Cost Control in Food and Beverage Companies

Cost Control in Food and Beverage Companies Product oriented companies create a production budget which estimates the number of units that must be manufactured to meet the sales goals. The production budget also estimates the various costs involved with manufacturing those units, including labour and material. Cash Flow/Cash budget: The cash flow budget is a prediction of future cash receipts and expenditures for a particular time period. It usually covers a period in the short term future. The cash flow budget helps the business determine when income will be sufficient to cover expenses and when the company will need to seek outside financing. Marketing budget: The marketing budget is an estimate of the funds needed for promotion, advertising, and public relations in order to market the product or service. Project budget: The project budget is a prediction of the costs associated with a particular company project. These costs include labour, materials, and other related expenses. The project budget is often broken down into specific tasks, with task budgets assigned to each. Revenue budget: The Revenue Budget consists of revenue receipts of government and the expenditure met from these revenues. Tax revenues are made up of taxes and other duties that the government levies. Expenditure budget: A budget type which include of spending data items. (Arthur Sheffrin, 2003) What is fixed cost? Fixed cost is defined as hey do not vary proportionally with volume, but rarely are they completely fixed in real sense. They might fluctuate for other reasons. (Ojugo, 1999,p349 ) Variable cost Variable cost are those cost which increase in volume with the increase in production and decrease in volume with decrease in production as material cost, labour cost, power, repair, fuel etc. variable cost changes in direct proportion to the level of production. (Gupta et al. 2007) What is cash flow statement? Cash flow statement is the financial document that projects what your business plan means in terms money. It is same as a budget. It projected statement used for internal planning and estimates how much money will flow into and out of a business during a designated period of time, usually the coming tax year. (Jinnet Pinson, 2006) Advantages of cash flow statement Cash flow statement act as an essential tools of short term financial analysis and planning. The main advantages are listed below Cash flow statement is very useful in preparing cash budget as cash is the very basis of business operations cash flow proves very useful in evaluating the cash position of the concern The projected cash flow statement helps finance manager in exploring the possibilities of repayment of long term debts which depends upon the availability of cash Cash flow statement can be used for making appraisal of various capital investment projects just to determine their liquidity and profitability. A comparison of the cash flow statement of pervious year and projected cash flow statement reveals deviations of actual from budgeted. For payment of liabilities which are likely to mature immediately, cash is more important than working capital. Cash flow statement is certainly a better tool of analysis than funds flow statement as far as short term analysis is concerned. Cash flow statement enables the management to explain why the company is facing difficulties in paying dividend while it has earned good profits. It helps in taking loans from banks and other financial institutions; the repayment capacity of the company can be understood by going through the cash flow statement. It supplements the analysis provided by funds flow statement as cash is a part of the working capital. What is costing sheet? A cost sheet is a statement of cost incurred, or to be incurred, for producing a given volume of output or for rendering services, as the case may be. Preparation of a cost sheet helps cost control and pricing decisions. (Banerjee, 2006) Cost sheet for Hospitality The standerised reciepe cost sheet is a record of the ingredient cost reqiured to produce an item sold by your operation. This standerised cost sheet can be created using any basic spreadsheet software. (Dopson, 2010) Advantages of cost sheet in hospitality New employees can be better trained. Helpful to maintain food laws. Helpful to explain about any food item to the guest. Helpful for accurate purchasing in order to gain profits out of business. Purchasing, receiving, storing and issuing Purchasing Purchasing can be defined as a function concerned with the search, selection, purchase, receipt, storage and final use of a commodity in accordance with the catering policy of the establishment. Types of purchasing Blanket Orders A Blanket Purchase Order is a type of purchase order designed to consolidate repetitive small purchases from a single supplier. It is essentially a form of open account which is limited in terms of the things which can be ordered, who can place the orders, the period for which it is to be open, and the total amount which can be ordered. This form of purchase order is useful for departments that have repetitive supply needs. Standing Order A Standing Purchase Order is purchasing method used in purchasing leases (e.g. auto, property and equipment), and equipment maintenance. Generally speaking, equipment maintenance orders are set up for one year. Standing orders for leases should be created for the term of the lease. Regular Purchase Order The Purchase Order (Regular) is the basic purchasing system for making single instance purchases. It is a contract providing for the delivery by a specific date of listed goods or services at a predetermined price. Source -www.urmc.rochester.edu Objectives of receiving, storing and issuing Receiving Quantity of an item delivered must equal the quantity ordered Quality of an item delivered must be the same as the quality ordered Price on the invoice for each item delivered should be the same as the price quoted or listed when the order was placed Storing Prevent pilferage Ensure accessibility when products are needed Preserve quality Issuing To ensure the timely release of items from inventory in the needed quantities To prevent the misuse of items between release from inventory and delivery to the required department References Banerjee, B. (2006). Cost Accounting Theory And Practice (12th ed.). New Delhi: Prentice Hall of India. Dopson, L. R. (2010). Food and Beverage Cost Control (5th ed.). Canada: John Wiley and sons, Inc. Jinnet, L. P. (2006). Small Buisness Start-Up (6th ed.). Chicago: Kalpan Publications. Ojugo, C. (1999). Food Beverage Cost Control (2nd ed.). New York: Delmar. S.P.Gupta, Ajay Sharma, Satish Ahuja. (2007). Cost Accounting (1st ed.). New Delhi: V.K. Enterprises. Sullivan, Arthur; Steven M. Sheffrin (2003), Economics: Principles in action. Upper Saddle River, New Jersey: Pearson Prentice Hall https://www.urmc.rochester.edu/purchasing/purchaseorder.cfm

Complex adaptive systems Essay

Introduction Organizations should always adapt to a changing environment. The business environment is characterized by a number of changes which are a result of many factors, both external and internal. Nature is continuously changing and adapting. According to the complex adaptive systems theory, organizations must keep on revising their goals to come up with something new. This can be done through testing new ways of doing things, as dictated by the changes in the society. The theory asserts that natural variations create confusion and chaos, and ensure long-term survival. In addition to this, some of these variations are useless to nature. The study of the relationship between chaos, adaptability and survival is very important for all organizations (Holland, 1992). For our case Company, Costco, the managers must understand how the natural world influences business strategy. The managers ought to take into consideration that only a few of the natural variations succeed. This has a serious implication on leadership and innovation at Costco. To be strategically placed in the retail industry, Costco ought to understand that there is a need to test survival strategies to identify the most adaptive innovation. Innovation is all about coming with something new, but it is greatly influenced by adaptive systems. A study of complex adaptive systems will help Costco understand how natural systems interact, survive and adapt over time. This way, Costco can up with a strategy that can remain relevant even when natural systems change. The company should understand that boundaries cannot be imposed from outside. For Costco these boundaries are management hierarchies, division offices, departments, and so forth. For the complex adaptive systems to function fully there ought to be continuous feedback. The feedback can be positive or negative (Lansing, 2003). Costco must understand that positive feedback will elevate their outputs while negative one will lower their profitability. For those reason, Costco should carry out forecasts to understand the future. References Lansing, J. S. (2003). Complex adaptive systems. Annual review of anthropology, 183-204. Â   Holland, J. H. (1992). Complex adaptive systems. Daedalus, 17-30.

The Sorrow of War Essay - 1244 Words

The Sorrow of War Bao Ninh’s The Sorrow of War is a novel that is a personal view of the Vietnam War from the perspective of a Vietnamese soldier. Like the American novel â€Å"The things they carried†, this novel brings about the effects of war on people, and especially how it defeats the human capacity for things such as love and hope. Bao Ninh offers this realistic picture of the Vietnam War’s impact on the individual Vietnamese soldier through use of a series of reminiscences or flashbacks, jumping backwards and forwards in time between the events most salient in memory, events which take on a different theme each time they are examined. His main protagonist Kien, who is basically Bao himself, looks back not just at his ten years at†¦show more content†¦Along with not seeing the bigger picture soldiers lost their ordinary lives due to the war and the contrast was so different between pre and post war that it was hard to cope with life for the men fighting in the war. â€Å"For Kien, the most attractive, persistent echo of the past is the whisper of ordinary life, even though the sounds of ordinary life have been washed away by the long storms of war. It is the whispers of friends and ordinary people that are the most horrifying.†(63) The strongest emotions occur as the story unfolds and life takes over from childhood fantasies, destroying individuals and their families as a whole society is remade for instance Kien’s sweetheart before the war. Kien abandons his lover and instead spends the next years plodding through the jungle where everything dies. no jungle grew again in this clearing. No grass, no plants (26). He had no true friends and he learned not to fear death but rather wish it. When war ends he has a struggle to rebuild that was once loss, he can no longer see the good of things while he slowly goes insane with out love and hope and of course no sweetheart to aid him. A very sad and classical effect of a war that was wo rthless to its soldiers and people. The war had changed people in so many ways, as their former character of being sincere, at peace, and loving was slowly changed to chaotic, indecisive and unhopeful lives. People began to forget who they really were all due to the war, â€Å"ItShow MoreRelated The Sorrow of War Essay1313 Words   |  6 PagesIt can be hard to fully comprehend the effects the Vietnam War had on not just the veterans, but the nation as a whole. The violent battles and acts of war became all too common during the long years of the conflict. The war warped the soldiers and civilians characters and desensitized their mentalities to the cruelty seen on the battlefield. Bao Ninh and Tim O’Brien, both veterans of the war, narrate their experiences of the war and use the loss of love as a metaphor for the detrimental effectsRead MoreThe Sorrow of War: Book Review998 Words   |  4 PagesThe experience of war brings out the moralities of war and the tragedies of loss and death. Bao Ninh portrays these realizations and tragedies throughout his novel The Sorrow of War. The stories told follow the central character Kien whose story shows the moralities of war and tragedies of loss and death. Bao Ninh’s The Sorrow of War is a novel depicts the horrors that are a result of war. Kien is the main character whose life is used to depict these horrors; a soldier who’s lost all his comradesRead MoreEssay about The Sorrow of War961 Words   |  4 Pagesis the thought that goes into the title of the book, or translation in this case: The Sorrow of War. It is short and effective, if a little plain, as it exposes the main theme of the book right away while inviting the reader to see how and why. It says what it says: war is bad. War will do nothing but take away everything one knows and loves. War shows the worthless sacrifices of the noble and the virtuous. War forcibly warps human beings into inhuman beasts capable of heinous deeds much like anyRead More Bao Ninhs Sorrow of War Essay1010 Words   |  5 PagesBao Ninhs Sorrow of War When we think of the Vietnam War, we think of all the hell and torture that American soldiers went through with little regard to the Vietnamese and the hardships they endured. Reading the Sorrow of War gave me a clear understanding of the Vietnamese people and the suffering that the war caused them. The Sorrow of War is unique and powerful in the sense that it is written by a Vietnam army veteran and gives the perspective of the war from a Vietnamese soldier. It is oneRead MoreThe Sorrow Of War And The Deer Hunter1961 Words   |  8 PagesThe Sorrow of War and The Deer Hunter are a novel and a movie about the Vietnam War. The novel is written by a North Vietnamese soldier named Bao Ninh while the movie takes on the American perspective of the war. Below, there will be an analysis of the differences and similarities between the novel and the movie. For organizational purposes, the novel and then the movie will be summarized. Then, based on the summary, the similarities and difference s between the novel and the movie will be pinpointedRead MoreThe Sorrow Of War And Full Metal Jacket Essay1287 Words   |  6 PagesThe Sorrow of War and Full Metal Jacket both have one main element in common – the Vietnam War. Other than the similar time period, these two representations of the Vietnam War differ drastically. The Sorrow of War, a novel written by Bao Ninh, follows a North Vietnamese solider named Kien during his years fighting for the communist regime and documenting his hardships before, during, and after the war. Full Metal Jacket is a movie that depicts the American side of the war in Vietnam, focusing onRead MoreCharacterization In Bao Ninhs The Sorrow Of War1381 Words   |  6 Pagesmeaning of the work. Hoà  ng á º ¤u PhÆ °Ã† ¡ng is a Northern Vietnamese veteran of the Vietnam War. Under the pen name Bao Ninh, he is the author of The Sorrow Of War. In his fictional memoir, there is no chronological order and the memoir transitions from event to ev ent based on what triggers the next memories. Ninh recounts the hardships of the war and life after as a catharsis for the trauma he is inflicted during the war. As the memoir is a reflection of Ninh’s traumatized mind, Ninh utilizes an intendedRead MoreThe Character of Kien in The Sorrow of War Essay692 Words   |  3 Pagesand believed in the importance of a proper burial of the dead.nbsp; The survival and honor of the family rested on these beliefs.nbsp;nbsp;nbsp; Through the course of the war, Kien lost these values: his father was not properly respected, the dead were not appropriately buried, and were even forgotten.nbsp; After the war, the Kien spends his time struggling to return to these values and purge his soul of these sins. nbsp;nbsp;nbsp;nbsp; At the beginning of the novel, we learn that KienRead MoreSorrow Of War : The Thought That Goes Into The Title Of The Book 1121 Words   |  5 PagesSorrow of War: the thought that goes into the title of the book, or the translation in this case is what is important for anyone who is curious. It is short and efficient, if a bit simple, because it exposes the main theme of the book immediately while inviting the reader to see how and why. Survivors lucky that I cursed because they have to adapt to a society zombified by infected wounds bled past. What is curious alternative translation: The understanding of love. Labeling it a book of war in itsRead MoreVietnam War Themes in Books Wandering Souls and The Sorrow of War2283 Words   |  10 Pages Themes of a Soldier’s War The Vietnam War was hard for the country to handle, let alone a single soldier. Many soldiers dealt with different personal and physiological effects of this war. This war in Vietnam was different than any of the other wars. This war was unconventional, when we first entered it was more about the fight against the spread of communism then slowly changed over the years. Going into Vietnam was different in all senses from battle conditions, weather, and heavy jungle environment

The Yellow Wallpaper And Mrs. Dalloway - 1220 Words

In Mrs. Dalloway, Septimus, a supporting character struggles with a mental illness that is most likely Post-Traumatic Stress Disorder. Similarly, in The Yellow Wallpaper, the narrator also struggles with a mental illness which could be related to postpartum depression. Charlotte Perkins Gilman, author of The Yellow Wallpaper struggled with depression and Virginia Woolf, author of Mrs. Dalloway, suffered childhood trauma and was bipolar (McMan). Both story’s views on mental illness are most likely heavily influenced by each author’s personal experience with mental illness. The Yellow Wallpaper and Mrs. Dalloway both reflect society’s negative view toward mental illness during the late 19th and early 20th century as both stories have themes of scarring symptoms, unreliable doctors, shameful therapy and feelings of isolation. Society’s View Mrs. Dalloway is set in 1923, a time where mental illness was extremely looked down upon and seen as a sign of weakness—much more so than today. In Mrs. Dalloway, Virginia Woolf chose to write Septimus into the story and have him struggle with mental illness. Sadly, Septimus reaches a point where he would rather choose â€Å"death of the body instead of death of the soul† and he commits suicide by jumping out of a window (SparkNotes Editors). Many who read Virgina Woolf’s writing know that she herself struggled with depression and also showed signs of bipolar disorder which was often integrated in her writing. (ONU). Unfortunately, Woolf’sShow MoreRelatedThe Yellow Wallpaper By Charlotte Perkins Gilman1704 Words   |  7 PagesEscaping The Yellow Wallpaper Charlotte Perkins Gilman (1860-1935) whom is most acclaimed for her short story The Yellow Wallpaper (1891) was a women’s author that was relatively revolutionary. Gilman makes an appalling picture of captivity and confinement in the short story, outlining a semi-personal photo of a young lady experiencing the rest cure treatment by her spouse, whom in addition to being her husband was also her therapist. Gilman misused the rest cure in The Yellow Wallpaper to alarm other

Major and Career Research Project - 1352 Words

Major | Career Research Project | | | James Paullin | 11/16/2012 | | Biology Biology is under the college of Arts and Sciences and is categorized in the Biological Sciences department. The main chair/director is Dr. Sam Atkinson with an assistant, Kendra Donahue. The Biological Science department is located in the Biology Building 210. There are numerous courses that have to be taken in order to major in Biology; while also minoring in Chemistry as well. There are introductory classes that need to be taken like: â€Å"Introductory Biology: Comparative Physiology† or â€Å"Introductory Biology: Cell and Development Biology.† Also â€Å"General Chemistry† for two semesters with â€Å"Organic Chemistry.† One semester of calculus is†¦show more content†¦Neuroscientist A neuroscientist is trained in researching the structure and function of the brain and nervous system. They have to specialize in cell chemistry and biology, brain anatomy, cognition, genetics, or experimental psychology. Many neuroscientists use number of tools in order to learn about the brain, nervous system, and behavioral patterns. They mainly use computers in order to interpret results from studies they find. Neuroscientists collaborate with one another in order to conduct sensitive, complicated studies. They wor k together to design materials, apply for grants ,acquire new materials, and even recruit volunteer test subject. I think this type of work would interest me and I would be able to accomplish these things. I find interest in the brain and how it functions; therefore researching the brain and its functions would interest me the most. In order to become a neuroscientist an individual is required to obtain a PhD and complete up to two years of postdoctoral training. Most scientists complete a four-year bachelor’s degree in biology, chemistry, or psychology, along with four- or five-year doctoral programs in cognitive, biological, or molecular neuroscience. Graduates usually obtain postdoctoral fellowships at universities, private research institutions or pharmaceutical companies, where they work alongside experienceShow MoreRelatedChapter 3 : An Purpose For Reading1324 Words   |  6 Pagesspeech. Chapter 10, I found it refreshing by the tips of choosing a major such as considering my abilities and values, make a trail choice of my top three majors, then evaluate the trail choice by enrolling in related classes from the top three, and repeat again with different major. These trail choices opened my eyes figuring out what major I would want to do and what are my interests that correspond to a particular major. Part 2 of Final The two best class activities were mind mapping videoRead MoreA Career in Project Management1577 Words   |  7 Pagesproposal on pursuing a career as a Project Manager is designed to provide research and criteria concerning elements for entering into the field of Project Management. The research will provide the essential skills and a job description of a Project manager. As background information, I have provided researched information based on the interest of being a Project Manager. The Survey results provide an insight to how some individuals pursued their careers and their educational backgroundsRead MoreA Research Study On Social Justice Work864 Words   |  4 Pagesranges and varies a little. As a Criminology major I will be seeking to locate subjects within the field I would like to go in (Lawyers, Judges, and Detectives†¦ etc.) But also I would like to learn more about social justice work (shelter for youth, being involved in civic engagement work and how it feel to be labeled as a â€Å"troubled youth.† With the following I will be able to get a better understanding on how I would like to develop my potential career field aspect along with changing the world forRead MoreThe Field Of Higher Education1508 Words   |  7 Pagesstudents the skills needed for their careers and the real world, the new university will not offer students a major, but rather, they will form their own undergraduate dissertation and project focus. As a result, every student will graduate with their own unique set of skills and experience, allowing them to pursue an array of careers rather than only one specific area. The curriculum will consist of the following components: 12 general education courses from every research available at the university (mathRead MoreMy Career Goals Of Becoming An Applied Social Psychologist982 Words   |  4 PagesPersonal Statement A few years ago, my future and my goals were clear: I would graduate in 2017 with a Bachelor’s of Science in Psychology and pursue a career in therapeutic counseling. However, my plans were altered after I was exposed to the research side of psychology. I was drawn in by the psychological insight shed on tragedies like the holocaust, why no witnesses helped Kitty Genovese after she had been stabbed, how a rape victim can misremember his or her assailant, and possible solutionsRead MoreFirst Innovative Leadership Academy For Young Women Leaders1280 Words   |  6 PagesI started doing most of my career research early on in my middle school and high school years. I was lucky enough to be selected among the hundreds of fifth graders and sixth graders that applied to go to the first innovative leadership academy for young women leaders. A middle school in the early 2000’s which was previously Porter Middle School to most austinites, was renovated in summer of 2007 founded and named after the late great female governor of texas Ann Richards. In a summer camp leadingRead MoreGoal Statement1263 Words   |  6 PagesStatement Walden University Ph.D. in Human Services, specialization; Human Services Administration My primary goal in applying to Walden University for Ph.D. program is to prepare myself for a future career in forensic human services administration. Interested in furthering the current body of research and in improving techniques used on the study of the theoretical foundations of organizational behavior and the practice of management and planning. I am very committed to pursuing human services administrationRead MoreMy Path to Choosing a Career741 Words   |  3 Pagesfilled teaching the fundamentals of tennis to young players as I hope to transition towards a career in law. How did I arrive at this juncture? What motivated me to leave the lab and embark on this new path? To answer these questions, let me first explain what motivated me initially to pursue a career in research. With an interest in science well before college, I entered Emory University as a chemistry major. In my introductory courses I became fascinated with learning how genes function at the molecularRead MoreThe Hot Zone By Richard Preston Essay1498 Words   |  6 Pagesmy interest in public health in college as a biology major. During my Spelman College trajectory, I explored various careers. The summer after my freshman year at Spelman, I participated in the Continuing Umbrella of Research Experiences Program (CURE) at Northwestern University and conducted cancer research under Dr. Erwin Goldberg centered around enzyme inhibition as a cancer treatment option. I subsequently conducted ovarian cancer research the following academic year centered on serum withdrawalRead MoreResume [Utp Template]1448 Words   |  6 Pages(Hons) Mechanical Engineering [Majoring in Material] Universiti Teknologi PETRONAS (UTP) 7th August 2010 Dear Sir/Madam, APPLICATION FOR CAREER OPPORTUNITY Your company’s milestone and achievement in the industry really impresses me, and your philosophy of encouraging career professional development is something I value. Thus, I am writing to apply for a career opportunity in your reputable company. I am currently in my final semester and will be graduating on December 2010. 2. On my previous work

Analysis on Personal Philosophy Free Essays

As defined by Webster†s Dictionary, a teacher is â€Å"one who instructs, directs, and disciplines other individuals.† This definition is correct, however, teaching encompasses much more. A teacher is an integral part of the learning process of a child. We will write a custom essay sample on Analysis on Personal Philosophy or any similar topic only for you Order Now A teacher also aids the child in personal growth and life development. Teaching has always been my lifetime desire. I look forward with great anticipation to the day when I teach my own class. This will give me the opportunity to instill in the children a thirst for knowledge. This is also a chance for me to make the children realize their unique potential for greatness and open their eyes to the beautiful world around them. Before getting involved in my formal education classes and field experiences in Elementary Education at Pennsylvania State University, I thought being an educator involved teaching the students basic skills, assigning homework, and testing their knowledge. I soon found out that this monotonous routine does not maximize student interest and learning. Through my valuable student teaching experience, I have come to identify with a teaching paradigm known as Inquiry learning. In this particular paradigm, knowledge is viewed as functional and pleasurable. Children learn from the questions they pose. Key skills are learned in context and focus on child interest rather than artificial and made-up. This type of education concentrates on student interest. Children are focused and on-task because they are directly involved in their own learning. The Inquiry Paradigm also allows for numerous hands-on learning experiences. Another aspect of Inquiry learning is that the teacher is viewed as a â€Å"partner along the journey† instead of â€Å"Supreme Being†. I firmly believe that a teacher should treat her students as partners on a journey. This allows students to feel independent and responsible for their own learning. How to cite Analysis on Personal Philosophy, Papers

Free Sample Assignment on Marketing Plan of Michael Kors

Question: Describe about the Marketing Plan of Michael Kors. Answer: Introduction to the Company Michael Kors is a well-known manufacturer of readymade mens and womens accessories, watches, and fragrance products. It is a global brand and running its operations from more than 35 years. The company operates in all levels of the supply chain and has primarily three distribution modes, namely, retail format, wholesale format and licensing format (Michael Kors, 2016). It produces budget-friendly yet stylish products. The primary markets of the company are Europe and the USA. Recently, the company is focusing on expanding its business in other emerging markets such as China, Iran and India. The following report conducts a thorough analysis of the potential markets for the company to expand. In this regard, the macro and micro factors impacting the fashion industry are explored, the internal business factor of Michael Kors are discussed, the potential markets are evaluated on the basis of 12 Cs international market strategy, and recommendations are provided so that the company can ent er the market successfully. Analysis of Macro and Micro Factors impacting on the Fashion Industry The global fashion industry is influence by several factors on which the business owner has little control. It is important that a company adapt itself to these factors to succeed. In this report, the macro environment of the fashion industry is analysed through PEST analysis (Applegate Johnsen, 2007). Political factors: The fashion industry is influenced by the labour laws and political environment of a country. The trade laws and the export laws also influence the fashion companies. Economic factors: In the times of economic boom, the customers have more disposable income in their hands. Therefore, the customers are more inclined to buy fashion products. In contrast to it, recessions have a negative impact on the sales of the fashion industry. Social Factors: It includes factors such as culture, lifestyle, and demographics. The fashion companies have to create items that appeal the targeted market segment. In addition to it, demographics also influence the consumer behaviour, for example, in places where the birth rate is low, demand for baby clothes will be low (Duff, 2016). Technological Factors: In fashion industry, technology plays a critical role in marketing and operations. Analysis of Micro Factors influencing the Fashion Industry The micro environment includes those factors that can be controlled by the management of the organisation. The most important factors are competition, supplier and consumers. The micro environment of the fashion industry is analysed by the porters five force model. The porters five force analysis examines the competitiveness in a given market on the basis of five forces, namely, buyer power, supplier power, competitive rivalry, the threat of new entrants and the threat of substitution (Porter, 2008). Buyer Power: In fashion industry, a consumer has multiple options for a single product. There are numerous international and national competitors and the consumers can easily switch companies without any switching cost. Therefore, the bargaining power of the consumers is high. Supplier power: In the fashion industry, the products are outsourced from cheap labour companies such as China and Bangladesh. Thus, the suppliers share significantly amount of the net profit. Moreover, they can be easily replaced. Therefore, the bargaining power of the suppliers is low. Industry Rivalry: In the fashion industry, there are a large number of retailers who sell similar products. Therefore, there is intense competition among the companies. There is very small innovation in the industry and most of the companies are at price wars. However, there are also several luxurious brands sell products at a high cost, but the market share for these companies is very low. As a result, the industry rivalry in this industry is high. Threat of New Entrants: Fashion industry is considered as a saturated industry due to the number of retailers in the business. There is little innovation in the industry, which makes it difficult for the new organisations to distinguish themselves from the older ones. However, the companies can utilize extensive marketing strategies to distinguish themselves. The operational costs of the companies are also medium. Therefore, the threat of new entrants in neither low nor high in fashion industry. Threat of substitution: There is no substitution to the fashion apparels and the fashion products. Therefore, all the substitution to the fashion products is between different companies and brands. The threat of substitution in the fashion industry is low. Micheal Kors Internal Business Factors Porters Value Chain Framework The value chain framework provides an analysis of the activities that allows a firm to obtain competitive advantage and gain shareholder value. It is a generic model that examines the range of activities which are differentiated as primary activities and secondary activities (Wiedemann, 2013). The value chain analysis of Michel Kor is conducted below: Inbound logistics: Most of the products of Michael Kor are manufactured in the Asian countries and stored in British Virgin Islands. It results in cost and tax saving for the company. Furthermore, storing manufactured in British Virgin Islands result in easy accessibility of the products to the major markets. Operations: It is the process of transforming inputs into finished products. The company has robust operations. It has skilled workforce and technically advanced machinery to transform input into finished products and services. Outbound logistics: Michal Kor has a technically primarily three channels for product distribution, namely, retail outlets, wholesale outlets and licensing format. It has not participated in other distribution channels such as franchising and joint ventures to enter in international markets. It has a limited market mainly in Europe and the USA; therefore, the company has limited market. Marketing and Sales: In the recent year, Michael Kor has gained substantial market in Europe and the USA due to extensive and attractive marketing method (Lutz, 2012). It has targeted its marketing strategy on these higher middle-class and growing affluent class. Service: The staff of the company is focussed on providing good services to the customers and be available to their every requirements to achieve customer satisfaction. In the value chain framework, the primary activities of the organisation are supported by: Infrastructure of the firm: Michael Kor is a leading organization in the fashion industry. The infrastructure and the control system of the company is well-establishes and state-of-the-art. Technology: The Company has embraced technology in all its operations to achieve efficiency and support all the value-creating activities. Human Resource management: Michael Kor tries to gain competitive advantage over other competitors by recruiting and training the best talent in the industry. It put special emphasis in employee retention, development and training to enhance productivity of the organization. Procurement: Over the years, the company has established a robust supply chain that includes the purchase of materials, supplies and equipment at low cost and high quality. SWOT Analysis The SWOT analysis is a framework that analyses the internal strengths and weaknesses and external opportunities and threats (Pahl, Richter, 2009). It assists an organisation in strategic management by identifying opportunities and strengths. Strengths The brand is very popular among the ladies. The company has used the strategy of celebrity endorsement wherein a number of Hollywood celebrities have worn the brand on red carpet and endorsed it. It has carved itself a niche market segment and is hugely popular among the young generation. All the designs are developed by the renowned global designers Weaknesses It serves a limited marketing segment in the US and Europe. It is lesser known globally. As per the recent strategy of the company, the brand has lowered its cost which has made the consumer perception of low quality and mass company. Opportunities Emerging markets in developing countries in China, India and Israel. Trust-worthy brand, popular among the consumers as a reliable brand. Rapidly growing luxury lifestyle market due to increase in higher middle class in the global population. Nowadays, many companies are trading through internet and e-commerce platforms. It is an opportunity for Michael Kors to increase market penetration and customer base. Threats It provided limited options or choice of products. Other emerging companies which are trying to obtain the market segment held by Michael Kor. There are a number of competitors in the luxury penalty. Market Attractiveness Evaluation using 12 Cs Framework A company can analyse international markets opportunities using the 12 Cs framework. According to this framework, the 12 Cs are country, culture customer behaviour, concentration, communication, channels of distribution, capacity to pay, currency, control and coordination, commitment, choices, contractual obligations, caveats. With this framework, a business organisation can examine the viability of the business venture. China Country: China is the most populated country across the globe. In the recent years, the economy of the country has substantially grown and as a result the affluent middle-class section of the society is growing. It also has a relatively better infrastructure than other Asian countries and cheap-labour. Culture Customer Behaviour: Majority of the Chinese population follow Buddhism religion. The young generation are attracted towards brands and luxury goods. The growing middle-class has increased the disposable income in the hands of the customers and expanded the luxury apparel market of the country (McKay, 2012). Concentration: The country has high population and industrial concentration in Shanghai, Beijing, Ghuangzhou and Hong Kong. In the recent years, the Chinese government has implemented various measures to increase the urbanization of the country. Communication: In term of telecommunication, China has the maximum users of mobile phones and internet. However, there is substantial restriction over foreign media. China has its own internet and social media services (McKay, 2012). Channels of distribution: As Michael Kors imports manufactured products from China, Bangladesh and other Asian countries, it can avail local distribution channel. The net cost associated with distribution will also be significantly less. Capacity to pay: A large number of customers will be capable of paying (McKay, 2012). Currency: Chinese currency is stable. Control and coordination: There is significant control of the Chinese government on the local markets but they are becoming more flexible to expand its economy. Commitment: The Company has commitment to provide quality products at reasonable cost. Choices: The competition between the luxurious apparels is evident in China. Recently, several companies have entered the country to exploit its expanding market. Contractual obligations: In the recent years, the country has transitioned from planned economy to mixed economy to open market. The government has loosened control over international companies and market to attract more foreign companies to the market. The contractual terms such as warranty, guarantees and penalties are similar to other countries (McKay, 2012). Caveats: The Chinese citizens prefer to buy luxury clothes from foreign countries. Recently, Michael Kor has also lost its status of celebrity brand and become more a mass product. India Country: It is second most populous country of the world and fastest growing economy after the economic reforms in 1991 (EY, 2016). Culture Customer Behaviour: It is a traditional country and recognized as multi-ethical and multi-lingual society. A significant section of the society comes in middle-class; however, they prefer traditional and ethnic wear. Recently, this trend has changed. Concentration: The country has high population and industrial concentration in cities like Delhi, Mumbai, and Bangalore (EY, 2016). Communication: It has a fast growing communication sector with more and more customers using internet and smartphones every day. Channels of distribution: The products can be outsourced from the nearby countries which are already producing the finished goods for the company. Other than that, it can adopt the indirect or direct distribution strategy wherein the goods can travel through an intermediary to customers or directly to the customers respectively. Capacity to pay: Growing affluent class has high disposable income in their hands. Currency: Indian currency is stable. Control and coordination: It is a mixed economy but the government has strong hold of the market and there are strict legislations and taxation structure. Commitment: The Company commits to provide quality products at reasonable cost. Choices: Several international brands have entered into the Indian markets to exploit the opportunities of the growing market. Contractual obligations: It has strict legislation and taxation structure; therefore, the companies are required to maintain certain contractual obligations while doing business in India. Caveats: The Indian market has issues like complex taxation structure as well as duplication market. Copies of the products of high brand are available at very low cost and people prefer to buy them. Recently, Michael Kor has also lost its status of celebrity brand and become more a mass product. Russia Country: The country is politically stable and developed economy. Culture Customer Behaviour: The country is rich in culture, arts and performance. The people are inclined towards aesthetically beautiful things, designs and clothing. Concentration: It has a relatively high population, but the concentration is relatively low. Communication: It is a developed country with a strong infrastructure for telecommunication. Channels of distribution: The infrastructure of the country is ageing and inadequate. It has a well-developed system of railways and inland waterways. The company can use indirect or direct distribution methods for goods distribution (Dellloite, 2016). Capacity to pay: As Russia is a developed country; the customers have a high capacity to pay. Currency: Russian Rubble is strong and stable. Control and coordination: Russia is a federal republic with semi-presidential system. It has a mixed economy with government control over certain domains. It is relatively free for fashion industry. Commitment: The Company is committed to consumer experience which can be observed in its experience. Choices: High competition due to large number of foreign and local merchandisers. Contractual obligations: The companies are required to maintain certain contractual obligations while doing business in Russia (Dellloite, 2016). Caveats: Recently, Michael Kor has also lost its status of celebrity brand and become more a mass product. Iran Country: The country is a strong middle-eastern and regional power. It is a democratic country with Islamic theocracy. It is a multicultural and multi-ethnic country. Culture Customer Behaviour: It has a relatively old culture which is influenced by several countries like Greece, Italy and India. It has a traditional culture influenced by Islam, and people wear traditional dresses and women wear hijab (Spivack, 2016). Concentration: It has a relatively high urbanization rate. Majority of the population is saturated around Tehran, Mashhad and Isfahan. Communication: It has serious limitations in telecommunications as all the media channels are government owned and all the outlets must be approved by government before releasing them to public. Channels of distribution: The infrastructure of the company has serious imitations because of technological lags. It is advised to follow the business to business distribution model as Iranian business men have a very different style of conducting business. Capacity to pay: It is home to a market of 60 million as well as it is strategically located so that the company can access the whole central Asian market (Spivack, 2016). Currency: Iranian currency has a strong value. Control and coordination: The taxation structure in Iran is highly complicated (Spivack, 2016). Commitment: The Company is committed to good consumer experience. Choices: A significant number of foreign companies have entered Iran which provides customers numerous choices in fashion apparels. Contractual obligations: The labour laws in Iran are very employee friendly and they have a peculiar style of following all the business dealings. Caveats: It has an unstable government and rules and regulations. Market Entry Strategy In the present situation, partnering is the most appropriate strategy for Michael Kors to enter in the foreign markets. It is the particularly beneficial strategy when the company is planning to enter a foreign market in which the both social and cultural differences are highly prominent. On the basis of 12 Cs framework, China is selected as the most suitable country for market expansion due to its infrastructure, suitable distribution channel, large market and capacity of the consumers to pay. However, the company has to make changes in its market mix to appeal to the local customers. Product: As Chinese society is conservative and traditional, it is important to integrate the ethnic taste and culture while developing the clothes and apparels for the traditional customers (Wenderoth, 2009). Price: As discussed, there is a large segment in the Chinese society who is willing to pay higher for valued products. However, inexpensive products lost their appeal to large section of society. It is important to determine the price of the products according to a specific strategy. Promotion: The Chinese customers are different from their Western counterparts. Therefore, various advertisements popular in the USA and Europe might be perceived as confusing in China. It is important to develop a promotional strategy inspired by local culture. Conclusion Michael Kors has carved itself a distinct place in the fashion industry. 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