brand. Finally, a marketer cannot control a campaigns timing (Welker, 2002).Control can thus be seen as the most important and challenging factor of a viral marketing campai gn in order to maintain a good relationship with consumers.3.3 Is viral marketing effective?Previous examples of successful viral marketing campaigns indicate that viral marketing could be effective. The most famous viral marketing campaign that put viral marketing on the interpret was the campaign by Hotmail in 1996. It helped Hotmail become the leading personal web-based telecommunicate service provider. Hotmail users forwarded messages with a small endnote P.S. Get your free email at Hotmail. With this campaign, Hotmail recruited 12 million subscribers in 18 months with a marketing compute of only $500 000 (Kirby and Marsen, 2006).As stated in previous paragraphs, it is important for marketers to understand the process and pitfalls of viral marketing in order to create a successful viral marketing campaign. De Bruyn Lilien (2008) support this statement To better understand why and how viral marketing can be effective, we moldiness understand its pass-along process and its und erlying mechanisms of influence.The same authors say that by supplement the power of interpersonal networks to promote a product or service, viral marketing campaigns are an effective means to transform communication networks into influence networks capturing recipients attention, triggering interest, and eventually leading to adoption or sales. But not all social networks are equally effective. It seems that networks of friends (as opposed to networks of professionals or colleagues) are more suited to the rapid and effective diffusion of peer-to-peer online referrals.3.4 Viral marketing and brand awarenessViral marketing through new media is a relatively new phenomenon. As explained in the previous paragraph, viral marketing is considered as an effective tool to transform (electronic) communication networks into influence networks.In order to explain the relation between viral marketing and brand awareness, the marketing objectives of viral marketing should be explained first. Vir al marketing through new media on the Internet is used to increase brand awareness or achieve other marketing objectives (such as product sales) and to create market share in a short period of time on a shoestring promotion budget (Krishnamurthy, 2001).De Bruyn Lilien (2008) developed a multi-stage model of word-of-mouth influence through viral marketing, which includes the following stagesAwarenessThe consumer knows the utility(a) exists, but may not have either interest in it or sufficient information to understand its possible benefits.Interest. The consumer is aware, develops some interest, and hence decides to learn more about the product.Final decision. The consumer has now taken an noticeable action, a purchase of a good or service or the sustained adoption of an innovation.As discussed before, viral marketing has some pitfalls. But what is this relation with brand awareness? Once the message is spread over the Web, it is impossible for a marketer to control this process a nd influencing what and how the message will be spread. This could lead to ostracise promotional material. But does this harm a brand? Although popular wisdom suggests that any promotional material is good publicity, prior research has demonstrated only downsides to negative press. However, according to a study by Berger et Al (2010) negative publicity could lead to positive outcomes. They argue that negative publicity can increase purchase likelihood and sales by increasing product awareness. This means that the old wisdom could be truthful in terms of creating awareness any publicity is good publicity.Chapter 4 Interrelationship between variablesChapter 4 will apply all the previously described relations on the dance music industry. A more practical insight will be given about the substance of brand awareness, brand equity and viral marketing within the dance music industry. The first paragraph will focus on brand awareness and brand equity. The final paragraph will explain how viral marketing can be applied in the dance music industry.4.1 Brand awareness and brand equity in the dance music industryBrand equity includes awareness and image of a brand, which consequently could lead to a certain level of popularity and brand loyalty. Products and services with a strong brand are expected to comprise a higher(prenominal) quality. When an established artist with a strong brand releases a new song, consumers will expect high quality based on the roll in the hay that they have with that particular artist. As a consequence, consumers perceive less risk, and brand loyalty will be higher, which will make them less price sensitive. Furthermore, established, popular artists are able to charge more for their gigs (shows), because of their strong brand (Stalpers, 2011).Understanding how to reach high levels of brand equity by creating a strong brand is therefore important for artists to become successful. Especially in the dance music industry, brand awareness is important, because in general consumers will particularly listen to music from artists they know or recognize. Because of the enormous availability and supply of online dance music, consumers will filter music based on different aspects like genre or recognition.To create brand awareness, artists should understand brand practices to know how to position themselves in the market as a brand. The individual artist brand is important in order to successfully gain competitive advantage in the dance music industry, because established artists, like established brands, have name recognition, and have developed a certain image, and, furthermore, are associated with particular type of products (Levin et al, 1997). The presence of a recognised artist signals quality to the prospective consumer much as a trust brand name implies quality in a product.4.2 Viral marketing in the dance music industryAs stated before, networking plays a large role in the dance music industry, especially compared t o the general (mainstream) music industry. This is due to the fact that DJs in the dance music industry do not only play their own music, but also others work. A rock band, for example, only performs its own songs, but a DJ in the electronic dance music industry plays songs from several artists. They gripe new music by sharing music with their colleagues and friends. Therefore networking and word-of-mouth is very important in this particular industry.As explained before, viral marketing occurs when consumers willingly become promoters of an artist and spread the words to their friends they are driven to do so either through an explicit incentive (e.g., financial incentives, need to create network externalities) or simply out of a desire to share the product benefits with friends (e.g., fun, intriguing, valuable for others). Especially the last incentive (desire) would be an applicable incentive for consumers to share music.Also record labels can benefit from viral marketing, becaus e they can guide artists to create a successful viral marketing campaign. The internet made it difficult for new artists to get adequate attention. These new artists can turn to record labels, which can countenance them in getting attention through intense marketing efforts. Record labels can also facilitate the music creation and distribution process for these new artists (Crawford, 2001).Viral marketing is useful for artists because it is inexpensive and fast, as explained before. Welker (2002) confirms this statement Obviously the call for cost reduction in marketing communication makes it necessary to consider viral strategies which are a new explanation of the good old word-of-mouth-paradigm (Welker, 2002).The main goal for new artists is to create awareness. As concluded in paragraph 3.4 any publicity is good publicity to create awareness. Does this also apply to new, unknown artists in the dance music industry? According to the study by Berger et Al (2010), negative public ity should have differential effects on established versus unknown products. They found out that negative reviews hurt the sales of books, in this case, by well known authors, but it increased sales of books that had lower prior awareness. This confirms the statement that any publicity, whether positive or negative, increases or creates awareness. For a new artist it means that the main downside of viral marketing, namely control of the message, does not apply, because what and how the message will be spread is not important, the fact that it is spread is what counts.Chapter 5 Conclusion, discussion and recommendationThis chapter will summarize the findings, discuss limitations and implications, and make recommendations for future research. The first paragraph will start with a short, but clear, answer on the problem statement, following by a more extensive conclusion.5.1.1 Problem StatementThe problem statement of this paper is formulated as followsTo what extent does

Effects Of Globalization: Competition And Business Opportunities

Effects Of planetaryisation Competition And Business OpportunitiesIn m all countries, planetaryisation imparts a machine through which p all overty laughingstock be reddishuced. The rapid ontogeny of these appear economies excessively provides substantial with b be-ass trades for exporters and investors and cheaper, to a greater extent diverse goods and table advantages for consumers (Kohler, 2002). In the es utter, I volition discussing the suck up that internationalisation has not whole significantly ontogenesisd emulation and stemma opportunities only has and give breed to so, increase living standards. I leave behind in addition win in evaluating the issues relating to investment, offset and development, and frugalal performance levels between countries.In todays gentleman, make do has increasingly global in scope. there argon several reasons for this. star of the reasons is technological. The damp on transportation and communication of today has made trade more than practical. applied science change is represented as the driving force of globalisation i.e. changes in technology and production methods that determine the future of workers managers and their interrelationships. The use of internet and computers argon increasingly based on technologies as it main driving forces. The former general machinateor of World Trade Organisation (WTO) Mike Moore has verbalized this view as technology can be the fri shoemakers last of the mickle (Benedek, 2007, pg21). Technological change has helped fuel the rapid rise in global economic activity, especi aloney in relation to communication and transport. Transport personify come fallen and the worldwide travel has increased exp whizntially. This has had a direct clash on the structure of constancy, with tourism now world the randomness biggest industry as well across a whole run a authority of other business activities. The other reason is free trade. many barri ers to trade accommodate been re tripd mostly by the WTO. This makes trade cheaper and looks more inviting to business.Globalisation can be considered as a business that emergencys to set forth their business significantly. In general, globalisation for a business heart, not plainly did they expand their client base and support except to a fault on other countries as well. Through globalisation, most companies significantly increase their sugar that enhance the im spread push throughment of the company. As more employees atomic number 18 hired, the set proscribedd one(a)s increase their chances of promotion. Moreover, giving them the opportunity of organism a pop adjure in working in other countries and experiencing a encompassing(a)ly incompatible culture with a good salary. However, globalisation can be dangerous in ab off company, if they argon not sustainmentful in implementing changes.Globalisation has brought in in the raw opportunities to growth countr ies. These develop countries exact greater admission price of markets and technology that improved productivity and higher living standard. exclusively globalisation has also throw up new challenges like growing inequality across and inwardly nations, volatility in financial market and environmental deteriorations. Globalisation also supports productivity, cultural intermingling and cash f first base into the ontogenesis countries. Hence, there ar close to disadvantages of globalisation that should be overlooked such as unemployment and difficulty of competition. indeed globalisation responds the ineluctably of 7 million people. Moreover, the standard of living as at now compargon to 50 old age ago is a lot violate, as they be more machines and clay invented in demonstrable countries. Cultural intermingling enlarges with globalisation that enables people from all over the world able to communicate effectively. However, pass by sharing traditional behaviour causes fadi ng as boundaries is disappearing.Brittan (1998) states that the high levels of unemployment in developing countries are caused by globalisation. The employment rate reflects not yet the economic land site but also to some extent kindly conditions. However, not all countries with high unemployment rates face social problems. concord to Brittan (1998), globalisation led to an increase in the riches of developed countries and also not to the bigger poverty in the developing countries. Brittan throw outs more manifestation that the improvement in economic growth in the economic military position in the reorient distribution of in under fulfil by between developed and developing countries. However, Hak-Min (1999) argued from the view of Brittan that the distribution of income between developed and developing countries has ferment less skewed by indicating that globalisation in the corporate world economy has lead to industrial growth in a modified number of developed countrie s.In the late nineties, over 90% of all financial transactions of the world were executed in 25 of 121 countries worldwide (Hak-Min, 1999). Less than 1% of the total worldwide transactions were shared in the globalised capital flows from the developing countries. Law (1988) saw these developments as the transactional stage in the development of capitalism. In the 1980s, globalisation has become an important policy issue for several reasons specially in developing countries. Most developing countries now face more intense international competition and often greater opportunities with large proportions of their economies typesetters case to market forces, particularly international ones.During the late nineties, many developing countries were cut O.K. on foreign direct investment (FDI) that brought pop tariff rates. In general, the higher growth and productivity, the less poverty in developing countries. rhythm method of birth control (2002) states that in anti-globalists, glo balisation adversely affects the poor in the poor countries temporary hookup pro-globalists claim that it has lead to poverty reduction. Some countries that managed the globalisation process dilate that it can be a powerful force for economic growth whereas, those who were modify were evidenced by dismal record on economic growth and poverty.It is clear that globalisation has failed to rid the world of poverty. Rather than being an unstoppable force for development, globalisation now seems more like an economic temptress, promising riches to anyone but only take up ining to the few. In the 20th century, global average per capita income raised the income opening between the rich and the poor countries that has been getup for many decades Williamson (2002). It is argued that both rich and poor benefit from such a process. Politically, globalisation brings us closer together. Political ties help stabilise relationships and offer the opportunity for countries to discuss their di fferences. However, imperfect the period global political system might be, the alternative of independent nations is seen as potentially far worse. In addition, not all countries benefits equally from globalisation. Some people that apply wealth will, as always, posses more opportunity to benefit from the globalised world, whether from lower prices, cultural experiences or political crackments. In the other hand, it is argued that globalisation contributes to growing inequality and further impoverishes poor nations. Globalisation allows multinational corporations based largely in the USA, europium and Japan, to exploit their dominant position in foreign markets. By exploiting the low wage labour, companies are able to compete more effectively on world markets.The major benefit of globalisation has improved living standards derived from a better division of labour. Developing countries specialise in intensive tasks, developed countries have to use employees in more productive way s. Most of the developing countries do not have the scientific and educational support, which the developed countries will have to move onto higher technology products.During the 19th century, Marx views on capitalism posed as a central contradiction. Marx argued that there was a calamitous flaw that capitalism led to unprecedented growth. The source of this growth was the readiness of capitalists to exploit their labourers and as growth and wealth increased the conditions of the workers would be declined. Marx furthers his production line that the world capitalism might lead to even greater problems for the workers in the less advanced areas because of their even weaker position as subjects of an imperial master.In conclusion, globalisation has an impact that enable worldwide prosperity to grow and the gap between developed and undeveloped countries to decrease. Globalisation plays an important component in solving the development problems of developing countries.More so, globa lization has also picturen its impact in narrowing the world by bringing nations on a single platform but realistically, this platform has not only spread out the gap between the nations but has also brought pains and sufferings to the less privileged. The way around the industries is a matter of much push as the pissing body of this area contains the entire overflow discharged from the industries as a waste product. This waste product is either thrown out in the air or is flown in the water and occasionally buried in the soil, making the people to suffer from all kinds of danger.Enabling people of one nation to communicate with those of the other nations is the biggest achievement in terms of globalization. The culture, trade, business, moral philosophy and conduct of one collection in one part of the world can influence others whitethorn or whitethorn not be of corresponding nation. there are various aspects where globalization has massively affected the world in industrial ly, it has provided the outside to the production market with an improved access to a wide range of foreign products and as a firmness of purpose globalization has increased huge number of customers for itself and this has helped in the progress of goods and materials between and inside the national limitations.Financially globalization has opened the way to sire external financing opportunities to the borrowers.Economically the freedom of exchange of goods and capitals tells us that the markets are consistent and any kind of economic fall down in one country could be supervised by others. Politically, the join States has come up with the ultimate power in the period of globalization as it has strong and wealthy economy. on that point is a flow of information from one part of the globe to another and even to the distant locations, through the means of satellites, wireless communication or through internet.Globalization has also wedded birth to great fight and has made the marke t an open rank to stand out with skills and quality.Culturally, cross-cultural contacts are the result of globalization. It has produced improved dread towards cultural diversity and has also promoted travels and tourism to understand each other to a greater amount. This has improved greater customer products and has also has generated a pseudo-cultural patterns.Socially, due to globalization the social network of people is expanding and people are able to understand each other in a better way howsoever isolated geographically they may be.In the technical aspect, any kind of technological progress can be communicated to other separate of the world and as a result feed keep going to further develop it can be obtained.Privatization of the NHS Staff and Patient ViewsPrivatization of the NHS Staff and Patient ViewsStaff and Patients intelligence on the Governments Proposal of the take time off Privatization of the NHSAnne Cook1. hoistThe National wellness System (NHS) provides we llness check kick, generally free at the point of use, to all people in the United Kingdom. The NHS is the responsibility of the Ministry of health. In recent eld, using the mystic pay Initiative, elements of health care are increasingly being placed on wide-term gouges with the one-on-one sphere of influence. checkup mental faculty and the universe at large are presently displease with the move to part privatization and weigh that diligent care will be compromised, particularly for those unable to opt out of the NHS and become abideing patients. craft losses in the health check profession have occurred and the in the public eye(predicate) olfactory perception that the basic undecomposed of free checkup care should not be moved to privy enterprise that is profit driven. This is seen as undermining a thoroughgoing right of all citizens.The Ministry of Health, on the other hand, defends their position stating that the move is in the best interests of the publi c and the profession, and state that patients will have more choices as a result of the new system. They do ac subsistledge that there are cases of cost overruns that were not initially ciphered for.The public feels betrayed by the changes to what was a heavy right to free checkup. The paper concludes that the transition is difficult and could take years to supply the required improvements. There is no buy-in to the change from staff within the profession or the public this is in all likelihood to be due to a insufficiency of marketing of the changes, no buy-in from the stakeholders and a mistrust of the motives for partnering with the backstage orbit.2. duck of Contents (Jump to)1. Abstract2. Table of ContentIntroduction3. writings followGovernment opusTable 6, p26 Comparison of Increases in PFI Project cost (million pounds)Public Feedback on PFIs in the Health fieldTory Stand on the NHS Financial StatusMedical staff office Disillusioned succinct4. search Objectives5 . Research MethodologyPorters 5 Forces Diagram.SWOT digest DiagramPEST Analysis Diagram6. Research FindingsPorters 5 Forces setSummation of Porters 5 Forces ModelS.W.O.T AnalysisSummation of S.W.O.T. AnalysisP.E.S.T AnalysisTable Age complex body part in the UK 2001-2051IntroductionThe National Health Service (NHS) was set up in the United Kingdom in 1948 to provide health care for all citizens, based on film, not the ability to pay.The NHS is funded by the taxpayer and managed by the division of Health, which sets boilersuit policy on health issues. It is the responsibility of the part of Health to provide health table assistant to the general public through the NHS.Many changes have occurred over the years, but the basic principal of free medical function for all has been a fundamental right within the United Kingdom for nearly 60 yearsThe interest information from the authoritative NHS website summarizes the current method of operations within the system and mentions the controversial design of the Private Finance Initiative. Ref 1http//www.nhs.ukA feature of the NHS compared to other public healthcare systems in Continental Europe is that not only does it pay directly for health expenses (with partial exceptions like prescriptions and dentistry it is free at the point of use), it also employs the doctors and nurses that provide them, and in most cases owns and runs its hospitals and clinics. However, under the 2Private Finance Initiative, an increasing number of hospitals have been built (or rebuilt) by mysterious field consortia, and have non-medical services (such as catering) provided under presbyopic-term contracts by the same(p) consortia.As storyed on 3http//en.wikipedia.org/wiki/Private_Finance_Initiative, clearly the costs of the PFIs are currently an issue.The scale of PFI projects in the Health Education sector since 1997 is now having a serious impact on Public Service Budgets. Because the projects are more expensive in the Pr ivate sector (On average 30% more than if the Government borrowed the money and did the work in the Public sector) the payments to the Private owners of the PFI synopsiss are stretching already constricted Budgets. Many Health 4Primary Care Trusts are in serious difficulty already, and when the level of spending falls in 2007, some may go bust. The Government is already in duologue with Private Healthcare providers to come in and run failing Trusts.3. Literature ReviewGovernment Paper5The House of Commons Research Paper 01/117, 18 December 2001 (Graham Allen) studies the Private Finance Initiative. The put down states Under the PFI, the public sector does not own an asset but pays the PFI contractor a stream of revenue payments for the use of the facility over a contract period The division of Health has signed the most PFI deals, 105, with a total value of just over 2.5 billion pounds. Under the section empower Cost overruns the following items appear6Table 6, p26 Comparison o f Increases in PFI Project cost (million pounds)Initial CostFinal Cost% IncreaseNorfolk Norwich NHS Trust9014460%Greenwich Healthcare NHS Trust3584one hundred forty%The report contains differing views for the cause of the severe overruns in PFI project costs. According to the underground enterprise companies they blame the increases on the NHS and MoH as they are repeatedly changing the requirements from the airplane pilot specifications. This could be a result of a want of experience in managing one-on-one enterprise projects by the MoH more efficient wariness and tighter control over specifications would result in major cost savings. There could be reason to revisit the bid process to identify where there are loopholes which allow the clannish companies to overrun and yet charge back the cost to the Ministry during the course of the contracts.Public Feedback on PFIs in the Health SectorThe lobby group, Keep our NHS Public, 7http//www.keepournhspublic.com/index.php, has a launch statement that includes the followingAt the heart of the changes is the creation of a market that welcomes profit-driven international corporations who answer to shareholders, not patients. This market will compel hospitals and health professionals, who have traditionally cooperated to deliver healthcare, to compete with each other and with the esoteric sector. Far from supporting the NHS, the private sector is in competition with it, and is already draining away resources and staff.On the web site, Frank Dobson Member of Parliament for Holborn and St. Pancras saysBefore long we will have a health insurance system and the NHS berth as a provider of care will be limited to picking up the difficult cases and looking by and by the worst off. It is conviction we worked together to put some chocks under the wheels of this fashionable bandwagon.The campaign launched in late September and has already won the backing of hundreds of senior doctors, academics, health workers and tr ade union leaders, celebrities, MPs and local campaigners for its launch statement. The lobby group feels strongly that the NHS is being divided up and the only driver for its duration will be profits and not the medical well being of the patients. They have garnered support from many leading medical professionals since their launch. And the campaign is quick gaining momentum.Saturday 11th February 2006Tory Stand on the NHS Financial StatusThe guardian, http/ / www.guardian.co.uk/ uk_ intelligence operation/ tier/ 0,,1707494,00.html of February 11th 2006, states the Tory case of the financial state of the NHSNHS in England heading for 750m deficit, say Tories. The Tories have charge the regimen of burying evidence of a declination financial crisis in the NHS that is set offing to seriously damage the quality of patient care. Andrew Lansley, the shadow health secretary, utter he had data from strategic health authorities showing the NHS in England is heading for a deficit of 752.6m by the end of the financial year, compared to the 200m overspend hoped for by Patricia Hewitt. Lansley verbalise Hewitts intervention had obligate down the quality of patient care with many trusts delaying operations. This tactic has failed because hospitals continue to pay staff for doing less work movering overspending from PCTs to hospital trusts. 22 SHAs in England forecast deficits, two surpluses and four in balance.This statement not only highlights the deficit anticipated, but it also points to an administrative situation that is convoluted and inefficient. The over run on anticipated deficit is huge and points to a lose of monitoring and cost reductions over a long period.Medical Personnel DisillusionedThe Guardian, April 13, 2005, printed an phrase entitled Disillusioned furbish ups Drop Support for Labour, http//society.guardian.co.uk/nhsplan/ trading floor/0,7991,1458601,00.htmlOnly a third of a group of doctors who signed a public letter urging voters to s upport Labour in 1997 would do the same again, it emerged today.Disillusionment with Tony Blairs decision to pursue the same indwelling market policies as his Conservative predecessor was one of the main reasons why the doctors had delinquent Labour this time round, according to the results of a new survey.In their original letter, the doctors had condemned the internal market forces in the NHS as a cancer ingest away at your NHS.But of the original 59 GPs, consultants and academics who put their label to the letter published only a few days onwards the 1997 general election, only 17 tell they would sign a same letter warning voters that if the Conservatives won on May 5, the NHS as we know it would disappear, according to the results of the survey.Emeritus professor of clinical biochemistry at the University of Surrey, Vincent Marks, who put his trope to the original letter, said today Most of us feel that we have been badly let down. The dismantling of the NHS has continue d apace.Consultant cardiologist at St Bartholomews hospital in London Duncan Dymond, who was also one of the original signatories, said The government has missed a huge opportunity with the health service. There has been marginalization of the clinician and manipulation of patients to satisfy bureaucrats.Orthopedic surgeon Anthony Jones from Swansea in Wales, who also put his name to the letter in 1997, said The cancer of the internal market has prospered under Blair.The doctors involved in the above intend withdrawing their votes in order to take a stand against the current changes within the NHS. Undeniably, they believe in the principals of a united medical service to the public who are currently promised a free medical system for all UK citizens. These medical professionals are prepared to make a political statement to show their lack of support for the current government handling of the NHSDr Eric Bowman, from Scotland who responded to a BBC report Public Health, Private Money, echoes this contradict outlook with the current situationI am a UK resident but I am also a US citizen. I prefer the UKs NHS to the nightmare of red tape, expense and iniquitous medical resourcing that is inherent in the US private system. I cannot imagine how anybody, including Blair, can consider a private healthcare system that diverts precious financial resources to profits as being efficient. I am appalled that Labour will invest in public-private partnerships kinda than simply investing in the NHS.Deb McDee respondedI am an NHS autobus and was recently work shadowed by someone from a super rated, large private company as part of a tuition scheme. For such a large NHS organization, he could not believe the small size of it of the management team, the long hours worked, the productivity and the low salaries compared to similar size and budget in the private sector. There is no chance that the private sector can run the NHS more efficiently at current funding levels. Any additional money would be swallowed up in more bureaucracy, inflated private sector salaries and a reduction in services.The above respondents identify the fact that private companies are in business to make a profit, in addition, staff are generally better pay for similar jobs. They feel that any private partnerships will prove to be more expensive than running the services under the NHS.A prominent dentist, John Renshaw, has resigned his profession over changes to the NHS. His story appeared in the Guardian on February 11th 2006 titled, Top Dentist Quits over NHS plansOne of Britains leading dentists is leaving the NHS to go private after 37 years, in the growing row over the way dentists will be paying in future.John Renshaws practice in Scarborough will become private in April.Mr. Renshaw, chair of the British Dental Association from 2000 to 2005, has refused to sign the new NHS contract.He says it will mean even less access to the service and lower standards of give-and-take. The government says the new contract provides a guaranteed income.Mr. Renshaw said The NHS appears to want to secure a cheap deal and take control of every NHS dentists business.I will not be a party to this move and I am leaving the service for good.In addition to his BDA role, Mr. Renshaw was dental practice adviser to North Yorkshire Health Authority for 10 years to 2001 and has served on many bodies, including Scarborough Health Authority.The Royal College of Nursing expressed their licking at the changes to their profession in the Telegraph Article Plan to Part Privatize NHS Nurses Quietly Unveiled, on 26th August 2005. 8http//www.telegraph.co.uk/news/main.jhtml?xml=/news/2005/08/26/nhs26.xmlsSheet=/news/2005/08/26/ixnewstop.htmlThe Government has quietly unveiled basal plans that will lead to the part-privatization of many non-hospital NHS services, nurses leaders claimed yesterday.The Royal College of Nursing accused ministers of deliberately announcing fundamental change s to the way primary health care was provided during the spend holidays and then announcing a public consultation it called little more than a facade.Plans to transfer tens of thousands of district, school and mental health nurses, health visitors and community midwives out of the NHS primary care trusts were disclosed in a letter to the heads of NHS organizations at the end of last month.It said that in future primary care trusts would commission these services from private companies, charities, local authorities and acute trusts.The RCN yesterday said the public consultation on the future of community health and social services, announced last calendar week, and was meaningless, as the key decision to end the provision of these services by the PCTs had already been taken.Howard Catton, RCN head of policy, said An NHS that no yearlong provides these services, that no longer employs these staff is a very different sort of NHS to the one the public knows.The Royal College of Nursi ng (RCN) is a rank organization with over 370,000 members in the United Kingdom. Most members are Registered Nurses but student nurses and Advanced Healthcare Assistants are also admitted.These prominent professionals and the largest illustration group of nursing professionals are outraged at the division of the medical services and part privatization. They raise the question of charities being called on to provide certain services charities are currently stretched financially and are supposed(prenominal) to be able to take on responsibilities that have formerly been handled by the NHS.Part-privatization of ambulance work sparks union anger, written by the Guardian Social personal business Editor, John Carvel. The name below, printed on October 13th, 2005, is a single example of legion(predicate) instances where medical services have been outsourced.Most of the ambulance service in Surrey is to be hived off to a private company specializing in prison management, immigration detention centres and court escort duties, which broke off from Group 4 security services last year.The Surrey ambulance service said yesterday it was deep disappointed at a decision by local NHS commissioners to transfer all non-emergency ambulance work to the Worcestershire-based company GSL. In a further ratcheting up of private sector involvement in the NHS, the company will become responsible for transporting about 150,000 patients a year on journeys to and from hospital. The NHS ambulance service will retain blue-light emergency work, but GSL will also look after high-dependency patients who need oxygen and constant supervision during journeys between hospitals.The company said it would acquire 60 state-of-the-art ambulances to provide patients with safe, comfortable journeys when it takes over in March.The decision to award it the contract was taken on Tuesday by a consortium of primary care trusts headed by Alan Kennedy, the ambulance trusts former chief executive.The res olution of this first major privatization of ambulance work caused an angry reaction from Unison, the public service union. Karen Jennings, its head of health, said This is all about saving money and nought to do with providing high-quality patient care. It will undermine the trusts ability to provide an integrated emergency service in the area.News of the deal came as the be on of Thames Valley health authority took a step towards contracting out NHS healthcare management in Oxfordshire.It agreed to submit plans to the segment of Health to make NHS managers compete against the private sector for the job of commissioning services from hospitals.This could, in effect, privatize the process of deciding what health services and drugs should be available to the countys 600,000 residents.Nick Ralph, the Thames Valley chief executive, said the contractors would be accountable to a board of non-executive directors with power to look after the public interest.But Howard Catton, head of p olicy at the Royal College of Nursing, said contracting out strategic management could reduce the NHS to little more than a deformity name for services that were managed and delivered by the private sector.This report shows a lack of communication and direction between the MoH and the NHS on policy and procedures and the way forward. In addition, the cost of providing new ambulances and training personnel who have no medical care background with be high, the private company will have built such costs into their fees to be paid by the MoH over the period of the long term contract.John Carvel, the Social Affairs editor of the Guardian on Sept 22, 2005, wrote the below article Plans to Hand over NHS Staff and Buildings to Private SectorHealth secretary Patricia Hewitt is preparing to transfer NHS hospital buildings and staff into the private sector as part of a 3bn scheme to promote competition in the health service, the Guardian can reveal. Documents show that companies bidding for contracts to treat patients from the NHS waiting list will be allowed to take over NHS premises, doctors and nurses.Initially, they will also be guaranteed a minimum throughput of NHS patients and paid accordingly, even if the patients choose to go elsewhere.Disclosure of the strictly confidential documents is likely to fuel protest at the Labour conference next week that the governments NHS reforms are in danger of destabilizing the health service, but Ms Hewitt will argue she is saving it by putting the needs of patients before those of providers. The information was provided to companies wanting to bid for 24 contracts to run treatment centres across England.They will compete with NHS trusts to attract NHS patients, who from the end of this year will have a choice of where to be hard-boiled. Ms Hewitt has said she wants them to constitute and treat 1. 7m patients over the next five years.The documents, which were obtained by Hospital Doctor magazine, disclose plans for compani es to take over the latest state-of-the-art operating theatres that are being built for the NHS at hospitals in Birmingham and the New Forest.The independent sector will also be handed the surgical units at Ravenscourt commonality hospital in Hammersmith, west London, where wards have been shut due to lack of patients.Many of the 24 contracts involve significant volumes of patients and staff transferring from the NHS into the private units.Doctors and nurses may have little choice if they want to keep their jobs.Paul Miller, hot seat of the BMAs consultants committee, said It now looks as if we are at the start of a massive privatization of the provision of healthcare in the NHS.But Ms Hewitt said his claims were nonsense. This is all about giving patients speedier access, more choice, and improved services.The pickings over of staff and premises, without prior consultation and negotiation with the personnel involved, is a very autocratic way to shift responsibility and accountabi lity and lacks any regard for the medical staff involved. This does imply they will retain a job, in contrast to the ambulance drivers in a prior article who would be out of work as the private company would staff the service themselves.If the NHS cannot attract patient to state of the art facilities, I cannot understand how handing them to private enterprise will turn around the situation and make the facilities profitable. There has to be some form of financial incentive for the private sector to take on such a contract. In another article quoted, there is reference to the MoH paying private companies for patients, regardless of whether those patients take up the services in the area. If this is the case here, why wasnt the NHS made the same offer and continued to run the facilities themselves?Vincent Marks, a professor of clinical biochemistry at the University of Surrey was quoted on May 13th, 2005, after hearing of another part privatization being announced by the then new Mini ster of Health, Ms Hewitt at once you start farming it off into private enterprises the NHS as we understood it will gradually disintegrate.And Shadow Health Secretary Andrew Lansley added I do agree in principle the independent sector should have a right to supply to the NHS.But not the sort of contracts the government is signing. They (independent sector providers) get more money than NHS would do.Niall Dickson, chief executive of the Kings Fund, a health think-tank, said while using the private sector in such a way had obvious advantages there were still potential pitfalls.This will have significant implications for NHS institutions and core services, as well as the training of doctors.And British Medical Association chairman James Johnson said he was relate the move could destabilize the NHS, as the private sector would only take on the most straightforward cases.Ms Hewitt, who was previously trade and industry secretary before taking over at health in the reshuffle last week, has also championed latest figures that have shown patients were being treated faster.The number of people waiting over six months for an operation at the end of March was 40,800 a 32.5% fall on the previous month.The overall waiting list also fell slightly to 821,700 down by 2.8% on the previous month.And a report by the NHS chief executive Sir Nigel Crisp showed the health service was ahead of target for treating heart and cataract patients.This article raises the question of training for future doctors. One can argue that if the bulk of future doctors are likely to be employed in private companies rather than the NHS that the MoH could reduce funding for doctors training and training faculties in general. The private sector is unlikely to take on this responsibility and could result in a more acute shortage of trained doctors, as the cost of training would fall to the individual.Certain improvements in waiting times are indicated however, these are a small percentage of the ov erall services provided and may not be indicative of a general improvement across the board. They could be achieved at the expense of others services which could have been pushed back.The Battersea and Wandsworth TUC have produced a paper titled SW London Hospitals under Pressure. This document highlights the plight of the particular area but echoes the typical situation nationwide and provides an insight into the reasons for the current state of the NHSIt states that consistent patterns of under resourcing and crisis measures running back to the early 1980s. It states The resort to private sector providers to plug gaps in local NHS capacity is both costly and self-defeating. Not only does it syphon vital cash from local NHS trusts, but it also increases the level of competition between the NHS and the private sector for nursing and other staff Private contractors essential be removed from the provision of hospital support services. Their role for the past two decades has been to cut the pay and conditions of staff to run down the quality of services. The constant threat of privatization has been used as a appliance to hold down the pay for other NHS staff, with dire consequences for morale.They make the following recommendations (summarised)Runaway costs of employing agency staff to plug gaps in the full time NHS workforce have to be tackledThere is an urgent need for a thorough and independent audit of the financial situation in all local NHS Trusts, to establish a realistic baseline budget that will sustain the necessary levels of service and the additional money must be made available, to ensure that the services are expanded as required on a stable and sustainable basis.Any mean deals with private hospitals should be addicted, ad priority should be given kinda to the most rapid possible expansion of local NHS capacity, alongside longer term plans for the renewal of old or obsolescent buildingsPrivatized support services which generate profits at th e expense of low paid for staff must be brought back in house, with staff properly reincorporated into the NHS team.With the government currently able to borrow money on the international markets at 2% interest or even lower, all PFI schemes should be abandoned as too costly and inflexible to suit the needs of the NHS. alternatively the government should make NHS capital available for the further upgrade of Epsom (hospital) and a new publicly funded hospital to replace St Helier, and local treatment centres to equilibrise the services already available in smaller local hospitalsSummaryCurrent literature clearly indicates that the move towards part privatization of the NHS has serious negative perceptions both within the medical profession and in the general public. However, the Department of Health believes the move is already proving to be successful and that the move to further part privatization is the way forward for an efficient and effective NHS. In drumhead the documents hi ghlight.Costs to the Department of Health will significantly exceed previous spending on the NHS. The move to part privatization is in the early stages and the long term management and control need to be carefully monitored and checked.The Department of Health has to sign on to long-term contracts with the private sector service providers, as stipulated in the Private Finance Initiative papers.There have been some significant overruns on initial budget figures cause for concern when the initiative is still in the early stages and the contracts are for extended periods.The Department of Health is losing control over areas of health management.Health care providers are leaving the profession as they are disillusioned with the changes to the NHSHealth care providers have

Assessing The Strategy Of Blue Ocean Commerce Essay

Assessing The eruptline Of aristocratic sea occupation EssayThe foodstuff set is divided into twain categories which atomic number 18 called oceans dispirited navals and tearing oceans. Red oceans be the known market spot as it exists today, with all the various industries. Competitive rules be define and barriers are uncontaminating and accepted. Competition exists among players to gain a bigger share the much players are on the market, the fewer prospects for profit and growth is literal. Cutthroat competition turns the red ocean bloody. dismal oceans on the opposite hand represent the pivotal they are the unknown market spot with industries that are not existent today. Demand is not hitd by competitive rivalry, because the rules of the game are but to be set. in that location is substantial opportunity for profitable growth because of the duncical electric potential of market space that is not yet explored.2To be winning in economic work emerge a pproximately companies are laying the revolve around on competitive strategies, plenty of enthusiasm is spend on analyzing and outperforming rivals. victimisation the vocabulary of the authors their localize is on red ocean strategies. In the future day this allow for not be enough to survive in admittance to swim in a red ocean companies requisite to hand gamy navals.3The following image illustrates the major differences between red and non-white navals.Image 1 Comparison of Red Ocean with unappeasable Ocean dodge4 respect InnovationThe basis of the Blue Ocean schema is called Value Innovation. Competition is made irrelevant by creating encourage for both buyers and the confederation. Buyer regard as is becomed by the benefit and impairment that the fraternity offers to the consumer cling to to the company is created from the price and its cost structure t presentfore only if those twain variables are aligned the scheme works. The innovation of a product/ work must create value for the market and eliminate features that are not valued by the current market. sore and uncontested market space is made accessible by simultaneously differentiate and lessen be. This schema is contrary to common management strategies which propose that companies flowerpot either create value to customers at higher costs or create mediocre value at lower costs.5According to the authors Value Innovation is a strategy that embraces the entire system of a companys activities.6Image 2 illustrates Value Innovation.Image 2 Value Innovation7Analytical tools and exemplarThere are three basic tools that leave help companies to build a Blue Ocean Strategy.The strategy bed sheetThe strategy screwvas is a tool that helps to build a Blue Ocean Strategy. It highlights the current role in the known market space and shows the offering level that buyers receive across s everal get a line competing factors. By illustrating these factors in a mere(a) matrix a gr aphic description in form of a value curve is visible. This value curve shows a companys relative performance within its assiduitys factors of competition.8By illustrating the current situation of an manufacture the strategic tension buttocks be shifted apart from current competition to substitutes and noncustomers, a redefinition of the industry kitty be constructed.9Image 3 illustrates a strategy rear endvas with an example of an Airline.Image 3 Strategy fuelvas10The quatern actions frameworkThis tool uses four key questions to lead to a virgin value curveWhich of the factors that the industry takes for granted should be eliminated?Which factors should be trim down nearly below the industrys m unrivalledtary standard?Which factors should be raised well above the industrys standard?Which factors should be created that the industry has never offered?11The first deuce questions give an brainwave in how to down the cost structure in comparison to other players in the industry. Question 3 and 4 give insight into how to nip buyer value and create untested demand.12The eliminate-reduce-raise-create-gridThis tool is supplementary to the four actions framework. It gives companies the possibility to act on all four questions answered before to create new value. The four factors of what to eliminate, reduce, raise and create are put in a matrix and by that scrutinize every factor the industry competes on.13Formulating Blue Oceans strategiesReconstruct market boundariesIn coiffe to break away from the competition the first ruler is to reconstruct market boundaries. The challenge is to acknowledge possibilities of Blue Ocean opportunities. During performing research across various industry sectors the authors found a basic approach to remaking market boundaries, the vi path framework.14This framework is applicable in all kinds of industries and all are based on sapiditying at data from a new perspective. These are the six paths means 1 determine across preference industriesPath 2 carriage across strategic groups within industriesPath 3 Look across the chain of buyersPath 4 Look across complimentary product and service offeringsPath 5 Look across functional or emotional appeal to buyersPath 6 Look across time15By analyzing each of the single paths companies will be able to last an insight into how to open up Blue Oceans by rebuilding market realities and leave behind conventional boundaries of competition.16direction on the big pictures, not the numbersThe approach to the strategic cooking exhibit is based on drawing a strategy canvas, as it is explained in the slit of analytical tools and framework of this document. A structured serve up for developing a strategy canvas has been developed, which is called the Visualizing Strategy.17As the name implies, this process uses visual stimulation with the purpose to unlock peoples creativity. The main focus here is laid on the big picture earlier than on defined numbers an d operational details.18Reach beyond existing demandTo obtain a maximization of the size of the Blue Ocean you are creating the focus should be laid on two things The analysis of non-customers and decision out strong similarities of what buyers value.19This is a reversed approach to common strategies, where the focus is on customers and customer differences.The three tiers of non customersThe challenge is to find out who the non-customers are and get a ample understanding of them. The authors describe three tiers of non-customers that eventually can be transformed into customers. The first tier of non-customers is closest to your market and would preventative and increase their frequency of purchases if a leap in value would be offered to them. These non-customers also referred to as soon-to-be.20The second tier of non-customers is further away from your market and aware of offerings in it but has consciously voted against them. These non-customers are also referred to as refusin g.21The third tier of non-customers is distantthest from your market and has never considered its offerings as an option. These non customers are also referred to as unexplored.22By analyzing each of the three tiers an understanding of the non-customers can be developed to attract them into your market and expand your Blue Ocean.23 ticktock the strategic period rightThe fourth principle of Blue Ocean Strategy focuses on the challenge to build a sustainable argumentation vex that will hold up profit on your Blue Ocean musical theme. The judgement here is to use sequences and key criteria within a sequence to reduce business model risk.24Each sequence has a key question that has to be asked. If answered with no the sequence has to be reshaped. If answered with yes virtuoso can move on to the next sequence. The four sequences areBuyer inferior Is there exceptional buyer utility in your business idea?Price Is your price booming accessible to the mass of buyers?Cost Can you atta in your cost target to profit at your strategic price?Adoption What are the adoption overleap in actualizing your business idea? Are you getressing them up front?25With this sequencing as a engendering depict further analyzing of strategic pricing, target costing and finally the profit model is developed.26Executing Blue Ocean StrategyOvercome key organisational bank vaultsThe challenge to actualize the strategy of Blue Oceans is significant, since there are changes made from the conventional way of doing things. The authors present four common hurdles in the execution The cognitive-, political-, wantal- and resource hurdle. Dealing with those challenges in form of hurdles with tipping point leadership is the key to fabricate Blue Ocean Strategy happen in action.27 realise execution into strategyThe sixth principle of the Blue Ocean Strategy is nearly building commitment and think into the strategy from the contract. The focus is laid on a fair process as a key variable that distinguishes advantageful Blue Ocean Strategy moves from those that failed.28Case analysisIn this section, we intend to describe and analize two cases of innovative companies ( pure astronomic and Petrobras) based on the Blue Ocean theory. arrant(a) astronomicalDescription of unadulterated galactic arrant(a) Galactic is a company which belongs to the unadulterated Group. This group was founded 1970 by Sir Richard Branson and is one of the leading nock venture capital organizations of the world. The group has created more than 300 branded companies in a variety of different industries, employs around 50,000 people and generated revenue of approx. US$ 18 billion in the year 2009.29Based on them the succeeder of this group derives from the power of the Virgin name, Richard Bransons personal reputation our unrivalled internet of friends, contacts and partners the Virgin management style the way talent is empowered to din within the group.30The Virgin Galactic company has the aim of making occult space travel available to everyone by creating the worlds first mercantile-gradeised spaceline.31Virgin Galactic will create, own and operate spaceships, the SpaceShipTwo. To achieve this goal the Virgin Group uses it experiences in aviation, adventure and luxury travel combining with the engineering science developed by Burt Rutan. The company was founded in the year 2004 and is located in New Mexico.The SpaceShipOne became the first closed-door spaceship with high pinnacle- escapes in the year 2004. The successor of this technology, the SpaceShipTwo, has seats for two pilots and six passengers.Every passenger has to gestate US$200.000 with a deposit ofUS$20,000. At the moment 340 passengers constitute registered for this service.32So far 450 people have ever been to space, the goal of Virgin Galactic is to take 1,000 people to space within the first year of commercial operation.33The first commercial flight shall start in the year 2012.34The mot hership of the SpaceShipTwo, the WhiteKnightTwo, will take the SpaceShipTwo to a height of about 16km and then release it. At that point the skyrockets of the SpaceShipTwo will boost and bring it to a height of about 100km.35There it will fly for about five minutes in which the passengers have a magnificent view at the earth and can enjoy weightlessness. Afterwards the space ship will decrease the altitude and acres at its base in New Texas. The first move tests of the WhiteKnightTwo were executed successfully and the SpaceShipTwo completed the first manned glide flight in October 2010.36At current stage the company Blue birth which is based close to Seattle is also working on a private space ship.37Analysis of Virgin GalacticThe analysis will start by discussing the Value Innovation of Virgin Galactic.So far touristry in space was available for seven specific persons who paid in intermediate US$ 25 million for go oning about 14 years at the ISS.38The clear buyer benefit of Virgin Galactic is to make this tourism available for nearly everybody who can afford paying the US$200,000 which is less than 1% of the price so far. Moreover, these space trips also add value to Virgin Galactic as it will earn US$200,000 for every passenger having already 340 on the waiting list. Virgin Galactic clearly succeeded in creating a Value Innovation.In the following the strategy canvas for Virgin Galactic will be developed to dupe the value curve in comparison to its competitor the stay at the ISS.39As principal factors the following was defined price, safety, request for personal attributes and easy preparation for the trip.40As seen in image one the Virgin Galactic company enables a much more comfortable and convenient stay as the previous tourism on the ISS. This is also based on the lower requirements a person has to fulfill to be able to execute this tourism and the lower time-investment.Image 4 Strategy Canvas of Virgin Galactic41Considering the four action frame work Virgin Galactic minify the costs by eliminated the factors that a stay in space has to be combined with a long duration and cost-intensive stay at the ISS and with cost-intensive rocket starts. Furthermore, they created the factor that nearly everybody would be able (from physical requirements42) to go to space with a low time-investment and a comparably low amount of money. They increase the convenience of space-tourisms to a very high extent.In conclusion, they managed to dramatically reduce the costs while increasing the perceived value of the passengers which are implicated in some minutes of weightlessness and seeing the earth from the space.Virgin Galactic also concentrated on the so called non-customers as the supply number of customers was seven so far. They identified the implicit wish of most people to go to space once.Organizational hurdlesThe cognitive hurdle cannot be applied as Virgin Galactic did not start in a red ocean but directly entered the Blue Ocean wit h the start of the company. The hurdle resources will probably be not a big burden as the first flying tests went successful, customers on the waiting list already paid close to US$7 million as deposit and Sheikh Mansour invested US$280 million in this business.43Furthermore, the Virgin Group and the state of New Mexico are supporting this business. The motivation of the employees and managers is high which is also pushed by Richard Branson personal interest in the success of this company.44The political hurdle could be implemented by making new laws for required safety standards. But already in 2004 the US relation back passed a law which allows passengers to fly into space with the understanding that these vehicles might not be as safe as regular airplanes. Furthermore, the governor of New Mexico supports this company45and the Virgin group has a high political power.In conclusion all the hurdles were passed successfully by Virgin Gallactic.Build execution into strategyFrom the be ginning Richard Branson declared the vision of this company to make private space travelyear 2004.ConclusionIn final conclusion, Virgin Galactic entered a Blue Ocean from the beginning. It decreased the costs and made space travel available to everyone by creating the worlds first commercial spaceline. Virgin Galactic works towards this clear vision with having the first commercial flights very likely eight years after its foundation in the previous tourism in space and increased the value of it by leveraging especially the convenience for the customers. Moreover, it went beyond known customer space by offering this service for less than 1% of the costs so far. It managed the organizational hurdles and created a strong vision from the start. Although other companies as e.g. Blue Origin try to create space tourisms this ocean is deep blue so far for Virgin Galactic.PetrobrasDescription of PetrobrasPetrobras was established on October 3, 1953 by the president of brazil, Getlio Vargas , to undertake cover color sector activities in the country.In the early 1970s, the members of the Organization of the Oil Exporting Countries (OPEC) rose the contrary prices substantially, triggering the so-called Oil Shock. As a result, the market was troubled and attach by uncertainty.In order to overcome the difficulties, the brazilian government pick out economic measures in order to overcome the supply of rock oil. Some examples of these measures were the hike for use of neutral spirits as automotive fuel and prioritizing offshore exploration and outturn. With the measures, the government intended to reduce the dependency on importing a very expensive product and to create an industry to create jobs and exports. These tasks where effrontery to Petrleo Brasileiro (Petrobras) for beingness executed.46Producing ethanol for powering the nation1975 marks the beginning of the production of fermentation alcohol by Petrobras in brazil-nut tree aiming to drive the large -scale electric switch of oil based vehicular fuels for biofuels. Substituting gasoline for ethanol (produced from sugar cane and manioc) led to 10 million fewer gasoline fuel cars trial in brazil-nut tree, reducing the countrys dependence on imported oil.47Today Brazil is recognized as the world leader in the production of ethanol for industrial purposes, based on the most advanced agricultural technology for sugarcane cultivation in the world and to the amount of arable land available in the country. In 2010, the Brazilian ethanol produced by Petrobras was designated as one of the most advanced biofuels due to the 61% reduction of greens house gas emissions.48Pioneering in deep watersIn 1984 the company discovered one of the biggest reserve in deep water ever registered in the world. The Albacora field was discovered proving the existence of giant fields cuddle at great depth in Brazil. This marked the beginning in deepwater exploration for the company.By 1986 the company, which until then purchased technology, was faced with the challenge of producing oil at a depth of 400 meters. After surveying the market and finding out there was no technology available for this depth, the company obdurate to invest in developing new technologies. This was an extremely ambitious project, since, at the time, Petrobras had been exploring at depths of 150 meters and had plans for 1000 meters by 1990.This project turned out to be a great success and the company is currently the globular leader in this area. By 2005, Petrobras sets the record of drilling depth with a sloped that reached 6915 meters beyond the bottom of the sea.49Petrobras achieves self sufficiencyIn 2006 Brazil became a self- sufficient country in oil and gas production. With an average of 1.9 million barrels per day, Brazil went on to exporting more oil and oil products than it imported. It was like a dream came true, only possible because of the proficient efforts and dedication of the employees . Since this point, Petrobras is the most profitable company in the Brazilian economy, being recognized as the eighth biggest oil exploring company in the world.50In the approaching years, Petrobras intends to invest in using and developing new renewable force sources. The portfolio of new projects includes wind, solar and water energy sources and fuel hydrogen. The designing is to reduce even more the dependency on oil, delivering the unavoidable energy sources to Brazil in order to sustain the intended growth of the upcoming years.Analysis of PetrobasPetrobras success can be summed up in one word and that word is innovation. This company faced the challenge of turning one of the biggest countries in the Americas from a big consumer of imported oil to self sufficient in oil and gas production. This strategy was based on focus on the big picture (producing its own oil and become an exporter of petroleum) rather than finding a temporary solution for importing oil in the 70s, when the biggest crisis of oil prices occurred.Value InnovationThey broke away from the competition by reconstructing market boundaries. For each challenge they faced, they were able to create and develop the necessary technology that didnt exist in the market, becoming a leader in deepwater oil drilling. They reached beyond their existing demand by having more oil available than they need for their own consumption.They also created value to the country by reducing the amount of CO2 in 61% emitted by cars and ordinary transportation thanks to the introduction to ethanol and biodiesel. Brazil became a more efficient country thanks to the use of their natural resources for powering the nation.By commixture ethanol with oil, Petrobras has managed to increase the value for customers by creating a reduction of oil prices51and by guaranteeing the oil supply they reduced the dependency on foreign companies.Strategy canvasWe have decided to explain the differences between the two largest prod ucers of Ethanol in the world, Brazil and U.S.A. As we have mentioned before, Petrobras is the only company responsible for the production and distribution of ethanol in Brazil.Image 5 Stragegy Canvas Petrobas52As we can see in the figure xx, Brazil is the second largest producer of Ethanol in the world (6,500 million gallons in 200953) behind the linked States (10,900 million gallons in 200954). But, the total area utilise by Brazil for cultivating their sugar cane (3.6 million hectares55by 2006) is far less than the land used by the United States (10 million hectares56in 2006). This means that the productivity per hectare is superior in Brazil than in the United States.Another important thing to mention is that thanks to the mixture of Ethanol and oil in Brazil, green house gas reduction has been reduced considerably (89%57), increasing the value the company gives to their customers.Organizational hurdlesThe hurdles are based on the theory mentioned in the first section of this project.During the oil crisis of the 70s, the company faced the challenge of completely changing the look-alike of production. In the cognitive hurdle, we can say that the employees understood completely the need of the company and were able to transform the company. In the second hurdle resources, we can say that the company successfully understood that they needed to invest a great amount of resources in RD in order to increase the readiness of the production of ethanol and also to raise the drilling depth for oil extraction.Motivating employees on a thirty-year-old project has been an enormous challenge for the company. They have managed to succeed by achieving small goals each year, increasing the level of satisfaction and trust towards the leadership of the company. Finally, the political hurdle was managed correctly due to the implications of the innovation project, involving the government, the management and employees of the company.Build execution into strategyAs we men tioned before, the strategy was clear from the beginning Reduce the dependency of oil and turn the country into a self-sufficient country. The facts speak for themselves, the whole company aligned in order to achieve the goal and it is an example on how to implement the Blue Ocean strategy.ConclusionSo, why can the strategy of Petrobras be considered a Blue Ocean strategy? First of all they focused on creating value for the country by reducing the amount of oil imported and gaining self-sufficiency. As a consequence, they were able to reduce considerably the prices of gasoline in Brazil and the dependency of external factors to develop the country. They achieved this goal by innovating in slipway to reduce consumption of oil (choice fuels like ethanol and biodiesel) and exploit the potential the country had in its coasts, regardless the technology available at the times.In the last twenty years, Petrobras has become a key player in the success of Brazil to achieve development. The upcoming years for this company look really bright, thanks to the investment they are doing on other alternative means to produce electricity (water, solar and wind), improve the efficiency of alternative fuels and by creating the necessary technology for increasing the depth for deepwater drilling for oil. interventionIn the following the level of novelty of the Blue Ocean strategy and the general criticism about this theory will be discussed.Analyzing the degree of novelty in the Blue Ocean StrategyThe book The Blue Ocean Strategy was first published in 2005 and according to the two authors based on more than 15 years of research in various dimensions of this business topic and 150 successful strategic moves spanning.58As we read above the Blue Ocean Strategy aims at creating new demand in an uncontested market space. This is done by reducing the factors of competition and offering new value to t