Ethical Issues in the UK Government

Ethical Issues in the UK Government Part 1: Case study analysis[D1] Question 1:  Describe the main activities pursued by government. The UK government is a democratically elected entity that has jurisdictional rule over Great Britain and Northern Ireland forming what is commonly known at the United Kingdom. This government is led by the Prime Minister and consists of a tripartite system of a legislative, executive and judicial branches in order to rule consistently and fairly. In the case of the UK government, the legislative branch consists of the Cabinet, which is made up of government ministers who are responsible for making and deciding laws. The executive and legal branches represents the two Houses of Parliament; The House of Commons and The House of Lords respectively. The House of Commons carries out laws and represents peoples (constituencies) interests and the House of Lords scrutinise, amends and evaluates laws. There is also the Supreme Court, which also deals with judicial matters. The UK government also has a monarch figure head in the form of the Queen, who reads out decisions made in her speech. The UK government is responsible for protecting and providing both the economic and social systems of UK society by implementing decent laws for financial stability in UK markets and for providing public services including health care, education and transport for all members of society and including decent legislation to safeguard the quality of jobs and the welfare of citizens. Housing could be incorporated into that list as housing issues are a current concern in the UK. (Jonn Elledge 2017). Some say housing should be top priority for the government. (DCLG priority objectives, 2015 to 2020). The debates around housing vary between demands for the government to build more homes to combat the housing deficiencies around the country, due to densely populated towns and cities. Arguments around redeveloping inner cities and building new social housing on existing brown field sites, or capping private rental fees are all feasible with some ingenuity and forward planning by a willing gove rnment. Discuss the role of government in the case study provided. On the other side of the spectrum are the super-rich who, over many years, have been able to spend small fortunes on acquiring houses in London and other parts of the UK. The case study analysis (Booth, 2016) shows that the UK government has woken up to the fact that some rich millionaires are taking liberties by buying up properties in the UK, using money from questionable sources. The article shows the government has acted proactively and quite boldly to establish a legal framework to put new anti-corruption rules cracking down on offshore secrecy (Booth, 2016) in place to allow for a more transparent process when wealthy investors buy up expensive UK properties. This action by the government to ensure overseas investors and offshore companies have to join a public register of beneficial ownership (Booth, 2016) will reduce corruption in the housing industry. Implementing this legal framework will act as a precedent in safeguarding the UK housing market. It is a bold move by the gov ernment because the article points out many extremely affluent people may sell up their homes and relocate elsewhere as they will lose their anonymity in the UK once this new legislation becomes law. Question 2:  Describe how supply and demand interact to shape prices and  discuss how this applies to Londons property market. The property market is extremely unique in regards to supply and demand concepts. In the property market demand outstrips supply and some of the determinants of this is due to the increases in population, the obtainability of available property and stamp duty costs. There is a lack of Ceteris paribus meaning that all is not equal or held constant in the UK property market at the moment. (Alessandro Sancino, 2015) Before the economic crisis in 2008, house prices continued to soar at unprecedented levels allowing the equilibrium of supply and demand in the property industry to go off track. The economic crash brought with it opportunities for regulating the property market, and allows the elasticity of demand to fall back in line with supply and bring the levels of equilibrium back to an level playing field for the UK property market. Question 3:  Using one theory of ethics, describe the key ethical issues in the case and what you think the Prime Minister should do. A theory of ethics that is relevant for this discussion would be the ethics around justice in organisations and societies. Justice is an ethical perspective that takes account of how benefits and resources are distributed in a society, or even within an organisation. It asks one to think about how one might design just opportunities and the distribution of wealth. (Owain SmoloviĆ¡-Jones, 2015). This theory of ethics would be ideal for the UK government to consider when implementing regulation of the housing market. Ideas around the distributive justice is imperative for a democratic government. I think that this type of ethics is important in regulating the property market because it gives young people a better chance to own their own home and not be priced out the housing market for the foreseeable future. The government that was in power when the case study was written was run by the Conservative Party and led by David Cameron. That government has overtones of having a ca pitalist perspective, which holds that justice is determined by the benefits generated through work which should be distributed according to contribution. In order to apply to a greater demographic of society, that particular government incorporated elements of justice through a socialist perspective to gain greater appeal. This may have been the thinking behind regulating the housing market in the fashion they chose as highlighted in the case study. (Booth, 2016) So that not only the super-rich would benefit from future home ownership in London. This thinking was right in order for the government to show that they are listening to the concerns about the need for regulation in the property sector being generated by MPs, who have been speaking on behalf of their constituents. Question 4:  Identified two human rights that are important in the case.  Explain why these are important and how the Prime Minister should respond. There are two human rights from the Declaration of Human Rights charter (1948) that are relevant for discussion here. The first, Article 12, states that No one shall be subjected to arbitrary interference with his privacy, family, home or correspondence, nor to attacks upon his honour and reputation. Everyone has the right to the protection of the law against such interference or attacks. (Universal Declaration of Human Rights, 1948). The UK government should factor in this human rights article in regards to the implications of regulating the London housing market because the case study (Booth, 2016) shows that the super-rich could abandon plans to buy homes in Britain, as they would lose their anonymity once they join the public register for foreign home ownership in the UK. The government should respond to these concerns by putting plans in place, maybe through an advisory board, to make sure the public register, although public, is not used as a tool by the media to scapegoat the super-rich and scaremonger the wider public with tales of unfair home ownership by foreign investors. As undoubtable, the super-rich do make substantial contributions to the UK economy that the government would not want to lose. The second, Article 17 states that everyone should be able to purchase property in their home country (Human Rights Declaration, 1948). This is self-explanatory and affords the government leverage to act on behalf of the interests of British citizens without breaking any discriminatory laws. Currently house prices are soaring at an increasing extent and arguments widely heard include that buying homes are becoming increasingly difficult for first time buyers, and young people to purchase. Due in part to the huge deposits needed to secure a mortgage and the ominous increases in the private rental market. The UK government could use this article to their advantage by stating that this regulatory measure will be used as a stepping stone for further regulation of the housing market and look to tackle these other issues as the next priority. Activities could include working with private sector businesses through Public Private Partnerships to build more homes on existing brownfield sites and factor in through further legislation that only a third of those homes can be sold to foreign investors, whilst two-thirds are ring-fenced for British citizens using, on this occasion, the controversial concept of positive discrimination in regards to British citizens seen as priority over foreign investors. References Sancino, A, Readings 37-45 (2015), Open University. Booth (2016) Super-rich may quit London homes under new anti-corruption rules Open University. Department for Communities and Local Governments (DCLG) single departmental plan. Priority objectives for 2015 to 2020. [online] (Updated 2 September 2016). Available at https://www.gov.uk/government/publications/dclg-single-departmental-plan-2015-to-2020/single-departmental-plan-2015-to-2020. Elledge, J (2017) Britains housing crisis could be solved if only the government wanted to. The Guardian, 30 January 2017 [online]. Available at https://www.google.co.uk/amp/s/amp.theguardian.com/commentisfree/2017/jan/30/britain-housing-crisis-solved-social-housing. SmoloviĆ¡-Jones, O (2015), Readings 46-55, Open University. Universal Declaration of Human Rights (1948) [online] Available at http://www.un.org/en/universal-declaration-human-rights/. [D1]I note straiught awqay that you have not used the full word count. You appear to be short by several hundred words. Please ensure you use the full allowance in your EMA. While quantity doies not guarantee quality, by missing out on so many words there will be an effect on the quality fo your work.

Read and Respond to: Amy Tan’s Mother Tongue Essay

Amy Tan is a passionate writer of books such as â€Å"The Joy Luck Club† and other published works. Now that we have read her text read her text â€Å"Mother Tongue†, we learn new things about her as a writer. In my first response to Amy Tan’s passage I described her as a self-motivated author as I read what motivated her to write. She introduced readers to her mother, a woman who enjoys reading Forbes and listening to the Wall Street Journal talks. This gave us as readers a clue that Amy’s mother was used to reading more advanced pieces. Amy tan tells us about her mother’s English and how it sounded â€Å"broken† or as if something was â€Å"missing† every time she talked. While at the same time, her mother’s way of speaking English sounded natural and real to Amy, and I think this could be a reason she chose â€Å"Mother Tongue† as her title. While Amy described herself as a rebel by nature, she pursued her passion to become a great write for herself, and for her mother, while disproving all negative assumptions about her. A good example of this when she started writing fiction. She mentions in her article that most sentences although grammatically correct, had an in-authentic sound to her and unnatural. In other words she was probably writing something â€Å"mother wouldn’t approve†. I go back to when Amy Tan mentions that she enjoyed disproving assumptions made about her while she was starting out. She was told that her English was not good enough to be a writer and still pursued her goal and worked hard to become a great writer. She gives off a sense of pride and accomplishment when she writes that about how she knew she had succeeded as a writer when her mother finished reading her book and said to Amy, â€Å"so easy to read†. Mother Approved. As a personal opinion, I think most people are not like Amy Tan. In the sense of us sometimes not being passionate enough to truly follow what we want and work towards it regardless of what other may have to say. There are many influences out there and must learn to only pay attention to those that will help us get closer to our goal and ignore the rest. As a good friend of mine once told me; It’s not that don’t care about certain people, it’s just that at this very moment where our goals are constantly in our minds, we need to focus and let go and only stick to what will help us accomplish our goals.

Oia Bible Paper Mark 2:23-28

New Testament Survey O-I-A Gospels/Acts Throughout the book of Mark, several themes are found to be present which address the legitimacy of Jesus. Multiple times Jesus’ actions prove He is who He says He is, although through His attempts to hide His identity from the public, people still are in disbelief about His identity. The periscope of the Sabbath helps to explain this. The periscope on the Sabbath according to Mark is found in Mark chapter 2 verses 23 through 28: 23  One Sabbath Jesus was going through the grainfields, and as his disciples walked along, they began to pick some heads of grain. 4  The Pharisees said to him, â€Å"Look, why are they doing what is unlawful on the Sabbath? † 25  He answered, â€Å"Have you never read what David did when he and his companions were hungry and in need? 26  In the days of Abiathar the high priest, he entered the house of God and ate the consecrated bread, which is lawful only for priests to eat. And he also gave s ome to his companions. †27  Then he said to them, â€Å"The Sabbath was made for man, not man for the Sabbath. 28  So the Son of Man is Lord even of the Sabbath. †My own understanding of this periscope is reworded like this: 23 One day on the Sabbath, Jesus was walking amongst His disciples through a field of gain. As they made their way, the disciples began to pick the heads of grain. 24 The Pharisees confronted Jesus and questioned Him as to why the disciples were breaking the law of Sabbath rest. 25 Jesus replied, â€Å"Do you know what David and his friends did when they were hungry? 26 Let me tell you, they entered the House of God during the days of Abiathar the high priest and ate the holy bread in front of Abiathar himself!You all know that the holy bread is only able to be eaten by the priests themselves! † 27 Jesus told the Pharisees, â€Å"I am the Son of Man. The Sabbath was made for man. † 28 Therefore the Son of Man is even Lord over the Sabbath. Multiple observations are obvious throughout the passage. To begin with, it is mentioned several times how the setting of the story is occurring on the Sabbath, which is a day of rest. It is mentioned how Jesus and the disciples are present in the grainfields and the Pharisees are there with them.The Pharisees end up questioning Jesus about the disciples’ actions. Jesus defends them with an allusion of David in the time of Abiathar. There are countless numbers of interpretations that can be made throughout this short passage. These deal with the actions of the disciples, Jesus’ confrontation by the Pharisees, Jesus’ allusion to David’s actions in the time frame noted and the meaning behind the consecrated bread. The disciples’ action of picking heads of grain was completely lawful, even though the Pharisees challenged it (Lane 114).In that time, people followed the Mosaic Law which stated, â€Å"when you come into your neighbor’s s tanding grain, then you may pluck it with your hands, but you shall not bring a sickle to you neighbors standing grain† which is found in Deuteronomy chapter 23 verse 25. The only grounds that the Pharisees had to challenge the disciples were because it occurred on the Sabbath (Lane 115). Their actions could be seen as reaping which was prohibited on the Sabbath by the Mosaic Law in Exodus chapter 34 verse 21. This violates the Sabbath because it is considered work.It was also noticed how the Pharisees question Jesus about the Disciples’ actions instead of question them personally. When someone was considered a â€Å"teacher† it meant that they were responsible for those under them, so Jesus was responsible for the disciples (Keener 142). This is the reasoning Pharisees specifically questioned Jesus directly. It was done in order to satisfy the legal requirement of a warning prior to the prosecution for Sabbath violation (Lane 115). It is also important to unders tand Jesus’ allusion to I Samuel chapter 21 verses 1 through 6. 1 David went to Nob, to Ahimelek the priest.Ahimelek trembled when he met him, and asked, â€Å"Why are you alone? Why is no one with you? † 2  David answered Ahimelek the priest, â€Å"The king sent me on a mission and said to me, ‘No one is to know anything about the mission I am sending you on. ’ As for my men, I have told them to meet me at a certain place. 3  Now then, what do you have on hand? Give me five loaves of bread, or whatever you can find. † 4  But the priest answered David, â€Å"I don’t have any ordinary bread on hand; however, there is some consecrated bread here—provided the men have kept themselves from women. 5  David replied, â€Å"Indeed women have been kept from us, as usual whenever I set out. The men’s bodies are holy even on missions that are not holy. How much more so today! † 6  So the priest gave him the consecrated br ead, since there was no bread there except the bread of the Presence that had been removed from before the Lord and replaced by hot bread on the day it was taken away. According to Cole, Abiathar was Ahimelek’s son who survived the priestly slaying at Nob in I Samuel chapter 22 (129).Abiathar served as high priest and was better known in association with David than his father, so this is known as a common error could have entered tradition before it became known to Mark (Lane 115). Another interesting thing about the David reference is Jesus’ summary of the consecrated bread. He mentions in Mark chapter 2 verse 26 how David and his men ate the consecrated bread, which is lawful only for priests to eat. It is interesting to compare both passages when is mentions the restrictions of who is eligible to eat the bread.In I Samuel chapter 21 verses 4 through 6, it is mention that the requirement is for men to have kept themselves from women. One interesting question that Lan e brings to light is the actual connection between what is happening in the grain fields and the reference that Jesus makes in light of the situation (116). The incident in the grain fields specifically deals with the Sabbath while the allusion that Jesus makes, highlights the fact that God does not condemn David for his actions. This shows how the Pharisees interpretation of the Law was not in accordance with the scripture (117).This can be applied to the biblical understanding of the Pharisees and others in that time period. Many people misinterpreted the text and often even twisted them to have a meaning that applied to their situation. The most important thing that I learned from this scripture is the importance of understanding the background information behind the scripture. I must admit that in this case, I would be no different that a Pharisee. Although I have read this passage and heard it referenced multiple times, I have never fully understood Jesus’ allusion withi n the text and how it applies to the situation at hand.I am constantly guilty of skimming over text or not reading it on a level deep enough to fully understand the message behind the words. This has been a lesson in itself. Works Cited Page Cole, R Alan. The Gospel According to Mark. Grand Rapids: William B. Eerdman, 1989. Print. The Holy Bible New International Version. Grand Rapids: Zondervan, 1984. Print Keener, Craig S. The IVP Bible Background Commentary: New Testament. Downers Grove: Intervarsity Press, 1993. Print Lane, William L. The Gospel According to Mark. Grand Rapids: William B. Eerdman, 1974. Print.

Sample Business Plan An Example

The following business plan for the fictional firm of Acme Management Technology (AMT) is an example of what a completed business plan might look like. This example is provided as part of the instructions and detailed descriptions included in the Components of a Business Plan. Sample Business Plan for Acme Management Technology 1.0 Executive Summary By focusing on its strengths, its key customers, and the companys underlying core values, Acme Management Technology will increase sales to more than $10 million in three years, while also improving the gross margin on sales and cash management and working capital. This business plan leads the way by renewing our vision and strategic focus of adding value to our target market segments—the small business and high-end home office users in our local market. It also provides a step-by-step plan for improving our sales, gross margin, and profitability. This plan includes this summary, and chapters on the company, products services, market focus, action plans forecasts, management team, and financial plan. 1.1 Objectives Sales increased to more than $10 million by the third year.Bring gross margin back up to above 25% and maintain that level.Sell $2 million of service, support, and training by 2022.Improve inventory turnover to six turns next year, seven in 2021, and eight in 2022. 1.2 Mission AMT is built on the assumption that the management of information technology for business is like legal advice, accounting, graphic arts, and other bodies of knowledge, in that it is not inherently a do-it-yourself prospect. Smart business people who arent computer hobbyists need to find quality vendors of reliable hardware, software, service, and support and they need to use these quality vendors as they use their other professional service suppliers—as trusted allies. AMT is such a vendor. It serves its clients as a trusted ally, providing them with the loyalty of a business partner and the economics of an outside vendor. We make sure that our clients have what they need in order to run their businesses at peak performance levels, with maximum efficiency and reliability. Many of our information applications are mission-critical, so we assure our clients that well be there when they need us. 1.3 Keys to Success Differentiate from box-pushing, price-oriented businesses by offering and delivering service and support—and charging for it accordingly.Increase gross margin to more than 25%.Increase our non-hardware sales to 20% of the total sales by the third year. 2.0 Company Summary AMT is a 10-year-old computer reseller with sales of $7 million per year, declining margins, and market pressure. It has a good reputation, excellent people, and a steady position in the local market, but has been having difficulty maintaining healthy financials. 2.1 Company Ownership AMT is a privately-held C corporation owned in majority by its founder and president, Ralph Jones. There are six part owners, including four investors and two past employees. The largest of these (in percent of ownership) are Frank Dudley, our attorney, and Paul Karots, our public relations consultant. Neither owns more than 15%, but both are active participants in management decisions. 2.2 Company History AMT has been caught in the vise grip of margin squeezes that have affected computer resellers worldwide. Although the chart titled Past Financial Performance shows that weve had healthy growth in sales, it also indicates declining gross margin and declining profits. The more detailed numbers in Table 2.2 include other indicators of some concern:As can be seen in the chart, the gross margin percentage has been declining steadily, and nventory turnover is getting steadily worse as well. All of these concerns are part of the general trend affecting computer resellers. The margin squeeze is happening throughout the computer industry, worldwide. Past Performance 2015 2016 2017 Sales $3,773,889 $4,661,902 $5,301,059 Gross $1,189,495 $1,269,261 $1,127,568 Gross % (calculated) 31.52% 27.23% 21.27% Operating Expenses $752,083 $902,500 $1,052,917 Collection period (days) 35 40 45 Inventory turnover 7 6 5 Balance Sheet: 2018 Short-Term Assets Cash—$55,432Accounts receivable—$395,107Inventory—$651,012Other Short-term Assets—$25,000Total Short-term Assets—$1,126,551 Long-Term Assets Capital Assets—$350,000Accumulated Depreciation—$50,000Total Long-term Assets—$300,000Total Assets—$1,426,551 Debt and Equity Accounts Payable—$223,897Short-term Notes—$90,000Other ST Liabilities—$15,000Subtotal Short-term Liabilities—$328,897Long-term Liabilities—$284,862Total Liabilities—$613,759Paid in Capital—$500,000Retained Earnings—$238,140Earnings (over three years)—$437,411, $366,761, $74,652Total Equity—$812,792Total Debt and Equity—$1,426,551 Other Inputs: 2017 Payment days—30Sales on credit—$3,445,688Receivables turnover—8.72% 2.4 Company Locations and Facilities We have one location—a 7,000 square-foot brick mortar facility located in a suburban shopping center conveniently close to the downtown area. Along with sales, it includes a training area, service department, offices, and showroom area. 3.0 Products and Services AMT sells personal computer technology for small business including personal computer hardware, peripherals, networks, software, support, service, and training. Ultimately, we are selling information technology. We sell reliability and confidence. We sell the assurance to small business people that their business will not suffer any information technology disasters or critical downtimes. AMT serves its clients as a trusted ally, providing them with the loyalty of a business partner and the economics of an outside vendor. We make sure that our clients have what they need to run their businesses at peak performance levels, with maximum efficiency and reliability. Since many of our information applications are mission-critical, we give our clients the confidence that well be there when they need us. 3.1 Product and Service Description In personal computers, we support three main lines: The Super Home is our smallest and least expensive, initially positioned by its manufacturer as a home computer. We use it mainly as an inexpensive workstation for small business installations. Its specifications include: (add relevant information)The Power User is our main up-scale line and our most important system for high-end home and small business main workstations, because of (add relevant information) Its key strengths are: (add relevant information) Its specifications include: (add relevant information)The Business Special is an intermediate system, used to fill the gap in positioning. Its specifications include: (add information) In peripherals, accessories and other hardware, we carry a complete line of necessary items from cables to forms to mousepads to... (add relevant information) In service and support, we offer a range of walk-in or depot service, maintenance contracts, and on-site guarantees. We havent had much success in selling service contracts. Our networking capabilities include... (add relevant information) In software, we sell a complete line of... (add relevant information) In training, we offer... (add relevant information) 3.2 Competitive Comparison The only way we can hope to differentiate effectively is to brand the vision of the company as a trusted information technology ally to our clients. We will not be able to compete in any effective way with the chains using boxes or products as appliances. We need to offer a real alliance that feels personal. The benefits we sell include many intangibles: confidence, reliability, knowing that somebody will be there to answer questions and help at critical times. These are complex products that require serious knowledge and experience to use, which we have, while our competitors sell only the products themselves. Unfortunately, we cannot sell the products at a higher price simply because we offer services; the market has shown that it will not support that concept. We must also sell the service and charge for it separately. 3.3 Sales Literature Copies of our brochure and advertisements are attached as appendices. Of course, one of our first tasks will be to change the messaging of our literature to make sure we are selling the company, rather than the product. 3.4 Sourcing Our costs are part of the margin squeeze. As price competition increases, the squeeze between the manufacturers price into channels and the end-users ultimate buying price continues. Our margins are declining steadily for our hardware lines. We generally buy at... (add relevant information) Our margins are thus being squeezed from 25% from five years ago to closer to 13 to 15% at present. A similar trend shows for our main-line peripherals, with prices for printers and monitors declining steadily. We are also starting to see that same trend with software...(add relevant information) To hold costs down as much as possible, we concentrate our purchasing with Hauser, which offers 30-day net terms and overnight shipping from the warehouse in Dayton. We need to continue to make sure our volume gives us negotiating strength. In accessories and add-ons, we can still get decent margins of 25 to 40%. For software, margins are: (add relevant information) 3.5 Technology For years, we have supported both Windows and Macintosh technology for CPUs, although weve switched vendors many times for the Windows (and previously DOS) lines. We are also supporting Novell, Banyon, and Microsoft networking, Xbase database software, and Claris application products. 3.6 Future Products and Services We must remain on top of emerging technologies because this is our bread and butter. For networking, we need to provide better knowledge of cross-platform technologies. We are also under pressure to improve our understanding of the direct-connect Internet and related communications. Finally, although we have a good command of desktop publishing, we are concerned about improving integrated  fax, copier, printer, and voicemail technology into the computer system. 4.0 Market Analysis Summary AMT focuses on local markets, small business, and home office, with a special focus on the high-end home office and the five-to-20 unit small business office. 4.1 Market Segmentation The segmentation allows some room for estimates and nonspecific definitions. We focus on a small-medium level of small business, and its hard to locate data to make an exact classification. Our target companies are large enough to require the kind of high-quality information technology management we offer but too small to have a separate computer management staff (such as an MIS department). We say that our target market has 10 to 50 employees, and requires five to 20 connect workstations in a local area network, however, the definition is flexible. Defining the high-end home office is even more difficult. We generally know the characteristics of our target market, but we cant find easy classifications that fit into available demographics. The high-end home office business is a business, not a hobby. It generates enough money to merit the owners paying real attention to the quality of information technology management, meaning that both budget and productivity concerns warrant working with our level of quality service and support. We can assume that we arent talking about home offices used only part-time by people who work elsewhere during the day and that our target market home office needs powerful technology and sufficient links between computing, telecommunications, and video assets. 4.2 Industry Analysis We are part of the computer reselling business, which includes several kinds of businesses: Computer dealers: storefront computer resellers, usually less than 5,000 square feet, often focused on a few main brands of hardware, usually offering only a minimum of software and variable amounts of service and support. Many are old-fashioned (1980s-style) computer stores that offer relatively few reasons for buyers to shop with them. Their service and support are not usually very good, and their prices are normally higher than those at larger stores.Chain stores and computer superstores: these include major chains such as CompUSA, Best Buy, Future Shop, etc. They almost always have a footprint of over 10,000 square feet of space, usually offer decent walk-in service, and are often warehouse-like locations where people go to find products in boxes with very aggressive pricing, but little support.Mail order/Online retailers: the market is served increasingly by mail order and online retailers that offer aggressive pricing of a boxed product. For the purely price-driven buyer, who b uys boxes and expects no service, these are very good options.Others: there are many other channels through which people buy their computers, however, most are variations of the three main types above. 4.2.1 Industry Participants The national chains are a growing presence: CompUSA, Best Buy, and others. They benefit from national advertising, economies of scale, volume buying, and a general trend toward name-brand loyalty for buying in the channels as well as for products.Local computer stores are threatened. These tend to be small businesses, owned by people who started them because they liked computers. They are under-capitalized and under-managed. Margins are squeezed as they compete against chains, in a competition based on price more than on service and support. 4.2.2 Distribution Patterns Small business buyers are accustomed to buying from vendors who visit their offices. They expect the copy machine vendors, office products vendors, and office furniture vendors, as well as the local graphic artists, freelance writers, or whomever, to visit their office to make their sales. There is usually a lot of leakage in ad-hoc purchasing through local chain stores and mail order. Often the administrators try to discourage this but are only partially successful. Unfortunately, our home office target buyers dont expect to buy from us. Many of them turn immediately to the superstores (office equipment, office supplies, and electronics) and mail order to look for the best price, without realizing that there is a better option for them at only a little bit more. 4.2.3 Competition and Buying Patterns The small business buyers understand the concept of service and support and are much more likely to pay for it when the offering is clearly stated. There is no doubt that we face stiffer competition from box pushers than from other service providers. We need to effectively compete against the idea that businesses should buy computers as plug-in appliances that dont need ongoing service, support, and training. Our focus group sessions indicated that our target home office buyers think about the price but would buy based on quality service if the offering were properly presented. They think about the price because thats all they ever see. We have very good indications that many would rather pay 10 to 20% more for a relationship with a long-term vendor providing back-up and quality service and support, however, they end up in the box-pusher channels because they arent aware of the alternatives. Availability is also very important. The home office buyers tend to want immediate, local solutions to problems. 4.2.4 Main Competitors Chain stores: We have Store 1 and Store 2 already within the valley, and Store 3 is expected by the end of next year. If our strategy works, we will have differentiated ourselves sufficiently to avoid competition against these stores.Strengths: national image, high volume, aggressive pricing, economies of scale.Weaknesses: lack of product, service and support knowledge, lack of personal attention. Other local computer stores: Store 4 and Store 5 are both in the downtown area. They are both competing against the chains in an attempt to match prices. When asked, the owners will complain that margins are squeezed by the chains and customers buy based on price only. They say they tried offering services and that buyers didnt care, instead preferring lower prices. We think the problem is that they didnt really offer good service, and also that they didnt differentiate from the chains. 4.3 Market Analysis The home offices in Tintown are an important growing market segment. Nationally, there are approximately 30 million home offices, and the number is growing at 10% per year. Our estimate in this plan for the home offices in our market service area is based on an analysis published four months ago in the local newspaper. There are several types of home offices. For the focus of our plan, the most important are those that are real businesses offices from which people earn their primary income. These are likely to be people in professional services such as graphic artists, writers, and consultants, some accountants—and the occasional lawyer, doctor, or dentist. We will not be focusing on the market segment that includes part-time home offices with people who are employed during the day but work at home at night, people who work at home to provide themselves with a part-time income, or people who maintain home offices relating to their hobbies. Small business within our market includes virtually any business with a retail, office, professional, or industrial location outside of the home, and fewer than 30 employees. We estimate there are 45,000 such businesses in our market area. The 30-employee cutoff is arbitrary. We find that the larger companies turn to other vendors, but we can sell to departments of larger companies, and we shouldnt give up such leads when we get them. Market Analysis . . . (numbers and percentages) 5.0 Strategy and Implementation Summary Emphasize service and support. We must differentiate ourselves from the box pushers. We need to establish our business offering as a clear and viable alternative to the price-only kind of buying for our target market. Build a relationship-oriented business. Build long-term relationships with clients, not single-transaction deals with customers. Become their computer department, not just a vendor. Make them understand the value of the relationship. Focus on target markets. We need to focus our offerings on small business as the key market segment we should own. This means the five to 20 unit system, connected by a local area network, in a company with five to 50 employees. Our values—training, installation, service, support, knowledge—are more clearly differentiated in this segment. As a corollary, the high end of the home office market is also appropriate. We do not want to compete for buyers who go to chain stores or buy from mail-order outlets, but we definitely want to be able to sell individual systems to the smart home office buyers who want a reliable, full-service vendor. Differentiate and fulfill the promise. We cant just market and sell service and support; we must deliver as well. We need to make sure we have the knowledge-intensive business and service-intensive business we claim to have. 5.1 Marketing Strategy The marketing strategy is the core of the main strategy: Emphasize service and supportBuild a relationship businessFocus on small business and high-end home office as key target markets 5.1.2 Pricing Strategy We must charge appropriately for the high-end, high-quality service and support we offer. Our revenue structure has to match our cost structure, so the salaries we pay to assure good service and support must be balanced by the revenue we charge. We cannot build the service and support revenue into the price of products. The market cant bear the higher prices, and the buyer feels ill-used when they see the same product priced lower at the chains. Despite the logic behind it, the market doesnt support this concept. Therefore, we must make sure that we deliver and charge for service and support. Training, service, installation, networking support—all of this must be readily available and priced to sell and deliver revenue. 5.1.3 Promotion Strategy We depend on newspaper advertising as our main outlet to reach new buyers. As we change strategies, however, we need to change the way we promote ourselves: Advertising Well be developing our core positioning message: 24 Hour On-Site Service—365 Days a Year With No Extra Charges to differentiate our service from the competition. We will be using local newspaper advertising, radio, and cable TV to launch the initial campaign. Sales Brochure Our collaterals have to sell the store and visiting the store, not the specific book or discount pricing. Direct Mail   We must radically improve our direct mail efforts, reaching our established customers with training, support services, upgrades, and seminars. Local Media Its time to work more closely with the local media. We could offer the local radio station a regular talk show on technology for small business, as one example. We could also reach out to local news outlets to let them know we have experts who are able to address issues relating to technology for small business/home offices should the need arise. 5.2 Sales Strategy We need to sell the company, not the product. We sell AMT, not Apple, IBM, Hewlett-Packard, or Compaq, or any of our software brand names.We have to sell our service and support. The hardware is like the razor, and the support, service, software services, training, and seminars are the razor blades. We need to serve our customers with what they need. The Yearly Total Sales chart summarizes our ambitious sales forecast. We expect sales to increase from $5.3 million last year to more than $7 million next year and to more than $10 million in the last year of this plan. 5.2.1 Sales Forecast The important elements of the sales forecast are shown in the Total Sales by Month in Year 1 table. The non-hardware sales increase to about $2 million total in the third year. Sales Forecast †¦ (numbers and percentages) 5.2.2 Startup Summary 93% of startup costs will go to assets.The building will be purchased with a down payment of $8,000 on a 20-year mortgage. The espresso machine will cost $4,500 (straight-line depreciation, three years).Startup costs will be financed through a combination of owner investment, short-term loans, and long-term borrowing. The startup chart shows the distribution of financing. Other miscellaneous expenses include: Marketing/advertising consultancy fees of $1,000 for our company logo and assistance in designing our grand-opening ads and brochures.Legal fees for corporate organization filings: $300.Retail merchandising/designing consultancy fees of $3,500 for store layout and fixture purchasing.