Review of the SME Sector - Free Essay Example

Sample details Pages: 8 Words: 2489 Downloads: 4 Date added: 2017/06/26 Category Economics Essay Type Research paper Did you like this example? 2.0 REVIEW OF SME SECTOR 2.1 BACKGROUND SMEs all over the world play an important role in the economy by creating employment, contributing significantly to GDP and socio-economic development of a nation. It plays a major role in the democratization of the economy. The latest CSO Report 2007 on Small Establishments and itinerant units indicates that there were 91 979 small production units employing 208 797 persons. Don’t waste time! Our writers will create an original "Review of the SME Sector" essay for you Create order In many countries, particularly in East and South East Asia, SMEs are the leading force of the economy. For example, in 2006 SMEs constituted 99.2% of the business establishment in Malaysia and employed 65.3% of the national workforce, contributing 47.3% of GDP. (Thurasamy et al., 2009) Another example is Thailand where SMEs account for 99.5% of enterprises in 2006 and about 80% of all employment in 2004-2006 contributing 38% to GDP. 2.2 HISTORY OF SME SECTOR IN MAURITIUS 1976: Establishment of Small Scale Industry Unit (SSIU) under the aegis of the Ministry of Commerce and Industry. Guidance and general advice were given to small entrepreneurs. 1983: The Small Industry Development Organisation (SIDO) took over from SSIU. 1988: Enactment of Small Scale Industries Act which provided for a legal definition of Small Scale Industry (SSI), voluntary registration of SSI and duty exemption on production equipment. 1993: Setting up of Small and Medium Industries Development Organisation (SMIDO). The SMIDO Act 1993 established SMIDO as a parastatal body with a vision to develop a modern SME sector that was competitive, efficient and export-oriented. 2005: Creation of Small Enterprises Handicraft Development Authority (SEHDA) following the merger of SMIDO and the National Handicraft Promotion Agency (NHPA). The aim was to rationalise and optimise the resources allocated to the small enterprises. 2009: The SEHDA Act was repealed and the Small and Medium Enterprises Development Authority Act 2009 established the Small and Medium Enterprises Development Authority (SMEDA) as a parastatal body with the vision to be the centre of excellence for servicing SMEs and the mission to establish SMEDA as the institution to promote, serve, support and strengthen SMEs to face the challenges of globalization. SMEDA operates under the aegis of the Ministry of Business, Enterprise and Cooperatives. (Source: SME Portal, Office of Public Sector Governance (OPSG)) 2.3 SME DEFINITION SMEs are involved in a wide array of business activities. There is no universal definition of SMEs. The table 2.1 below gives the UNIDO definition of SMEs in some Asian Countries. Table 2.1: UNIDO definition of SMEs in some Asian Countries Country Definition of SME Measurement People Republic of China Varies with industries, less than 100 employees Employment Indonesia Less than 100 employees Employment Korea Manufacture: less than 300 employees Service: less than 300 employees Employment Malaysia Varies, turnover: less than RM 25 million and 150 employees. Shareholders, Funds and Employment Philippines Less than 200 employees, less than P 40 million assets Assets and Employment Singapore Manufacture: less than S$12 million fixed assets Service: less than 100 employees Assets and Employment Table 2.2 gives the definition in the European Union. An SME should satisfy either the turnover ceiling or the balance sheet ceiling, but not necessarily both: Table 2.2: Definition of SMEs in the European Union Enterprise category Headcount Turnover or Balance sheet total medium-sized 250 à ¢Ã¢â‚¬ °Ã‚ ¤ à ¢Ã¢â‚¬Å¡Ã‚ ¬ 50 million à ¢Ã¢â‚¬ °Ã‚ ¤ à ¢Ã¢â‚¬Å¡Ã‚ ¬ 43 million small 50 à ¢Ã¢â‚¬ °Ã‚ ¤ à ¢Ã¢â‚¬Å¡Ã‚ ¬ 10 million à ¢Ã¢â‚¬ °Ã‚ ¤ à ¢Ã¢â‚¬Å¡Ã‚ ¬ 10 million micro 10 à ¢Ã¢â‚¬ °Ã‚ ¤ à ¢Ã¢â‚¬Å¡Ã‚ ¬ 2 million à ¢Ã¢â‚¬ °Ã‚ ¤ à ¢Ã¢â‚¬Å¡Ã‚ ¬ 2 million (Source: SME Portal) The Central Statistical Office defines a small unit as a production unit employing less than 10 persons. It can be an establishment or an itinerant unit. As per SMEDA Act, SME definition includes enterprises in all sectors. There is no differentiation between services and manufacturing sectors for small enterprises. An enterprise with an annual turnover of up to Rs 10 million is defined as a small enterprise whereas one whose turnover is more than Rs 10 million but not more than Rs 50 million is considered as a medium enterprise. 2.4 POLITICAL AND LEGAL ENVIRONMENT Mauritius is a member of the World Trade Organization (WTO) since 1 January 1995. It is committed to adopt the WTO rules towards trade liberalization. We are also a member state of regional blocks namely: Southern African Development Community (SADC) and Common Market for Eastern and Southern Africa (COMESA). SADC: It is a Regional Economic Community comprising of 15 Member States esta blished in 1992 and committed to regional integration and poverty eradication through economic development and ensuring peace and security. COMESA: It is a block of 19 member states with the aim to strengthen regional cooperation. Through greater regional co-operation and networking between regional and international partners, COMESA strives to improve access to technology and other resources and thus enhance productivity and competitiveness. Membership of SADC and COMESA gives Mauritius access to a market of more than 440 million people. The Regional External Trade for period 2009, 2010, 2011 and 2012 are given in Table 2.3 Table 2.3: Regional External Trade for period 2009, 2010, 2011 and 2012 REGIONAL EXTERNAL TRADE Regional External Trade (Rs M) 2009 2010 2011 2012 Total Exports (FOB) ACP 7,998 9,103 11,146 13,802 COMESA 4,972 4,945 5,579 6,496 SADC 7,352 8,193 10,114 12,763 Imports (CIF) ACP 13,595 15,485 15,520 15,690 COMESA 3,311 3,997 4,565 4,683 SADC 11,972 13,480 13,534 13,553 (Source: The Mauritius Chamber of Commerce and Industry) Through US-Africa Growth and Opportunity Act (AGOA), Mauritius benefits from preferential access for apparel exports to the US. It mitigates the negative effect of elimination of Multi-fibre Agreement and gives Mauritius a chance to diversify its textile sector by favouring spinning and weaving activities and promote regional integration of the local textile sector with other Sub-Saharan countries eligible for AGOA benefits. Over the years, government has passed laws and regulations to facilitate business. It is committed to promote a conducive business environment with the appropriate incentive to support and modernise the SME sector. In the 2014 Budget Speech, the Minister of Finance and Economic Development described measures taken in the last three budgets as a à ¢Ã¢â€š ¬Ã…“Marshall Plan for SMEsà ¢Ã¢â€š ¬Ã‚ . The following measures in favour of SMEs were announced: Government procurement from SMEs will reach about 11% in 2013 as compared to 6% in 2012. The aim is to reach 20% within the next three years. A National Business Award to encourage large businesses to support SMEs will be set up. A free basic website will be provided to all SMEs. More elaborate website costing up to Rs 6000 will be subsidised at 50%. Government will guarantee loans for small enterprises directly to commercial banks up to 70% of any amount of loss incurred. This will remove the need for small enterprises to provide collateral and third party guarantees. Rs 70 million will be provided under the SME Factoring Scheme for 2014. The National Productivity and Competitiveness Council (NPCC) will offer training to 500 SMEs to improve their productivity and will organise a National Productivity Award. Two SME parks will be constructed and delivered to 80 SMEs, in addition to the 55 already delivered in 2013 with a 50% subsidy. The Global Competitiveness Report 2013-2014 of the World Economic Forum ranks Mauritius in the 45th place in terms of Global Competitiveness Index out of 148 countries surveyed. Among other things, it describes Mauritius as a country with an independent judiciary, with clear property rights and strong investor protection. Furthermore it has noted an improvement in market efficiency and access to different types of financing and financial services. As for the number of procedures to start a business, Mauritius ranks 30th and for the number of days to start a business, we rank 16th. To facilitate business, Government has consistently streamlined procedures governing business operations, namely in the field of company laws, tax laws and labour laws. 2.5 SME ESTABLISHMENTS The last Census of Economic Activities published by CSO reveals an increase in the number of small production units by 23%, a rise in employment by 19% from 2002 to 2007 as shown in Table 2.4 Table 2.4: P roduction units, persons engaged and value added (CEA 2002 and 2007) 2002 2007 Percentage change Production units 74 928 91 979 22.8 Persons engaged 175 791 208 797 18.8 Value added (Rs million) 23 202 42 126 81.6 (Source: Statistics Mauritius and SME Portal) Figure 1: The distribution of small units in 2007 by industry group. (Source: Statistics Mauritius and SME Portal) There are a considerable number of small enterprises that do not register with SMEDA. The possible reasons are: They are not aware of benefits to which they are eligible and the fiscal and non-fiscal incentives at their disposal through registration. They are operating in a sector where they do not perceive any significant benefit through registration. E.g. seller/producer of dholl puree. They are operating in the informal sector and do not want the Mauritius Revenue Authority to probe into their business activities. Table 2.5: Small and Medium Enterprises registered during the period 2005 à ¢Ã¢â€š ¬Ã¢â‚¬Å" 2012 Enterprises In Operation 2005 New Registered 2005 2012 Total Registered 2012 New In Operation 2012 Total in Operation 2012 Food Beverages 473 1884 2357 607 1081 Leather Garments 886 1819 2705 670 1556 Wood Furniture 262 236 498 98 360 Paper Products Printing 69 72 141 26 95 Chemical, Rubber, Plastic 46 62 108 28 74 Handicrafts, Pottery Ceramics 476 990 1466 373 849 Jewellery Related Items 67 63 130 27 94 Fabricated Metal Products 251 338 589 126 377 Profession/Vocation/Occup 764 2274 3038 788 1552 Trade Commerce 1463 5054 6517 1431 2894 Business Support Service Sector 67 158 225 48 115 Others 338 866 1204 248 586 Total 5,162 13,816 18,978 4,470 9,632 (Source: SMEDA and OPSG) The above table indicates that the mortality rate for registered SME is high. Employment status In 2007, out of 208 800 persons in the small units, 18.5% were employers with paid employees. 24.7% were on their own account or with the help of unpaid family members. The total number of employees was estimated at 47.2% and contributing family workers at 9.6%. (Source: CSO) 2.6 INSTITUTIONAL SUPPORT To promote the SME sector, the Government has set up several support institutions. These institutions cater for a wide range of support and services: access to finance, training, business counselling, marketing assistance, innovation, business plan elaboration etc. The ministry dedicated especially for SMEs, the Ministry of Business, Enterprise and Cooperatives has some of these institutions under its aegis. SMEDA: The objectives of the Authority are inter alia: To promote a conducive business environment and empower SMEs to emerge and grow. To enhance the competitiveness of SMEs To facilitate, assist SMEs to gain market and business opportunities and to compete successfully in national and international markets Enterprise Mauritius: Enterprise Mauritius is a Trade Promotion Organization. It is a collaborative partnership between the public and private sectors. The various types of supports provided include: Market development Financial assistance Consultancy Product and quality improvement Market intelligence Skills and trend monitoring Networking Strategy development For the benefit of businesses, Enterprise Mauritius coordinates every year the participation in Trade fairs, Buyers and Sellers Meetings and Business to Business meetings in local and international events. Enterprise Mauritius has set up liaison offices in Kenya and USA and is opening other offices shortly in Tanzania and South Africa with a view to targeting emerging markets in Africa. The Mauritius Business Growth Scheme (MBGS): The MBGS was established by the Government in collaboration with the World Bank. Its aim is to bring innovation, improve productivity and competitiveness of enterprises, particularly SMEs by targeting specifically areas of skills and training, technology upgrading, innovation, quality standards and business development. The Development Bank of Mauritius Ltd (DBM Ltd): The DBM Ltd provides an array of support facilities to all those engaged in socio-economic activities. It assists the government in achieving the economic and social objectives and has devised various credit schemes to finance SMEs. The Mauritius Post and Cooperative Bank Ltd (MPCB): The MPCB has devised special schemes for SMEs and micro enterprises at preferential and concessionary rates as well as a wide range of banking products and services in line with government policy. The National Women Entrepreneur Council (NWEC): The NWEC is a parastatal body under the Ministry of Gender Equality, Child Development and Family Welfare. It provides support and assistance to would be and existing women entrepreneurs. Services provided by NWEC include: Information Programmes Counselling Trade fairs (Local and International) Training Marketing Other institutions which provide support to SMEs in some way or other are: Mauritius Institute of Training and Development (MITD) University of Mauritius (UOM) Mauritius Standards Bureau (MSB) National Computer Board (NCB) National Productivity and Competitiveness Council (NPCC) Human Resource Development Council (HRDC) Board of Investment (BOI) State Land Development Co Ltd (SLDC) 2.7 INCENTIVE FRAMEWORK Over the years, Government has provided several incentives to allow SMEs to grow: in particular through various exemptions from customs duty on raw materials and imported production equipment. SMEs have also obtained concessionary rates on interest on loans from DBM Ltd. SMEs operating in the EPZ benefit from other incentives as well. Incentives to registered SMEs include: Fiscal Incentives: Exemption from Land conversion tax for relocation, expansion or launching of an industrial business Exemption from Customs duty on some types of utility vehicles Reduction in payment of Road Tax for Dual purpose vehicle. Non-Fiscal Incentives: Obtention of Building Land Use Permit 3 days after complete submission of application and notification procedures. Payment of Rs 500 of fees for Building and Land Use Permit for construction, extension or conversion of existing building for up to 250 square metres of floor area. 2.8 FINANCIAL SUPPORT TO SMES SMEs have at their disposal several support institutions that provide either loans, cash support, refund scheme, leasing, subsidies for participation in trade fairs, refund of costs of buying bidding documents etc. The DBM Ltd has a variety of financing schemes to service a wide range of businesses such as: Value addition projects for small enterprises in the manufacturing, agricultural, agri-business, and handicraft sector etc. Agricultural Diversification Loan Scheme Loan to finance trade, commerce and other related activities Loan to manufacturing sector: start-ups, expansion, modernization, computerisation, working capital finance. This list is not exhaustive, other sectors also are serviced. The interest rate charged is at a concessionary rate of: Repo Rate +3 %. Small businesses also resort to other sources of finance. These include personal savings, loans from family and friends who may join in as business partners. A summary of schemes from support institutions are shown at Appendix 1. 2.9 FINANCIAL DIFFICULTIES The success of an enterprise depends heavily on a good financial planning and a good business plan. In many cases, finance is required during the start-up, operating and growth stages. The traditional source of finance is from commercial banks and other financial institutions. These banks prefer to deal with established or large businesses rather than SMEs, particularly start-ups owing to higher risks and potentially low profitability of the business. The difficulties in obtaining loans or satisfactory loans from commercial banks stems mainly from the following reasons: Unsatisfactory or unrealistic business plans Inadequate accounting records and other information Insufficient assets as security or no personal guarantors Potentially low profitability and stability of small businesses not well established High administrative costs to banks for relatively small amounts of loan High interest rates from commercial banks 2.10 ACCESS TO INFRASTRUCTURE A satisfactory infrastructure is a pre-requisite for the setting up and growth of SMEs. DBM Ltd has pioneered the construction of industrial buildings in the 1970s. Subsequently other government support institutions have created a number of industrial estates at different locations. These are made available to SMEs at a subsidized rate of 50% for the first three years. SLDC is constructing more industrial parks destined to SMEs at an affordable rate. However, there are still vacant industrial spaces at various localities. Vacant Industrial Space available as at July 2012 is shown in appendix II. It is observed that many of the vacant industrial space in various localities belong to private owners. This may suggest that SMEs cannot afford to pay the rent or that they are relying on SLDC to provide the space at a subsidized cost. An Incubator Centre of 10 000 sq. ft. has been constructed at SMEDA Headquarters at Coromandel and is made availab le at a subsidized rate to start-ups for a period of five years.

Adult Learning Theory Paper - 1041 Words

Adult Learning Theory Paper INFT 101 Section 7 7 March 2013 Summary In an effort to determine how adults learn, experts examine and evaluate studies that have been done that involve the adult learner. The more that experts understand how the learner processes information, the better the understanding will be on how to structure their learning environment. Research is continually changing in this area, and educators know there are differences in how each adult learner attains information. In the two articles, â€Å"Adult Learning Theory for the Twenty-First Century† by Sharan B. Merriam, and â€Å"Adult Learning Theory: Applications to Non-Traditional College Students† by Kenner and Weinerman, different theories are discussed. In†¦show more content†¦Merriam, to myself because as the expert is continuing to gain knowledge and understanding on how adults learn, I then can take that information and use it in my everyday academic career. 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Marketing & Management for Consumer Electronics - myassignmenthelp

Question: Discuss about theMarketing Management for Consumer Electronics. Answer: Introduction Company Background Apple Inc., also known as Apple, is an American based multinational company that designs, manufactures and sells hardware, software and consumer electronics. Apple is famous throughout the world for its vast variety of flagship line-ups, such as iPhone, iPad, iPod, MacBook, Apple watch, etc. The company was founded by Steve Jobs, Steve Woznaik and Ronald Wayne on April 1, 1976 and became the first American company to be valued over US$ 700 Billion as of February 2015. Apple has almost 498 retail stores throughout the world and had a workforce comprising of 116,000 employees during 2016 (Rawlinson, 2017). The company has been able to establish a strong reputation in the worldwide market and also amongst the gadget enthusiasts because of its high quality and unique products. Even though Apple products are priced higher than most of the competitive products, the brand still enjoys a large pool of loyal customers (Dougherty, 2010) Apple and marketing Apple is not just a leader in the industry when it comes to sales but is also a company that wants to capture the market itself. The products and services designed by Apple are paving the way for future devices, services and hardware. The company invests extensively in gathering customer information from different sources and also in its marketing activities so that it can experience a greater market reach and penetration. The company understands its customers and is able to implement effective market strategies that can appeal to them. Apple 5C Analysis 5C analysis is a strategic tool that helps in analysing the situation of a business or a company, in order to identify problems for the purpose of research. It also helps in understanding the internal and external environment of a firm. The five points covered in a situation analysis are Company, Customers, Competitors, Collaborators and Climate (SMstudy, 2016). A situation analysis of Apple is given below: Company Apple is the worldwide market leader when it comes to information technology products and services. The company has been able to distinguish itself from its competitors on the basis of quality, design and price as well. The reason that Apple products are considered to be a status symbol can also be attributed to the fact that the products are easily distinguishable and because of the high brand value that the customers attach to Apple. Customers The company enjoys a large pool of loyal customers throughout the world. Products designed and manufactured by Apple are famous throughout the world and the entire global population is a potential customer for Apple. The loyalty of the customers towards the company can be judged from the fact that they are willing to pay any amount for Apple products even if a competitive product with the exact same features are available at half the price. The huge product line up offered by the company keeps the customers engaged and the company experiences continuous sales throughout the year, which gradually rises during the festive seasons. Competitors In the past few years, the global market has been experiencing entry of a number of new brands, which are definitely posing a considerable threat to Apple. Companies like Samsung, Micromax, Lenovo, Lava, Vivo, etc. are coming up with innovative technology solutions and products that have a lot of potential and are also attracting the customers. In developing countries, where the demand for smartphones is relatively high, these companies are introducing competitive products at a price that is almost three times lesser than the price of flagship products being offered by Apple (Investopedia, 2017). As a result, the sales of Apple is suffering a great deal because of new market entrants and also because of its pricing strategy. Collaborators Apple is a company that enjoys high brand value in the global market and as a result, a lot of companies look to collaborate with Apple to gain market recognition and a greater customer base. Apple has been teaming up with a number of companies in the global market so that it can expand its business. Telecommunication companies like ATT, Vodafone, Verizon, Orange, etc. have been associated with Apple since a long time and have helped the company in increasing its sales and reaching out to a greater customer base. Furthermore, Apple has also collaborated with a number of other companies, such as Intel, TPK Holdings, Foxconn Technology Group, Samsung, etc. (CNBC, 2011) These companies are market leaders in their own industries and are providing a number of products and services to Apple. Climate As Apple operates in the global electronics industry, it is vulnerable to a number of internal and external environment factors, such as legal, environmental, social, political, technological, etc. Its global presence makes the company vulnerable to the rules and regulations set up by the governments of different countries, such as India and China, as it outsources most of its manufacturing processes from these countries. Further, the labour laws of these countries can also have an impact on Apple. Apple is also dependent on the global technology environment (|, 2015). Due to presence of a lot of competitors, there are new inventions taking place on a daily basis and Apple introduces its new product line-ups only once in a year. Thus, Apple has to design such products that can sustain in the market for an entire year and can compete with the competitive products in the longer run. How Apple collects market information Apple invests a lot of its resources in advertising and marketing research, which helps it in collecting information about its customers, rival products, competitors and much more. First of all, Apple conducts a monthly survey in which it tries to gain knowledge about the attributes that is driving the customers to buy Apple products. The survey reveals country-by-country data and is also conducted for each product separately. Using such surveys, the company is able to gain knowledge about the features the the customers use the most in Apple devices, demographic data about their customers and also about the level of customer satisfaction with Apple products (Heisler, 2012). Steve Jobs, one of the founder trio, in an interview, told the media that Apple has a greater focus on developing products instead of focusing on market research. He was of the view that the customer need to research the market for what they want and what is being offered and their duty was just to offer innovative products and services. Later on, the myth has been busted by a number of media sources (Spillers, 2012). It has also been discovered that Apple uses ethnographic research methods and tried to identify consumer behaviour when they visit Apple stores and interact with the staff (Flory, n.d.). Using ethnographic research methods, the company is able to identify customer behaviour, buying patterns, preferences, usage patterns, etc., which ultimately helps them in gaining information about the market and also about the customers. Developing a marketing strategy for Apple Apple is a company that has gained worldwide market success because of its effective strategies in all fields. The company makes heavy investments in advertising and marketing of its various products and is definitely a company that can be looked upon for marketing ideas. From product mix to pricing strategy and distribution channels, Apple has put in a lot of thought and has been outperforming its competitors on the basis of its ability to device powerful strategies (Yeung, 2017). Even though the company has been receiving success since a long time and is still an industry leader in the worldwide market, the entry of new companies into the market poses a great threat to its position. As a result, Apple should start implementing new marketing strategies that would allow it to retain its position in the market and outperform the competitors. Some marketing strategies or a new marketing mix, which can help Apple in retaining its market position and brand value are discussed below: Product Apple already has a huge product portfolio, which includes smartphones, tablets, personal computers, laptops, music players, smartwatches, accessories, etc. but all of them are costly products that are not easily affordable for the general public. On the other hand, the rivals of Apple are offering a diverse range of products in all price segments. As a result, they are able to achieve higher sales as compared to Apple. Apple should start introducing new models in all its product segments so that it can offer a greater portfolio of products to all types of customers and not just limit itself to those customers who have higher purchasing power. Place The success of Apple in the worldwide market can also be attributed to the fact that it had very effective distribution channels throughout the world. Of late, the company has been suffering because of the expansion of its distribution channels. The products manufactured by Apple are available on every retail counter as well as on online websites, which are posing a tough competition to each other in terms of prices (Rodrigo, 2012). The competition between the two is having an impact on the prices of Apple products as the online retailers offer heavy discounts just to compete with retail counters. Due to reduction in prices, Apple products are losing their credibility as well as brand value. Thus, Apple needs to rethink about its distribution channels and limit them to authorised Apple Retail Stores alone. Price From the very beginning, Apple has priced its products higher than the rival products as a strategy to create brand value and a better image in the market. Recently, the strategy has done more damage to the company than providing any actual competitive edge. The aggressive pricing strategy of the company has been criticised by the customers in the past few years as the prices of Apple products are way higher than the prices of rival products that are offering more features than any Apple features. The latest flagship smartphone introduced by Apple i.e. iPhone X has been priced at 89,000 INR whereas Galaxy Note 8, the rival flagship smartphone introduced by Samsung, is priced at 67,000 INR (Cipriani, 2017). Therefore, Apple urgently needs to reconsider its pricing strategy and introduce the smartphones at a competitive approach because a lot of Apples loyal customers have started switching to other devices because of irrational pricing strategies of the company. Furthermore, fr equent price drops is not helping Apple in retaining its brand image in the market. Promotion Apple is a company that has been able to promote its products in the best possible way even when they did not invest much into promotion and advertising. Apple has been able to establish effective relations with a lot of media partners and telecommunication partners, who are eager to spread the word about Apples new products and about their own association with a company like Apple. Thus, the strategy to promote its products through its collaborators if an effective and resource saving strategy and the company should continue to implement it in the future as well (Yeung, 2017). Conclusion Apple is one of the most successful business organizations in the world and has been setting examples for the new market entrants. The company has been able to achieve higher profits every year even when there were reductions in its operating costs. Further, the marketing and advertising strategies of the company has also helped it in establishing a strong brand image in the market but tough times call for tough decisions and the changing market trends are having an impact on the market position of the company. Therefore, the company needs to redesign its marketing mix and take necessary measures that would allow it to remain competitive and retain its position in the market. References Dougherty, M., 2010. The History of Apple, Inc.. [Online] Available at: https://www.brighthub.com/computing/mac-platform/articles/65346.aspx[Accessed 23 September 2017]. Rawlinson, N., 2017. History of Apple: The story of Steve Jobs and the company he founded. [Online] Available at: https://www.macworld.co.uk/feature/apple/history-of-apple-steve-jobs-mac-3606104/[Accessed 23 September 2017]. SMstudy, 2016. 5C Analysis. [Online] Available at: https://www.smstudy.com/article/5c-analysis[Accessed 23 September 2017]. CNBC, 2011. 10 Significant Apple Business Partners. [Online] Available at: https://www.cnbc.com/2011/08/25/10-Significant-Apple-Business-Partners.html?slide=12 [Accessed 23 September 2017]. Investopedia, 2017. Who are Apple's (AAPL) Main Competitors in the Tech Industry? (HPQ). [Online] Available at: https://www.investopedia.com/ask/answers/120314/who-are-apples-aapl-main-competitors.asp[Accessed 23 September 2017]. |, J. M., 2015. Analyzing Porter's Five Forces on Apple (AAPL). [Online] Available at: https://www.investopedia.com/articles/investing/111015/analyzing-porters-five-forces-apple.asp[Accessed 23 September 2017]. Heisler, Y., 2012. How Apple conducts Market Research and keeps iOS source code locked down. [Online] Available at: https://www.networkworld.com/article/2222892/wireless/how-apple-conducts-market-research-and-keeps-ios-source-code-locked-down.html[Accessed 24 September 2017]. Spillers, F., 2012. Busting the myth that Apple doesn't do User Research. [Online] Available at: https://www.experiencedynamics.com/blog/2014/09/busting-myth-apple-doesnt-do-user-research[Accessed 23 September 2017]. Flory, M. M., n.d. Does Apple Use Market Research?: Industry Strategists Weigh In. [Online]Available at: https://www.ama.org/publications/eNewsletters/MarketingInsightsNewsletter/Pages/apple_market_research.aspx[Accessed 23 September 2017]. Yeung, N., 2017. The marketing strategy of Apple: A concise analysis. [Online] Available at: https://www.versiondaily.com/the-marketing-strategy-of-apple-a-concise-analysis/[Accessed 24 September 2017]. Cipriani, J., 2017. Apple iPhone vs Samsung Galaxy models: Specs, prices, and features compared. [Online] Available at: https://www.zdnet.com/article/spec-showdown-apples-iphone-lineup-vs-samsungs-galaxy-lineup/[Accessed 23 September 2017]. Rodrigo, 2012. Marketing Analysis of Apple Inc. [Online] Available at: https://writepass.com/journal/2012/11/marketing-analysis-of-apple-inc/[Accessed 24 September 2017].

Organizational Behavior Big Five Model Of Personality

Question: Discuss about theOrganizational Behavior for Big Five Model of Personality. Answer: Introduction Primary goal of this essay is to reflect on how individuals act differently while executing management practices with in organizational behavior. In order to understand this, Big Five Model of Personality concepts and results are used. The score that I got after undergoing Big Five Model of Personality test is attached in the appendix. That test helped me to understand the strengths and weaknesses with in my personality. This essay also includes information on how my personality influences my motivation and work performance. While discussing, main focus has been given on the dimensions of the Big Five Model of Personality model. Besides, pertinent theories of organizational behavior along with individual examples are also used to support the discussion in this essay. In the end of this essay, a recommendation is provided that can help me to enhance my work performance and improve my motivation in the future. According to Gurven et al. (2013), Big Five Model of Personality which is also known as Five Factor Model is settled based on the common linguistic descriptors of personality, lexical hypothesis. Factor analysis which is known as a statistical technique is used to group the descriptors all together. In this way, a connection is built between personality and organizational behavior (Judge et al. 2014). A number of researchers conducted several researches on Big Five Model of Personality and they started by going through a large number of personality traits. Then a list of these personality traits were made that was later reduced by 5-10 fold (Halverson et al. 2014). After that factor analysis was executed in order to group the remaining traits. Data that was used while doing this research was collected through opinion poll based on self-report and peer ratings. Figure 1: Big Five Model of Personality (Source: Milfont and Sibley 2012) As mentioned by Kneevi et al. (2016), in order to describe personality of an individual, most of the psychologist used five dimensions that are displayed in figure 1. They are also known by the acronym OCEAN. Detail information on those five dimensions are hereby mentioned below, The first dimension of the Big Five Model of Personality is Openness that states human personality including emotion, dissimilar experiences, innovative ideas, indebtedness for art and curiosity. Primary goal of this dimension is to understand whether an individual is creative, curious or not. The second dimension that is Conscientiousness which is designated as propensity to be prearranged and consistent, aim for accomplishment, showing self-will and act unquestioningly (Cobb-Clark and Schurer 2012). Third dimension is Extraversion that showcases positive energy assurgency and confidence. If an individual is highly extravert then he will try to perceive attention and will try to dominate things. On the other hand, an individual with low extraversion will force him to stay sel-absorbed and aloof (Lehmann et al. 2013). Agreeableness which is the fourth dimension measures individuals trust and helpful nature and decides whether if a person is well mitigated or not. As mentioned by Chan g et al. (2012), if a person is highly agreeable then he will be looked as nave or submissive. On the other hand, low agreeable individuals are normally competitive. Last but not the least; Neuroticism is described as human characteristics that help to experience hostile emotions with ease. Some of such emotions include helplessness, nervousness, fury and despair. It also helps to indicate instinct control and demonstrative stability (Carlo et al. 2014). It is mentioned that an individual with stable and calm personality will have high need of stability; however, it can be seen as demotivating and unconcerned. On the other hand, low need for stability might cause a sensitive and impulsive personality. Through Big Five Model of Personality, my strengths and weaknesses within my personality are identified. In case of openness to experience, I scored only 35 out of 100 that can be considered as a low score. It is said that high score in this personality trait means an individual is creative, curious and complex (Wortman et al. 2012). However, low scoring means that person is conservative, down to earth, and not creative and has narrow interests. Individuals who score high in openness to experience is marked by some adjectives which are cultured, original, intelligent, broad minded, curious and innovative. However, my scores are low that means I am absolutely not one of them. I tend to do my jobs by following traditional ways, does not matter how much time it would take. I do not like to use innovative or new methods out of fear that something might go wrong. That is one of my weaknesses within my personality. In todays corporate world, people are always looking to create things. They are even supported by their organizations to become imaginative. I am also not curious that means I do not love to learn new things which are also a major weakness (Zvolensky et al. 2015). New technologies are being implemented in companies almost every day. In order to survive in the work place people are learning as much as they can out of curiosity and requirement. My score in conscientiousness was 79 which can be considered as high. Individuals who score high in this trait are known to be reliable, careful, disciplined and organized (Judge et al. 2013). This clearly indicates my strengths in my personality. It is however true as my personality includes typical behaviors such as hard working, accomplishments oriented and responsible. Even though I do not like to acquire new ideas, I know how to do things in time. For example, if my seniors provide me with a project that has a narrow deadline, I can manage that one way another. Most of the other employees would look for short cuts and innovative ideas; however, I stick to traditional ways. This consumes my energy and forces me do hard work. However, I can maintain it and can complete the work within the time limit. I believe that traditional ways are tested; therefore, the chances of error are negligible. As I am a careful person, I always take precautions and I always create several backups for my jobs. In extraversion I scored 64 which is again a high score. This means I am friendly, talkative and fun loving. In one word I am quite sociable. This clearly indicates that I am flexible and suitable to organizational behavior. Team work is known to be one of the most important organizational behavior which out which it is impossible to execute a large task successfully. Now, if an individual is not friendly and fun loving then he will not be able to execute his task with in a group (Barrick et al. 2013). For example, if I am assigned to group where other people are from different backgrounds, race, sex, culture and color, then I will try to become comfortable with them. I understand that doing a team work is only possible if team members are bonded emotionally. I can easily mix with those members of my team as I am a talkative and fun loving person. Besides, I will also use m friendly behavior to help out others to overcome their hurdles in my team which will obviously help me and my t eam members to cultivate good results from that project. This is surely one of my strengths within my personality. I scored 69 in agreeableness that means I have a good nature and I am merciful, polite and understanding. This is strength of my personality as these traits are perfect for a leader in an organization. It not only helps me to perform better but also allows collaborating perfectly when needed (OReilly et al. 2014). For example, if I am a manager in a business organization, then my first duty would be to win the loyalty of the employees who are working under me. Now, it is obvious that people will make mistakes in workplaces. However, I will figure out their mistakes only to strengthen their skill. Some managers in several organizations will provide you warnings or will demonstrate your faults in front of others in an improper manner. However, I will call the employees individually and will communicate with them about the problems they are having which is forcing them to make mistakes. I will show merci and will allow the employees to enhance their working through trainings so that the y do not repeat their mistakes. In the last train, that is Neuroticism, I have scored 11 which low; however, it is good. It means I can keep myself calm and relaxed in serious situations (Wayne et al. 2013). For example, it is possible that my team along with me has worked really hard in a project but the results are not expected. In that situation, it is obvious that we will receive negative reviews from our superiors. In this situation, most of the team members will panic and will feel demotivated (Judge and Kammeyer 2012). However, I can keep myself calm in that situation as I believe that failure is just another part of life. I will cheer up my team members and will try to motivate them so that they can perform better in the next projects. Figure 2: Recommendation to enhance motivation and performance (Source: Judge et al. 2013) From the Big Five analysis it is found that my only weakness in my personality is my traditional thinking and working style. Lack of creativity is my working style has sometimes affected my performance as others did better than me using innovative ideas. Therefore, there are recommendations that will help me to improve by creative skills. First of all I will have start thinking that creativity is an essential skill. I solely believe that creativity includes risks and one should not walk on this path as uncertainty waits in this. However, it is true that I am failing even after following traditional ways; therefore, creativity can only improve my results. I will have to take examples of companies such as Google and Apple where employees are allowed to take risk and implement as much innovation as they can in the workplace. That is why; both of these organizations are known be the paradise of employees. Theories of organizational behavior strongly recommend that one should communicate with the successful employees to learn how they did things to gain success in their lives. I will find some people who have used innovation as their primary tool and achieved success in their life. I will have interacted with them in order to learn to use creativity in a proper manner. Following old and traditional paths will do no good to me. I will have to ask questions, to myself and to the world. I will have to find better ways to complete a task in way that it would cultivate better results. If I do not ask questions then I will not learn new things. Practicing openness is another solution that I can adopt. Creativity cannot be learned easily. I should not try to use it to complete bigger tasks. I will have to use openness in smaller tasks at fist where chances of failure are negligible. Then I will understand how I can implement innovation in broader manner. I will have to act as an explainer to no one but to myself. I will have to talk to myself about my successes and failures. I will have to explain to myself that I can cultivate better results by using innovation and openness in my work style. Even if I fail, I will have to explain the reasons to myself so that I can find out solutions for my mistakes. In the end, it can be concluded that this assignment, an analysis has been done on my personal behavior depending on big five personality trait model. Depending on the results I found, strengths and weaknesses of my personality are identified. It is found that my only weakness is that I refuse use innovation and openness which I will have to rectify in the near future if I want to become a successful person on my life. On the other hand, I will also have to work on my strengths so that they become more powerful with time. References Barrick, M.R., Mount, M.K. and Li, N., 2013. The theory of purposeful work behavior: The role of personality, higher-order goals, and job characteristics. Academy of Management Review, 38(1), pp.132-153. Carlo, G., Knight, G.P., Roesch, S.C., Opal, D. and Davis, A., 2014. Personality across cultures: A critical analysis of Big Five research and current directions. Chang, L., Connelly, B.S. and Geeza, A.A., 2012. Separating method factors and higher order traits of the Big Five: A meta-analytic multitraitmultimethod approach. Journal of personality and social psychology, 102(2), p.408. Cobb-Clark, D.A. and Schurer, S., 2012. The stability of big-five personality traits. Economics Letters, 115(1), pp.11-15. Gurven, M., Von Rueden, C., Massenkoff, M., Kaplan, H. and Lero Vie, M., 2013. How universal is the Big Five? Testing the five-factor model of personality variation among foragerfarmers in the Bolivian Amazon. Journal of Personality and Social Psychology, 104(2), p.354. Judge, T.A., Simon, L.S., Hurst, C. and Kelley, K., 2014. What I experienced yesterday is who I am today: Relationship of work motivations and behaviors to within-individual variation in the five-factor model of personality. Journal of Applied Psychology, 99(2), p.199. Halverson, C.F., Kohnstamm, G.A. and Martin, R.P., 2014. The developing structure of temperament and personality from infancy to adulthood. Psychology Press. Judge, T.A. and Kammeyer Mueller, J.D., 2012. General and specific measures in organizational behavior research: Considerations, examples, and recommendations for researchers. Journal of Organizational Behavior, 33(2), pp.161-174 Judge, T.A., Rodell, J.B., Klinger, R.L., Simon, L.S. and Crawford, E.R., 2013. Hierarchical representations of the five-factor model of personality in predicting job performance: integrating three organizing frameworks with two theoretical perspectives. Journal of Applied Psychology, 98(6), p.875. Kneevi, G., Lazarevi, L.B., Bosnjak, M., Puri, D., Petrovi, B., Teovanovi, P., Opa i, G. and Bodroa, B., 2016. Towards a personality model encompassing a Disintegration factor separate from the Big Five traits: A meta-analysis of the empirical evidence. Personality and Individual Differences, 95, pp.214-222. Lehmann, R., Denissen, J.J., Allemand, M. and Penke, L., 2013. Age and gender differences in motivational manifestations of the Big Five from age 16 to 60. Developmental psychology, 49(2), p.365. Milfont, T.L. and Sibley, C.G., 2012. The big five personality traits and environmental engagement: Associations at the individual and societal level. Journal of Environmental Psychology, 32(2), pp.187-195. OReilly, C.A., Caldwell, D.F., Chatman, J.A. and Doerr, B., 2014. The Promise and Problems of Organizational Culture CEO Personality, Culture, and Firm Performance. Group Organization Management, 39(6), pp.595-625. Wayne, J.H., Casper, W.J., Matthews, R.A. and Allen, T.D., 2013. Family-supportive organization perceptions and organizational commitment: The mediating role of workfamily conflict and enrichment and partner attitudes. Journal of Applied Psychology, 98(4), p.606. Wortman, J., Lucas, R.E. and Donnellan, M.B., 2012. Stability and change in the Big Five personality domains: Evidence from a longitudinal study of Australians. Psychology and aging, 27(4), p.867. Zvolensky, M.J., Taha, F., Bono, A. and Goodwin, R.D., 2015. Big five personality factors and cigarette smoking: A 10-year study among US adults. Journal of psychiatric research, 63, pp.91-96.