Cost Leadership Business Strategy

Cost Leadership Business Strategy Cost leadership is a business strategy developed by Michael Porter. It helps the organization create competitive advantage. Cost leadership refers to provide lowest cost of operation in the industry and it is different from price leadership. Its often driven by organization efficiency, size, scale, scope, technology and experience. A cost leadership strategy use to exploit scale of production, producing highly standardized products by using high technology. An organization could be the lowest cost producer, but not offer the lowest-priced products or services to customer. Therefore the organization would have a higher than average profitability. However, cost leader organization will compete on price and are very effective at such a form of competition, having a low cost structure and management.   The organizations can increase the market share by appealing price-sensitive customers. This is achieved by having the lowest prices in the target market segment to appealing price-sensitive customer while the organization still profitability and a high return on investment. The organization must be able to operate at a lower cost than its rivals. Organization can achieves this by achieving a high asset turnover, low direct and indirect operating costs, and control over the supply/procurement chain to ensure low costs. The company choose are London Biscuits Berhad Group, Oriental Food Industries Sdn Bhd and Apollo Food Industries Sdn Bhd. London Biscuits Berhad Group is a manufacturing and marketing cakes and snack food which score high in terms of product safety and quality based in Malaysia. It is listed in the main market of Bursa Malaysia. The reason our group chosen this company is in the annual report 2010 the company outlook and prospect mention about the cost effective. Besides, the company strategy for go also show they march toward cost leadership. It relate to assignment topic which is compete on a cost leadership strategy. Oriental Food Industries Sdn Bhd is the food manufacturing industry, today holding the leading position in the snack food and confectionery industry in Malaysia. It also listed in the main market of Bursa Malaysia. One of the aim for research and development team is to reduce cost and wastage while increasing productivity and maintaining standards. This strategy shows the company trying to achieve cost leadership. Apollo Food Industries Sdn Bhd is the manufacturing compound chocolate confectionery products and layer cakes based in Malaysia. The company also listed in the main market of Bursa Malaysia. One of the company strategies is implementing and maintains the quality management system and continually improves its effectiveness. This strategy shows the company is towards to cost leadership. Body London Biscuits Berhad The first company is London Biscuits Berhad. From annual report, they mention that the company is toward cost efficiency by few strategies. The first and foremost, London Biscuits Berhad have implement the low cost in the main raw material. The company bought Lay Hong Berhad to assure has a continuous and adequate supply of quality liquid eggs at reasonable price. Liquid egg is one of the main raw materials in manufacturing of cake product. After, the company have take up a controlling stake in TPC PLUS BERHAD( TPC) at a reasonably cheap entry cost. TPC is a company also listed in the main market of Bursa Malaysia, mainly involved in producing chicken eggs for industry, commercial and consumer use. TPC is also a supplier of London Biscuit Berhad. The action help the company have own supplier of egg with assured quality and cost-effective to the company. The second strategy they implement is mass production, it can help the company to reduce the average cost. The reason is that, mass production can reduce the wastage in raw material as well as achieve cost-effective at long range perspective. In the annual report, they mention they are commissioning of new cake production line which to be the single biggest production line in South East Asia. The line wills more than double of the company existing production capacity. The third strategy implement is upgrade technology to improve production efficiencies, reduce wastage and reduce manpower requirement. In annual report, the company mention about older machines and facilities in snack manufacturing division are upgrading to custom design and built machines. For long term, this will help the company save production cost and lead to cost leadership in the industry. The last strategy implement is directors training. In annual report, the company mentions certain directors have attended training and seminar whether in-house or external in various areas to enhance their skills to contribute more effectively to the company. This action will help the company running with more efficiency, implement useful strategy and reduce the mistake in decision making by director. Oriental Food Industries Sdn Bhd The Second Company is Oriental Food Industries Sdn Bhd. From the annual report, the groups pre-tax profit grew faster at 37.5%. Its driven principally by a better sales mix as well as a more efficient cost structure. From the statement, we can know the company is a cost leadership company. The first strategy the company use to achieve cost leadership is directors training, it can find in the group annual reports. This will improve the ability and efficiency of the director in making decision. This will reduce the wrong decision making, indirect reduce the loss in making a wrong decision. Besides, in the annual report mention the company provide on-job-training and external courses for relevant departments to ensure the sufficiently skilled to perform effectively and efficiently. This strategy can help the company reduce the manpower require and save cost pay for Over Time. The second strategy implement is reducing cost and wastage and increasing productivity. From the company websites, the RD team engages in various research methods in order to improve the production process to achieve the strategy. This will lead the company to cost leadership. The third strategy implement is technology. From the company website, they mention the company abreast with the latest technology developments. The company produces the products with modern machinery for increase the productivity and efficiency to achieve economic of scale. It also can help the company reduce the manpower using. The forth strategy implement is the relationship with suppliers and customer. In the annual report, the company mentions Mr. Son Chen Chuan as a Managing Director in the company, he had close relationship with the supplier and customer. With the relationship with supplier they can get the material with quality and lower price. This will reduce the cost for the company. Apollo Food Industries Sdn Bhd The third company is Apollo Food Industries Sdn Bhd. From the annual report, all the director have completed the Mandatory Accreditation Programmed (MAP). The aim of this training is to enhance their skills and knowledge. It can help the directors in decision making to reduce the error and risk. When wrong decision making, the risk and cost for the company is high, it can help the company save cost. The second strategy implement is training provide to employee. From the annual report, the company mention the employees are provided with necessary training in various job related organized by external parties to enhance the skill and knowledge. This will help the company reduce the manpower and pay for Over Time. The third strategy implement is reducing wastage. From the annual report, the company mention operation and office resources are been utilized without much wastage and recycling are being encourage at all time. This strategy will save the cost for the company and lead the company towards cost leadership. The forth strategy implement is continuous improve in production planning. From the annual report, the company invests on newer and modern production machineries to increase the production and reduce the cost. These companies have implemented several similar strategies such as mass production, upgrade the technology and director and employee training. These strategies will help the companies to achieve economic of scale, reduce the manpower and other expenses in order to achieve cost leadership in the industry. Besides, these companies also have implement different strategies to leads the industry. The London Biscuits buying their supplier to reduce the raw material cost and insure the quality of raw material. This strategy not implement by the two companies, it become superiority for London Biscuit Berhad. The Oriental Food Industries Sdn Bhd implement different strategies but the same aim is to get the material at reasonable price. This company achieves this by having a good relationship with the supplier to increase the bargaining power to supplier. 3.0 Conclusion The three companies uses to research are from the same industries that compete with each other in the same market. These three companies use their cost leadership strategies in the confection industry in order to reduce the cost and keep their price low to compete with others and increase the market share to survive. Most of the strategy are similar but implement in different ways to achieve cost leadership strategies. Besides, there are some different strategies use are different from others. These help company have superiority when compete with other.

Are humans naturally good or naturally evil Essay

Are humans naturally good or naturally evil? Paul Bloom’s (psychologist) answer is yes. Most adults know wrong from right, for the excep*on of psychos. The heroes who come to the rescue, the ones that are disappointed, by some of the things that occur in our society and the act of kindness. There is a push to make the wrongdoers pay for what they commi-ed, help the needy, also emo*onal responses that revolve around morality. Research in laboratories, prove the claim that sense of good and evil are bred in the bone. Babies and toddlers can judge others ac*ons based on whether they are evil or good. They feel the same way about evil and bad and react the same way as adults. They also like Nikki Daniel 2/12/14 1st current event of quarter 3 per 2 those who do too. Based on their behavior, their judgments and ac*ons we can tell what they like and dislike. There is limit to morality. Babies start slow and then start seeing themselves as a group. Most humans obtain general moral ideas. Our ac*ons fall low compare to our moral principles. Communica*ng with people with the same morals and values as you is a big part of growing up to be a good person. This research might change the way that many people feel about their babies and children. Some think babies are bad seeds others think they are psychopaths. Our surrounding can change our natural moral senses. Understanding moral psychology can make the world a be-er place. The Nikki Daniel 2/12/14 1st current event of quarter 3 per 2 science of baby morality is all about human natures best and worst. It is actually pre-y goal that babies and li-le kids can tell the di5erence between good from bad. I think with people with be-er morality, the world would be a be-er place. Many people believe in one thing and do something completely di5erent. I learned something new. Honestly, I thought babies’ brain was like a size of a peanut and did not know right from wrong. I knew they could sense when someone is a good person or bad person but I did not know about all of this.

Development of the American Experiences

Current society of America dates back to past development experiences. The American nationalities comprise of distinct tribes, states and ethnic groups who survived from diverse political, cultural and social backgrounds. New societies, culture and people mainly originate from migration in search for new opportunities and lives. American society in the United States traces back their origin to more than one migration experiences. Such emigrational experiences labeled America as nation of immigrations.Change is inevitable, development experiences have been influenced by changes in the society where immigrants sought for new destinations. Change occurred due to impact of immigrant culture to the natives. The change results from pursuit of freedom and acceptance in the American society. The article seeks to evaluate the development experiences in the American Society by discussing thinker Jr. Martin Luther King commentary on â€Å"Letter from Birmingham Jail† The paper presents a new interpretation of American history by focusing on Jr.Martin Luther King, political thought as a commentary on principles and problems of free government. In addition, some respects on modification of the principles as advanced in the declaration of independence and embodied in the constitution are discussed in this paper. The pursuit of Negro towards freedom and justice is discussed based on Jr. Martin Luther King answers to criticisms of his activities. Martin Luther King, Jr. , â€Å"Letter from Birmingham Jail† While Jr. Martin Luther King was confined in the Birmingham city jail, he came across statement calling his activities â€Å"unwise and untimely.† He sought to answer criticisms of his work and ideas since the men who criticized him were of genuine good will with sincere criticisms. He served as president of the Southern Christian Leadership Conference, an organization that was established in every southern state with Atlanta, Georgia being headquarter. The organization had several affiliates who shared staff, educational and financial resources. The affiliates in Birmingham called the organization to engage in a nonviolent direct action program if such sharing deemed necessary. These lead to Jr. Martin Luther King confined in Birmingham city jail because of injustices.The rise of injustices compelled Jr. Luther to fight for freedom beyond his home town by responding to the Macedonian call for aid. He was aware of the interrelationship of all communities and states, this lead to his concern about the injustices in Birmingham which threatened justice all over the state (Luther 1). The Negroes faced multifaceted problems from political, social and economic injustices. They faced segregation, racial discrimination, brutality, bloodshed and poverty. Such problems gave rise to freedom fighters in pursuit to achieve social freedom and justices.The Negro leaders were caught in an unavoidable network of mutuality which was tied to a single element of destiny. Importantly, what affects one directly affects all indirectly. He explored the demonstrations which took place in Birmingham, the city’s power structure of white left the Negro community with no alternative but to use demonstration to raise the issues which they faced. The nonviolent campaign comprised four basic steps namely: collection of the facts to determine existence of injustices, negotiation, self purification and direct action. All these steps were followed by black in Birmingham with aim of gaining justice.Racial injustices were dominant in the community; Birmingham was tremendously segregated city in the United States with brutal experiences. They experienced unjust treatment in the courts, high proportion of unsolved bombings of their homes and churches in Birmingham than in any other cities. The Negro leaders sought to negotiate with the white leaders of the city who consistently refused to engage in negotiation and understanding (Luther 1). After several failures of negotiations, Negro leaders got opportunity to talk with leaders of Birmingham's economic community.Certain promises were made during negotiation, which saw merchants removed stores which were racialism sign. Such promises led to suspension of demonstration by Reverend Fred Shuttlesworth and other leaders of the Alabama Christian Movement for Human Rights. Negroes become victims of broken promises where injustices were briefly removed, returned and others remained. Shadow of disappointment remained upon the Negro leadership who sought for direct action with aim of presenting their cases to local and national community. Self purification was used, nonviolent workshops were introduced.Direct action was scheduled for the Easter season since it was main shopping period of the year. The by-product of direct action was a strong economic-withdrawal which brought pressure on merchants for a change to occur. Direct action plan was postponed until mayoral election wa s over and later till the run off with aim of demonstrations not to cloud the issue at hand. The defeat of Commissioner of Public Safety, Eugene â€Å"Bull† Connor resulted to more postponement of direct actions. The call of negotiation was indeed a purpose of direct action.Nonviolent direct action was used to create crisis and foster tension because community consistently refused to negotiate. The force was used to confront and dramatized the issue which could no longer be ignored. Luther is strongly opposed to violent tension, but he asserts that there is a constructive nonviolent tension which is effective for growth. It was very necessary to create a tension in the mind of individuals to enable them rise from the bondage of myths and half truths to the free realm of creative analysis and objective appraisal.This suggests that the kind of tension is created in society to help individuals rise from dark depths of prejudice and racism to the greater heights of understanding and sense of belonging. The purpose of direct action was to create the crisis situation which opened door for negotiation (Luther 2). Despite Mr. Boutwell being a gentleman than Mr. Connor, they are both segregationists, who were interested in maintenance of status. One is forced to understand the Negro leadership legitimate and unavoidable impatience of breaking laws. Luther urged people to obey Supreme Court's decision of 1954 which outlawed segregation in the public schools.However, one can ask why to break some laws while obeying others? Luther suggested that there are two types of laws: just and unjust. One has a legal and moral responsibility to obey just laws and to disobey unjust law. Just law is a man made code that mutually respects the moral law and God natural law while an unjust law is a coded unharmonious moral rule. Just law uplifts personality while unjust law degrades personality. Segregation is unjust since it distorts the soul and damages the personality. Segregat or feels superior while the segregated are viewed as inferiors.Segregation is politically, economically, sociologically and morally wrong and sinful. Throughout the nation of Alabama, all sorts of segregation were used not to vote despite being majority in the population. Another form of segregation was that citizens were denied a privilege to have peaceful assembly and protest. Luther asserts that one who breaks an unjust law must do so openly, lovingly and willingly to accept the penalty (Luther 4). From Luther’s point of view, Negro's great stumbling block towards achievement of freedom is not white citizens but the white moderates.The white moderates are highly devoted to order rather than to justice. They preferred a negative peace with absence of tension to a positive peace with presence of justice. In addition, they agreed on Negro’s pursuit for justice and freedom but not methods of direct action. They blocked social progress and revolution. Federal courts affi rms that it is very wrong to advocate an individual to cease from efforts that enable one to gain basic constitutional rights because the pursuit may precipitate violence. Society must be involved in protecting the robbed and punishing the robber.It was hoped that the white moderates would reject the myth of timing concern in relation to struggle for freedom (Luther 5). It is apparent that Luther stood in middle of two opposing forces in the Negro community. One force was complacency, made up oppressed and drained Negroes who have adjusted to segregation. The other force comprised few middle-class Negroes who had academic and economic security. The forces were characterized by bitterness and hatred. Despite such forces, the Negro church way of nonviolence became an integral part of the struggle for freedom.The yearning for freedom eventually manifested itself among American Negroes which gave birth to freedom. With the conjunction of Africans, Asian, South Americans and the Caribbea n, the United States Negro moved to great urgency towards racial justice (Luther 6). However, some of white individuals from South grasped the meaning of social revolution and they committed themselves towards it. Despite their low quantity, their high quality outweighed quantity. Some such as Ralph McGill, Lillian Smith, Harry Golden, James McBride Dabbs and Ann Braden have languished in jails for their pursuit of Negro social freedom (Luther 7).Conclusion From the evidence presented in the paper, it is concluded that developments of American experiences dates back to pursuit of political, social and economic freedom. Despite confinement of Jr. Martin Luther King in Birmingham jail, he answered all criticisms of his activities. Injustices such as segregation, brutality and racism compelled Luther to fight for freedom. Nonviolence demonstration which comprised of negotiation, self purification and direct action were used to raise issues of injustices.Direct action involved tension w hich helped society to wake up from racism to great heights of brotherhood. Laws are divided into two, just law which lifts up personality and unjust law which degrades personality. were segregated not to vote and privilege of peaceful assembly and protests were denied. The stumbling block of Negroes achievement of freedom was influenced by white moderates. Luther eventually won through the help of Negro church for struggle despite standing in the middle of Negro community opposition forces. Some whit individuals embraced social revolution though they languished in jails.Civil rights are not gained without determined legal and nonviolent pressure. It is known that through painful experience that freedom is not voluntarily given by the oppressor but it must be demanded by oppressed as the statement â€Å"Justice too long delayed is justice denied.† suggests. Time is neutral variable which can either be used destructively or constructively.

The Chemistry Behind AMCs Breaking Bad