Are we there yet?

I can not believe I am writing this blog; yes the end of the semester is here. I saw this date so far but now here I am writing my thoughts about this blog.
Well I have to be very sincere because I think that is the main point of the last blog. I found this blog very interesting but some times kind of annoying.
It was interesting because it helps you to interact with people in a different way. We posted ideas, thoughts, opinions, and points of view that amazingly have certain meanings and influence other people ideas. For example, when replying to the blogs, I found myself very surprised with the way people think; I really thought that many students put a lot of effort in trying to communicate their ideas. I read many different blogs that made me think that I was not doing the right job, but well maybe to other people is easier to communicate their thoughts but it was a challenge, and what a challenge!! I tried my best so I wasn’t left behind. I hope I accomplished my goal….
Regarding the topics I think they were just right. It was exciting because they followed most of the material that we were actually learning in class, and also helped us with the industry project and even helped us to analyze our simulation project.
The only thing that I did not like was the due dates, they were annoying. They seemed to me too fast, I don’t know if this has to do with my language barrier but it was difficult to post my ideas and comments on a timely manner. I wish I had extra time to do an efficient and substantial work. I felt that some of the topics that I posted were not explained in detail but when I went to edit them sometimes it was too late and we had to post the next one.
I do not see myself posting extra material about school, work, career, life on this blog after this class ends. I am just not a writing person. I wish I had the capacity to communicate with people through this blog but sometimes it seems to me that personal communication is better. Of course if the distance is the barrier there is no other way but use this type of means but if not I love to talk to people in person, face to face.

Strategic Virus!!

I think that two issues that show symptoms of strategic problems are high employee absenteeism or turnover and also deterioration of company image. I chose these two symptoms because they clearly show the lack of strategic management in the executives, bosses, partners, and so and so.

I work in a Business Management Entertainment company where I can clearly see the relationship of these two symptoms with the down pick the company is going through. I have been working with the company for the last year and a half, everything was going okey until one day I saw one of my co-workers leaving the company without "any reason". After few months I saw other two of my closest c0-workers leaving too. I started to wonder myself if we had a revolving door in the building? or what type of strategic management was the company applying for their business? Well I concluded some ideas that I believe have a lot to do with the issues mentioned before.

I think that the partners of the company right now are not paying attention to the competition in the market. Some companies believe that since they are not selling products such as food, cars, or toys they do not have to compete in the market. But yes, service companies also have to compete in the market and the best way to do this is by keeping their employees happy, with salaries or compensations that match or get close to the market. In my company, I found out that they pay employees approximately 45-50% below the market salary range, this is why employees decide to leave the company and the ones who decide to stay just do not do a very efficient job because they don't feel remunerated so; why doing it? This is a problem for the company because it is reflected in the business operations every day. So far I have seen 25 people leaving the company including myself. Next friday is my last day.

Now the other point that I want to make is the deteriorating of the image. I am going to continue referring to the company where I work. They have high-end profile clients including actors, directors, writers, etc. Some clients have found out some discrepancies on their financial statements that in one way have made them doubt about the company. One of the most important tool and goal of a company should be offering a service or good that provides 100% accuracy, reliance, and trust. Most of their clients have been attained throughout the power of word-of-mouth, but now that the image has been deteriorating little by little they have to apply another strategy, set up another goal, and all has to do with the right management of their business.

Google Kicks Up!!

Google is one of the search engine companies most compatible in the market. They have positioned themselves as leaders in this industry. I believe that some future scenarios that can become a threat for the company would be the competition that is being generated from some other companies such as Microsoft, Yahoo, and others. These competitors are also positioning in the market gaining a lot of credibility from its customers. These engine search companies are not only becoming stronger in but are also coming with some new products that implement some challenge on Google. We clearly know that the income or revenue from Google is directly connected with their search engine service that they provide this is why if other companies come and take part of the market share, in the long run this can get to the point that Google is going to loose many users of the service. The probability of this scenario to happen will be 60% because Google has realized this threat and they are starting to apply strategies to diversify their products like the new that they are initializing by the beginning of next year. Another scenario would be the lack of diversification when referring to products provided by Google. There are small companies that are providing new products that call the attention of users and little by little are taking part of the market share. The probability of this scenario to happen will be 90%. Actually Google is experiencing this threat right now this is why they are featuring a new service at the beginning of 2008. This new product offers its customers the feasibility to store any type of data into the hard drive of Google’s company. I think that Google can attain again market share that has been lost.

Competitive Advantage as a Winning Game

There are many forms in which a company can accomplish competitive advantage over its rivals. Some of the most reliable are definition of the market, niche dominance, market share, and governmental protection.

Wal-Mart has accomplished competitive advantage over its rival by defining the market. If we look at this company we can clearly see that they have acquired their competitive advantage based on their "always low prices" strategy. By offering this great deal to customers they had set their market in an efficient way. Wal-Mart not only offers low prices but good quality gaining competitive advantage over K-mart. I think the strongest strategy that they have adapted to gain competitive advantage is their inventory system; JUST IN TIME inventory. This is the strategy that has lead them to be the most successful company in the low price range of hypermarkets segment.

Then we have credit card companies such as Discover and American Express that have acquired competitive advantage based on the benefit that they offer their users by giving frequent flyer miles by dollar amount expenditure. We can clearly see that this great benefit has positioned them as companies that not only offer great service but on top of this they provide this extra gain.

We also have production companies on the TV industry that have competitive advantage over news, and soap operas with their mini series shows. HBO is a clear example of the competitive advantage that dominates the market and they also obtain a high sales and market share because they call the attention of viewers.

And finally we have pharmaceutical companies such as Pfizer that has competitive advantage over Johnson & Johnson. Based on for their recognizable patents they exercise the back of governmental protection because they help society. This competitive advantage has many advantages over a long period of time this is why it is very important for a company to position their market with quality, benefit, and cost. Pfizer offers all of these qualities in all the products that they offer and on top of these characteristics have the protention of governmental agencies.

Strategic Success!!!!

Strategic management is a very accurate measure for the good performance of operations and short and long term success of any particular company. According to the effectiveness of the main issues that strategic management such as cost leadership, differentiation, and focus, we can predict and analyze the foundation that the company builds in the market.

Macy’s being one of the biggest retail department stores in the U.S demonstrates the big benefit of having strategic management as one of the most powerful tools in the functioning of the business. For example, this department store differentiates from other department stores because they have positioned its cost leadership within the industry on the minds of its loyal customers. Their prices range and market every single need of customers. We can clearly find high, medium, and low prices that market each customer in this specific industry. It has reached an competitive advantage among other department stores because it does not only provides variety of prices depending the income of its clients but also offers quality that people perceived and this is equal to loyalty. I also think that the best strategic management tool that Macy’s has is their strength in marketing, this basic but important tool has taking them to be one of the biggest department store.

Then we have Target that also proves the point that cost leadership plays an important role in its functioning. This company has positioned their prices in a way that offer not only the benefit of acquiring inexpensive products but also quality that customers of every social class look for. For them their strategy has to do with the trend of the current market such as propaganda and fashion designers that call the attention of the customers in the marker.

Finally, we have Marshall’s; another big department store that have use this special management tool to call the attention of customers that are looking for low pricing without forgetting the fact of quality and name branding. They do not have a strong marketing campaign but word of mouth has taking them to position in the market of department stores in a high range and has helped them to focus in this specific market segment.

Clear cost leadership, differentiation, and focus are very reliable to measure the performance of management practices that successful companies like the ones mentioned above have acquired to become successful in the retail department industry.

Porter's Five Forces

I think that this Model is important to use because we can clearly define our current competition which is the main focus of this analysis, and also we can make future decisions that will improve the situation of the business. The Porter's analysis gives us an overall picture of the position of the business and most importantly shows us 5 basic ideas to evaluate our strengths and pay close attention to our weaknesses to better off our business.

This analysis is very effective for the specific business in every industry because if you know how to manage each of the ideas from the analysis, your business will be successful. It is essential to have a clear understanding of the supplier power because they exercise big control over the companies. You as a company have to provide the best relationship between the supplier and you because it is very easy for them not to supply you anymore. The effect on your business will be of extra costs trying to find new suppliers. The business also has to offer the best service to its buyers, I refer to the best quality on the product such as name, label, information so that the buyer feels a need for your product or service.
In every business you are going to find the rivalry but the most benefits you offer the better control of your competition will have. Exercising power over the substitutions of your product or service is vital because if you do not offer uniqueness, quality, and other qualities; it is feasible to acquire or "substitute " your product or service which ends up a a great disadvantage for your business. And as for the power of the barriers to entry the market, I think that this can only be done by keeping inform and always trying to better off your business therefore people trying to compete in your field find it more difficult over the time.

I believe that the Airlines Industry has a tremendous barrier for competitors to enter the market. The costs of enter the market is very high not only for the equipment, machines, labor but also for the costs of advertising. This is an industry that has few competitors but this few have learned how to position their names, labels, services in people's mind. They have power over the buyers because they set up prices according to the season and we as buyers have to adapt to them. Of course this leads to the fact that this industry has to provide an excellent service because since there are very few companies in the market it is easy to swich to another airline and never come back to the previous one. This will affect the company because they can go bankcrupt or sell it to the big companies that are taking competitive advantage over the others.

My Super Goals !!!

On the personal side, I have always wanted to build my own company company where I can provide different accounting methods of how to save money in a short term. Basically it will provide people with basic but meaningful ideas of how organize and manager their moneys. Right now I am conduction a pilot within my family and my closest friends and so far it is giving me the results that I was expecting for. If this pilot not only continues this way but also offers me enough feed back to improve, I think that in about two years I will develop this dream into a real fact. So I will be waiting for your to become my client!!!

On a familiar side this must sound very familiar from the other blogs, but yes, I do want to buy a beautiful big house within the next year to be more realistic within the next two years. The reason why I want it so fast is because we have three pets Mina, Lola, and Duke. We think that they need more place to play and the most important part they need a backyard and we need more space. My mother has always wanted a house so it will be a great gift for her.

On a professional side I am about to graduate well I still have to take three more classes. But my goal is to obtain a high enough GPA to get into the Graduate program here at Baruch to get my Master's Degree and then go for my CPA. Many people have told me that I don't need a Master's that with the CPA will be enough but I love challenge and I believe I will be better of with both. Right now I am happy where I work but I need to find a new job that offers me benefits for school such as tuition reimbursement and schedule benefits.

On the leisure side, my husband and I go dream to all the Mediterranean specially Greece because we feel very attractive to this culture and food. Greek culture is full of past, history, and enchanting places.

On the investing side, I want to start investing on real estate in different countries starting from my country Colombia. We want to sell some property that we own and buy a bigger property in a better area to thus rent it and from the rent pay it off the mortgage that we might need to get. My goal is to buy at least to apartment in my country, one in the interior and another one on the Northern East coast of Colombia.