Critical Path Method - Free Essay Example

Sample details Pages: 3 Words: 889 Downloads: 1 Date added: 2017/09/19 Category Management Essay Type Argumentative essay Tags: Information Essay Did you like this example? CPM Critical Path Method In 1957, DuPont developed a project management method designed to address the challenge of shutting down chemical plants for maintenance and then restarting the plants once the maintenance had been completed. Given the complexity of the process, they developed the Critical Path Method (CPM) for managing such projects. CPM provides the following benefits: Provides a graphical view of the project. Predicts the time required to complete the project. Shows which activities are critical to maintaining the schedule and which are not. CPM models the activities and events of a project as a network. Activities are depicted as nodes on the network and events that signify the beginning or ending of activities are depicted as arcs or lines between the nodes. The following is an example of a CPM network diagram: CPM Diagram [pic] Steps in CPM Project Planning Specify the individual activities. Determine the sequence of those activities. Draw a network diagram. Estimate the completion time for each activity. Identify the critical path (longest path through the network) Update the CPM diagram as the project progresses. . Specify the Individual Activities From the work breakdown structure, a listing can be made of all the activities in the project. This listing can be used as the basis for adding sequence and duration information in later steps. 2. Determine the Sequence of the Activities Some activities are dependent on the completion of others. A listing of the immediate predecessors of each activity is useful for constructing the CPM network diagram. 3. Draw the Network Diagram Once the activities and their sequencing have been defined, the CPM diagram can be drawn. CPM originally was developed as an activity on node (AON) network, but some project planners prefer to specify the activities on the arcs. 4. Estimate Activity Times Weeks are a commonly used unit of time for activity completion, but any consistent unit of time can be used . A distinguishing feature of PERT is its ability to deal with uncertainty in activity completion times. For each activity, the model usually includes three time estimates: Optimistic time generally the shortest time in which the activity can be completed. It is common practice to specify optimistic times to be three standard deviations from the mean so that there is approximately a 1% chance that the activity will be completed within the optimistic time. Most likely time the completion time having the highest probability. Note that this time is different from the expected time. Pessimistic time the longest time that an activity might require. Three standard deviations from the mean is commonly used for the pessimistic time. PERT assumes a beta probability distribution for the time estimates. For a beta distribution, the expected time for each activity can be approximated using the following weighted average: Expected time = ( Optimistic + 4 x Most likely + Pessimistic ) / 6 This expected time may be displayed on the network diagram. To calculate the variance for each activity completion time, if three standard deviation times were selected for the optimistic and pessimistic times, then there are six standard deviations between them, so the variance is given by: [ ( Pessimistic Optimistic ) / 6 ]2 5. Identify the Critical Path The critical path is the longest-duration path through the network. The significance of the critical path is that the activities that lie on it cannot be delayed without delaying the project. Because of its impact on the entire project, critical path analysis is an important aspect of project planning. The critical path can be identified by determining the following four parameters for each activity: ES earliest start time: the earliest time at which the activity can start given that its precedent activities must be completed first. EF earliest finish time, equal to the earliest start time for the activity plus the time required to complete the activity. LF latest finish time: the latest time at which the activity can be completed without delaying the project. LS latest start time, equal to the latest finish time minus the time required to complete the activity. The slack time for an activity is the time between its earliest and latest start time, or between its earliest and latest finish time. Slack is the amount of time that an activity can be delayed past its earliest start or earliest finish without delaying the project. The critical path is the path through the project network in which none of the activities have slack, that is, the path for which ES=LS and EF=LF for all activities in the path. A delay in the critical path delays the project. Similarly, to accelerate the project it is necessary to reduce the total time required for the activities in the critical path. 6. Update CPM Diagram As the project progresses, the actual task completion times will be known and the network diagram c an be updated to include this information. A new critical path may emerge, and structural changes may be made in the network if project requirements change. CPM Limitations CPM was developed for complex but fairly routine projects with minimal uncertainty in the project completion times. For less routine projects there is more uncertainty in the completion times, and this uncertainty limits the usefulness of the deterministic CPM model. An alternative to CPM is the PERT project planning model, which allows a range of durations to be specified for each activity. Don’t waste time! Our writers will create an original "Critical Path Method" essay for you Create order

CASE OF LG GROUP DEVELOPING TOMORROWS GLOBAL LEADERS - Free Essay Example

Sample details Pages: 7 Words: 2087 Downloads: 1 Date added: 2017/06/26 Category Marketing Essay Type Analytical essay Did you like this example? There is no company which is resistant to environmental changes, especially business environment. As the year comes by, new inventions or innovation will absolutely give impact on every type of business in the world. However, the causes of the impact, in other words, the root of the changes in the environment is not merely coming from company external territory; in most cases the impacts (either negative or positive) can come from external territory and internal territory of the company. Don’t waste time! Our writers will create an original "CASE OF LG GROUP: DEVELOPING TOMORROWS GLOBAL LEADERS" essay for you Create order This written analysis focuses on the LG Groups Chairman Koo who once stated and defined his vision for the LG group to develop and improve significantly and to be a leading company in its local market area (Korea) and the wider market scope, international market and increase its revenue significantly within 7 years period. This is known as LEAP 2005. Even though is not an easy task to do, he is much certain that the group can do that. He considers the past performance of the group and the major internal changes within the company will enable it to achieve what its chairman wants. The main key success, as the management agrees, lies on the future leaders of the group. There are several questions that arise as the result of the discussion between the management in relation with this key point, namely where and how to find these future leaders, what capabilities of competencies these leaders should possess how to develop these key competencies and so on. ANALYSIS OF LG GROUP SITUATION Briefly speaking on LG historical background, a common first impression on the company is that it has tremendous historical records in terms of business performance and business revenue. Citing the record, LG was established for the first time in 1947 as a small chemical company. As the time went by, there are expansions that the group has done. As a result the company got bigger and bigger. The applied several strategies that really work well are the main reason why the company grew bigger within a relatively short period of time. These days, LG is one of the strongest players in Indonesia industry. As the case of LG Group already describes, what is meant by LEAP 2005 desired by Chairman Koo reflects the his dream to make LG Group as the leading company in Korea and leading company in the world as well. This leads to for sure the increasing revenue to US$380 billion. To achieve this, certain development an improvement towards the company as an organization is an urgent necessit y. The significant matter or points which are at the same time can be the conclusion of this brief analysis is that the improvement on internal aspects of organizations, which at the end should result in the transformation of LEAP 2005 into reality. Further, it is agreed that the management should focus on the human organization and make the first priority above all. The analysis is written as follow. LG GROUPS DESIRED CHARACTERISTICS OF HUMAN ORGANIZATION An ideal human organization that can facilitate the achievement of Chairman Koos LEAP 2005 vision of future definitely has three most fundamental characteristics namely: 1. Strong LG company culture/values, 2. Qualified competent people as its component, 3. Good managerial strategies and operations by the management. These all explains how the company will provide itself its needed sources to meet the requirements of the company to achieve the vision. Each of this characteristic can be described as follows. Strong Company Culture A company with certain strong culture (or some term it as values) can usually stand up against all turbulence that occurs during its operations. The LG Group itself has already passed some bad period with great success and continues showing positive progress. Addition to this, there is for sure changes of transforming (STABILITY, HARMONI, RESPECT) to the cultures (CHALLENGE, SPEED, SIMPLICITY, BOUNDARYLESSNESS). These changes are in line with the demand of business environment which requires a company to quickly adapt themselves to the changes. Competent Human Resources The core component of a business organization is the humans who move it and run the companys operation. The more competent the person of the company the more prosperous the company will be. If the all person in the company are competent in their own field it will lead to best product that the company produces. Furthermore, this will end up in the achievement of customer satisfaction target (consumers demand and wishes). This all will result in better competitive advantages that the company has. Good Managerial Practices by Best Management Company management can be is the back bone of the company. They are the key person who drives the company towards certain direction. They are the decision maker of in the company. The fate of the company is in their hands. The culture that the management builds inside the company will also influence the day to day operation of the company. In terms of external relation, the management acts as the representative of the company. The can influence the business partners as well as potential consumers. Specifically speaking, in relation with human resources, the management should provide strategies that relate to human resources management such as defining organizational strategy, defining organizational structure and man power planning, defining the critical jobs, defining the job description that matches with the companys competencies, setting competency model and implementing it in form of setting HR tools and functions such for performance appraisal and reward and compensation re cruitment, promotion, training and development. The human organization with the above mentioned characteristics that LG Group have and will help the company to achieve the LEAP 2005 vision will face obvious problems related to the organization and business the period of the vision achievement progress, they are for example the impact of paradigm or culture changes towards the company, process of setting up the companys core competencies, the changes on business orientation and target (e.g., business goals, from international to international (global) player, the internal (company value) and external cultural change, the demand of new employees to fulfill the need of increasing work load and competent employees, to prepare human resources management system and its tools in line with the company development. As the human resources management plays significant roles the process of translating the chairmans vision in 2005 they should be discussed further in details. The overall im plementation of strategies, policies, programs, and or practices by Mr. Y. K. Kims LG Human Resource Team that can help Chairman Koo transform his LEAP 2005 vision into reality must link to how the management organizes and manages the human resources that the company has. These could be the strategies of attracting best new employee, develop the star performers (or other may call high potential) in terms of soft and hard skills or competencies, retain the best performers, manage work effectivity etc. LG GROUP STRATEGY: DESIRED CHARACTERISTICS FUTURE LEADERS As explained before, the key success of the company in transforming the vision LEAP 2005 into reality relies on how the organization prepare and develop the future leaders of the company which will determine how the company will operate and run in the future. These leaders will be having several capabilities as what Chairman Koo desired so that these competencies will enable them to perform well. First and foremost, these leaders must possess a sense of competition for global perspective. This competency strongly connects with the capability to fight and compete with the world class companies. Secondly, this has a relation with how wise and strategic a leader can create a global management system. Finally, a sharp sense of global perspective will assist a leader on how to create a world class business. The other attributes that a future leader must hold is his ability to maintain the quality of the company output. In relation to this they must have capability to create maximu m value for customer. In other words, the satisfaction and loyalty of the costumer towards the company has to be the first priority and target for the future leaders that the group will need in the future. As important as the focus on outputs (products) the leader must also embrace the values that have been the LG values directly given by the Chairman. The two other values that basically are the required attributes for all future leader of LG to have are the skills (managerial) to conduct the business with integrity and the good level of contribution towards social development. Practically speaking, when it comes to day to day business activity, the basic capabilities for them to master is that the knowledge on what and how the company process runs. Thus, when there is a problem in certain area of the business, they can quickly tackle down the problem and solve it. Finally, they must have what so called global orientation and global leadership capabilities. These will define the company orientation in the future as well as solve the problem that may occur such as significant and drastic different environmental and business condition changes. LG GROUP STRATEGY: HUMAN RESOURCES APPLIED STRATEGY To discuss the case of future leaders in more detail, the whole process of preparing the future leaders can be described in more specific process and stages as follow: To identify and attract the best leaders. Here research I believe will benefit the company much in the sense of tracking the best candidates in the future. Nowadays, competition is occurring not only attracting best costumers/consumers but also in attracting the potential competent employees. To select, recruit and hire the future leaders. The activities are the follow up of the research conducted in the first phase. Citing the case of LG, the company will need a really significant number of employees, both Korea and Non-Koreans. These involve certain strategy to achieve best output in terms of attracting future leaders with competent capabilities. To train and develop the future leaders of the company. Here, a training center such as what Dr Lee runs with his LG Academy plays an important role. Their task i nvolves defining the current employee competencies required for better performance and a set of competencies on which they can focus assessment and development activities in the future. This also one of the main concerns of the management. They see training and development for technical competencies as the main component to achieve the LEAP 2005 To provide motivation, appraise, and rewards as implementation of strategies to retain the competent company future leaders. The company should not reenact what so called as Bamboo Ceiling which most Japanese company once faced. The management must develop clear and transparent career path for all employee. The assessment for promotion should also be made fair so that all employee can see the progress of their career and most importantly, and equal opportunity for career improvement must exist in the company. This will guarantee the all employee can achieve higher position as their performance says so. In regards with the future plans in LEAP 2005 vision, the company plans to attain 50 % of the whole revenue from international market the number of non Korean employees will increase significantly. In the practices, the company and the management plan to fill 3 or 4 business presidents with non-Koreans out of 50 positions and give 20% portion of all executives at the office at Seoul. To maintain the unity and fairness of the management approach, the team could take the same approach to the both Korean and non-Korean employees. However, the customization may take place in accordance with the background of culture of those two groups. However, in general the common strategies must be implemented to both groups. What must be emphasized is the output which is all employees can implement the strategies in to the business and provide the desired outputs. CONCLUSION In summary, by analyzing the case of LG Group: Developing Tomorrows it can be concluded that a company business activity can not be separated from internal and external influences. Internally the management may have a set of future plans and strategies or even vision that must be implemented and transformed by all company components. Externally, the changing business environment in each different period often requires the company to constantly prepare a set of strategies to cope possible problems and stay survive in the midst of uncertain condition. Here, the human resources team plays an important role since a competent future leaders are the key person that can manage the company through the hard time that may happen in the future. It is the responsibility of the human resources team to attract, develop, and maintain those future leaders for the sake of company stability.

Enlightenment Rationalism and Romantic Subjectivism

Enlightenment Rationalism and Romantic Subjectivism In the eighteenth century social theories had a huge impact on individuals within a society. Two social theories in particular came to be during radical times. The enlightenment rationalism theory was based on human reason and rational thought. The romantic subjectivism theory was based on the importance of individual freedom with an emphasis on the subjective mind and culture. These two social theories were both highly influential during their time period, but have many differentiating ideologies. Enlightenment rationalism was developed first primarily by Rene Descartes and was later opposed by the Romantics after the French Revolution. The Enlightenment focused on the human†¦show more content†¦The Romantics held women to a higher standard when it came to nature. They did share the thought of women not having any reason, even if reason was important, with the Enlightenment theorists. (p. 79). The Romantics did hold women on a pedestal, however the standards they held them to would be hard to achieve and thus women would only end up being disrespected in the end. The Romantics did see that women had somewhat of a purpose. Many theorists and philosophers had their own ideas of what the Enlightenment meant but for one particular philosopher reason was held to the highest importance. Locke explained that when reason and discourse would come together with some exercise of the mind and then applied to morals, would be when humans would find the absolute truth (p. 37). This was explained as hopeful for the Enlightenment but ultimately not realistic. The ideal Enlightenment thinkers were explained as â€Å"empirical scientists and the model method was the inductive and rationalist scientific method† (p. 37). While the Enlightenment used science as their most important explanation for human society, Romantics were rebellious and searching for exotic ways to explain society. One Romantic that used a very different method was Samuel Taylor Coleridge. He used opium to expand his thoughts on social theory (p. 78). Other Romantics used artistic ways to explain their thoughts through paintings, poems and music. Wordsworth was a poet and theoristShow MoreRelatedAn Ideal Social Policy Of The Rule Of Law And The Way Amendments Essay1841 Words   |  8 Pagesof views in governance. However, for an ideal country, application of philosophy is inevitable since governing deals with social institutions, which include family, friendship, property relations, community, race, and association. Moreover, the rationalism in governance emphasizes the use of reason in different social relations, that is submission to logic. In this way, citizens of a country can unify politically, thus forming a platform to ensure peace. On the other hand, consideration of the possibility

Gays Should Be Legal Contract - 1290 Words

Gays Should Be Allowed To Marry Calling something marriage does not make it marriage. Marriage is a legal contract between a man and a woman. It is the institution that establishes kinship and relations in the family. Marriage is mostly recognized by a state, organization, religious authority, local community, or peers. Marriage is for procreation, education, the unity, and well-being of the couple. Some say marriage is for two people who love each other and ready for commitment. Nevertheless, in the bible times, couples were not allowed to choose the one him or her married. Therefore, the person he or she married was not the person him or her loved. Divorce was not an option; the couples had to learn to love the person they married. Stating this, marriage is not all about love and emotions, but the purpose of marriage. Marriage is unique and universal. (Rauch) Marriage of homosexual couples would not provide the same benefits of a heterosexual couple. Homosexual are not allowed to produce children. They must have vitro-fertilization or surrogacy. Same-sex couples should not be allowed to marry, because marriage is for a man and a woman, all religion is against gay marriages, and gay marriages are the slippery slope for other marriages. (Ferguson) The History of Gay Marriage The history of same sex marriage has been recorded since the beginning of civilization. Ancient Roman Empire accepted same-sex relations. A lot of the roman emperors were homosexuals. However,Show MoreRelatedMarriage Discrimination: Ending Soon1120 Words   |  5 Pagesemphasizing that GLBT people should not have to wait for public opinion or government’s approval for establishing or continuing their relationships. On the other hand, in his article â€Å"What are we fighting for?†, Wedgewood asserts that couples marry not only to make a legally binding commitment to each other, but also to get the rest of the society to understand that they have a serious commitment to an intimate relationship. Although I concede Howley’s argument that public opinion should not matter to LGBTRead MoreSame Sex Marriage1643 Words   |  7 Pagesgroup presents valid and reasonable arguments to support their belief. Both hold their beliefs strongly and, therefore, aren’t wil ling to compromise. Those opposing claim that marriage is sacred and should be kept that way. Those supporting same-sex marriage state that marriage is nothing but a contract and prohibiting this right is unconstitutional and discriminatory. Same-sex marriage is a sacred, traditional bond between a man and a woman: Religious conservatives definitely believe that same-sexRead More Same-sex Marriage Should be Legal Essay1000 Words   |  4 PagesSame-sex Marriage Should be Legal    I do. These two simple words have the power change lives in an instant. For most people, the phrase conjures up images of a man and a woman being joined in marriage. But for gays and lesbians, having the chance to legally say I do is a far-off dream, not a reality. In many European countries, marriages between same-sex couples are federally recognized, but unions of American homosexuals still go unrecognized by the United States government. Same-sexRead MoreShould Gays Be Allowed to Marry1476 Words   |  6 PagesThe Prusuit of Happiness! Should gays be allowed to marry? Stacey Dockery PHI103: Informal Logic (GSJ1231E) Instructor Name: Daniel Beteta September 3, 2012 Argumentative Essay on Gay Marriage Marriage: a legally recognized relationship, established by civil or religious ceremony, between two people who intend to live together as sexual and domestic partners. Typically this is between a man and a woman, in love, as they come before their families, to pledge to spend the rest of their lives togetherRead MoreJonathan Rauch : For Better Or Worse?1296 Words   |  6 Pageshis article, Rauch debates on the negative views of gay marriage. He states his contempt for these views and states a detailed reason why gay marriage makes sense. He makes it known that he feels that gay marriage should be viewed as normal and gay marriage should be held to a similar standard. He feels that this union would help in domesticating men and make them reliable caregivers. In his article, he concludes by articulating that he is gay and would be ashamed if other homosexual individualsRead MoreThe Agreement And Living Together Contracts775 Words   |  4 PagesNonmarital Agreement Living Together Contracts Under Nonmarital agreements and simple â€Å"living together contracts they both function similarly to prenuptial agreements. The two are set up as business agreements which set forth how money, property and debt will be handled during and after the relationship. Living together contracts are more suitable for long-term relationships where a significant amount of money, property and debt are expected to accumulate. For example, the purchase of homes, combiningRead MoreA Refutation of an Argument by William J Bennett on Recognizing Same-Sex Marriage1749 Words   |  7 Pagesï » ¿REFUTATION OF ARGUMENT AGAINST GAY MARRIAGE In a remarkable article that appeared in the Washington Post, William J. Bennett argued that recognizing same-sex marriage would be detrimental to the concept of marriage and to the nation. The only thing more remarkable than the logical fallacies relied upon in the article was the fact that the author was the former Chairman of the National Endowment for the Humanities and Secretary of Education in the Reagan administration and Director of the OfficeRead MoreMargaret Marshall The Chief Juice Of The Supreme Judicial Court1062 Words   |  5 Pagesargues marriage is a vital institution, the commitment should be between two people who offer mutual support to children, and to bring stability to our society. Marriage provides legal, financial, and social benefits. Which leads to legal, social, and financial obligations. The department of health states the purpose of marriage is to have children, the state is only interested if children are involved. She believes the court is downgradin g marriage gay marriage for no rational reason. The responses fromRead MoreCalifornia s Statutory Prohibit Marriage949 Words   |  4 PagesQUESTION PRESENTED 1) Whether California’s statutory prohibit marriage between two persons of the same sex violate the California Constitution by denying equal protection of laws to gay, bi-sexual, lesbians and transgender a right to marry, or by denying the right to privacy and freedom of expression? BRIEF ANSWER No. Because the Constitution was written for a man and a woman to marry based on religion and would be a direct violation of what we have been taught all of our lives. Such a profoundRead More Gay and Lesbian Issues - Homosexual Couples Must Be Allowed to Marry798 Words   |  4 Pagesmarriage. But for gays and lesbians, having the chance to legally say I do is a far-off dream, not a reality. For years in other countries, same-sex couples have had their marriages federally recognized, but the unions of American homosexuals still go unrecognized by the United States government. Same-sex marriages deserve to be legalized in this country. Homosexual couples should be entitled to the same rights as heterosexual couples. First, look at the issue in purely a legal fashion. A legally

Showrooming Free Essays

There is a new problem for retailers these days, it’s called, showrooming. According to the Wall Street Journal’s article, â€Å"Can Retailers Halt ‘Showrooming’, their definition of this term is, â€Å"shoppers who scope out merchandise in stores but buy on rivals’ websites, usually at a lower price. As stated in the article, â€Å"Today half of shoppers who buy products online first checked them out in a traditional store, according to a recent study of 900 shoppers by Minneapolis-based research firm ClickIQ Inc. We will write a custom essay sample on Showrooming or any similar topic only for you Order Now While the majority of survey respondents favored Target and Wal-Mart stores for researching merchandise, half of the online consumers wound up making their purchases on Amazon. † So the problem many retailers are facing is trying to keep their customers from going to cheaper online alternatives. Many retailers are starting to scrounge for new ideas, some are dropping the price of their online stores 1% to 2%, others are trying to work with their suppliers to make their products exclusive to their stores, and a few are encouraging clerks to refer shoppers to their online stores when they cannot find the item. Using this article managers may now understand why they seem to be losing profits in their stores. So the next step for the managers would be to figure out why shoppers are not buying from them. As a manager, I would take a look at our prices compared to the online stores and figure out some incentives to keep our customers. I would start with coupons, rebates, and price matching programs. I would push to make our items more exclusive to our stores, and for the online shoppers, offer free basic shipping and more online deals and selections. I would push for ways to make shopping more enjoyable in the store with exceptional customer service, a knowledgable sales staff, next day store pickup for out of stock items, and a clean and friendly shopping environment. How to cite Showrooming, Papers

Small Business Management Starbucks

Question: Discuss about theSmall Business Managementfor Starbucks. Answer: Introduction Starbucks is an American based coffee giant company and was first established in 1971 in Seattle, Washington. At present it is one of the largest coffee chain retailers over the globe. Howard Schultz is the chairman of this company. Along with the coffee it also provides many beverages to the customers and takes care of the needs of the customers. It has expanded its stores worldwide and earned a great profit out of it. This company has a superb public relation with the customers and is active on the social media and on different web pages as well. Earlier when it started it had many issues regarding so many things but eventually it improved its strategies and now it is a successful coffee retailer (John, 2004). In this report starbucks has been discussed in detail which gives proper knowledge about the company. Analysis of Companys Entrepreneurial Characteristics Starbucks Starbucks is one of the most favored and recognized brands in todays era. This company is actually the first company that introduced emerging tech and innovative practices as a part of their total contribution (Melody, 2013). There are many characteristics that make this company innovative and recognized in the areas of leadership, marketing, finance and many others. Main characteristics of this company are: Listen To Feedback Starbucks is the company that believes in embracing the feedback. They respect every kind of feedback that they receive from the customers and even from the employees. In earlier times the employees of the company were given a post card sized card and were told to right the feedback of their experience in the company. And these feedbacks were kept confidential. Now the time has changed and everything is done on the emails and the internet. Everything has been replaced by the modern technology. But when it comes to the feedback of the customers, the company is still willing to listen to them and try to satisfy the customers. A company cannot make innovation without listening. Leading From The Heart This plays a vital role in the organization as the executive leadership in the Starbucks is projected to lead from the heart. The leaders of particular organization can lead from other places also like from the head as analytical abilities are necessary for the company. But in case of Starbucks leaders are expected to take themselves seriously and are also expected to take others seriously and at the end of the day they lead from the heart. Starbucks also provide leadership training and they provide the best possible training to the employees about the culture of the organization. Other Characterstics Starbucks launched a site for the customers called MYStarbucksIdea.com. It is basically a place where customers can give new ideas to the company and can even advocate for the change in the policies that are existing in the company. Starbucks also provide superior delivery with the desired benefits to customers and with that it also maintains the innovation and provide relevance for the brand (Simonds, 2013). Startup Issues Starbucks is a Seattle based coffee giant and had suffered a massive outrage that caused them to shut down the point of sales system at many stores across the U.S and Canada. This had cost starbucks a massive cost of millions of dollars. There are also many other issues that have occurred in this company. Earlier customers did not get the in-store experience due which they were losing their customers as compared to the other coffee giant companies. There was also a loss of aroma in coffee which many customers complained about. However it was failing to attract more customers (Starbucks, 2013). One more issue that was brought up was regarding the feeling one gets when they enter the store. Hence there was a loss of warm feeling in the Starbucks. Besides the issues about the commoditization of the experience of the company, there were also issues regarding the increase in competition. Starbucks was facing huge competition from other recognized brands that were also doing well in their business. There were also many other coffee retailers like McDonalds, dunkin Donuts and Caribou coffee. Not only there were issues in the increasing competition there were also issues in the management of the company. There was a mismanagement of the supply chain that was followed in the company and starbucks was even lacking behind the discipline. Eventually over the years starbucks expanded its store in many different countries and cities to increase the marketing of the company. This was actually beneficial but again there was an issue as with the rapid increase of stores starbucks lost control over the stores. Although starbucks expanded its store in many different areas of the cities but most of them had the poor locations of the stores. Starbucks eventually lost their focus on the core values which they used to follow. Due to increase in competition from other coffee retailers there was a huge decline in the economy sector of this company. McDonalds gave a tough competition to starbucks as according to a consumer report test McDonalds coffee was much better than starbucks and the Dunkin donuts. These were some of the startup issues that took place in starbucks. Business Model Development There is a framework that clearly explains the core competencies of a business model from the perspective of entrepreneurial. It basically consists of three key components that help in defining the business model development of starbucks. Value Creation This is the first component of the framework. This component includes the elements of the new business model which provides value from the firm (Flamholtz, 2012). Starbucks creates a unique value by creating an improved experience of the customer. It has provided the new service as this includes the starbucks mobile phone application. This new app consists of many new and unique ordering processes that allow the customers to find the nearest store available and choose from the menu they wish to have. This helped starbucks in enhancing their customer experience. This app will also in help in keeping the customer database which will directly help in the marketing communications. Market Factors This is the other competence which is concerned with the market of the organization to which it has to create value for. This particular framework mainly focuses on the nature and the scope of the marketing that helps in the success of the organization. Mainly the target market was the consumer target which aimed the younger generation because this is the generation that is most attracted towards such coffee giants. Starbucks has also aimed to increase the consumers throughout the world to increase the marketing. Internal Capabilities This framework describes the internal source of competence of the company. It is also used to explain that this framework is basically used to internment internal capabilities of the firm that provides benefits to the customers. This framework also includes any kind of process that is happening in the company and even allows it to work efficiently and most importantly deliver the results as source of value creation to the customers. Marketing Strategies of Starbucks Starbucks marketing strategies can be explained with the help of Porters five forces (Michael, 2008). Potential New Entrants This force helps in analyzing the organization to the current environment which will help the firm to compete in the market (Grundy, 2006). There is a huge rise in the coffee industry. Many other organizations such as Dunkin Donuts and McDonalds have a large distribution channels at deliver coffee at the low cost. In this case starbucks have to be cautious as other organizations are earning profit by purchasing the coffee beans in bulk from the farmers so that they can sell coffee at lower prices. Deputy There was a decrease in the coffee chemistry and threat was increasing because soft drinks like Coca-Cola and Pepsi were getting consumed by the costumers. The reason behind it was that these drinks were available at low cost as compared to the coffee which was expensive and many people could not afford it on regular basis. So to increase the marketing of coffee Starbucks actually negotiated with the suppliers of coffee beans. Therefore starbucks purchased the coffee beans at lower prices and reduced the capacity of the buyer to another (Greenspan, 2017). Industry Rivalry Rivalry of starbucks has changed over the years as in early days it had to compete with the small coffee shops but now things have changed for this company. Now it competes with the large recognized companies. More of its competition is with the Minneapolis based Caribou Coffee. Starbucks have also made changes to compete with the competitors and even introduced Wi-Fi to attract the customers. Bargaining Power Of Buyers Most of the buyers of the coffee industry is single customers which makes easy for the company to negotiate with the customers (Schultz, 2014). This negotiation is dependent on the type of buyers and the company itself. There are two types of buyers, the individual buyers and the children. Swot Analysis Strength Starbucks has the strong brand equity that lends to the competitive edge. This company has the wide range of geographic presence. It is one of the biggest coffee chains across the globe. This brand has managed to provide the high quality commodities. Weakness Starbucks is totally dependent on the coffee beans and the price of coffee beans. However it is price sensitive to the fluctuations in the price of coffee beans. Starbucks was also accused for violating the Fair Coffee Trade principles. The prices of the commodities are high so customers prefer other outlets for the coffee instead of starbucks. There is no diversion in the product range. Opportunities Starbucks has chances to expand its supplier network (Forbes, 2016). This company also a huge opportunity in its expansion into the emerging market. Starbucks can also diversify in the product offerings as this will help in the more business opportunities (Birkinshaw, 2004). This company can also expand its network of retail stores. Threats Starbucks has a threat from the rising prices of coffee beans. Misusing the brand and using the logo is a threat. Competition from other coffee retailers Faces challenges because of its global supply chain. Web Presence Starbucks has a strong web presence and utilizes many other platforms in order to reach to their customers (Virginias community colleges, 2016). The main website of starbucks keeps on changing the landing page so that they can coincide with the current promotion they are offering. It also engages itself in many marketing campaigns (Dan, 2011). For example Starbucks ran its advertisement on the website of MTV.com. Beside its web presence, starbucks has created an ecommerce site that allows for the online sale. Starbucks is also active on the social media including Twitter, Facebook, YouTube, and Goggle Plus. This company even has its own online community called MY Starbucks Idea. Global Opportunities As India is the largest growing market starbucks can open many stores in the country. India is pre dominantly the tea drinking nation so starbucks can launch Teavana which is a tea brand along with some packaged goods. Starbucks will also benefit if they bring the mobile and digital technology to India as this will reduce the long queues in populated nation. Moreover there will be a competitive edge for Starbucks (Thompson, 2004). Public Relations Many companies have complex structure and even make it difficult for the customers to reach them. But in case of starbucks its not the same, this company goes out of its way to solicit the feedback of the customers and even gets engaged in the conversations. Starbucks provides feedback brochures with many districts so that customers can provide feedback in number of ways. Not only through the feedbacks but also through social media it communicates with the customers and provides them the best experience and manages to form a healthy relationship with the customers (Green,2012). Conclusion From this report it has been concluded that starbucks has designed itself in an effective way that attracts customers. It uses all the latest technologies to involve with the people which are actually beneficial for them as more people now days are using communication media to interact. Starbucks have always responded and connected with the customers to maintain a strong relationship. From this report it can also be depicted that this brand has a huge global opportunity and follows a particular strategic planning to achieve their goal. Although it has many competitors still it has managed to survive in the market which makes starbucks special. References Birkinshaw, J. (2005). Subsidiary entrepreneurship, internal and external competitive forces, and subsidiary performance. International Business Review. 14(2) 227-248. Dan. B. (2011). Starbucks Breaks Interactive Rich-Media Ad Campaign Targeting iPad Users. Starbucks. Retrieved on: 13 February 2017. From: https://www.mobilemarketer.com/cms/news/advertising/9403.html. Flamholtz, (2012). Corporate culture, business models, competitive advantage, strategic assets and the bottom line: Theoretical and measurement issues. Journal of Human Resource Costing Accounting 16(2) 76-94. Forbes, (2016). How Starbucks Plans To Grow Its International Operations. Forbes. Retrieved on: 13 February 2017. From: https://www.forbes.com/sites/greatspeculations/2016/01/18/how-starbucks-plans-to-grow-its-international-operations/#19b074c55fc7. Green, A. (2012). Starbucks Corporation: Global Expansion International Marketing. Scribd. Retrieved on: 13 February. From: https://www.scribd.com/doc/123247528/Starbucks-Corporation-Global-Expansion-International-Marketing. Greenspan, R. (2017). Starbucks Coffees Five Forces Analysis (Porters Model). Panmore Institute. Retrieved on: 13 February 2017. From: https://panmore.com/starbucks-coffee-five-forces-analysis-porters-model. Grundy, T. (2006). Rethinking and reinventing Michael Porter's five forces model. Wiley online library. 15(5) 213229. John, L. T. (2004). Strategic Management: Awareness Change; Cengage Learning. U.K. Melody, (2013). What Organizational Characteristics Make Starbucks So Innovative? StarbucksMelody. Retrieved on: 13 February 2017. From: https://www.starbucksmelody.com/2013/05/04/what-organizational-characteristics-make-starbucks-so-innovative/. Michael. E. P. (2008). On Competition; Harvard business school Publishing Corporation, US. Paul, A. A. (2004). Collaborating with Activists: How Starbucks Works With NGOs. University of California press 47(1) 91-116. Schultz, H. (2012). Pour Your Heart Into It: How Starbucks Built a Company One Cup at a Ti; Hachette UK. Simonds, L. (2013). Starbucks: A Model of Success. Time. Retrieved on: 13 February 2017. From: https://business.time.com/2013/08/27/starbucks-a-model-of-success/. Starbucks, (2013). As you taste different coffees from around the world, try to compare and contrast the coffees by identifying the four tasting terms for each coffee: aroma, acidity, body and flavor. Coffee Taste Characteristic. Retrieved on: 13 February 2017. From: https://www.starbucks.com.au/Coffee-Taste-Characteristics.php. Thompson, J. C. (2004). The Starbucks Brandscape and Consumers' (Anticorporate) Experiences of Globalization. Journal of consumer research. 31 (3): 631-642. Virginas Community Colleges. (2016). Web Site Analysis. Starbucks. Retrieved on: 13 February 2017. From: https://sites.google.com/a/email.vccs.edu/starbucksportfolio/web-site-analysis.