Coca Cola Threat of Entrants and Porters Five

Coca Cola Threat of Entrants and Porters Five Rationale: Coca Cola Company continues to work on research/development and focus on making new products. For instance, a can of coke has a secret formula that will be difficult to imitate. Coca Cola products are significant because they make each product unique. Internal Fit/Factors Porter 5 Forces Analysis Threat of Entrants Coca-Cola does have a lot of competitors in the soft drink industry. The threat of entrants is low for the soft drink industry. There are very few entrants who can compete with Coke. In addition, a barrier to entry when entering the soft drink industry would be a high capital investment. If you dont have that high capital investment it would be hard to enter the industry. Coke nearly earns 48% of the soft drink industry and there are no competitors that are nowhere near coca colas distribution. Coca-Cola has over 500 brands of products which are potentially substitutes. To get the point, the buyer can switch from one product to another at no cost under the Coca Cola brand. Nowadays, consumers are really being health-conscious about their health. So they may not be interested in soft drinks but look at tea, juices, milk and even water. Certainly, Coke does have these products on hand. If Coca Cola decides to increase most of their product by a $0.50 increase, it would be very likely, consumers would buy Pepsi products. Coke can lose its profits margin and can have a major impact on the trademark itself if they increase prices. Price is a huge factor to take into consideration with regards to other entrants. The challenge for this organization today and the future is to focus private companies because they can imitate the products and put cheaper prices. Private companies currently earn 14.4% of the soft drink industry. Having strong barriers prevents from this rising situation to happen. One strong barrier to entrant that prevents from coming would be distribution channels. Coca cola has their products everywhere on their store shelves which make it accessible to consumers while new private companies will have a hard time selling their products to wholesalers, retailers, and distributors. Rationale: Entrants are slowly rising to the carbonated soft drink industry and as organization must find new barriers. Coca-Cola should continue to develop their brand loyalty worldwide and convince consumers to have reliability in their products. Barriers to entry One of the 5 forces that shape the soft drink industry is barriers to entry. The Coca Cola company says on its website it is facing strong competition from well-established global companies and many local participants. For this particular industry, the competitive forces are benign, (favourable). Most of the companies in the soft drink industry are profitable. The Coca Cola companys main competitors are Dr.Pepper, Nestle and Pepsico. These companies definitely have the advantage over there competitors. In porters 5 forces, Porter refers to supply-side economies of scale, where firms such as the CCC and Pepsico can produce at large volumes enjoy lower costs per unit because they can spread fixed costs over more units, employ more efficient technology, or command better terms from suppliers. According to Porters article, supply-side scale economies deter entry by forcing the aspiring entrant either to come in the industry on a large scale, which requires dislodging entrenched competito rs. How does a newcomer circumvent the barriers to soft drink industry? Perhaps create new distribution channels of their own. Creating a niche market for their drink in the form of marketing to a certain segment in the soft drink industry. Competitive Rivalry Competitive rivalry is between two main competitors the Coca Cola Company and Pepsico to satisfy the taste of consumers in this industry. Last month Beverage Digest reported that Pepsi-Colas market share fell 0.5 percentage point while Diet Coke slipped just 0.1 percentage point in the U.S. supermarkets, convenience stores and other retail outlets. The two companies have fought over the past decade to win market share from one another as overall sales dropped. This relates to Porters article on the 5 competitive forces that shape strategy. There is an intense rivalry between these two companies. According to porter high rivalry, limits the profitability of the industry. The Coca Cola Company and Pepsico are competing based on brand image. Power of the buyers One of the 5 forces of porter is buyers the power of the, for Coca Cola Company the power of the buyers is high. They play an important role in the Company process because they are part of the distribution process of the company. They play an important role in distributing the system so it can reach the consumers. They are part of the company and the process. They are part of the strategy used by the company. Power of the suppliers Another of the 5 forces of porter is the suppliers. As well they play an important role in the company process so they have a high power. They have a high power because they also play an important part of the process of the soft drinks. If they decided to boycott the company it will caused them serious damages. There will be a cost to switch suppliers because they will have to build a relationship since 0 and might lost incomes for doing that. External Fit (Diamond E. Model) Management Preferences The senior management team wants to increase the efficiency and effectiveness in the production and bottling sector. With regards to economies of scale, Coke continues to increase production at a low cost. As production of Coca Cola products increase, the cost of producing each unit falls. Moreover, the senior management continues to think about new products (in addition to their 500 products), develop beverages, make new programs and promotions, and meet the needs of customers. The senior management continues to strive for sustainability in their organization. Coca cola recently launched their plant bottle packaging, which basically means they have created their PET bottles from plant based materials. Hence, makes their product 100% recyclable. Muhtar Kent, chief operating officer continues his obligation with sustainability. In 10 years, he plans to reduce coca colas emission by a half. To continue improving performance, Coca-Cola continues to update their technology with regards to quality control. As well continue using better material for their products. In addition, this organization is starting to develop their products in rural areas of the world. The senior management team wants to let consumers know that they are the most trusted carbonated soft drink company and strive to achieve leadership in corporate sustainability. Rationale: The main preferences for Muhtar Kent, CEO, wants to develop and raise their brands, enhance revenue growth and increase productivity within their products. Resources The resources on the Coca Cola Company according to the Diamond E. Model are first the all the resources that the company have to keep on growing and innovating. From the shareholders to the investors, etc. The company has used many of these resources to create healthy products or bio friendly products. They are aware that many of their ingredients comes from the environment and the nature so they are trying to created a friendly environment where the environment is being look after. They have different programs that are meant to help the environments to maintain the natural resources of the land. This is very important because if one of the products they use is gone they wont be able to produce the product anymore. Organization What is the structure, leadership and unique features of the Coca Cola Company in relation to Fry/Killing Diamond E Model. It is what is referred to as the Coca Cola system, which comprises 300 bottling partners worldwide. The coca cola system operates through multiple local channels, the company manufactures and sells its concentrate, beverage bases and syrups to bottling operations, owns the brands and responsible for consumer brand marketing initiatives. The bottling partners manufacture, package, merchandise and distribute the final branded beverages to customers and vending partners, who then sell the products to consumers. It is no wonder the coca cola company has one of the best distribution systems in the world and the ability to penetrate in markets where no company can duplicate is attribute to the structure and leadership at the Coca Cola company. The other unique aspect is the relationship it has with its bottling partners, who in turn works closely with customers, like g rocery stores, restaurants, street vendors, convenience stores, movie theatres, and amusement parks to execute localized strategies developed in partnership with the company. Part 2 The strategic job we chose for our organization was Brand manager and the requisite job we chose was a Truck Driver/Vending Machine Supplier. Requisite Job at Coca Cola: Truck Driver/Vending Machine Supplier The requisite job for the Coca Cola company we agreed to use was the truck driver/vending machine supplier. This type of worker requires high school education, has to be licensed to drive a truck, may involve some lifting and moving heavy case of soft drinks. It would be an asset to be in good physical condition. But it is not a requirement. The job incumbent must be personable, because you are dealing with customers and consumers of the company on a daily basis. It would be ideal to hire from within the company a group of truck driver/vending machine suppliers, but due to the supply of this type of worker. We will hire from outside the company. It is easy to hire from a pool of truck driver/vending machine stockers. Duties Responsible for delivering product and filling vending machines at all points of availability. Collects and is accountable for money Check accuracy and stability of the load Restock machine to proper level, maintaining accuracy in stock levels Invoice and collection of monies Securing company assets Ensure the machines are clean and in good working order Ensure compliance with regulatory and company policies and procedures Settle all accounts daily Ensure product codes and Health codes are adhere to Report damage to machines Load supplies in a vehicle, such as a truck Establish and maintain good customer relations with business owners and operators Knowledge/Skills/Attributes/other attributes of a Truck Driver/Vending Machine Supplier Knowledge knowledge of the English language Able to provide customer service and interpersonal relationships on one on one basis. able to provide and identify customer service needs in a group dynamic situation. being able to evaluate quickly customer service needs and know how to meet those needs knowledge of simple mathematics and statistics knowledgeable of relevant equipment and company safety policies and procedures. able to understand and read provincial regulations, regarding the safe operation of a vehicle Skills active listening speaking Critical thinking Coordination Service orientation Judgement and Decision-making Writing Abilities Oral comprehension Good Vision Ability for good oral expression Speech clarity Written Comprehension Control Precision Depth Perception Other Attributes Ability to perform and work directly with the Public Able to deal with external customers Able to have Face-to-Face discussions Able to work with a group or team Is able to work outdoors, exposure to all types of weather Able to handle the daily contact with the same people in a professional and polite manner Labour Market for a Coca Cola Truck Driver/Vending Machine Supplier Based on the duties and KSAOs of this type of work at the Coca Cola company. We are not just looking to hire any driver. They need to have the experience in dealing with customers and the public. They must be committed to working for the company, because we are going to be testing the potential hirees. The testing will be based on questions about our companys occupational health procedures and equipment operation. The potential hirees will be tested on English language proficiency and Mathematics problem-solving etc They will also be quizzed on customer service skills. What type of interpersonal skills do they possess? This type of job consists of daily contact with customers and business owners. We will give provide further training for those drivers/vending suppliers at the companys expense. Based on these requirements for the job, we will need to find certain individuals that possess a high school diploma, with a clean driving record. The company is confident that we will find the se talented people to come and work for the Coca Cola company. The CCC will provide the additional training to enhance skills such English, written and oral comprehension. The training will also involve a simulation of driving a Coca cola delivery truck. How to handle tight corners for example, or driving on the highway, avoiding dangerous maneuvers, while changing lanes. We at Coca Cola believe we can, attract and retain this type of driver. They will go through Coca Cola University, and once they complete their goals with a certificate. They will have the ability to work anywhere in Canada and the U.S. The company believes by showing that commitment and belief to our people in this case, our truck driver/vending suppliers, we have created a our own market. Benefits The benefits are: Training: at the Coca cola university for only selected hirees. Health, Dental, Vision Plan -an employee who requires work-life balance, can ask for it. This might involve parental leave or personal leave program. It is our belief at our company that we have invested time and training for our employees, in order to retain and attract future employees this is one benefit at the coca cola company will a mainstay. We also have wellness programs, so our employees have the option of going into a fitness program at the no cost to them. We have financial planning benefits that our Truck driver/vending suppliers can take advantage of, so they can plan for the a secure future for their families. Compensation We would start the new hirees at $13 hourly rate,work, after one year to $15/hr- enventually topping at $30/hr. The performance pay would be based on individual performance. We are designing the merit bonuses into the compensation package. One form of a bonus incentive could be showing up for work consistently. Or we could gear it to production like serving a number of vending machines or a certain number of clients. The other options are, since this type of work involves excellent customer service skills, we could start to give bonuses to employees who score high on customer service. Another type of bonus, could be about minimizing errors by truck delivery personnel on the most efficient routes for delivering products of Coca cola. We would also encourage the participation of employees on what type of bonuses they like to attain. Research has shown that employees who work to challenging but attainable goals, especially when they had a role in formulating these goals-outperform those without specific work goals

Korean Investment

A Korean property development company, CoDA, is planning to increase the value of Swansea’s SA1 docklands project by  £80 million through investment.   The money poured into the project would develop Harbour Square, which overlooks the Prince of Wales Dock, with the creation of 406 apartments with shops.   Moreover, this new development would add to the growth expected in the area with 1,500 new jobs at a Jersey Marine distribution center established recently. It would take three years to build the 406 new apartments with shops on Harbour Square.   The Korean investment is expected to create approximately 400 construction jobs, and lead to further growth with respect to the project.   Indeed, this project is the biggest one in the scheme, turning old docklands into a modernized place to live and work.   The total cost of the scheme is estimated at  £400 million. CoDA, backed by UK and Korean banks as well as investment funds, is expected to make a formal announcement about its plan early next week.   The fact that the Korean firm chose Swansea ahead of many other potential sites in the UK has been explained by CoDA’s chief executive, Hoshik Chi, thus: â€Å"The market in Swansea is dynamic and buoyant, and I have been most impressed by the city and the surrounding area.† The Korean firm would seek planning permission for the 2.7-acre site soon.   The development on this site would consist of twin structures, four to eight storeys high, offering reasonably priced housing and car parking, in addition to seven retail units.   Developers are claiming that the new development would be as modernized as possible, featuring a community  heating system which would be fueled by zero emission wood pellets, in addition to a rain harvesting system. This eco-friendly development may very well be the biggest investment of a Korean company in the UK.   What is more, the Korean investment is bound to be highly profitable, seeing as Swansea’s city center and its waterfront are also in the process of being transformed through a  £1 billion plan announced last week; and the people of Wales continue to demand residential accommodation.   Other Korean companies may also join CoDA in Swansea’s development and modernization, especially since South Korea has relaxed its laws regulating the purchase of property in foreign countries.

Alexander Graham Bell biography

Alexander Graham Bell, was the inventor of the telephone. Bell was born in Edinburgh on 3 March 1847. He was the son of Melville, a speech and elocution teacher who developed the first International Phonetic Alphabet and Eliza, who was deaf from the age of five. Bell was the only child to survive into adulthood, with his younger and elder brothers, Ted and Melly, dying of tuberculosis. These biographical facts foretell the strong values, personality and determination of the man destined to radically change the preferred mode of long distance communications to voice, and thus transform virtually all aspects of modern life.Bell developed a passion for communication from a young age. He was to become an extraordinary man with a visionary understanding of its power and potential. Educated at the universities of Edinburgh and London, Bell immigrated to the US in 1870. In his twenties, he set about developing a multiple telegraph that could send several Morse code messages. In 1872, Bell s tarted attending MIT’s public lectures on experimental mechanics, including one in October by Professor Charles R. Cross that began a long, fruitful collaboration.At the talk, Cross demonstrated a device invented by his colleague Edward C. Pickering, who then chaired MIT’s physics department. At the time of Cross’s lecture, MIT (which had been incorporated in 1861 on the Boston side of the Charles River) had recently opened the Rogers Laboratory of Physics in a new building on Boylston Street. The facility was the first of its kind in the United States, a well-outfitted working laboratory that allowed students to conduct experiments illustrating the physical laws they learned about in class.Of particular interest to Bell, the new laboratory had an impressive set of equipment identical to that used in the path breaking work of Hermann von Helmholtz, one of the world’s leading acoustical researchers. In 1873, Bell accepted a position as a professor of vocal physiology and elocution at the fledgling Boston University (which had been chartered in 1869). The post drew him into even closer contact with Boston’s scientific community, affording him the chance to get better acquainted with Professor Cross, who would eventually succeed Pickering as chair of MIT’s physics department.In April 1874, after Bell addressed MIT students and faculty about his acoustical studies and his eff orts to teach the deaf to speak, Cross—apparently impressed—granted him unfettered access to the Institute’s facilities for his further research. Bell seized the opportunity. Of course, Bell won his patent claim as the sole inventor of the telephone, and public knowledge about the contributions of others mostly faded into oblivion.The many surviving primary documents from the period, however, leave little doubt of the important supporting role that Cross and the Rogers Laboratory played in helping Bell gain vital, detailed, and of ten hands-on knowledge about the cutting-edge work of others in the field, including Pickering, Helmholtz, Reis, and Elisha Gray, the inventor whose path breaking design for a liquid transmitter Bell seems to have appropriated to make his world-famous call to Watson. Many years later, with Bell’s legal claim to the telephone long since secured, he publicly acknowledged Cross’s contribution.Bell told the crowd of 1,500 assembled at Symphony Hall for MIT’s 50th-anniversary gala—and more than 5,000 alumni and guests who were listening in by phone at Alumni Association gatherings across the country—that Cross had not only made â€Å"many advances in the telephone itself † but inspired many students to â€Å"go forth from the Institute to perfect the work. † On 7 March 1876, Bell patented the telephone (Patent 174,465) at the tender age of 29. On March 10, 1876, Bell supposedly knocked over the battery acid he and Watson were using as tran smitting liquid for early telephone tests, and shouted, â€Å"Mr.Watson, come here; I want you. † Watson, working in the next room, heard Bell’s voice through the wire. Bell introduced the telephone to the world at the Centennial Exhibition in Philadelphia in 1876. In 1877, Bell formed the Bell Telephone Company. He later sued Western Union over patent infringement of his telephone copyright, and won. In the 1880s, Bell used his considerable fortune to establish research laboratories to work with deaf people. Helen Keller was among his many students.Bell, though, was able to translate his exceptional values into his private life. He lobbied the cause of deaf people and to establish day schools for them throughout the US. When he set out on this challenge, only 40 per cent of deaf children were taught to speak. At the time of his death in 1922 the figure was 80 per cent — testimony enough in itself to his leadership qualities. Like all exceptional leaders, Bell m ade himself accessible to all. He encouraged one family — the Kellers — to educate their little girl Helen, who was deaf.She later attended the Boston Museum of fine arts and became a highly successful commercial artist. Employers today can learn much from Bell's great achievements — nurture ideas, encourage innovation and pursue developments, however radical they might seem at the time. Likewise, there remains a need today for companies to accept and foster their links and social responsibilities within the communities in which they operate and beyond. Bell proved that leaders and business can create the circumstances to improve our quality of life.In researching this article, I have grown to respect the great depth and leadership qualities of Alexander Graham Bell, a hugely successful entrepreneur and a great humanitarian. While telephones, fax, mobiles, text messaging, and the like may sometimes drive you mad, they have undoubtedly revolutionised the world fo r the better, and it can all be traced back to the leadership and vision of one man. Bell is the greatest creator ever of shareholder value and an inspirational figure for the to the cause of the â€Å"children of a lesser God† — it must earn him the title of Greatest Briton in Management and Leadership.Other Bell inventions include an electric probe, a device used to locate bullets and other metal objects in the human body, and the vacuum jacket, which when placed around the chest, administered artificial respiration. He’s also credited with inventions related to the iron lung and triangular aircraft wings. In 1898, Bell became the president of National Geographic because he believed that geography could be taught through pictures. Bell’s fascination with aeronautics led to his â€Å"hydrodrome† boat, a vessel that traveled above the water at high speeds.The hydrodrome reached speeds in excess of 70 mph, and for many years was the fastest boat in the world. Bell died August 2, 1922, in Nova Scotia, Canada But unlike so many great pioneers and inventors, Bell followed through, visualizing the future and realizing the potential of his remarkable invention. Shortly after the invention of the telephone, Bell had told his father: â€Å"The day is coming when telegraph wires will be laid on to houses, just like water or gas†¦ and friends will converse with each other without leaving home. How right he was.Remember this prediction was at a time when the telephone was in its infancy and its full potential was far from recognized. Bell's invention changed for good the way people live their lives. Telephones and telephone lines have enabled us to network global companies via computers, make transactions electronically, or simply talk to our loved ones to let them know all is well, wherever in the world we might be at the time. The telephone is not only capable of transmitting voice, but also of transmitting emotion and, therefor e, allows us to communicate not only what we are thinking but how we feel.In a stroke of genius, Bell shrank the world and transformed the lives of the citizens of his country of birth and education, Great Britain, and, indeed, the lives of people around the world. Like many great people, Bell appeared to benefit from luck and skill in equal measure, and it was while he was trying to develop multiple morse code that he stumbled on the concept that speech could be reproduced through sound waves in a continuous undulating current. This truly brilliant discovery is the principle behind the telephone.Steven Paul Jobs was born in San Francisco on February 24, 1955 to two university students, Joanne Carole Schieble and Syrian-born Abdulfattah â€Å"John† Jandali (Arabic: ), who were both unmarried at the time. [32] Jandali, who was teaching in Wisconsin when Steve was born in 1955, said he had no choice but to put the baby up for adoption because his girlfriend's family objected to their relationship. [33] The baby was adopted at birth by Paul Reinhold Jobs (1922–1993) and Clara Jobs (1924–1986), an Armenian-American[3] whose maiden name was Hagopian. 34] Later, when asked about his â€Å"adoptive parents,† Jobs replied emphatically that Paul and Clara Jobs â€Å"were my parents. â€Å"[35] He stated in his authorized biography that they â€Å"were my parents 1,000%. â€Å"[36] Unknown to him, his biological parents would subsequently marry (December 1955), have a second child Mona Simpson in 1957, and divorce in 1962. [36] The Jobs family moved from San Francisco to Mountain View, California when Steve was five years old. [1][2] The parents later adopted a daughter, Patti.Paul was a machinist for a company that made lasers, and taught his son rudimentary electronics and how to work with his hands. [1] The father showed Steve how to work on electronics in the family garage, demonstrating to his son how to take apart and rebuild elec tronics such as radios and televisions. As a result, Steve became interested in and developed a hobby of technical tinkering. [37] Clara was an accountant[35] who taught him to read before he went to school. [1] Clara Jobs had been a payroll clerk for Varian Associates, one of the first high-tech firms in what became known as Silicon Valley. 38] Jobs was an intelligent and innovative thinker, but his youth was riddled with frustrations over formal schooling. At Monta Loma Elementary school in Mountain View, he was a prankster whose fourth-grade teacher needed to bribe him to study. Jobs tested so well, however, that administrators wanted to skip him ahead to high school—a proposal his parents declined. [39] Jobs then attended Cupertino Junior High and Homestead High School in Cupertino, California. [2] At Homestead, Jobs became friends with Bill Fernandez, a neighbor who shared the same interests in electronics.Fernandez introduced Jobs to another, older computer whiz kid, St ephen Wozniak (also known as â€Å"Woz†). In 1969 Woz started building a little computer board with Fernandez that they named â€Å"The Cream Soda Computer†, which they showed to Jobs; he seemed really interested. [40] Jobs frequented after-school lectures at the Hewlett-Packard Company in Palo Alto, California, and was later hired there, working with Wozniak as a summer employee. [41] Following high school graduation in 1972, Jobs enrolled at Reed College in Portland, Oregon. Reed was an expensive college which Paul and Clara could ill afford.They were spending much of their life savings on their son’s higher education. [40] Jobs dropped out of college after six months and spent the next 18 months dropping in on creative classes. [42] He continued auditing classes at Reed while sleeping on the floor in friends' dorm rooms, returning Coke bottles for food money, and getting weekly free meals at the local Hare Krishna temple. [43] Jobs later said, â€Å"If I had never dropped in on that single calligraphy course in college, the Mac would have never had multiple typefaces or proportionally spaced fontsSteve Jobs introduced in 1988, was an even more expensive marvel of hardware and software design; it at-tracted even fewer customers. Today, Windows running on Intel-compatible chips remains the most common software platform for per-sonal computers (though cellphones far outsell PCs and have become the dominant mode of computing). But Mi-crosoft has introduced only incremen-tal innovations, following the path set by the Macintosh more than 25 years ago. And Android-based smartphones and tablets, which rely on Google s free and open operating system, follow the lead of the iPhone and the iPad.My point is that Microsoft, Intel, and Google have taken the usual route to platform leadership, with inexpen-sive or free products, relatively open viewpoints interfaces, and extensive efforts to cul-tivate a broad ecosystem of partners. But Jobs and Appl e have shown us an-other path to platform leadership, and not just for a niche product segment: Design breakthrough products that set new standards for form, function, and aesthetics; market them creatively and aggressively, with some modest reduc-tions in price over time; open them up gradually as industrywide platforms, and let the chips fall where they may.Jobs wanted Apple to create computers that would be as elegant and simple to use as a type-writer or even a toaster. Now, looking back, we can see that every product Jobs championed, whether or not it succeed-ed commercially, set new standards for aesthetics as well as utility, such as in ease-of-use or handling graphics and multimedia. What stands out most to me are the ultra-simple, intuitive user interfaces of the Macintosh (GUI plus mouse, albeit invented earlier at the Stanford Research Institute and Xerox PARC) and then the iPod s clickwheel and the iPhone and iPad touchscreens.Today s PCs, digital media players, smartpho nes, and tablets based on Windows or even Android are as good as they are only because of how much Steve Jobs and Apple raised the bar for everyone. Charisma and Leadership In the 1996 PBS documentary, Tri-umph of the Nerds, Larry Tesler, who used to work at Apple, discussed how Steve Jobs was able to inspire people to surpass what even they believed they could accomplish. He would never settle for anything less than someone s absolutely best effort, and then some.That is how Jobs raised the bar for the Macintosh project whose competi-tion was the character-based IBM PC and compatibles and many products since then, most recently the iPad. As Steve Jobs moved forward in his career, he also brought related but formerly distinct technologies and businesses together. In fact, he felt compelled to shed the historic Apple Computer name in 2007 in favor of Apple, Inc. to reflect the broader set of aspirations that he and the company had adopted.It is instructive again to compare Jobs and A pple with Gates and Microsoft. Gates main entrepreneurial legacy has been to create a mass-mar-ket software products company that continues to print money and ex-ploit those remarkable gross margins of packaged software , Jobs solved an extremely vexing problem for the industry and for consumers: how to price digital content in the form of music, video clips, movies, and TV pro-grams. This innovation in digital servic-es is no less profound than Steve Jobs innovations in consumer products. he master Strategist Early observers of Jobs and Apple, in-cluding myself, underestimated his ability to master the business side of technology. Clearly, over time, Jobs got better at this much better perhaps as the world caught up to what he was trying to do. Two incidents stand out. First, when he rejoined Apple in 1996, the firm was practically bankrupt, with only a few months of cash left. But Jobs got a $150 million investment from archrival Microsoft as well as a commitment from Bill Gates t hat Microsoft would continue to produce Office for the Mac.This agreement was critical to maintain the Macintosh business, then the only real source of revenue for Apple. Second, in 2005, Jobs abandoned his 20-year commitment to the Motorola micro-processor and adopted archrival Intel s technology. This move helped bridge the growing cost-performance gap with Windows PCs, and enabled the Macin-tosh to continue as a second platform that was also much more interoperable with the Windows world.

Keynesian Theory During The Great Depression - 949 Words

Since the establishment of the Keynesian theory during the Great Depression, there was a continuous rivalry between Keynesians and monetarists. The ongoing debate was about which model can most accurately and correctly explain economic instability and which theory provides the best suggestions on how to achieve constant and steady economic growth. There are fundamental differences in these two approaches, for example over the usefulness of government intervention through fiscal policies, monetary aggregates and money market conditions as a policy guide, fixed and flexible exchange rates to name the few. Financial crisis that occurred in 2007-2008, boosted the debate among politicians, economists, scholars over the way the economics policies should be conducted. To begin with, Keynes came up with a theory that challenged monetarist model, that was widely employed in 1930s, as a reflection of the unprecedented events of the Great Depression. From Keynes’ point of view, it was the failure of the free market theory that led the world into financial crisis. Keynes stressed the fact that non-interventionist policies proposed by monetarist economists were the main cause of the depression. He believed that during the liquidity trap governments’ best response is to stimulate the aggregate demand in the economy to offset lack of confidence among consumers and investors (Field 2011). Fear of future unemployment, uncertainty about the impacts of recession, incentives consumers delayShow MoreRelatedMacroeconomic Theories Of Macroeconomics And Classical Economics999 Words   |  4 Pagesmacroeconomics is one of the two most general fields in economics. There are two major macroeconomic theories that economists use to describe the economy. Those theories are Keynesian and Classical. Each theory has a different approach to the economic study of monetary policies, consumer behaviors, and government spending. 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They are opposites on the economic policy field and were introduced in the 20th century, but are known for their influence on the economy in the United States both were being used to try and help the economy during the Great Depression. John Maynard Keynes a British economist was the founder of Keynesian economic theory. Keynesian economics is a form of demand side economics that inspires governmentRead More Milton Friedman Essay1059 Words   |  5 Pagesaccomplishments and awards he has received, but what about how Milton Friedman played a very important role in helping us get into a huge national debt? This paper will discuss how Milton Friedman played a negative role in our economy. When the Great Depression hit worldwide, it was up to the economists to explain it and to devise a cure for it. A person named John Maynard Keynes came up with an explanation to the economic slump that was so simple people did not think it would work. Keynes explanationRead MoreEconomic Studies: Quantitative and Qualitative Analysis793 Words   |  3 Pagesdifferent materials such as the government. Two very important economic theories include classical and Keynesian economics. They each have a specific approach on studying consumer behavior, monetary policy, and government spending. Classical economics began during and after the industrialization and was founded by David Ricardo where Friedrich von Hayek became a strong defender of this theory. The classical economic theory is known as free market also referred to as laissez-faire. This means it