Contracts :: GCSE Business Marketing Coursework

Contracts Lump Sum Contract A defined lump sum plan expresses employees' pension benefits as a lump sum amount, which makes it easy for them to understand and appreciate the benefits. In many cases, the plans also allow employees to accrue larger benefits at younger ages than they would under a traditional pension plan. And, increasingly, defined lump sum plans provide "portable" benefits that employees can take with them if they leave the company before retirement age. Cost plus percentage contract: Cost-plus construction contracts are often used for projects in which an owner or developer wishes to retain flexibility in selecting construction materials or modifying the design during construction. Unless specifically described in the contract, the contractor and the owner/developer may have a different perception of what types of costs are reimbursable to the contractor. The cost-plus contract should include a section defining all of the types of costs that are reimbursable by the owner/developer, and most standard form contracts include such provisions. Cost plus fixed fee contract: A cost-plus-fixed-fee contract is a cost-reimbursement contract that provides for payment to the contractor of a negotiated fee that is fixed at the inception of the contract. The fixed fee does not vary with actual cost, but may be adjusted as a result of changes in the work to be performed under the contract. This contract type permits contracting for efforts that might otherwise present too great a risk to contractors, but it provides the contractor only a minimum incentive to control costs. Design and build contract, also known as "package deal" and 'turnkey" contracts Turnkey drilling services offer a viable method for operators to better man age drilling risks and reduce costs. In the future, they may be able to utilize drilling management contractor services for complete field development programs. The offshore turnkey drilling industry remained a high-margin, low-volume business until about 1993 when turnkey drillers began to realize bidding prices were not competitive with most operators' internal cost estimates. Increasing market share could only be achieved by reducing margins to match the real competition, which is the operator's AFE (authority for expenditure). Since then, the number of offshore turnkey wells has increased almost every year. However, the future of the offshore drilling management services industry involves moving beyond merely providing a well or a completion for a fixed price.

How does Wal-Mart Keep their competitive advantage Essay

Founded in 1962 by Sam Walton, Wal-Mart has grown to be the largest discount retail chain in the world. Wal-Mart currently has over 6,500 thousand stores in 14 different countries, 1.8 million plus associates and nets sales this last quarter of over 85 billion dollars, an increase of 8.3 percent (walmart.com). The only other corporation larger than Wal-Mart to date is Exxon Mobile. So how does Wal-Mart keep their competitive advantage and sustain their position in discount retailing?Historically Wal-Mart main competitive advantage has been their low price of brand name goods. Though their most important competitive advantage, it is not their only one. Wal-Mart’s competitive advantage is based off of many key strategic choices, not just their low prices. Their strategic choice of location has given Wal-Mart a first mover advantage. By Wal-Mart strategically placing their stores within the proximity of their distribution centers, Wal-Mart is able to keep their in-house inventory at a minimal. Their distribution network is based on the hub-and spoke concept, which places stores no more than a day’s drive from its distribution centers and replaces goods within 24 hours (refrigeratedtrans.com). Their distribution centers carry more than 85 percent of all merchandise sold by Wal-Mart. With over 3,000 tractors and 12,000 trailers, Wal-Mart has one of the largest private fleets in the country with an on-time delivery record of 99.5 percent, which Mauldin believes is not good enough, that anything less the 100% is unacceptable (refrigeratedtrans.com). Not only has Wal-Mart’s strategic placement of their stores and distribution centers given them a competitive advantage, their strategic operations and inventory management has played a vital role in their success. Wal-Mart’s in-store inventory is kept at a minimum, allowing them to achieve maximum efficiency of their store floor space. Inventory is tracked by UPC scanners allowing Wal-Mart to better communicate with vendors via satellite when supplies need to be replenished. This strategy helps Wal-Mart lower inventory cost, which allows them the ability to meet the demands of local consumers, and the ability to avoid overstocking. Thus in return giving them a higher operational efficiency and keeping their prices significantly lower  that other discount retail stores. According to A.T. Kearney, Wal-Mart’s three-biggest sources of cost advantage are low corporate overheads, the efficiencies of its supply chain and above all, it’s low labor cost. However, I believe their biggest source of cost advantage is their corporate culture. Not only is this their biggest source, it is also the one source that will help Wal-Mart sustain their position in the future. Wal-Mart’s corporate culture dates back to the beginning when Sam Walton founded Wal-Mart in 1962 with a vision to keep prices as low as possible. He also emphasized frugality, customer service, an open book policy, building loyalty among associates, suppliers and customers (Wilbert, 2007). He built Wal-Mart from leading by example, and instilling in his people and his business a belief system that is still currently in place today (walmart.com). Sam Walton had three basic beliefs and 10 rules for building a business that he believed to be the secret of their success. His three basic beliefs were respect the individual; service to the customer; and strive for excellence. He believed that applying these beliefs would make an associate a better person, which in return would make a better organization. All great beliefs and are still followed today (walmart.com). However it is the 10 basic principals where I believe gave Wal-Mart the competitive advantage and defines their culture. These basic principals are:†¢The customer is always right†¢We are a merchandise-driven company†¢Our people make the difference†¢We communicate with our associates†¢We maintain a strong work ethic†¢Associates are partners†¢Our leaders are also servants†¢Associates are empowered†¢We have integrity in all we do†¢We control our expensesThese basic principal are the driving force of Wal-Mart. Sam Walton knew that in order to be successful that the associates held the key. That an unhappy associate could project their feelings to the customer and a business could not succeed by attracting one-time customers (walmart.com). Walton also knew that in order to develop a successful corporate culture,  both management and employees had to work together, with the sole purpose of serving the customer. Wal-Mart has followed this culture for the past 45 years. Wal-Mart’s cost-leadership, culture, operations, geographic location, distribution system and organization strategy has all played a vital role in Wal-Mart’s success and will continue to play a vital role in their future. Though some more important than others, without each one Wal-Mart could not duplicate their competitive advantage. Wal-Mart is an organization that shows a strong culture. Associates as well as outsiders can observe many elements of the culture within Wal-Mart. Every aspect of the culture has been instilled in each associate of this company and has helped make Wal-Mart successful and will continue to help them be successful (Berg, 2001). Wal-Mart is a large corporation which stands for the small town community values, that operates with the efficiency of a major corporation. References Berg (2001, July 2). Wal-Mart and Organizational Culture. Retrieved on May 26, 2007 from http://academic.emporia.edu/smithwil/001smmg443/eja/ardmg443ej.htmBernstein, J. and Bivens, J. (2006, June 15). The Wal-Mart Debate. A False Choice between Price and Wages. Economic Policy Institute. Issue Brief #223Corporate Culture Provides Wal-Mart Competitive Advantage. 2002, July 1. Refrigerated Transporters. Retrieved on May 26, 2007 from http://refrigeratedtrans.com/mag/transportation_corporate_culture_provides/Wal-Mart Home Page. Retrieved on May 26, 2007 from http://walmart.comWilbert, C (2006). How Wal-Mart Works. How Stuff Works. Retrieved May 26, 2007 from http://money.howstuffworks.com/wal-mart.htm

Communication Barriers in Workplace - 1252 Words

Communication Barriers in the Workplace Communication barriers in the workplace can have a serious effect on the functioning and of an organization. In the following article we shall understand what some of these communication barriers are and how to overcome them. What are the Communication Barriers in the Workplace? Difference in Perception No two people can perceive an event in the same way. What I infer from a particular incident, the other will not necessarily perceive the same. This can act as a major communication barrier because what I convey to a subordinate or colleague will be based on my perception and what he understands from it will be based on his. If the two viewpoints end up differing, it could cause the task at†¦show more content†¦In the current workplace, co-workers can sometimes be from different countries and continents. If you interact with others who have language issues, with English as their second language, the potential for miscommunication expands geometrically. Leading employee training seminars is even more challenging. You are expected to dispense important information, ensure that your audience understands your presentation, and converts your words into efficient, productive action in the workplace. You must bridge the language gap to achieve your training goal. The more technical or conceptual the worker interaction, the more important - and difficult - building the language bridge becomes. While converting all the subtle nuances of your native language to another person with a different native language is impossible in the short-term, you must be as clear as possible to convey the complete essence of your conversation. Here are some specific tips to build your communications bridge successfully. Language Bridge Building Tips Adjust your â€Å"language level† to fit your audience or listener. Learn about the understanding level of your listeners and adjust your speech to match their comprehension competency. Not only will your listeners appreciate your consideration, your words will be better understood. Workplace communications depend on comprehension for effective operations. In these language situations, theShow MoreRelatedCommunication Barriers in the Workplace1113 Words   |  4 PagesCommunication barriers in the workplace Communication is the conveyance and flow of ideas from one person to another. The exchange of information takes place through letters, words, symbols and nonverbal behaviors. It involves the transmission of ideas from the sender to the receiver. Communication is effective only if the receiver fully understands the transmitted information. Many problems and failures occur in organizations due to poor communication. 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In This Assignment,1636 Words   |  7 PagesMid-module Communications assignment In this assignment, I am looking at communications in several different ways. These are to, Understand the importance of the role of communication in the workplace; Understand how barriers to communication can impact upon an organisation meeting goals and objectives; Understand how barriers to communication impact upon an individual and a team meeting their goals and objective; Understand how strategies for overcoming barriers to communication can assist in meetingRead MoreCommunication For Diversity, Gender Barriers, And Tools For Managers854 Words   |  4 PagesThis particular article entitled â€Å"Communication for Diversity†, talked about three specific things: Global communication barriers, Gender communication barriers, and tools for managers to overcome barriers. Managing a diverse workforce that is spread widely, presents unique challenges for today’s managers. Despite many obstacles, managers must be sensitive to various cultural values and traditions associated with the employees they manage. For instance, â€Å"Japanese culture favors consensus decision-makingRead MoreAnalyse the Barriers and Challenges to Communication Within Own Job Role669 Words   |  3 PagesAnalyse the barriers and challenges to communication within own job role Effective Communication is significant and a fundamental relationship-building skill in the workplace for any employee especially for managers to perform the basic functions of management, i.e., Planning, Organising, Leading and Controlling. If people dont communicate well they limit their ability to connect on any meaningful level which can create conflict. Depending on the position in workplace, others will have expectations