The Services Sector Marketing Essay Example | Topics and Well Written Essays - 3250 words

The Services Sector Marketing - Essay Example This will be important for the bank to win a larger client base by getting new clients and also maintaining its current clients. The HSBC bank is a major bank in the UK and has more assets than the rest of the banks. This aspect makes it less risky as compared to the other banks and it is able to pay for all the costs it incurs in the day to day running of the business. The service sector is also very important to the economic wellbeing of a country as it contributes a considerable amount to the GNP. The essay will therefore seek to impart knowledge about the services sector marketing. It will also explain about the gaps model and its usefulness in improving the effectiveness of marketing. This model was developed by authors and was based on the quality of service. The model was made based on the perceptions of the consumers towards the quality of service. It was concluded that the service quality depended on four gaps. Some in-depth measurement scales were developed a year later. Th e perceived service quality can be said to be the difference between the expectations of the consumer and their perceptions. This will depend on the four gaps' sizes and directions with respect to the way the service quality is delivered as per the requirement of the company (Vovici Cooperation, 2009, pg 1). The gaps are grouped into an overall customer gap which is further classified into provider gaps. The provider gap has 4 gaps. Under the provider gap, gap 1 is lack of knowledge of the customers' expectation; Gap 2 is the lack of proper designs and standards; Gap 3 is the lack of delivery as per the service standards; and finally Gap 4 is the lack of matching the performance according to the promises the organization made. The provider gaps are known as internal gaps. The overall objective is to close these gaps. The model aims at connecting the internal and external customers (Vovici Cooperation, 2009, pg 1). Customer gap The factors leading to customer gap include gap 1 which is the lack of knowledge about the customers' expectations. This can be resolved through research which is aimed at finding out the needs of the customers. Various methods can be used to collect data from the people. These methods include questionnaires, observations and interviews. Through this, the organization is able to identify the various needs of the people and thus structure the services to meet these needs (Vovici Cooperation, 2009, pg 1). Research is important because the organization would otherwise have offered its services in the way they deemed fit which could have been contrary to the customers' requirements. Structuring services that are as per the customers' requirement of the customers will attract more customers and this will be to the overall benefit of the organization. In addition to this, the customers are happy to contribute or give their opinion to the way certain services should be and therefore identify with the organization. Another factor that leads to c ustomer gap is gap 2 which is the failure to select the right designs and standards for a service. Wrong designs and standards lead to the development of services which are of poor quality and do not meet the customer's needs. The customer is the center of focus and if this customer is not happy with the services he or she is being offered this is not good for the business.  

Warranties and Product Liability Essay Example | Topics and Well Written Essays - 2000 words

Warranties and Product Liability - Essay Example A warranty also comes to the fore in any contract of sale whenever such contract is subjected to any condition whereby such is not performed. The promisee therefore, has two options. He may refuse to proceed with the contract by reason of a breach of warranty or he may waive the performance of that condition. To test whether in a contract of sale there is warranty, the pertinent question is whether the buyer is an 'ignorant' buyer who relied on the seller's affirmation of fact or promise or not. If he is, there is warranty. However, in one case, there is no warranty when the purchaser is expected to have an opinion and the vendor has no special opinion (Spencer Heater Co v Abbot). In the hereinabove definition of warranty, there are 2 kinds of general warranties enumerated i.e. express warranty and implied warranty. A third one, statutory warranty has recently been added via legal enactments. From these 3 categories are engendered several other warranties which may be express or implied depending on the facts of the case. Express warranty is any affirmation of fact or any pledge by the vendor relating to the goods if the natural inclination of such affirmation or pledge is the inducement of the vendee to buy the same, and if the vendee purchases by reason of such affirmation or pledge. Thus, it is imperative that such warranty... express warranty and implied warranty. A third one, statutory warranty has recently been added via legal enactments. From these 3 categories are engendered several other warranties which may be express or implied depending on the facts of the case. Express warranty is any affirmation of fact or any pledge by the vendor relating to the goods if the natural inclination of such affirmation or pledge is the inducement of the vendee to buy the same, and if the vendee purchases by reason of such affirmation or pledge. Thus, it is Warranties 3 imperative that such warranty as derived from the language of the contract must be explicit and may take form as an affirmation, pledge or representation (Parish v Kotthoff). The Patricia Henley case whereby petitioner Henley sued Philip Morris for damages on the basis of the latter agent's misrepresentation to her that she should shift to Marlboro Lights in order to escape or diminish the risks of smoking, is one potent example of express warranty. The court ruled that the petitioner's carcinoma of the lungs was caused by her chain-smoking of Marlboro Lights and that such was induced by the (mis)representation of Philip Morris'agent that such is not only safe but desirable (Henley v Philip Morris). Another example is when the product contains these words in the label "This product is guaranteed free from defect". Implied warranty, on the other hand, doesn't involve any explicit promise rather the warranty is imposed on the seller by operation of law. The basis for such is the circumstances of the sale. Thus in each contract of sale, oral or written, it is implied or inferred that the

Marketing Planning and Strategy (Poject)1 Assignment

Marketing Planning and Strategy (Poject)1 - Assignment Example technologies apply in the teaching methodology and curriculum development that include all-time internet connectivity, online courseware (Blackboard), and online registration (PMU, 2014). PMU molds its students to become academic, social, and economic achievers. In admitting students, PMU follows the Saudi Arabian governing rules and regulation of higher education without consideration to nationality geographical origin, or religion (PMU, 2014). Under the leadership of university Deanships, PMU offers various courses and adopts the North America model that relies on the credit hour system to value such academic programs (PMU, 2014). Moreover, the university Deanships plans and executes the organization’s strategic plans through the help of the staff, sponsors, management, faculty, government, students, and nongovernmental organizations (PMU, 2014). Indeed, the organization offers scholarship to bright students in partnership with various donors. By 2012, the organization planned to admit about 5,500 students where the financial aid and the tuition fees paid by students derive financial stability and management in the university. PMU faces immense competition from public universities like King Saud University and King Abdulaziz University (4 International Colleges & Universities, 2014). In seeking to achieve its mission and vision, the university follows a defined marketing plan and strategy. Prince Mohammad bin Fahd University has a long-term vision of ensuring that the university achieves a unique and distinguished recognition of becoming a higher education institution with resultant benefits to the students, community, and administration. PMU seeks to achieve this by preparing students to become future professionals in various fields of human knowledge and its application. Moreover, the university aims at adopting new technological methodologies and innovations to pursue its objectives. Prince Mohammad bin Fahd University seeks to enhance and develop

The Services Sector Marketing Essay Example | Topics and Well Written Essays - 3250 words

The Services Sector Marketing - Essay Example This will be important for the bank to win a larger client base by getting new clients and also maintaining its current clients. The HSBC bank is a major bank in the UK and has more assets than the rest of the banks. This aspect makes it less risky as compared to the other banks and it is able to pay for all the costs it incurs in the day to day running of the business. The service sector is also very important to the economic wellbeing of a country as it contributes a considerable amount to the GNP. The essay will therefore seek to impart knowledge about the services sector marketing. It will also explain about the gaps model and its usefulness in improving the effectiveness of marketing. This model was developed by authors and was based on the quality of service. The model was made based on the perceptions of the consumers towards the quality of service. It was concluded that the service quality depended on four gaps. Some in-depth measurement scales were developed a year later. Th e perceived service quality can be said to be the difference between the expectations of the consumer and their perceptions. This will depend on the four gaps' sizes and directions with respect to the way the service quality is delivered as per the requirement of the company (Vovici Cooperation, 2009, pg 1). The gaps are grouped into an overall customer gap which is further classified into provider gaps. The provider gap has 4 gaps. Under the provider gap, gap 1 is lack of knowledge of the customers' expectation; Gap 2 is the lack of proper designs and standards; Gap 3 is the lack of delivery as per the service standards; and finally Gap 4 is the lack of matching the performance according to the promises the organization made. The provider gaps are known as internal gaps. The overall objective is to close these gaps. The model aims at connecting the internal and external customers (Vovici Cooperation, 2009, pg 1). Customer gap The factors leading to customer gap include gap 1 which is the lack of knowledge about the customers' expectations. This can be resolved through research which is aimed at finding out the needs of the customers. Various methods can be used to collect data from the people. These methods include questionnaires, observations and interviews. Through this, the organization is able to identify the various needs of the people and thus structure the services to meet these needs (Vovici Cooperation, 2009, pg 1). Research is important because the organization would otherwise have offered its services in the way they deemed fit which could have been contrary to the customers' requirements. Structuring services that are as per the customers' requirement of the customers will attract more customers and this will be to the overall benefit of the organization. In addition to this, the customers are happy to contribute or give their opinion to the way certain services should be and therefore identify with the organization. Another factor that leads to c ustomer gap is gap 2 which is the failure to select the right designs and standards for a service. Wrong designs and standards lead to the development of services which are of poor quality and do not meet the customer's needs. The customer is the center of focus and if this customer is not happy with the services he or she is being offered this is not good for the business.  

Marketing Planning and Strategy (Poject)1 Assignment

Marketing Planning and Strategy (Poject)1 - Assignment Example technologies apply in the teaching methodology and curriculum development that include all-time internet connectivity, online courseware (Blackboard), and online registration (PMU, 2014). PMU molds its students to become academic, social, and economic achievers. In admitting students, PMU follows the Saudi Arabian governing rules and regulation of higher education without consideration to nationality geographical origin, or religion (PMU, 2014). Under the leadership of university Deanships, PMU offers various courses and adopts the North America model that relies on the credit hour system to value such academic programs (PMU, 2014). Moreover, the university Deanships plans and executes the organization’s strategic plans through the help of the staff, sponsors, management, faculty, government, students, and nongovernmental organizations (PMU, 2014). Indeed, the organization offers scholarship to bright students in partnership with various donors. By 2012, the organization planned to admit about 5,500 students where the financial aid and the tuition fees paid by students derive financial stability and management in the university. PMU faces immense competition from public universities like King Saud University and King Abdulaziz University (4 International Colleges & Universities, 2014). In seeking to achieve its mission and vision, the university follows a defined marketing plan and strategy. Prince Mohammad bin Fahd University has a long-term vision of ensuring that the university achieves a unique and distinguished recognition of becoming a higher education institution with resultant benefits to the students, community, and administration. PMU seeks to achieve this by preparing students to become future professionals in various fields of human knowledge and its application. Moreover, the university aims at adopting new technological methodologies and innovations to pursue its objectives. Prince Mohammad bin Fahd University seeks to enhance and develop

Aging and Disability Worksheet Essay Example for Free

Aging and Disability Worksheet Essay Part I Identify 2 or 3 issues faced by the aging population. 1.Employment discrimination 2. Poverty 3. Inadequate care Answer the following questions in 100 to 200 words each. Provide citations for all the sources you use. †¢What is ageism? How does ageism influence the presence of diversity in society? According to Schaefer (2012), ageism is a term which refers to prejudice and discrimination against the elderly. â€Å"Ageism reflects a deep uneasiness among young and middle-aged people about growing old† (Schaefer, 2012, p. 395). Our society looks to youthfulness as successfulness; therefore, the elderly threaten those who want to be young and successful; thus influencing diversity in society. The elderly are seen as unessential, unneeded, and a constant reminder we one day will be old as well. So we shy away from associating with the elderly; so we do not have a constant reminder of our own ageing and immortality. Reference: Schaefer, R. T. (2012). Racial and ethnic groups (13th ed.). Upper Saddle River, NJ: Pearson Prentice Hall. †¢What is the Age Discriminitation in Employment Act (ADEA)? How does the ADEA address issues for the aging population? â€Å"The federal Age Discrimination in Employment Act (ADEA) which went into effect in 1968, was passed to protect workers 40 years of age or older from being fired because of their age and replaced with younger workers who  presumably would receive lower salaries† (Schaefer, 2012, p. 396). The ADEA provides a resource when there are suspicions of age discrimination in the workplace when it comes to hiring or not promoting or training ageing workers. Reference: Schaefer, R. T. (2012). Racial and ethnic groups (13th ed.). Upper Saddle River, NJ: Pearson Prentice Hall. †¢What is being done to address the issues you identified? Many companies have been taken to court and charged with violating the ADEA. â€Å"According to the Equal Employment Opportunity Commission, between 1999 and 2004, complaints of age discrimination rose more than 41 percent† (Schaefer, 2012, p. 396). Some studies suggest older workers are more of an asset to their employers, are absent less often and are more effective salespeople than their younger co-workers; therefore, diminishing the stereotype of the older employee is a less valuable employee. Reference: Schaefer, R. T. (2012). Racial and ethnic groups (13th ed.). Upper Saddle River, NJ: Pearson Prentice Hall. †¢Is the number of aging population expected to rise in numbers or decrease? The aging population is expected to increase significantly will into the twenty-first century. With the decline in mortality rates and the baby boomer generation aging the â€Å"proportion over age 65 increases from less than on in 10 in 1960 to almost one in four by 2050† (Schaefer, 2012, p. 395) Reference: Schaefer, R. T. (2012). Racial and ethnic groups (13th ed.). Upper Saddle River, NJ: Pearson Prentice Hall. †¢What types of legislation may or may not be affected by the aging population? The ADEA is one type of legislation which has affected the aging population;  ensuring they have recourse if discriminated against in the workplace. Today the Affordable Care Act will affect the aging population; however, to what extent is still uncertain at this time. Legislation which concerns pension provisions is another area which will directly affect the ageing population. Reference: Schaefer, R. T. (2012). Racial and ethnic groups (13th ed.). Upper Saddle River, NJ: Pearson Prentice Hall. †¢How does poverty affect the aging population? â€Å"The aged who are most likely to experience poverty are the same people more likely to be poor earlier in their lives; female-headed households and racial and ethnic minorities. Although overall the aged are doing well economical, poverty remains a particularly difficult problem for the thousands of older adults who are impoverished annually by paying for long-term medical care† (Schaefer, 2012, p. 397). Will the Affordable Care Act ease the burden faced by the elderly who are impoverished by debilitating long-term diseases? Reference: Schaefer, R. T. (2012). Racial and ethnic groups (13th ed.). Upper Saddle River, NJ: Pearson Prentice Hall Part II Answer the following questions in 100 to 200 words each. Provide citations for all the sources you use. †¢What does the ADA provide for people with disabilities? The ADA â€Å"prohibits bias in employment, transportation, public accommodations, and telecommunications against people with disabilities† (Schaefer, 2012, p. 401). The ADA is considered the most sweeping antidiscrimination legislation since the Civil Rights Act of 1964; thus, ensuring people with disabilities are no longer discriminated against. Reference: Schaefer, R. T. (2012). Racial and ethnic groups (13th ed.). Upper Saddle River, NJ: Pearson Prentice Hall †¢How have people with disabilities been treated in the past? People with disabilities have been discriminated against in the past, unable to easily use public transportation, unable to easily enter public buildings, and basically treated as second class citizens. The Americans with Disabilities Act was enacted to level the playing field so to speak. Making the once inaccessible areas or participating life activities easier for them to maneuver. Reference: Schaefer, R. T. (2012). Racial and ethnic groups (13th ed.). Upper Saddle River, NJ: Pearson Prentice Hall †¢How has the attitude toward people with disabilities changed over time? Attitudes towards people with disabilities have changes significantly over time. Those who were once shipped off to intuitions are now productive members of society. Many groups across the United States sprang up utilizing this demographic in meaningful employment positions. In my community we have a group who work with the disabled from collecting sensitive materials for shredding, managing thrift shops, to years ago sewing the scarfs Elvis Presley used while preforming. Today the opportunities for those with disabilities have come a long way; however, the fight is not over, there is still more work to be done to ensure equality for all. Reference: Schaefer, R. T. (2012). Racial and ethnic groups (13th ed.). Upper Saddle River, NJ: Pearson Prentice Hall †¢What are some unique circumstances or issues encountered by people with disabilities? There are numerous circumstances or issues encountered by people with disabilities daily. The sheer task of accomplishing anything seems  insurmountable. Those with physical disabilities must depend on the help of others to simply exist let alone pursue a meaningful life. Public transportation can be difficult; sidewalks were not always wheelchair friendly, handicapped parking was non-existent which makes it extremely difficult to live. What about the being looked at as abnormal, those with disabilities must endure tremendous amounts of awkward moments daily from those who are not disabled. †¢What is being done to address those issues? The ADA has brought awareness to the plight of those with both mental and physical disabilities by ensuring there is no discrimination against this group. However I believe awareness is another step to address the prejudice and discrimination against people with disabilities. We must be able to look past a person’s disabilities to see the true person they are, and not label them for their disability. †¢What types of legislation have been introduced to address issues faced by people with disabilities? The American’s with Disabilities Act is the most notable legislation address issues faced by people with disabilities. What type of legislation will the future hold? I believe the ADA has address all the concerns for this demographic; however, in the future there may be some revisions to the interpretation of the legislation ensuring everyone with disabilities is serviced fully.

Morgan Motor Company Case Study

Morgan Motor Company Case Study Automobile industry has a long history, since 19th century it has been continuously developed. The auto industry is often thought of as one of the most global of all industries. Its products have spread around the world, and it is dominated by a small number of companies with worldwide recognition. In this assignment I am going to discuss Morgan Motor companys strategic position which includes: marketing position, culture of the company, competitiveness and the future development. Profile of the Company The Morgan Motor Company is unique in building cars in England since 1909 and still being privately owned by the Morgan family. Indeed in its 100-year existence only three Morgans have headed the company. Since the first four-wheeled car in 1936 the factory has only built sports cars. The traditional Morgan is still being built using the separate steel chassis, with an ash body frame panelled in aluminium, but using excellent modern drive trains from Ford. This combines the pleasure of driving a real classic with a modern day performance and new car reliability. The launch of the all new Morgan Aero 8 in 2001 was the first all new Model since 1936. It was also an all aluminium super car incorporating the very best of British race car chassis technology in a stunning road car. Powered by a BMW 4.4 V8 the Aeros bonded aluminium chassis followed the Morgan tradition of great strength yet lightweight. Built alongside the traditional cars, the Aero 8 is proving its outstanding competence to a new breed of Morgan owners. The product market mission Morgan is unique in a car industry. They consistently keep making the hand- made and ash-framed cars. They dont have as much customers as other car companies and its niche market is relatively small than others. Their output is also small in comparison with other car brands. Morgan is not trying to change its cars to more modern cars and to increase its production number, this is what gives Morgan its uniqueness. If they start producing more modern cars and increase its output they may loos its uniqueness. This does not mean that Morgan is consistently using the same technology of producing cars as they used to, they are continually improving the quality. Morgan is a niche operator and it does not compete with others. If they moderate their production with increasing the output and produce more modern cars they will face the competition with other car manufacturers. They are always staying at the position they are now and keeping the same strategy, if they keep doing this they will n ot have many competitors in the market. There are number of approaches to understand the product market mission in deep. I will discuss some of them below. Porters Generic Strategy Porter (1980, 1985) suggested that some of the most basic choices faced by companies are essentially the scope of the markets that the company would serve and how the company would compete in the selected markets. Competitive strategies focus on ways in which a company can achieve the most advantageous position that it possibly can in its industry (Pearson, 1999). According to Porter, there are three generic strategies that a company can undertake to attain competitive advantage: cost leadership, differentiation, and focus. Focus Companies that use Focus strategies concentrate on particular niche markets and, by understanding the dynamics of that market and the unique needs of customers within it, develop uniquely low cost or well-specified products for the market. In Porters Generic Strategy model Morgan Motors can be placed in differentiation focus, because Morgan cars price is quite high so it can not follow the cost leadership strategy, they are not selling their product in a standard market price. Morgan do deliver high quality product and service, their cars are unique in car industry market, as already mentioned above, Morgan is the oldest hand-made car manufacturer. The company concentrates on a particular niche market and is different from other mass production car manufacturers. Parnells Idea Parnell suggested that valuable resource is more important for the company than cost leadership and differentiation. He believed that valuable resources could help the company to achieve more success. He said that if company can have inimitable, rare and valuable resources it could help the company to gain the competitive advantage. Organizations possessing rare, valuable and inimitable resources possess a greater capability to perform a strong value proposition than those without such resources (Parnell, 2006) In case of Morgan the idea of Parnell can be aplicable because Morgan uses valuable resources and they are inimitable. What are their valuable resources and what makes them to be inimitable will be discused after. Strategy Clock The strategy clock is another appropriate way to analyze a companys competitive position to cost or differentiation advantages (Bowman Faulkner, 1996). The strategy clock uses differentiation and focused differentiation in a similar manner to that of the generic strategy model. As it is already explained above in Porters Generic Strategy Morgan Motors in Strategy Clock takes the same place which is the focused differentiation. Morgan Motors product price is high and the market niche is relatively small it concentrates on particular niche market. Customers perceived value is also high. Strategy Cube A model that allows the discussion of competitive strategy from both market and resource perspectives has been described by Jenkins (2004). A framework is proposed in which products/services are described by three variables: Relative level of consumer perceived product benefits Relative product price to the customer Relative product cost to the producer If we compare the cube with porters generic strategy and strategy clock point A in the cube is similar to Differentiation Focus in above mentioned models, which means that the companies which are placed in this point has got high price, high benefits, particular market niche. The point E is similar to Cost Focus in Porters generic strategy and it is similar to 1 and 2 positions in strategic clock. In the case of Morgan Motors Company in this model it is positioned in a point A because of its high cost, high perceived benefits, low market niche and high price. The Cultural Web, which I will discuss below will help us to understand the Companys culture. The Cultural Web identifies six interrelated elements that help to make up what Johnson and Scholes call the paradigm the pattern or model of the work environment. By analyzing the factors in each, the companies can begin to see the bigger picture of their culture: what is working, what isnt working, and what needs to be changed. The six elements are: Stories Rituals and Routines Symbols Organizational Structure Control Systems Power Structures Company has been owned by Morgan family since it has been established. Company has about 150 employees. The managers seat together with the employees on a traditional tea break and talk with them, this is the way to know better all employees and share their thoughts. For the Company it is very important to have high skilled staff. Company is situated at the same place as it was since it has been established, most of the employees have worked for the Company for more than ten years, mainly the employees are from the same area and moreover they are from the same family. All the employees have a very close relationship with each other. All this makes the Company to have a different culture from other manufacturers. The activities and the resources of the Company Value chain analyses The value chain framework of Porter (1990) is an interdependent system or network of activities, connected by linkages. When the system is managed carefully, the linkages can be a vital source of competitive advantage (Pathania-Jain, 2001). In order to conduct the value chain analysis, the company is split into primary and support activities. The primary and secondary activities of the firm are discussed in detail below. Primary activities The primary activities (Porter, 1985) of the company include the following: Inbound logistics These are the activities concerned with receiving the materials from suppliers, storing these externally sourced materials, and handling them within the firm. Morgan is using high standard and high quality materials. Morgan always keep improving their quality and they are continuing using the aluminium and recently they bought the BMWs engine to make their cars better and faster. Operations These are the activities related to the production of products and services. Morgan cars since the Company has established are made by hand with ash-frame. This is what makes Morgan cars so special and valuable. All Morgan cars are different from each other, they are made according the taste of the customer. Comparing to other car manufacturers, to produce Morgan cars takes much longer time, but this doesnt make to shorten their customer waiting list and people are still keen to get Morgan car which can be made according to their taste. Outbound logistics These are all the activities concerned with distributing the final product and/or service to the customers. As it is already described above, because of Morgan car is made by hand, it takes much longer time than other car manufacturers. The waiting time till Morgan car is finished is between one and two years, but sometimes it takes much longer to collect the car to its final face. Morgan has only one plant, but it has dealers all over the world what makes much easier for the customers to get their car more conveniently. Marketing and sales This functional area essentially analyses the needs and wants of customers and is responsible for creating awareness among the target audience of the company about the firms products and services. Morgan Company doesnt do many marketing activities. For many people the brand still can be unknown. It is because of its low productivity, but their uniqueness and brand still brings them enough customers. It is obvious from their waiting list. Demand is much higher than supply. Service There is often a need to provide services like pre-installation or after-sales service before or after the sale of the product or service. Support activities The support activities of a company include the following: Procurement This function is responsible for purchasing the materials that are necessary for the companys operations. Human Resource Management This is a function concerned with recruiting, training, motivating and rewarding the workforce of the company. For Morgan well trained and high skilled employees are very important as it is for many Companies. As in many Companies Morgan also has the training programs to develop their employee skills. As above mentioned there are around 150 employees in Morgan Company and all of them are in a good relationship with each other. The heads of the Company is also trying to have a good relationship with each of their staff member and to share their thoughts with each other. Technology Development This is an area that is concerned with technological innovation, training and knowledge that is crucial for most companies today in order to survive. Morgan consistently is improving their product and technologies. For example: launching the Aero 8 model, and purchasing the BMWs engine to make their cars much comfortable and faster. Firm Infrastructure This includes planning and control systems, such as finance, accounting, and corporate strategy etc. (Lynch, 2003). The value chain should be analysed with the core competence of the company at its very heart (Macmillan et al, 2003). Resource Based View The resource-based view theory is based on the assumption that a competitive advantage is the result of optimal resource allocation and combination in imperfect markets. Resources are assets, skills, and capabilities. The resources leading to competitive advantages have to be scarce, valuable, non substitutable and it has to be hard to imitate them (Barney, 1991). In case of Morgan, the resources they are using are very special, high quality and valuable. They pay very big attention of the quality they are producing, using high quality materials to produce cars. The Morgan car has always been built around an ash-frame, and a steel chassis. The new Aero 8 also has an ash frame. This gives unique strength, flexibility and surprisingly, research showed that the frame made the car safer on impact tests. There are approx 50,000 colours to choose from. There are many things that makes Morgan cars so special. Its uniqueness in a world of look-alike cars. Its handmade quality the use of wood in many areas of construction long standingÂÂ   hands-on craftsmanship displayed in the bodywork and interior by the highly skilled workforce. Ability to tailor a model to the customers exact requirements. Most of the components of Morgan cars are made in-house. All this gives to Morgan to be inimitable. VRIO Analyses Given that almost anything a firm possesses can be considered a resource or capability how should you attempt to narrow down the ones that explain why firm performance differs? In order to lead to a sustainable competitive advantage a resource or capability should be Valuable, Rare, Inimitable, and Organized. Value: Rarity: Materials (Ash tree) 1. Limited edition Reputation 2. Rare materials Craft skill 3. Design High experienced workers 4. Unique cars 5. Choice of colour Inimitable: Organization: Skilled workers 1. Strategy Design 2. Tea break Materials 3. Friendly atmosphere Brand name The competitive context of the Company Five Forces The ideas and models which emerged during the period from 1979 to the mid-1980s (Porter, 1998) were based on the idea that competitive advantage came from the ability to earn a return on investment that was better than the average for the industry sector (Thurlby, 1998). The original competitive forces model, as proposed by Porter (1998), identified five forces which would impact on an organizations behaviour in a competitive market. These include the following: The rivalry between existing sellers in the market. The power exerted by the customers in the market. The impact of the suppliers on the sellers. The potential threat of new sellers entering the market. The threat of substitute products becoming available in the market. Understanding the nature of each of these forces gives organizations the necessary insights to enable them to formulate the appropriate strategies to be successful in their market (Thurlby, 1998). Force 1: The Degree of Rivalry. Force 2: The Threat of Entry. Force 3: The Threat of Substitutes. Force 4: Buyer Power. Force 5: Supplier Power. The rivalry in global automotive industry is very intense. However in the case of Morgan Motors, the Company is very unique and only the one in automotive industry with its old fashioned hand made cars. Morgan doesnt have competitors and there is no rivalry between Morgan Motors and other car manufacturers. There is no substitute of Morgan cars. The threat of substitutes to the automotive industry is quite mild, numerous of other car manufacturers are competing with each other in the global car industry, but none of them offer the same kind of cars as Morgan does. None of them can offer to customers the hand- made, with an ash body frame panelled in aluminium, the classic old fashioned and herewith modern car, which can be made with the taste of customer. Entry barriers exist whenever it is difficult or not economically feasible for an outsider to replicate the incumbents position (Porter, 1980b; Sanderson, 1998). In the case of Morgan as I have already mentioned before it has a long history with its unique production, the Company has already obtained a solid position on the market and from my point of view it will be hard and not feasible for new entrants to replicate them. PESTEL Analyses PESTEL Analyses help organizations to analyse factors such as tax changes, new laws, trade barriers, demographic change and government policy changes. PESTEL stands for: Political, Economic, Social, Technological, Environmental, and Legal. PESTEL analysis is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations (Kotler, 1998). PESTEL analyses also ensures that companys performance is aligned positively with the powerful forces of change that are affecting business environment (Porter, 1985). Typical PESTEL factors to consider include: (P)olitical e.g. international trade, taxation policy (E)conomic e.g. interest rates, exchange rates, national income, inflation, unemployment (S)ocial e.g. ageing population, attitudes to work, income distribution (T)echnological e.g. innovation, new product development, rate of technological obsolescence (E)nvironmental e.g. global warming, environmental issues (L)egal e.g. competition law, health and safety, employment law Applying PESTEL to Morgan Motors Political: Political decisions can impact on many vital areas for business, but in case of Morgan the political factor does not impact on the companys environment. Question 2 Product Life Cycle The typical Product Life Cycle consists of five main aspects. Product development Introduction Growth Maturity Decline The Product Life Cycle begins with product development, during which time the firm devises and creates a new product (Kotler and Armstrong, 2004). The introduction of a new product onto the market is typically characterised by very slow sales, which may grow only very slightly over a long period of time. (Porter, 1980; 1985; Kotler et al., 1996; Blackwell et al., 2001; Grant, 2002; Kotler and Armstrong, 2004). The growth stage in the PLC typically involves a rapid growth in sales as early adopters replace pioneers as the main consumer group.ÂÂ   The maturity stage in the PLC is a key point for a firm because it marks the turning point in the products success.ÂÂ  Morgan Motor Company in Product Life Cycle takes Maturity stage.