Tuesday, March 31, 2020
Is Machu Picchu Being Managed Sustainably free essay sample
Mach Fichu was discovered in 1911 by Hiram Birmingham after he was lead up there by a Peruvian guide. The invading Spanish never discovered Mach Fichu, which helped preserve and keep the site isolated for many centuries. However, today Mach Fichu is far from isolated with hundreds of thousands of people visiting the ruins every year. Naturally, this puts pressure on the ancient city, but what pressures is Mach Fichu put under? In 2001, Mach Fichu became a wonder of the modern world, sharply increasing visitor numbers.In 1 980 there were roughly 1 50,000 suitors yet in 2009 there were approximately 850,000 visitors (see figure B). Up to 2,000 people visit the ruins every single day, with the vast majority being foreign visitors. The number of visitors reached a historic high in 2008, with 858,211 people visiting Mach Fichu. These high numbers of visitors put a strain on local resources. Tourists feet are slowly eroding away the ancient site and the Inca Trail, as well as cutting down timber for fuel. We will write a custom essay sample on Is Machu Picchu Being Managed Sustainably or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page This loss of trees increases erosion by rain and often leads to landslides in the area. The high tourist numbers can also be a good thing. Its providing jobs for any local people, but the jobs are not usually well paid. With the increase of people in the area, local property values and the prices of goods increase. Local people cant afford to pay the entrance fee and enjoy one of their countrys greatest treasures! In fact, money made from tourism does not usually stay in Peru, but goes to the countries where the tourist companies are based.As Mach Fichu gained popularity, helicopters began to bring in tourists, which pollutes the area and disturbs the peaceful qualities of the site. As Mach Fichu has been put under pressure, there is the growing issue f being environmentally friendly and dealing with waste. More and more sewage is being pumped into the Aruba River and litter is often dropped in the valley below. I think that although the site is beautiful, people definitely deserve to see it, and that tourism does provide jobs, Mach Fichu is currently being put under too much pressure.An issue surrounding Mach Fichu is sustainable development. Sustainable development is development that meets the needs Of the present without compromising the ability Of future generations to meet their own need s. According to KIDS (International Institute for Sustainable Development, 2014). What this means is that the site needs to be developed in such a way that it meets the current needs but allows for future generations to meet their own needs. For example, imagine a village near a forest, where people go to get timber.Fifthly cut down 3 trees a week, but dont plant any, there will be none left for the future generations. However, if they plant 2 new saplings for every single tree they cut down and limit the amount of trees they can cut down in a week, there will be trees there for future generations. This way the current generation can get what hey need, but also dont stop the future generation from getting what they need. So this raises the question, is Mach Fichu actually being managed sustainable? I think that Mach Fichu is not being managed sustainable. Concerns have been raised about the environment due to logging, commercial plant collection, logging, poor waste management, poaching, introduced species and water pollution from not only urban waste but from chemicals in the Aruba River, as well as pressures from broader development in this region. However, it is important to remember that the action is in a high altitude with an extreme environment and terrain, as well as bad weather conditions, making it more prone to natural disasters which could make things more difficult. However, there is a very high potential to restore degraded areas.All these concerns require new, long-term solutions in order for the site to be managed sustainable. Currently, Mach Fichu is being abused by the sheer number of tourists entering the site annually. If this rise in tourists increases and solutions for concerns raised arent created then Mach Fichu will not be the same for future generations, and may not e there for them to enjoy. UNESCO (United N ations Educational, Scientific and Cultural Organization) threatened to take away Mach Fichus place on the World Heritage Sites list; however it still remains on the list. UNESCO has identified many problems with Mach Fichu and is also raising concerns with the site. In the future, helicopters could be banned to help reduce pollution in the area and help preserve the quiet nature of the site. The issue of waste could be fixed, helping to preserve the Aruba River and reduce water pollution. Prices for both goods and properties could be fixed to a certain, elastic price to try and help the local people.
Saturday, March 7, 2020
Bill Gates Essays - Nerd Culture, Altair, Bill Gates, Traf-O-Data
Bill Gates Essays - Nerd Culture, Altair, Bill Gates, Traf-O-Data Bill Gates Introduction "Bill Gates and his empire command fear, respect and curiosity in the world he helped create. Microsoft dominates the software world like no other company in a major consumer industry" (Electric 1). Exactly how did Bill Gates and his partner Paul Allen get their company to such a tremendous height? The history of Microsoft is a very fascinating past full of enterprise and excitement. The Dawning of a great company Bill Gates and Paul Allen are the co-founders of Microsoft. The start of their great success started in high school on a computer terminal. All their free time and money was spent working on that terminal. The development that really inaugurated everything, in the business sense was when they found an article in 1971, in a business magazine about Intel's 4004 chip (Billionaires 70). Soon they both talked about the chip and decided that the microprocessor can only get enhanced. Later in the year Intel came out with a newer chip called the 8008. Bill and Paul the n went out and bought their own 8008 for $360 (Billionaires 70). They thought plan in which Gates and Allen would use this chip to make a computer to do traffic - volume - count analysis. Gates and Allen then set up their first "company" called Traf-O-Data (Billionaires 70). "In 1973 the duo landed their first authentic jobs, helping TRW in Vancouver, Washington, to use minicomputers for the management and distribution of power from hydroelectric dams" (Billionaires 70). Gates' parents wanted him to go to Harvard instead of going into business with Allen. Inevitably, Gates convinced his friend to move to Boston so they could work together, and Allen could get a job programming. It was a magazine article that would ultimately change their lives. A cover story in Popular Electronics describing the MITS Altair 8800. "World's First Minicomputer Kit to Rival Commercial Models" (Billionaires 71). When Bill and Paul designed the Traf-O-Data machine they wrote a version of BASIC that they m ight be able to adapt to the Altair. By April Gates and Allen had finished the language and convinced MITS to sell it (Billionaires 71). Allen was offered a job by MITS and both of them went to work in a small office for MITS. "Soon after, Microsoft was born" (Billionaires 71). The Birth of Microsoft In the beginning the management skills of Paul Allen and Bill Gates was somewhat loose. Both men took part every single decision that had to be made (Billionaires 71). They were both very cautious entrepreneurs. If there was any difference in their roles in the company, Allen was the one always pushing for new technology, and Gates was more interested in doing negotiations, contracts, and business deals (Billionaires 71). They acquired knowledge as their company slowly grew. Microsoft's basic business scheme was to charge a price so low that computer makers could not do it for less internally (Billionaires 72). Texas Instruments gave Microsoft one of their largest contracts where Texas Instruments bid $99,000 providing programming languages for a home computer TI was going to produce. Allen and Gates picked that price because they did not want to go into six figures (Billionaires 72). They later found out that TI would have paid much more. When Microsoft started selling to Japanese companies they were so overpromised that it was ridiculous Sometimes the business would get a little frightening. In their very first talk to MITS they set it up so the MITS would sell BASIC to their customers. MITS decided later not to sell it because there were so many pirated copies of BASIC floating around that they did not see why they should charge their customers for it. This seemed to Microsoft that MITS was prompted piracy. Gates and Allen eventually went into arbitration to determine if MITS was complying with the contract (Billionaires 72). While they were in arbitration, they were running out of money because MITS was withholding their payments trying to starve Microsoft to death. The arbitrator took nine months to come to a decision. When it was all over MITS was "ripped apart" (Billionaires 72). That case really scared Allen and Gates. They were worried that they were going
Thursday, February 20, 2020
Sustainability Assignment Example | Topics and Well Written Essays - 2500 words
Sustainability - Assignment Example Significantly, the economy necessitates people consume in order to maintain healthy growing. As such, every day numerous marketing campaigns are prophesying about their commodities and before we get aware, the market is filled with commodities much of which people quickly forget. Notably, people like consuming and their consumption is engrained as a social activity that numerous people participate. Globally, people consume 30% resources beyond what the earth can replenish (Brebbia 2010). It is significant noting that, the developed countries are the west in offending. Therefore, if each continent is to consume at the European and the Americansââ¬â¢ rate, the planet earth can hardly sustain the people. Currently, we face numerous challenges, such the climatic change, biodiversity loss, accelerating social inequalities, changing demographics, and demands for basic commodities. However, the UK Government has set a complex legally binding carbon reduction policy. Accordingly, there is the need to adopt societies, as well as, economies to sustainable consumption patterns that portray at least low carbon, efficiency in resources, and profitability. Generally, retail businesses play critical roles in responding to demands of consumers hence their principal business controller. However, it cannot deliver the contagious changes; thus we need the creation of prosperous, and resource- efficient world. Additionally, numerous consumers possess inadequate information, motivation, and opportunity; hence they cannot make sustainable choices about buying practices and use of products. Concisely, sustainable consumption is still a niche and numerous companies make mere incremental improvements. Co nsequently, the leading brands must take the initiative and collaborate in order stimulate the pull of consumers on sustainability; hence make sustainable consumption mainstream.
Tuesday, February 4, 2020
Funding Sources for Terrorist Organizations Essay
Funding Sources for Terrorist Organizations - Essay Example According to Ehrenfeld (2002), terrorist operations such as selling illegal drugs, prostitution, and donation, in most cases, takes place in countries far away from their area of operation. Therefore, funds made must be channeled to them without being detected. Funds from drugs are obtained either by directly distributing the drugs or extorting drug traffickers. Drug money can be channeled either by carriers that ship money notes together with other goods or distributing funds to various wire transfers and registering them as processing expenses incurred in the transfers. The second method of extorting funds from businesses, farms, schools, as well as, other drug traffickers, is said to be taxation fee or payment for protection and security provided to hide its true purpose. These funds are given to individuals that relay the amount collected to the organization. The third method, on donations or charity, involves making multiple deposits to a single account consistent with donations made to a private charity firm (FATF, 2015). Forth methods on money laundering, funds are channeled using mechanisms such as fabricated invoices and loans, purchase of luxurious items, company shares, estates, or investing in casinos and hotels. Finally, funds obtained through prostitution are channeled through an individual that collects from them. Some prostitutes could be victims of human trafficking. Fatf. (2015). Financing Of the Terrorist Organization Islamic State in Iraq and Levant (ISIL) FATE.Ã
Monday, January 27, 2020
Examining Netflixs Business Model
Examining Netflixs Business Model Analyze Netflixs business model? How does Netflix change the video distribution industry? Business Model Business Model describes how a company produces, delivers and sells a service or product to create value for its customers, shareholders and other stakeholders. Netflix a pioneer in the online DVD subscription services operates in the in-home entertainment video market. In-home distribution channels include home video rental and retail outlets, cable and satellite television, pay-per-view, VOD (video-on-demand), internet streaming and broadcast television. (Source:- Netflix Annual Report 2005 Section Industry Overview) Netflix started operations in 1997 and relied on the DVD format as the medium of in-home entertainment, although this format of viewing was restricted to a small population of affluent, technology-savvy customer base. Over a period of time DVD became accepted as the choice and its penetration into every household rose exponentially. Netflixs business model revolves around its home-grown proprietary software Cinematch which powers its website and a comprehensive information system to manage operations. The comprehensive information system allows it to manage and integrate business across order processing, customer service and fulfilment operations. This leads to maximum utilization of library and operate with a decreased number of customer reps. It had 100 customer reps to handle 115,000 customers in the early days, now it has 43 to handle 3.2 million customers. From a business perspective management, organizational and technical elements are aligned towards customer focussed innovations. Warehouse workers get free Netflix subscriptions and DVD players. Corporate Employees are kept happy with perks so that they are eager to solve tough engineering problems to improve user experience. Netflix and the video distribution industry Netflix changed the video distribution from a store based rental channel to an online subscription based distribution channel. The web-site enables subscription account signup and management, personalized movie merchandising, inventory optimization and customer support (Source:- Netflix Annual Report 2009). Coupled with features such as social networking (Friends) and queue management (Profiles) it compares each subscribers movie preferences derived from the individuals past ratings and rental patterns with preferences of other users contained in the database and comes up with personalized movie recommendations unique to each subscriber. The company leveraged on the power of Internet and technology to achieve two purposes (a) Enhance customer experience by providing them a web-based portal tailored to individual preferences. It comes up with a customer specific recommendation list based on the individuals ratings of past viewings. Customers can set up their queues and receive delivery through mail. There is no return deadline; no charges and the DVDs can be mailed back through pre-paid envelopes. (b) Enhance operational efficiency Traditional Video rental retail outlets would have to compromise on the number of titles available in each of its stores because of space constraints. Netflix has an advantage in being able to offer a much wider range of titles since the stock is piled in its warehouses. One of its core business strengths is its vast catalogue of not so popular and old time movies and TV show content which is cost effective to procure and profitable to sell, but is not available in conventional retail stores. Cinematch also avoids suggesting out-of-stock movies and ensures maximum utilization of inventory. An effective and comprehensive Information system enables it to distribute DVDs from the nearest warehouse through US Mail. There are 100 shipping points across the United States which enables the company to provide delivery in one business days for 97% of its customers. Advantages and Disadvantages to potential customers Advantages Personalized DVD rental services and movies through internet streaming. The recommendation software is quite accurate and is built on the customers historic choices and ratings. Coupled with the social networking feature (Friends) it avoids the customer to go through the hassles of selecting and ending up with something he does not like. Availability of a wide range of not so popular and old titles which are not available in a conventional DVD rental stores. Disadvantages The recommendation software purposefully omits out-of-stock titles and hence influences the choice of the customer. It is intentionally slowing down delivery to high volume customers which are not so profitable. Instead it gives a preference to the low volume members. Hence preferential treatment is given to the more profitable low volume customers. Ability to fight competition and sustain its own markets (Source: Annual Report 2009. From Sec Filings of 2010 Subscribers have increased to 20,010(in thousands), Revenues have increased to $2,162 Million and Net Income has increased to $161 Million) Netflix has continued to increase its subscription base, revenues and net income over the years. The following analysis is based on how information systems can address Porters competitive forces model Traditional Competitors, New Market Entrants, Substitute Products and Services, Customers and Suppliers Low-cost Leadership Netflix uses its information systems to ensure maximum utilization of inventory and avoiding recommending out-of-stock titles. The information system integrates order processing and customer service and this has given it a cost advantage with increase in scale of operations, driving down per-unit cost and Netflix has been able to price its service offering at levels difficult for competition to meet. Product Differentiation Netflixs personalized web based movie selection services and technological innovations in the movie recommendation algorithm are a huge entry barrier for new entrants. Although the software and technology is not hard to replicate Netflix has the advantage of a database of over half a billion movie ratings and takes in more than a million new ones every day. Focus on market niche Unlike competitors like Amazon, Netflix has built its information systems targeted to the in-home entertainment industry. It has engaged with partners to expand the number of devices which can support streaming videos from Netflix. Strengthen Customer and Supplier Intimacy Almost 60% of the movies customers put in their queue comes from Netflixs recommendation system and ensures customers run a lesser risk of wasting time on a movie that they will not enjoy. This increases the switching costs for the customer. Although the case study does not state anything explicitly, the annual reports of 2010 indicate that Netflix obtains content through streaming content license agreements, DVD direct purchases and DVD and streaming revenue sharing agreements with studios, distributors and other suppliers and our assumption is that suppliers would benefit from Netflixs recommendation software which could boost up sales of their not so popular titles. All new titles do not end up becoming blockbusters and the less popular ones could get recommended to customers with specific preferences based on Cinematch algorithm. Competitive strengths of Netflix include an iconic brand, personalized merchandising, growing scale without substantial increase in cost and an information system catering to convenience, selection and fast delivery. Principal competitors are DVD rental outlets and kiosk services, such as Blockbuster, Movie Gallery and Redbox (Source: Netflix Annual Reports 2010) Video package providers with pay-per-view and VOD content including cable providers, such as Time Warner and Comcast; direct broadcast satellite providers, such as DIRECTV and Echostar; and telecommunication providers such as ATT and Verizon (Source: Netflix Annual Reports 2010) Online DVD subscription rental web sites, such as Blockbuster Online (Source: Netflix Annual Reports 2010) Entertainment video retail stores, such as Best Buy, Wal-Mart and Amazon.com (Source: Netflix Annual Reports 2010) Internet movie and TV content providers, such as Apples iTunes, Amazon.com, Hulu.com and Googles YouTube. (Source: Netflix Annual Reports 2010) Popularity of alternative entertainment mediums which can be distributed using a similar business model like Netflix (Example Gaming CD and DVDs) Threats Currently the time for distribution in DVD format is shorter than release to other mediums (VOD, premium TV etc) after a theatrical release of a movie. This gives a competitive advantage to the DVD market. However this competitive advantage may go if the distribution to these multiple formats happens simultaneously. The proprietary technology and information systems are also based on a certain historic scale of operations which has increased substantially and this could lead to systemic disruptions and negatively impact operations. The DVD format would probably give way to Internet movie and TV content providers and Netflix would be left stranded with its warehouse and sophisticated mail handling systems. However the one thing which will continue to survive is CINEMATCH and its database of billions of movie ratings which will give a competitive edge to Netflix when it decides to switch over to other formats of movie distribution. AOL, Yahoo to Charge for Email Question: Yahoo and AOL are relying on some durable economic laws to support there new email product. What are these? What are the new opportunities that they can exploit by Certified mail product? Durable economy: Assumption: 1. Net Neutrality Legislation will not be approved by the congress. 2. Certified mails also have an opt-out feature that allows recipients to unsubscribe. A sustainable or durable economy requires the development of programs, policies, and implementable initiatives that encourage activities that will empower communities and conservation of resources; promote environmental justice; preserve ways-of-life; and promote by example and through discourse the ideas of ecological and participatory democracy and its real world implications. The basic principal of economy is to distribute the scare resource to most needy ones. In reference to this caselet, the spam mails are using the network bandwidth preventing the internet users to do there legitimate work. The real value produced by information providers comes in locating, filtering and communicating what is useful to the consumer. The certified email service allows email service providers to deliver only the legitimate emails to end users. As the legitimacy and the background of the email originators are already verified by the service providers like GoodMail, this will help in reducing the spam detection cost for AOL and Yahoo. Also, spam and Phishing is bigger threat to web based mail users. To keep the user experience, companies spending huge amount of money to reduce the spam. The fundamental factors that determine the profitability is industry structure and sustainable competitive advantage. By offering these service AOL and Yahoo can out perform there competit ion. There aint no such thing as a free lunch .The economic theory, and also the lay opinion, that whatever goods and services are provided, they must be paid for by someone. The information production and delivery systems requires significant amount of investment in Hardware, Software, network systems. To sustain this business, they need to recover the cost and make profit. The free mail based service cost the mail service providers close to $10-$12 per user. By charging the business to deliver there message to its users, they can recover this cost. Yahoo, AOL mail users will also benefit from this as the information sent to there inbox is useful to them and also they will have an option to unsubscribe these certified mails if they wish too. The business will be willing to pay these charges for sending the mails as this toll will allow them maximize there ROI. Opportunities for AOL and Yahoo: Customer care in a service-based industry and priority email delivery In the information age, service based industry rely heavily on email based communication. Companies want to make sure that, there product information, quires and customer concerns are addressed in stipulated time. The internet traffic is growing year by year and which creating the bandwidth issues. Yahoo and AOL can start the priority email service (similar to the Fedx, USPS, US post which charges for faster delivery) where they can provide the guarantee of delivering mails and to user inbox in stipulated time by charging the legitimate fees. They can work with ISPS to prioritize there mail traffic by sharing the revenue they earn. Eg. Distributed Document Processing services. Govt agencies wanting to reach out to mass public to explain there policies. Yahoo and AOL can offer products to government agencies where they can deliver there communication directly to users inbox. On line Advertising By collecting information about their interests, what particulars mail users want ( based on the responses to the certified mails),Yahoo and AOL can customize adds that can be displayed alongside users mail box page. Reduce the spam and provide security to there users. Phishing and online identity theft are the fastest-growing threats to the email users. By using certified email service Yahoo and AOL can fight the spams better which will help in en-reaching the user experience. This will attract more users.
Sunday, January 19, 2020
How does Byron present the lovers Essay
Byron feels very strongly about love, believing it to be a very good thing, especially when found in the young. Thus he presents the two lovers as sweet and beautiful. A third adjective, innocent could be added to the list and in Juanââ¬â¢s case certainly should be-however, throughout the passage we find hints that it does not apply to Julia. In stanza 106 Byron says that ââ¬Å"her creed in her own innocenceâ⬠was ââ¬Å"immense. â⬠So she believes forcefully that what she is doing is innocent and not wrong, and yet she knows it is: ââ¬Ëâ⬠¦. she inly sworeâ⬠¦Ã¢â¬ ¦. she never would disgrace this ring she wore. ââ¬Ë However, Byron does not damn her for thinking of ââ¬ËDon Alfonsoââ¬â¢s fifty years,ââ¬â¢ instead he justifies this behaviour in the hole of stanza 108. This is most probably because of Byronââ¬â¢s own feelings on the matter of love ââ¬â he would not have backed away from extra-marital or adulterous love, believing infidelity to be a social normality. He believed that no shackles should be placed on love; it should be natural, and indeed this is how, to some extent, he does portray the love which blossoms here, though not as much as Juanââ¬â¢s later relationship with Haidei , ââ¬Ëunconsciously she leaned upon [Juan]â⬠¦ ââ¬Ë So, Byron shows us that Julia is aware of the wrongness of her impending deed, but he does not condemn her. Indeed it could be argued that Byron presents her infidelity as sweet and innocent in itself. The evidence for this can be found in the rhyming couplet at the end of stanza 105. ââ¬ËOne hand on Juanââ¬â¢s was carelessly thrown, Quite by mistake ââ¬â she thought it was her own. ââ¬Ë Clearly Julia knows the hand is Juanââ¬â¢s, but the lines are very tongue-in-cheek, and seem to be actually poking fun, very gently, at Juliaââ¬â¢s pathetic attempts to make it seem as if she isnââ¬â¢t doing what she is. Byron is amused at her mock innocence and this in turn leads us to see her actions as less brazen and more innocent than they might seem. The fact remains though, that Julia is not innocent of adultery and this is conclusively shown in the lines, ââ¬ËYet still she must have thought there was no harm, / Or else ââ¬â¢twere easy to withdraw her waist. ââ¬Ë So she is portrayed, seemingly paradoxically as a sweet and innocent, but knowing, adulterer. Don Juan, on the other hand, being only a young boy of sixteen is portrayed as completely nai ve and innocent. ââ¬ËHis young lip thanked it with a grateful kiss And then abashed at its own joy, withdrew In deep despair, lest he had done amiss. ââ¬Ë The reader knows that he is completely nai ve, having previously read of his ââ¬Ëbreeding, which was strictly moral. ââ¬Ë So it comes as no surprise then that in this, his first romantic encounter, he should be ignorant of what to do and that Byron should portray him as he does. In conclusion then, the lovers are portrayed in some ways similarly but very differently in other respects. Byron reflects his attitude to love in portraying Juan and Julia as helpless in the face of their over-riding emotions ââ¬â he describes love as ââ¬Ëstrengthening the weak and trampling the strong. ââ¬Ë This conclusion will suffice in the case of Juan but Julia is helpless in a different way. She is more worldly wise than Juan, having been married, and thus, almost certainly, sexual intercourse. She is portrayed as one caught in the middle of two pulling forces ââ¬â her own ââ¬Ëhonour, virtue, truth and love for Don Alfonso,ââ¬â¢ and her love for Juan. She knows that to display this love physically would be wrong, but she does it anyway ââ¬â ââ¬ËAnd whispering, ââ¬ËI will neââ¬â¢er consentââ¬â¢ ââ¬â consented. ââ¬Ë Byron, however, does not condemn her for her actions, because of his belief in the power of love, and he portrays her still as a virtuous and sweet young woman, despite her ââ¬Ëimmoral conductââ¬â¢. ââ¬ËA little still she strove and much repented,ââ¬â¢ at the end of the passage shows she is still a woman of integrity, rather than one of loose morals. This is how Byron portrays the individual lovers. Together, they are depicted as a beautiful couple ââ¬â ââ¬Ëhow beautiful she looked,ââ¬â¢ ââ¬â full of the initial exuberance of first love. Byron emphasizes the purity and goodness of their love over its illegitimacy in the eyes of the world and society, justifying it as much by describing its beauty as by showing why Juliaââ¬â¢s marriage with Alfonso is not pure and good in stanza 108. In this respect Byronââ¬â¢s portrayal of the lovers in this passage is a continuation of the general theme of the hypocrisy of society in ââ¬ËDon Juanââ¬â¢. Ironically, Byron shows us, Juliaââ¬â¢s legitimate marriage is un-natural and not really that good, whereas her illegal relationship with Juan is described with beautiful poetry, and is clearly more natural and proper than that of the former.
Saturday, January 11, 2020
Call Center Manager
The BCG matrix method is based on the product life cycle theory that can be used to determine what priorities should be given in the product portfolio of a business unit. To ensure long-term value creation, a company should have a portfolio of products that contains both high-growth products in need of cash inputs and low-growth products that generate a lot of cash. It has 2 dimensions: market share and market growth. The basic idea behind it is that the bigger the market share a product has or the faster the product's market grows, the better it is for the company. Placing products in the BCG matrix results in 4 categories in a portfolio of a company: â⬠¢ Cash Cow ââ¬â a business unit that has a large market share in a mature, slow growing industry. Cash cows require little investment and generate cash that can be used to invest in other business units. â⬠¢ Star ââ¬â a business unit that has a large market share in a fast growing industry. Stars may generate cash, but because the market is growing rapidly they require investment to maintain their lead. If successful, a star will become a cash cow when its industry matures. Question Mark (or Problem Child) ââ¬â a business unit that has a small market share in a high growth market. These business units require resources to grow market share, but whether they will succeed and become stars is unknown. â⬠¢ Dog ââ¬â a business unit that has a small market share in a mature industry. A dog may not require substantial cash, but it ties up capital that could better be deployed elsewhere. Unless a dog has some other strategic purpose, it should be liquidated if there is little prospect for it to gain market share. pic] Some limitations of the Boston Consulting Group Matrix include: â⬠¢ High market share is not the only success factor â⬠¢ Market growth is not the only indicator for attractiveness of a market â⬠¢ Sometimes Dogs can earn even more cash as Cash Cows The BCG Matrix method can help understand a frequently made strategy mistake: having a one-size-fits-all-approach to strategy, such as a generic growth target (9 percent per year) or a generic return on capital of say 9. % for an entire corporation. In such a scenario: A. Cash Cows Business Units will beat their profit target easily; their management have an easy job and are often praised anyhow. Even worse, they are often allowed to reinvest substantial cash amounts in their businesses which are mature and not growing anymore. B. Dogs Business Units fight an impossible battle and, even worse, investments are made now and then in hopeless attempts to ââ¬Ëturn the business around'. C. As a result (all) Question Marks and Stars Business Units get mediocre size investment funds. In this way they are unable to ever become cash cows. These inadequate invested sums of money are a waste of money. Either these SBUs should receive enough investment funds to enable them to achieve a real market dominance and become a cash cow (or star), or otherwise companies are advised to disinvest and try to get whatever possible cash out of the question marks that were not selected.
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