Strategic Planning Model Case Study: Apple

Strategic Planning Model Case Study: Apple The computer industry is mainly taken by many companies and among these there are some of the most competitive ones, namely, Microsoft, Apple, Dell amongst others. Apple Corporation was founded in 1976 in a garage in Santa Clara, California. The two founders of Apple, namely, Steve Wozniak and Steve Jobs who were drop outs of college wanted at that time to provide computer users with something new and user-friendly to the market. The two Steves work together to produce some of the famous computers at times, namely the Apple 1, then after its launch, they came up with the Apple II, then Apple III. During their computer era, Steve Jobs and Wozniak came up with the computer called Lisa in 1983, Apple continued to its revolution in the computer world during the 1980s .In 1983, Steve Wozniak left the company and John Scully was hired by Steve Jobs as the President of the company. Apple continued to innovate and brought into the market new products, such as the Macintosh with the Graphic user interface (GUI) in 1984. In 1985, Steve Jobs left the company and John Scully was appointed as the new CEO. By the late 1980s, Apple faced big competitions from Microsoft, Which made Apples share to decrease drastically and forced John Scully out. In 1997, Gilbert Amelio was appointed as the new CEO and under his management, Apple, bought NextStep, and with its operating system, Apple made huge improvement and got back on the track. Steve Jobs was taken back in Apple in 1996, when the deal was officialised to buy NextStep Company. Jobs was reappointed as the current CEO when shareholders lost confidence in Mr Amelio. Jobs brought back many changes in Apple which has change its future in the company. Some examples are, In 2000, Apple presented the ibook, iMac and came up with the Ipod 2003 and lately, the iPhone was launched followed by the Mac book in 2009 and in 2010, the iPad was created. Apple is an American multinational corporation that designs and manufactures consumer electronics, computers software, personal computers. The companys best known hardware products include the Macintosh computers, the ipod, the iphone and the ipad. Apple software includes the Mac OSX operating system, the itunes media browser amongst others. Apple operates in around 284 retail stores and has an online store where, hardware and software products are sold. In 2010, Apple was recognised as the most technological company in the world. MISSION AND VISION STATEMENT Apple[1] Apples motto, Think Differently, is a concept that the company is doing very well by constantly innovating that continues to define the world of computer design. Other computer manufacturers have attempted for decades to replicate the icon classic appeal of Apple design, but none have succeeded in the manner of Apple. Apple mission is to produce high quality, low cost, easy to use products that incorporate high technology for the individual. We are proving that high technology does not have to be intimidating for the non computer experts METHODOLOGY The authors primary research was done by attending a series of Strategic Planning and implementation, which were given by Mr Bruno Alba, lecturer, London School of Management and Science The secondary research has been undertaken in order to gain extensive knowledge, from range of publications and news papers and by facts available on the internet. CHAPTER 1 STRATEGIC PLANNING MODEL FOR APPLE-IPAD The relative importance of a strategic plan for APPLE Corporation. The general idea of the strategic planning is based on the strategy development processes which are described below: 1. Intended Strategy Development: The intended strategy development comprises of some tool or frameworks that are being used by the managers of an organisation for the formulation of strategic analysis and evaluation and these factors are being used as well by managers for strategic planning purposes. 2. Strategic Planning Systems A strategic plan is set out to develop or coordinate the organisations strategy. According to some studies conducted by Rob Grant, the strategic planning is done in accordance to some process which is as follows: 2.1 Initial guidelines The strategic plan will depend upon some guidelines about the external environment. 2.2 Business level Planning This is where the business units or divisions draw up strategic plans to present to the corporate centre who will in turn discuss with the business managers and then decisions will be agreed at a certain point in time. 2.3 Corporate planning level The corporate plan will be the aggregation of the business plans. This coordination may be undertaken by a corporate planning department and then the corporate board will approve the corporate plan. 2.4 Financial and strategic targets These are aspects about the basis for performance monitoring of businesses key strategic priorities based on the plan. (Gerry Johnson et al.., 2009) Apple has come up with many new products during its existence and is continuing to innovate within the computer and technology industry. The ipad is the latest product that Apple has launched and it has done this to sustain growth and keep pace with the innovation world. Therefore, we can deduce, that the Ipad is part of the technology push, i.e, Apple, launching the product and partly, market pull whereby, launching a product according to market demand. The strategy for Apple was firstly, to be able to bring a new product, which was the new version of the product iphone in order to attain customers needs specifically the businessmen and journalists. However, there is an open demand, for the students and retired workers. Apples main competitor such as Amazon.com has brought into the market, the Kindle, with which now users can buy and access online books for reading instead of buying them physically. On the other hand, the strategy of Apple was to adapt the same concept of Amazon and use it in a different way to create another version which was the ibooks and which led Apple to create as well its online bookstore. THE IPAD hero_20100430[1] The iPad is regarded as a high value product that Apple is offering to their users. Apple vision was to win over the market of Smartphones users and laptops. The ipad, is a tablet computer, designed and made by Apple for internet browsing, media consumption, gaming and light content creation amongst many others. The ipad was launched in April 2010 and has the option of using the WIFI system of 3G date connection to browse the internet, load and stream media amongst many others. Apple developed the ipad with an improved functionality of the iphone. It also come with several applications such as the safari, mail, photos, video, you tube, ipods and itunes amongst many others. (http://apple-listing.com, http://enwikipedia.org/wiki/ipad) Below are some pictures of the latest IPADS: 220px-Steve_Jobs_with_the_Apple_iPad_no_logo[1] 220px-Apple_iPad_Event02[1] CHAPTER 2 CRITICAL SUCCESS FACTORS OF APPLE APPLE SUCCESSFUL FACTOR The critical success factors are those factors which determine the success or failure of a company. According to Steve Jobs the CEO of Apple Inc, the company needs nine success factors out of which six are already in place as felt by the company that is what they already mastered and the other three as what they are still working on. Mastered Factors Concept. Apples is selling billions of dollars of product and theyre extending into the digital hub. New Product Pipeline. Apple is an innovative company. They have over 2,000 employees in their engineering groups who work towards developing high quality new products such as the ipods, iphone and now the ipad. Financing. Apple has the necessary financing with over $4 billion in the bank to carry out their operations. Marketing/Brand Names. Apple spends hundred million a year on advertising and has one of the most recognizable name brands in the world. Supply Chain Management. Apple is one of the best companies in the world at supply chain management and logistics, and they know how to extend into retail. Their retail stores are viewed as extra warehouses in the current system, so there is one supply chain group for the whole company. Information Systems. Apple has already built an IS system for its stores on top of its global ISP system. (www.apple.com) Less Experience factors However, there were three success factors at which Apple had no or less previous experience: real estate, store design, and store operation. Regarding real estate, Apple knew that the old adage of location, location, location was on target and the company realized that destination locations such as Best Buy and Office Depot wont work for the 95% of non-Mac computer users. Theyve got to ambush that 95% by being where theyre already at, by locating in high-traffic gathering places, such as malls, hip streets, and the new lifestyle centres, such as coffee shops, Jobs said. Were going to put our Apple stores in top tier locations. As for Store Design, Apple wanted a concept that would fit the needs of its customers and would showcase its products, but which would also be flexible enough for change and growth. To come up with the best concept, Apple actually built a prototype in a Warehouse. The result, according to Jobs is a solutions-focused store. When it comes to Store Operations, Apple realized it had to deliver a fantastic experience, the CEO said. That meant the right stores at the right place with great merchandise, incredible employees, and operational excellence, according to Ron Johnson, Apples new senior vice president of retailing. (www.apple.com) CHAPTER 3 ANALYSIS OF THE ORGANISATION AND ITS EXTERNAL ENVIRONMENT Strategic planning is an important factor in determining success and many methods can be used, such as the SWOT analysis, the PESTEL analysis, and the STEER analysis amongst many others. Some of the external factors will be discussed this chapter, Our analysis is based on the Porters Five forces and SWOT analysis. The SWOT analysis will determine the strength, weaknesses, opportunities and threats of APPLE. Firstly, some of the strengths of Apple are: Apple is one of the oldest hardware manufacturers and this give Apple a competitive edge over its competitors. It has control over the product it is making and their quality is optimum. It has products such as the iphones, ipods, laptops, which are easy to carry. It has a loyalty brand, i.e., users are still loyal to its products. Finally, Apple has a very strong RD department, which spend time and resources in the development of new and existing products. Secondly, some of the weaknesses of Apple are: Apple market share is far behind competitor Microsoft. The products are quite expensive Apple has also complaints from customers. Therefore, causing the companys reputation and image to be spoiled. Thirdly, we can look at the different opportunities of Apple which are: Apple is looking to get into new and less expensive products lines and produce quality products. It has a flexibility to its users Apples ipods products are now being used in new designed car models , therefore increasing the demand of the ipod Finally, the online sales are increasing and Apple are targeting new segments of the market. Lastly, we can look at the different threats of Apple which are: There is the pressure from competitors and the users are going for other products from other manufacturers. Technology is changing at a rapid rate thus Apple has to create products that will keep pace with the technology growth, such as the ipads. Competitors launching products such as Microsoft with vista and windows 7,all this making Apple to bring new products to sustain growth. Porter Five Forces Analysis on Apple i-pad Bargaining power of Buyers Apple is well known as an innovative company and there is a high demand for their products. Though buyers find many substitutes in the market for Apple products, they still attract to it because of the brand name and the uniqueness of its products which makes Apple a very profitable company. However regarding i-pad the buyers are somewhat more powerful. Somehow there will be alternatives for the i-pad in near future. Because of the relatively high price of the i-pad, it is a question whether the buyers will pay a premium for the brand reputation of Apple and its technology when their needs may be equally met by cheaper alternatives. Bargaining power of Suppliers Apple is mainly concentrated on design and marketing and they outsource the manufacturing of most of their products. Therefore it can be affected by the pricing of suppliers and costs because of the availability of raw materials. And also changes in minimum wage for labours can have effects on Apple. But due to the strong demand for apple products it has more power over its suppliers. Regarding i-pad even Apple outsource the parts which use to manufacture the i-pad, the software is the unique factor that brings all those parts together. Therefore the parts themselves are not that important as they as are readily available form many sources. Therefore in that case also Apple has more power over its suppliers. Threat of New Entrants Apple had many barriers to entry in the development of the i-pad but at the same time they must worry about the potential competitors like Google and Microsoft who are conquering as well. Economies of scale- As Apple already had experience in manufacturing mass market consumer electronic devices which also share components of the i-pad; Apple is not badly affected by this barrier. Product Differentiation- As the i-pad is significantly different than its competitors; overall this characteristic has positive effects on Apple. And also Apple has a certain amount of protection through the strength of its brand identity. But this product differentiation can be imitated to a certain amount by its competitors. Capital Requirement- regarding capital requirement, Apple enjoys a slight advantage. To compete with the i-pad effectively, competitors will have to invest immensely in certain areas. Cost disadvantages- Apple is able to reduce the impact of this threat as it has a number of manufacturing resources and channels available. But the new entrants may find these barriers as they have not got these resources. And also apple has invested a lot in knowledge and experience which will take time for its competitors to reach. Government policies- Apple was granted the ownership of patent for the i-phone and i-pad, which will give them, short term monopoly rights on some of its technology. It will stop their competitors imitating the product too closely. Threat of Substitutes Apple has been granted patent to the i-pad and its technology. However it is still likely that competitors in the market will soon deliver similar products. Most of the threats are going to come from the established players in the technology industry like HP and Sony and from potential competitors like Google and Microsoft. Competitive Rivalry Apple is mainly concentrated on design and marketing and is fairly vertically integrated towards customers. They do most of their business in their retail locations and on line stores. Because of this concentration on the customers and also as it is better equipped, Apple is able to compete with horizontal players like HP or Sony who are not as vertically integrated towards the consumers. It gives Apple an opportunity to create customer focused products which many of none vertically integrated players are not so good at. (http://www.csribd.com/doc/16788046/appleporters-five-force) CHAPTER 4 STRATEGIC OBJECTIVES AND OPTIONS OF APPLE STRATEGIC OBJECTIVES: Apple has a particular status; it doesnt have a listed set of objectives. All through our research, our group acknowledges that Apple always struggle to launch a new product in the market. Based on the executive overview of Apples report 2010 we can come out with a strategic objectives for their product named I pad. -To be the king of high-tech of Wall-Street -Increase their market value (get on over Microsoft), have over  £151 billion of market value. I pad is designed as a new generation of technology which to take over e-book and personal computer. That is to dethrone Microsoft at the king of high-tech By innovating in hardware which come obviously with its software, Apple compete with Microsoft who have a urge dominance on personal computer software, the launch of the Ipad announce the decline of the lap top computer. ( www.apple.com) Strategic options For an organization to have good success there is a need of having good strategic options. Strategic options are creative action-oriented responses to the external situation that an organization faces. Strategic options take advantage of facts and actors, trends, opportunities and threat of the outside world. It helps to identify and make a preliminary screening of alternative strategic options or perspectives. Strategic options for Apple iPad is to provide their clients with thorough and reliable information that may help enhance even the knowledge and skills. By doing so customers are able to page through websites, write emails, and flick through photos or watch movie, all on a big beautifully multi-touch screen. Another strategy is to have a continuous leap in technological advancements and a new or upgraded offering on average every six months. In order to have good strategies the apple company thought of what might give a continued competitive advantage and what markets should they enter and how. Which strategic options optimally fit the needs of the target group, the institutional options and aspiration of the stake holders, what supportive interventions are required to succeed in that option and threats? Apple on its product iPad focused on customer experience, they made a product which has no need of mouse, a keyboard configuration screens, and other advanced options such as touch screen. Strategic options help to make the vision into reality. SWOT analysis helps to get a better understanding of the strategic choices that company need. Strategy is the art of determining how one will win in business and life. It helps to make the most of companys strength circumvent their weaknesses, Capitalize on your opportunities and manage their threats. CONCLUSION Though Apples strategic model cannot be said, to be distinct, they are poised on taking Amazon and Microsoft head on. Their new products for example, ipad, suggests to be a real one in all product for the consumers. Apple success factors suggest that they have the ability and capability to become the market leaders. The major success factor being innovation. Behind their ability to innovate its strong research and development department. The latest product of Apple, the Ipad, however targeted on, the retired people and journalists, has received acceptance from the youth, students and the rest of the population giving Apple, a grab of the market. REFERENCES BIBLIOGRAGHY Exploring corporate strategy, 8th edition, Gerry Johnson et al.. http://www.csribd.com/doc/16788046/appleporters-five-force http://www.samples-help-org.uk/mission-statements/apple.computer-mission-statement http://apple-listing.com http://dudye.com/sneaking-intro-ipad http://enwikipedia.org/wiki/ipad http://www.apple.com

The Concert Experience and the Song as Oral Tradition :: Communication Literature Essays

The Concert Experience and the Song as Oral Tradition Before the invention of written language that enabled the creation of book technology, the spoken word was the leading edge of communication. Spoken epic poetry such as the Iliad and Odyssey, the Anglo-Saxon Beowulf, and the Sumerian Epic of Gilgamesh was the content of the speech medium. These epics were created as spoken pieces, and because listeners lacked an alphabet to commodify them (separate them from their performance), the tales had to be heard and experienced first-hand. This group experience of the spoken epic involves what authors Hobart and Schiffman term commemoration: â€Å"In the world before writing, memory is the social act of remembering† (15). The way pre-literate media (speech) shaped culture includes this commemorative act. Pre-literate cultures had no other way of storing information and memory than to relive it. They could not write something down, forget about it, and then relearn the same information at a later date by reading it, because they lacked the technology of the written alphabet necessary to do so. Of course, they had the recollecting powers of the mind alone, but as today's stories, passed from one person to the next inevitably change, so did oral communications as human recollection failed in terms of an exact repetition of the original performance. Hence, each time listeners heard a spoken account of the Iliad, it changed a bit. In terms of an exceptional pre-literate performer of the Iliad or Odyssey, Rober t Fitzgerald goes as far as to say that "He inherited a traditional art comparable in range and refinement to the art of the musical virtuoso in our day, but more creative and fluid, for in some degree it remained an art of improvisation" (484). Mnemonic devices such as rhyme and meter aided memory and kept the story on track (Hobart & Schiffman, 24), and as McLuhan would agree, can be counted as technological advances prior to the invention of alphabet because they extend language technology. An analog to the spoken epic experience is the modern-day concert experience. Both are examples of live performance. For an example, the Rolling Stones' song "Sympathy for the Devil" is more like a spoken epic than a written account of an epic. This is because song and spoken epic utilize the same medium.

Burroughs Wellcome Company Essay

In 1982, the Center for Disease Control and Prevention (CDCP) labeled the acquired immune deficiency syndrome (AIDS) and began to warn the public of the disease. In 1983 and 1984, the virus that causes AIDS was isolated and in 1988 it was named the human immunodeficiency virus (HIV). Burroughs Wellcome Company is a subsidiary of Wellcome PLC. Wellcome PLC is a pharmaceutical firm that employs 20,000 people in 18 countries. Wellcome PLC produces both ethical and over the counter medication. Zovirax, which treats herpes infections, accounted for $492 million in sales in 1989 (Kerin & Peterson, 2013). Retrovir, an AIDS treatment, was the second largest seller with $225 million in sales (Kerin & Peterson, 2013). Wellcome PLC also produces over-the-counter Actifed and Sudafed with $253 million in sales in 1989 (Kerin & Peterson, 2013). In 1981, there were 305 reported cases of AIDS, and by 1989 there were 35,198 reported cases of AIDS with numbers expected to continue to rise, although at a much slower rate (Kerin & Peterson, 2013). The majority of victims, almost 90%, were gay men or intravenous drug users, and almost one half of reported cases were in major metropolitan areas, such as San Francisco, Los Angeles, Houston, and New York. Not enough was known about the disease in the early 80’s to create a reliable way to predict its’ rate of growth. Economically, treating AIDS patients was proving to be very expensive, averaging between $70,000 and $141,000 per patient according to a 1987 study by the RAND Corporation (Kerin & Peterson, 2013). Treating some forms of cancer averaged less than half of that cost. Since the income level of many AIDS patients was low, Medicaid covered treatment costs for approximately 40% of the patients, resulting in an Burroughs Wellcome Company,   estimated annual cost to the Medicaid system of between $700 and $750 million in 1988 (Kerin & Peterson, 2013).  Several pharmaceutical companies, including Burroughs Wellcome, were in the  race to produce an effective drug to combat HIV and AIDS. Burroughs Wellcome began research in 1984, developed Retrovir and began clinical trials on humans in 1985 (Kerin & Peterson, 2013). The FDA cleared Burroughs to market Retrovir in 1987, as the first and only authorized treatment for AIDS. Bristol Myers developed a drug called DDI, which appeared to slow the progress of the AIDS virus and lessen the damage it causes (Kerin & Peterson, 2013). Hoffman-LaRoche developed a similar drug called DDC that began clinical trials in 1989 (Kerin & Peterson, 2013). As soon as Burroughs Wellcome was given the authority to market Retrovir in March of 1987, public protests began regarding the perceived high price of the drug. Wholesale price for Retrovir was set at $188 for one hundred 100-mg capsules. The recommended dosage was twelve 100-milligram capsules per day. The average annual treatment for an AIDS patients on Retrovir averaged approximately $8,528-$9,745 (Kerin & Peterson, 2013). The public, media, and advocacy groups compared the price of Retrovir to the cancer drug Interferon. The annual cost to a patient taking Interferon was only $5,000. In December of 1987, due to increased pressure, Burroughs Wellcome, reduced the price of Retrovir by 20%, and again by 20% in September of 1989 (Kerin & Peterson, 2013). The first price reduction was due to a cost savings in the production of synthetically manufactured thymidine while the second was due to an increase in potential patients. By 1989 sales had increased from $24.8 million in 1987 to $2 25.1 million (Kerin & Peterson, 2013). As postulated by industry analysts, the direct cost of research and development (R&D) for Retrovir was estimated at $50 million. Burroughs Wellcome spent an additional $30-50 million in indirect costs to establish a new plant and equipment to produce Retrovir (Kerin & Peterson, 2013). They also donated $10 million worth of Retrovir to 4,500 AIDS patients. Pharmaceutical R&D of a new drug in the US averages around $125 million, so with direct and indirect cost to develop Retrovir was on the low side. Prior to Retrovir, Burroughs Wellcome had spent a reported $726 million for R&D in  the previous five years without producing a single commercial winner (Kerin & Peterson, 2013). Retrovir was designated as an â€Å"orphan drug† in 1985 under the Orphan Drug Act of 1983. This enabled Burroughs Wellcome to gain marketing exclusivity for a sevenyear period after its initial introduction. When Burroughs Wellcome was faced with the task of pricing Retrovir they had to account for many factors. They had to consider the demand for Retrovir. Since they were developing a drug for a fairly new disease, with relatively few patients, they had no way to predict what the demand would be in the next five years. They had to recoup their cost with the known numbers of AIDS in 1987, which were still fairly low. Burroughs Wellcome had to take into account both the direct and indirect cost spent on the R&D of Retrovir that totaled approximately $100 million. With an unknown market and $100 million to recoup they had to price Retrovir fairly high at the beginning. Looming competition was another important aspect for Burroughs Wellcome. They knew other pharmaceutical compan ies were researching drugs to treat AIDS and analysts believed there would be one or more of these drugs on the market by 1991 (Kerin & Peterson, 2013). Burroughs Wellcome still had an ethical obligation to maintain fair pricing while trying to recoup their cost, as well as having an existing obligation to its employees, shareholders, and stakeholders. Most importantly however, is their responsibility to patients that rely on Burroughs Wellcome’s products for their health and well-being With an increasing number of AIDS cases, Burroughs Wellcome had a social and financial responsibility to make the drug Retrovir accessible to those who needed it, while remaining financially viable. It would be socially irresponsible to exploit people with an illness for mass profit gains. Like most other industries, the health care industry is competitive and no business is immune to failure. Because of this, Burroughs Wellcome must remain profitable in order to protect its employees and shareholders as well as to ensure that the company  can continue its research while providing the medical community with effective medicine. As previously mentioned, Burroughs had dropped the price of Retrovir twice: first on December 15, 1987 when a price drop of 20% was justified by synthetically produced thymidine and a second 20% cut due to a further expansion of HIV from 600,000 to one million estimated potential patients, at which point Burroughs’ gross profit margin (70.6%) and return on sales (20%) were comparable to other competitors in the industry (Kerin & Peterson, 2013). When pressured by outside entities about further reducing the price, Sir Alfred Shepard of the Board of Directors said, † There is no plan for another price cut† (Kerin & Peterson, 2013). As a result of this balance between sustainability, profitability, and social responsibility, it was important that Burroughs Wellcome maintained its margins and success, but continued to remain sensitive to price concerns. Furthermore, it would benefit both Burroughs and patients in need of the drug, if  insurance companies provided ade quate coverage on the drug Retrovir, as private insurance companies only covered $250 million annually compared to the $750 million covered by Medicaid (Kerin & Peterson, 2013). In January of 1990, congressional lobbyists began campaigning to reduce excessive profits in the drug industry. This set off a new round of pressure from the U.S. Congress, the media, and AIDS advocacy groups to again reduce the price of Retrovir. In 1987 sales of Retrovir were $24.8 million and net profit before tax was $8 million. Considering the $100 million dollar investment for the development, as well as new plant and equipment, the Return on Investment (ROI) was only 8%; meaning they only recovered about 8% of their initial investment for Retrovir. By fiscal year 1988 the ROI for Retrovir had increased to 52% but the initial investment had still not been recovered. In the five years prior to the sale of Retrovir, Burroughs Wellcome as a whole spent $726 million in R&D with no significant new drug.  The ROI for Retrovir was still less than the company as a whole when considering the investment in R&D. See figure 1 Figure 1 According to Industry analysts it was estimated that the cost of Retrovir was between 30 and 50 cents per capsule (Kerin & Peterson, 2013). Using 40 cents for estimates, it can be determined that in 1987 when the drug first became available for sale the return on sales (ROS) was 28%. Realistically, the cost was probably more towards  the 50 cent per capsule higher end, as producing the AZT required a biological chemical harvested from herring sperm and took months and over 20 chemical reactions to produce (Kerin & Peterson, 2013). Using the high-end estimate the ROS in 1989 was only 23.3%. This is very close to the 23.5% ROS industry average. By 1989 the price of Retrovir had been reduced by 20% twice. Burroughs Wellcome stated the first price reduction in December of 1987 was due to a synthetically manufactured Thymidine becoming available. At this time, ROS was 23.0% using the 40 cent COGS estimate. Due to public pressure for an affordable AIDS treatment Burroughs Wellcome reduced its price again by 20% in September of 1989. At the 40 cent estimated cost this reduced the ROS to16.4%. Even using the low 30 cent estimate the ROA was only 24% which was is still very comparable to the 23.5% industry average. Burroughs Wellcome overall company ROS in 1989, while they were selling Retrovir at the $1.20 price per 100mg, was only 20%, which is over 3% lower than the industry average. Continued pressure to reduce the price again is not warranted. The figures show that to reduce the price another 20% would show at best a low 18% ROS and a possible negative ROS. Comparing Burroughs Wellcome to 1989 industry average shows all their current  ratios are well within what is normal for the industry. They are not the highest or the lowest of Return on Sales, Return on Assets, or Return on Equity. Burroughs Wellcome has two choices at this point. Do not reduce the price or reduce the price. The advantage of not reducing the price is the ability to maintain their current ratios that will allow them to continue their R&D for new drugs. The disadvantage of not reducing price is dealing with the public, media, Congress, and advocacy groups that may continue to increase pressure on Burroughs Wellcome and create further negative publicity. The advantages of reducing the price would be the reduced pressure from the groups mentioned before and the claim of being ethically responsible. The disadvantage of reducing the price would be losing the current ratios. They take the chance to lose profit margin therefore lose some ability to develop new drugs. Although there is public unrest in regards to the price of Retrovir we do not recommend Burroughs Wellcome reduce the price further. Reducing the price of Retrovir without another new drug would further reduce their current ratios, which are all within industry averages. Drug companies need profits as incentive to continue their  research. Especially when there is the very real possibility of going several years without the discovery and approval of a new drug. Although, on the surface, it seems very unfair for a patient to have to spend close to $10,000 per year for treatment, it would be far worse if they didn’t have the treatment as an option at all. Drug companies such as Burroughs Wellcome would avoid trying to develop â€Å"orphan drugs† if they had no chance of recovering cost. This is why government offers subsidies, tax benefits, and grants extending patents for drugs that qualify. In 1989 there were only 35,189 reported cases of AIDS in America and due to prevention awareness and HIV treatments, AID’s numbers were leveling off. Drug companies are taking a  huge risk investing millions of dollars in cures and treatments for rare diseases. In part, the cost for â€Å"orphan drugs† is so high because so few people are consumers of them. While it would be socially conscious for Burroughs Wellcome to drop the price further, they have to remain a viable company. Profits will ensure the financial future of the company as well as all the shareholders and stakeholders of the company. Maintaining the ROI percentages will allow Burroughs to remain viable and competitive allowing them to continue to develop new drugs that may provide further benefit. If they were to drop their prices it would be benefit public relations as they put the needs of the consumers before profits, however in such a competitive environment this could prove to be to a liability in the pharmaceutical industry, therefore, it is advisable that they do not drop their price by another 20%. References Kerin, R.A & Peterson, R.A. (2003) Strategic Marketing Problems: Cases and Comments England: Pearson Education Limited

Modern Day Slavery Essay - 1039 Words

Mason Moran Mrs. Davis Government Period 9 February 14, 2013 Research Project: Human Trafficking â€Å"Modern Day Slavery† â€Å"SLAVERY was abolished 150 years ago, right? While it is true that slavery is illegal almost everywhere on earth, the fact is there are more slaves today than there ever were†¦Ã¢â‚¬  Despite the grim reality described in this quote, I believe Robert Alan successfully undermines a common misconception held by Americans, both young and old. Although we are brought up thinking that Abraham Lincoln with his Emancipation Proclamation along with the Civil War Amendments brought an end to the enemy known as slavery, in today’s society, however, that is sadly not the case. The harsh reality is that this problem never truly†¦show more content†¦Consequently, it is difficult to say where trafficking first originated. There are several arguments in circulation which speculate as to when and where trafficking first began. Some say that the slave trade, in which Africans were captured by slave traders and shipped across the Atlantic to the Americas, was the first instance of human trafficking. Others argue that the forced labor of children during the 1700’s was the real beginning of what is now known as human trafficking. As early as 1807, a law was passed by Britain which outlawed the Transatlantic Slave Trade making it the first piece of legislation against slavery. In 1820, the United States followed Great Britains example by making the slave trade a crime that was punishable by death. In June of 1921, the League of Nations held an international conference in Geneva, in which the term â€Å"white slavery† was changed to â€Å"traffic of women and children†. This was done to make sure that: the trafficking in all countries was dealt with, the victims of races other than those termed white were recognized, and that male children were also recognized as victims. During this conference, 33 countries signed the International Convention for the Suppression of the Traffic in Women and Children. In 1949, the United Nations Convention of the Traffic in Persons and the Exploitation of the Prostitution of Others was passed. This was the first convention about humanShow MoreRelatedModern Day Slavery And Slavery1992 Words   |  8 PagesModern Day Slavery Slavery has no single definition behind it because it is defined in so many different ways. It is best defined as confinement against a person s will. Slavery has existed in almost every region of the world. It dates back to before 500 BCE in Mesopotamia, Babylonia and Ancient Roman cultures. They have found records of sales, ownerships, and even rules and regulations for owning and selling slaves. Slavery has been an issue ever since civilization began. 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