The Alchemist Overview

The Alchemist is an allegorical novel published in 1988 by Paulo Coelho. After an initial lukewarm reception, it became a worldwide bestseller, with more than 65 million copies sold.   Fast Facts: The Alchemist Title: The AlchemistAuthor: Paulo CoelhoPublisher:  Rocco, an obscure Brazilian publishing houseYear Published: 1988Genre: AllegoricalType of Work: NovelOriginal Language: PortugueseThemes: Personal Legend, pantheism, fear, omens, biblical metaphorsCharacters: Santiago, the Englishman, Melchizedek, the crystal merchant, Fatima, the alchemist  Notable Adaptations: An illustrated version with artwork provided by Moebius, a graphic novel produced in 2010.Fun Fact: Coelho wrote The Alchemist in two weeks, and, after one year, the publisher gave the rights back to Coelho, who felt that he had to heal from the setback, which led him to spend time in the Mojave desert. Plot Summary Santiago is a shepherd from Andalusia who, while resting in a church, dreams about pyramids and treasures. After having his dream interpreted by an old woman, and after learning the concept of â€Å"Personal Legends,† he sets out to find those pyramids. Significant stops in his journey include Tangier, where he works for a crystal merchant, and the oasis, where he falls in love with Fatima, a â€Å"desert woman,† and meets an alchemist. During his travels, he also gets acquainted with the concept of the â€Å"Soul of the World,† which makes all beings partake in the same spiritual essence. This allows him to turn into the wind while facing some captors. Once he finally reaches the pyramids, he learns that the treasure he’d been looking for was by the church where he was resting at the beginning of the novel. Major Characters Santiago. Santiago is a shepherd from Spain and the protagonist of the novel. While at first he is content with tending sheep, once he gets acquainted with the concept of Personal Legend, he sets out on an allegorical journey to pursue it. Melchizedek. Melchizedek is an old man who is actually a renowned biblical figure. He is a mentor to Santiago, as he educates him on the concept of â€Å"Personal Legend.† The Crystal Merchant. He owns a crystal shop in Tangier, and, even though he is aware of his own Personal Legend, he chooses not to pursue it, which leads to a life of regret.   The Englishman. The Englishman is a bookish individual who used to solely rely on books to pursue knowledge. He wants to learn alchemy and is looking for the alchemist who lives at the Al Fayoum oasis. Fatima. Fatima is a desert woman and Santiago’s love interest. She understands omens and is happy to let destiny run its course. The Alchemist. The titular character of the novel, he is a scimitar-wielding, black-clad 200-year-old man who lives at the oasis. He believes in learning by doing something rather than reading it. Major Themes The Personal Legend. Each individual has a Personal Legend, which is the only means by which to achieve a satisfying life. The universe is attuned to that, and it can achieve perfection if all of its creatures strive to achieve their own Personal Legend Pantheism. In The Alchemist, the Soul of the World represents the unity of nature. All living beings, are connected, and they have to undergo similar processes, as they share the same spiritual essence. Fear. Giving in to fear is what hinders the fulfillment of one’s own Personal Legend. As we see with the crystal merchant, who never heeded his calling to make a pilgrimage to Mecca out of fear, he ends up living in regret. Alchemy. Alchemy’s goal was to transform base metals into gold and to create a universal elixir. In the novel, alchemy serves as a metaphor of people’s journeys in pursuit of their own Personal Legend.   Literary Style The Alchemist is written in a simple prose that is heavy on the sensory details. It contains a lot of extremely quotable passages, which gives the book a â€Å"self-help† tone. About the Author Paulo Coelho is a Brazilian lyricist and novelist. He had a spiritual awakening upon walking the Road of Santiago de Compostela. He is the author of over 30 books between essays, autobiography, and fiction, and his work has been published in more than 170 countries and translated into more than 120 languages.

The Heart And Vascular Institute - 755 Words

Clinical Specialty Area The clinical area chosen was the Heart and Vascular Institute through one of the hospital systems I am employed with. I had been involved with a project that studied the readmissions experienced within the hospital system and established heart failure (HF) and chronic obstructive pulmonary disorders (COPD) were our highest readmission problems. Our organization had found that millions of dollars had been left on the table since the Centers for Medicare Medicaid (CMS) handed down their final ruling in 2012 regarding reduced payments for preventable readmissions (CMS.gov, 2016). One of the outcomes of the project was the development of the rapid diuresis unit (RDU) through our Cardiac Decision Units (CDU) at several campuses. I often wondered how the RDU of the CDU was set up and how they function within the system. This is my opportunity to see the operation firsthand, the clientele it serves, the staff, and potential education needs that the department faces. Developing as an Advanced Nurse Educator The American Association of Colleges of Nursing (AACN) published report titled The Essentials of Master’s Education in Nursing (2011), where the core framework for all masters educated nurses is laid out to prepare for the dramatic changes seen in the delivery of healthcare today and in the future (American Association of Colleges of Nursing, 2011). I am excited to be with Walden’s vision to implement some advanced practice into the MSN inShow MoreRelatedEssay about Medical Technology has Increased Life Expectancy960 Words   |  4 Pagesmedical knowledge than ever. However micro vascular angina pectoris a medical term for chest pain remain number one killer in the world it is a discomfort due to coronary heart disease simply called angina. This occurs when the heart muscle temporarily doesnt get sufficient in order to function properly. In addition it’s usually happens because one or more of the hearts arteries is narrowed or blocked. In the article of Lana ma nagement of micro vascular angina pectoris he clearly explain the natureRead MoreOne Beat At a Time Essay1318 Words   |  6 PagesOne Beat at a Time When we think of cardio vascular diseases, we usually always associate them with the loss of a family member or friend. Almost everyone knows of someone who is affected by these tragic diseases. Since the ancient times, there have been clues left showing possible cardio vascular diseases within the Egyptian families. The earliest proof of a cardio vascular disease is of a 3,500 year old Egyptian mummy with a serious case of arthrosclerosis, which was identified via modern CTRead MoreThe Death Of The Word Cancer Strikes Fear Into The Hearts Of So Most Hardened Of Us1658 Words   |  7 PagesToxicology Timed Essay Just the thought of the word cancer strikes fear into the hearts of even the most hardened of us. 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Simple Harmonic Motion Dominic Stone Lab Partner Free Essays

Experiment 1: Simple Harmonic Motion Dominic Stone Lab Partner: Andrew Lugliani January 9, 2012 Physics 132 Lab Section 13 Theory For this experiment we investigated and learned about simple harmonic motion. To do this we hung and measured different masses on a spring-mass system to calculate the force constant k. Simple harmonic motion is a special type of periodic motion. We will write a custom essay sample on Simple Harmonic Motion Dominic Stone Lab Partner or any similar topic only for you Order Now It is best described as an oscillation motion that causes an object to move back-and-forth in response to a restoring force given by Hooke’s Law: 1) F=-kx Where k is the force constant. Then using two different procedures, we calculate the value of the force constant k of a spring in our oscillating system. We observed the period of oscillation and use this formula: 2) T=2(m/k) Then we reduced the equation to solve for the value of k by: 3) k=4^2/slope â€Å"Slope† represents the slope of the graph in procedure B. k is then the measure of the stiffness of the spring. We can then compare k to that of a vertically stretched spring with various masses M. By using the following equation: 4) Mg=kx Where x is the distance of the stretch in the spring. To find the value of the constant k we take the data from procedure A and graph it. Using this graph, we use equation: 5) k=g/slope We can compare the two values of the constant k. Both values should be exact since we used the same spring in both procedures. Here simple harmonic motion is used to calculate the restoring force of the spring-mass system. Procedure Part A: First, we set up the experiment by suspending the spring from the support mount and measured the distance from the lower end of the spring to the floor. After, we hung 100 grams from the spring and measured the new distance created from the stretch of the spring. We then repeated this step for masses 200 to 1000 grams, by increasing the weight by 200 grams each time. Then we took this data and plotted them on a graph with suspended weight Mg versus elongation x. After plotting this data we were then able to evaluate the force constant k from the slope of the graph. Part B: First, we suspend 100 grams from the spring and let it lay at rest. When the spring was naturally set in its equilibrium position, we slightly pulled down the weight and recorded the time it took for the weight to complete 10 oscillations and calculated the average period of each oscillation. We then repeated this process for masses 100 to 1000 grams by increasing the weight by 100 grams each time. After we completed this process we plotted a graph of T^2 verses suspended mass m with the data. When then found the intercept at T^2=0 to see how it would compare with the value of negative one-third the mass of the spring. We then also determined the spring constant k by calculating the slope of the graph and compared it with the spring constant k in part B. Data Part A: Mg(Kg/s^2)| X(m)| 1. 96| 0. 39| 3. 92| 0. 63| 5. 88| 0. 86| 7. 84| 1. 11| 9. 8| 1. 36| Part B: M(Kg)| T (s)| T(s)| T^2(s^2)| 0. 1| 8. 24| 0. 824| 0. 679| 0. 2| 9. 87| 0. 987| 0. 974| 0. 3| 12. 74| 1. 274| 1. 623| 0. 4| 14. 57| 1. 457| 2. 123| 0. 5| 16. 23| 1. 623| 2. 634| 0. 6| 17. 49| 1. 749| 3. 059| 0. 7| 19. 21| 1. 921| 3. 69| 0. 8| 20. 26| 2. 026| 4. 105| 0. 9| 21. 69| 2. 169| 4. 705| 1| 22. 89| 2. 289| 5. 24| Data Analysis How to cite Simple Harmonic Motion Dominic Stone Lab Partner, Essay examples

Pros and Cons of the two Contrasting Leadership Free-Samples

Questions: 1.What leadership style do you feel is exhibited by Richard Branson? Define and discuss the characteristics of the style and cite specific examples from the case to support your argument2.Define and briefly discuss the Path-goal leadership theory. (House 1971), (House Mitchell 1974). House describes four leader behaviours. 3.Discuss how you believe the leadership styles of both Branson and Gou could impact on workers motivation, from either a positive or negative perspective4.If you were a consultant hired to Improve leadership at Foxconn, what changes would you recommend to Terry Gou to create a workplace that is more harmonious, less stressful and less toxic for Employees. Answers: Introduction This assignment deals with pros and cons of the two contrasting leadership styles (Transformational and Autocratic) followed by Richard Branson and Terry Gou, in the relationship with the theories of motivation. It discusses the characteristics of the two theories and their relation to the leadership styles of the two leaders. It also deals with the four features of path-goal leadership theory and their connection to Richard Branson and Terry Gou. The report describes the connection of Chinese culture to the success of Autocratic style of leadership. Discussion 1.Richard Branson exhibits the Transformational leadership style. In this style of leadership, the leader enhances the morale, performance, and motivation of employees. In this style of leadership the leader, works along with the subordinates to find out the changes required, creating guidance for the change and implementing the change (Garca-Morales et al. 2012). These types of leaders are able to create a work culture full of trust and innovation. Some of the key characteristics of the transformational leaders are as follows Keeping ego in check: It is very essential for the leader of transformational leadership to keep the ego in check and not let it interfere with every topic related to a subordinate. Keeping the ego in check is a great way to bring out the best from the employees. The case study of Richard Branson perfectly proves this point. As stated in the case study, Branson gives respect to employees by stepping back and giving them authority for taking their own decisions. He knows exactly when to intervene and when to step back keeping his ego aside (Grant, 2012). Self- Management: The transformational leaders possess the capability to manage themselves well. They do not follow conventional rules of leadership and does not need direction from others on how to operate. They do whatever they love. They possess values that cater to the interests of the organization. Richard Branson is a self made businessperson who is now operating more than 200 businesses and is now a billionaire. He does not carry the conventional look and behavior of CEOs. He does exactly what makes him happy like dressing as Che Guevara in a press conference, wearing butterfly wings on a boardroom (Wright et al. 2012). The capability of taking appropriate risks: Taking calculated risks is one of the key features of transformational leaders. They trust their instinct and take input from the team to evaluate a situation and take appropriate risks for increasing the productivity of the organization. Richard Branson is famous for his decisions on taking calculated risks. The first music album, which he released from his company Virgin Records, was of Mike Oldfield, had no potential of being a hit. This calculated risk taken by Branson proved to be a super success. The album became one of the best-selling albums of all time (Kelloway et al. 2012). Share Organizational consciousness: A transformational leader always shares his views with the subordinates while listening and giving importance to their views and opinions. This helps the leader to understand the team members. The subordinates also feel valued by the organization and take decisions fearlessly. Branson believes in demolishing corporate hierarchy and sharing his views with employees. He gives authorities to others to take decisions while giving them the opportunity to have ample leisure time. According to Branson employees are paid to think and lead rather than following others orders. This makes them feel valued (Chou, 2012.). Being Inspirational: One of the major works of a transformational leader is to inspire and motivate the employees. This includes motivating employees and recognizing their hard work. It is also the process of understanding the motivational factor of an employee. According to Branson, focusing on employees is the key to success. He debates that if an organization looks after its employees the employees will look after the customers. He motivates employees by considering their situation and granting them leaves whenever required. According to him, this inspires and motivates employees to be more productive. He believes in the implementation of fun in the working environment to inspire the employees who spend most of the time of their day in the organization (Manning and Curtis, 2012). The case study shows that Terry Gou follows the Autocratic style of leadership. This style considers the boss as the supreme. The leader holds all the authority and responsibility. This type of leadership provides no flexibility in the working environment. Autocratic leaders never involve employees in decision-making and are always force them to follow instructions (Wright and Escrib-Folch, 2012). There are some key characteristics of Autocratic leadership. The first is that they take little or no input from group members. Terry Gou follows the secretive style of leadership. He never shares new product launches with employees. He tightly controls the employees in military style and is never consults them for decision-making. The second characteristic of this type of leadership is that they consider the employees and their well-being as the last priority (Manning and Curtis, 2012). Terry Gou forces its employees to do 24-hour shifts when there are urgent requirements. They are never g iven the flexibility of taking leaves. The work environment of Foxconn is mentally and physically stressful with forced overtimes. Employees have certain facilities like swimming pool, medical facilities, and cafeteria. The constant pressure of working hard and giving output drives workers to commit suicide. In spite of the suicides committed by his organization Terry Gou has stuck to his policy of customer first employee last by making the employees sign a treaty, which absolves the company from the responsibility of any suicides. 2.The Path-Goal leadership theory is a theory on specifying the behavior of leaders that suits the employees and the work environment. The goal of this theory is to increase the motivation of employees and empowering the employees to make them satisfied with the organization (Dixon and Hart, 2010). According to this theory, satisfied employees are best for the productivity of the organization. House describes four styles of leadership The directive, path-goal clarifying leader: This type of leader clearly communicates the goal to the employees and the processes by which the goals can be achieved. This is followed when the subordinate is inexperienced and the task is unstructured and complex (Manning and Curtis, 2012). Achievement-oriented leader: This type focuses on setting challenging task oriented goals to its followers and expects them to perform at their highest level. The leaders also show immense confidence in the ability of the workers (Manning and Curtis, 2012). Participative leaders: This type of leadership involves and consults the followers while taking a decision. They consider the ideas of the subordinates while taking an action (Huang et al. 2010). Supportive Leaders: This leader creates a healthy and friendly working environment by showing concern to the employees for their well-being and considering their needs. This increases the self- esteem of employees and increases their motivation to work harder(Zhang and Bartol, 2010). The most evident leadership styles of Richard Branson are the participative leadership style and the supportive leadership style. Branson as a participative leader gives the employees authority and flexibility to decide on situations without consulting the hierarchy, involves them, and considers their views and opinions while taking decisions. Branson believes that this makes the employee feel valuable and wanted for the company thus increasing the employee retention. As a supportive leader, Branson believes in introducing fun in the working environment. He never interferes with the needs of the employees to take leaves and grants the whenever required. According to Branson employees who are happy in the working environment and can fulfill their social obligations are always more productive. Terry Gou follows the Directive and the Achievement-oriented leadership styles. Terry Gou exhibits a military control over employees by describing their work area and forcing them to follow leadership instructions blindly. He does not allow employees to cite their opinions before taking decisions. Terry Gou even keeps the product launch a secret. This is how he becomes directive in his leadership. Terry Gou is highly achievement-oriented. He forces employees to do 24-hour shifts and extreme overtimes when there is urgency. He never considers the needs of employees and is least bothered about the health of employees forcing them to commit suicide. 3.The Transformational leadership style as followed by Branson has many positive effects on the motivation of employees. This leadership model relates to the Hertzbergs Two-Factor Theory and Maslows hierarchy of needs theory of motivation. Hertzbergs motivation theory suggests that employees get motivated when they enjoy their work, feel recognized and sees the progression in the career (Ifinedo, 2012). They are also motivated when there is an open environment free communication throughout the hierarchy. According to Maslows theory, employees get motivated when the company considers their needs. The employees feel motivated when they know exactly what their roles are in the company and how their opinions are important in any decision making. The employees feel needed by the company. The company should also look after the employee's life outside of work by providing them flexible working hours so that they can also fulfill their family responsibilities. This highly motivates an employ ee and increases the productivity. Another motivation factor for employees is getting fair salary according to their responsibility (Deci and Ryan, 2012). A person following the transformational model of leadership positively affects the motivation of employees by following all the methods as discussed above. However, there are also negative effects of this leadership. The motivation employees get by feeling that they are part of the decision-making and goal setting can backfire when employees work long hours and are encouraged to go beyond their limitations to achieve the goal. This type of leadership has the tendency to train only selected individuals. Though this enhances the knowledge of those that receives the coaching, the other left out employees get de-motivated as they have the feeling that they are unimportant. The sharing of goals and asking the employees to take authority for goal achievement can also have a negative effect on productivity when employees are incapable of understanding the situation correctly and hence takes irrelevant decisions (Allio, 2012). Autocratic leadership style as followed by Gou contradicts Hertzbergs Two-Factor Theory and Maslows hierarchy of needs theory of motivation. It is not a very popular leadership theory and does not go well with the subordinates. The employees get de-motivated when they feel that the managers do not trust them and their inputs in any decision are not valued (Bhatti et al. 2012). They also get de-motivated when they fear of the punishments that the leaders use to motivate the subordinates. This leadership also has a negative effect on employee morale. The talented de-motivated employees always tend to leave the organization as the leaders discourage innovation. Although it has many negatives, this leadership style is effective at the time of crisis, when the employees need motivation from their superiors. The leaders can positively affect the motivation of employees by taking a sole decision without consultation and by telling them on how to recover the crisis. The employees feel motiva ted when they know that there is someone to guide them (Manzoor, 2012). 4.If I become a consultant at Foxconn, I would suggest Terry Gou to keep certain things in mind and implement these changes to be successful in the autocratic form of leadership. He should respect his subordinates because all are important for the fulfillment of organizational goal. Hence, he should introduce an environment of mutual respect (Manzoor, 2012). He should convey the employees, the reason for following certain procedure or orders. Terry Gou should follow company policies fairly and consistently. He should not differ on decisions in similar circumstances. He needs to leave the secretive policy of leadership. Employees need to understand the expectations fully to avoid miscommunications and misconceptions. Even if Terry Gou does not implement the ideas that come from the subordinates, he needs to listen to their views to make them feel valued and needed by the company. He should introduce policies to look after the physical and mental health of the employees, by reducing th eir exposure to toxic working environments, granting them leaves when required and by providing them flexible working hours. These changes will create a harmonious, less toxic and a less stressful work environment for employees. Chinese employees usually expect a harmonious relationship between the leader and the follower expects the leader to be directive. The Chinese culture follows the Confucian value system. According to this Confucian understanding, people tend to respect their superiors and follow their orders. Hence, the Chinese prefer autocratic leadership style. Chinese people are very sensitive to authority even in modern days. Another element of Chinese culture is guanxi. It defines the relationship between two parties characterized by affection and mutual obligations (Dickson et al. 2012). According to this concern of emotion and feelings develops a strong bond between the parties. These characteristics of Chinese culture hence prove that implementing the above-discussed changes in Foxconn will be a great success for the autocratic leadership of Terry Gou. Conclusion The above discussion concludes that leadership styles have the positive and negative impact on employees' motivation. The key lies in implementing different leadership styles according to the requirement of the situation. A person who knows the difference between leadership and motivation are successful. Leadership is rising above all circumstances and motivation is the insight that helps to rise above all circumstances. References Garca-Morales, V.J., Jimnez-Barrionuevo, M.M. and Gutirrez-Gutirrez, L., 2012. Transformational leadership influence on organizational performance through organizational learning and innovation.Journal of business research,65(7), pp.1040-1050. Grant, A.M., 2012. Leading with meaning: Beneficiary contact, prosocial impact, and the performance effects of transformational leadership.Academy of Management Journal,55(2), pp.458-476. Wright, B.E., Moynihan, D.P. and Pandey, S.K., 2012. Pulling the levers: Transformational leadership, public service motivation, and mission valence.Public Administration Review,72(2), pp.206-215. Kelloway, E.K., Turner, N., Barling, J. and Loughlin, C., 2012. Transformational leadership and employee psychological well-being: The mediating role of employee trust in leadership.Work Stress,26(1), pp.39-55. Bhatti, N., Maitlo, G.M., Shaikh, N., Hashmi, M.A. and Shaikh, F.M., 2012. The impact of autocratic and democratic leadership style on job satisfaction.International Business Research,5(2), p.192. Wright, J. and Escrib-Folch, A., 2012. Authoritarian institutions and regime survival: Transitions to democracy and subsequent autocracy.British Journal of Political Science,42(02), pp.283-309.Chou, S.Y., 2012. Millennials in the workplace: A conceptual analysis of millennials' leadership and followership styles.International Journal of Human Resource Studies,2(2), p.71. Manning, G. and Curtis, K., 2012.The art of leadership. Tata McGraw-Hill Education. Ifinedo, P., 2012. Understanding information systems security policy compliance: An integration of the theory of planned behavior and the protection motivation theory.Computers Security,31(1), pp.83-95. Deci, E.L. and Ryan, R.M., 2012. Motivation, personality, and development within embedded social contexts: An overview of self-determination theory.The Oxford handbook of human motivation, pp.85-107. Allio, R.J., 2012. Leaders and leadershipmany theories, but what advice is reliable?.Strategy Leadership,41(1), pp.4-14. Dickson, M.W., Castao, N., Magomaeva, A. and Den Hartog, D.N., 2012. Conceptualizing leadership across cultures.Journal of World Business,47(4), pp.483-492. Manzoor, Q.A., 2012. Impact of employees motivation on organizational effectiveness.Business management and strategy,3(1), p.1. Dixon, M.L. and Hart, L.K., 2010. The impact of path-goal leadership styles on work group effectiveness and turnover intention.Journal of Managerial Issues, pp.52-69. Huang, X., Iun, J., Liu, A. and Gong, Y., 2010. Does participative leadership enhance work performance by inducing empowerment or trust? The differential effects on managerial and non?managerial subordinates.Journal of Organizational Behavior,31(1), pp.122-143. Zhang, X. and Bartol, K.M., 2010. Linking empowering leadership and employee creativity: The influence of psychological empowerment, intrinsic motivation, and creative process engagement.Academy of management journal,53(1), pp.107-128.

Business Finance Measuring Cashflow at Risk

Question: Describe about the Business Finance for Measuring Cashflow at Risk? Answer: Introduction Event Planners Ltd. carry on the business of planning the events for the clients such as weddings, birthdays, etc. It is a newly established business with only two shareholders. In the first year of the business, the company is in loss with major liquidity issues as the bank account has an overdraft balance and the company is unable to pay creditors on time. The company has appointed a manager to carry on the business of the company. But the directors feels that he is using funds of the company recklessly and his acts are not in the interest of the company. Difference between Cashflow Profits for the business Cashflow is the difference between the cash received during the year and the cash used during the year. Profit is the revenue from the sale of goods services, whether received in cash or yet to be received less all the expenses made during the year whether actually paid or yet to be paid. Profit is not equal to the Cashflow during the year. Business can be in loss and at the same time positive Cashflow. Similarly, there may be negative Cashflow and business is still making good profit. (Bizfilings, 2012) For a successful business, there must be a balance between both the Cashflow profit. (Sharma, 1996) Importance of Cash Profits for the business survival Profit making is the primary purpose of the business. It is a vital part of business, but profit is not the only purpose for the existence of the business. For the survival of business profit is essential, as profit has its own function in the business survival. Profit is required to pay the investors and stakeholders as return for the investment of money or time they invested in the business. Profit is needed for the running, expansion, growth and development of business. Profit also act as a financial indicator of how well business is working. Cash plays a major role in the survival of the business. A business in loss can survive for short to medium duration if it is generating enough cash. As cash is needed for paying of any stuff. And no business can survive without enough cash to meet its immediate needs. At the same time holding excess cash is also of no use. It will be a loss of potential earnings. So, the liquidity should be maintained in any business to manage the balance of cash in the business as per the business requirement. Identify and explain why business can report a profit, but be short of cash. Profits and cashflows are related to each other. They are the financial measurement of the business. They are not directly related to each other, both depict different thing about the business. Cashflow measures the business ability to pay its expenses while profit measures the sustainability of the business. Cashflow is the cash balance after considering all the cash receipts and deducting cash payme/nts for the period. Whereas, profit is the result of deduction of expense for earning the revenue from the revenue. For the accounting purpose, an income expense is recognized only in that period for which it actually takes place, whether received or paid in cash or not. (Vranceanu, 2014) For example, a company sold the goods worth 100$, partially on credit, i.e. 50 $ will be received after 1 month and 50$ now at the time of sale. Expenses are payed off $ 45 and outstanding expenses are for 15$. For calculating profit for the period= Revenue less Expenses = 100$ (Total Sales) 60$ (Total Expenses) = 40$ For calculating Cashflow for the period = Cash inflow less Cash outflow = 50 $ (Cash receipt) 45$ (Cash payment) = 5$ In this case, the company has an adequate profit, but short cash. This difference in the profit and cash is mainly due to timing differences. For calculating profit, the company focuses on when the profit is earned and expenses incurred legally, without considering the cash position. They follow accrual basis of accounting. For calculating cash, the company only focuses on when cash is actually received and paid, without considering when it is actually earned or incurred. Consequences to a business of being short of cash Cash is the blood of the business. It acts as lifeline to the business. Shortage of cash in a business can harm it many ways. Such as: Late payment to creditors, which lead to wrong image in the market and reduce the flow of material or goods. Short cash will create liquidity problem in the business. If the business is short of cash, then it will create crisis kind situation like how to pay for expenses, how to purchase raw material, how to develop the business etc. Cash shortage will lead to poor market image and also affect the goodwill of the business. A balance of cash is required in the business. Because cash is needed to earn profit for the business. Adequate cash is required to pay to employees and suppliers and other expenses. So that goods can be produced and profit can be generated by selling those goods. If business is short of cash than it will be unable to generate profit. So, business is to be managed in such a way to have positive cash flow for the growth and development of the business. Liquidity and profitability characteristics of new business as opposed to long standing business. Business have different requirement in its different phases. A new business will have more liquidity as compared to long standing business. As for new business more cash is required for initial setup and for the purchase of resources to run the business. As this is the growing phase of the business, it will require more liquidity for the growth and development of the business. For the long standing business, an adequate liquidity is required, but not high as the business is already set up and running. So, it need liquidity only for smooth running of the business. At the initial stage of business, it will have low profitability. As the business is trying to set up, building customers and goodwill in the market. In case of long standing business, there will be higher profitability. As the business has grown upto a level to give good returns and have high profitability. (Sasaki, 2015) How Cashflow problems can arise Cashflow problem arises due to following reasons: Low Profits Lower profit generally lead to cashflow problems for the business. Over Investment When more cash is invested in the machinery or equipment that required. This excess capacity will not generate revenue, so it is a waste of cash. Excess stock- Holding of excess stock than the required quantity for smooth working of business is just a waste of cash and also lead to the risk of stock become obsoltee. Higher credit period- Selling goods on credit is a good way of sales promotion. But providing very high credit period will lead to shortage of cash in the business. Expanding fastly Business in expanding very fast, so it will need more resources for the business. It will create a shortage of cash in the business. Declining sales - Reduction in the turnover of the business lead to a reduction in the cash receipt. So shortage in cash arise. Excessive debt Excess of debt lead to the use of major cash in the payment of debt and shortage in cash arise. High capital Expenditure - Higher capital expenditure will lead to higher cash flow and case cash reduction. Methods for dealing with cash flow problems Following are the methods for dealing with the cashflow problems: Cost cutting This is the best method for dealing with a cash flow problem by reducing the non essential costs of the business. This will help in reducing cash outflows for the business. Reduction in stocks Reduction in the cash tied up in the raw material and goods by ordering only minimum goods or raw material required for running the business. This will reduce the cash utilization in the stock. Late payments to suppliers - Try to increase the credit period for making payment to the suppliers. This will reduce the cash engaged in the business. Reduction in the credit period offered to the customer - Selling goods on credit is a good way of sales promotion. But providing high credit period will lead to shortage of cash in the business. So by reducing the credit period will allow more cash inflow in the business. Delay in the growth and expansion plans - Delay of the expansion plan of the business for the future. This will deffer the cash outflow from now and reduce cash crisis. Increasing the selling price Increase in selling price will increase the cash inflow in the business and reduce cash crisis. Cash Flow Management A proper management of the cash outflow and inflows will help in maintaining required cash in the business by proper planning the cash inflows and outflows. By keeping the cash flow forecast to remain prepared for future outflows in advance and manage cash flow problems. (Stein, 2001) References 1. Stein, J, C, Usher, S, E, LaGattuta, D Youngen, J 2001, A comparables approach to measuring cashflow at risk for non financial firms, Journal of Applied Corporate Finance, vol. 13 , no. 4 , pp. 100-09. 2. Sharma, D 1996, Analysing the Statement of Cashflows, Australian Accounting Review, vol. 6 , no. 12 , pp. 37-44. 3. Morley, S 2002, The Financial Appraisal of Development Projects, in Development and Developers: Perspectives on Property, Blackwell Science Ltd, UK. 4. Vranceanu, R 2014, Corporate profit, entrepreneurship theory and business ethics, Business Ethics: A European Review, vol. 23 , no. 1 , pp. 50-68. 5. Ang, A Liu, J 2004, How to discount cashflow with time varying expected return, The Journal Of Finance, vol. 59 , no. 6 , pp. 2745-83.6. Brown, C Burrows, G 2003, Risk-Adjusted Discount Rates and Projects of Unequal Lives Australian Accounting Review, vol. 13 , no. 29 , pp. 57-65. 7. Sasaki, T 2015, The Effects of Liquidity Shocks on Corporate Investments and Cash Holdings: Evidence from Actuarial Pension Gains/Losses. Financial Management,vol. 44 , no. 3 , pp. 685-707. 8. Albuquerque, R Schroth, E 2015, The Value of control and the costs of illiquidity, The Journal Of Finance, vol. 70 , no. 4 , pp. 1405-55. 9. LANG, M, LINS, K, V MAFFETT, M 2012, Transparency, Liquidity, and Valuation: International Evidence on When Transparency Matters Most, Journal of Accounting Research,vol. 50 , no. 3 , pp. 729-74. 10. Amihud, Y Mendelson, H 2012, Liquidity, the Value of the Firm, and Corporate Finance, Journal of Applied Corporate Finance, vol. 24 , no. 1 , pp. 17-32. 11.Bizfilings 2012, The Difference between cash flow and profit, viewed on 24th March, 2016, https://www.bizfilings.com/toolkit/sbg/finance/cash-flow/cash-flow-and-profit.aspx. 12. Robbins, S, Profit and Cashflow explained, viewed on 24th March, 2016, https://www.steverrobbins.com/articles/profit-and-cash-flow-explained 13. Smith, K, Reasons why cash is king for businesses Individual, viewed on 24th March, 2016, https://www.moneycrashers.com/why-cash-is-king 14. Business casestudies, Controlling cash flow for business growth, viewed on 24th March, 2016, https://businesscasestudies.co.uk/cima/controlling-cash-flow-for-business-growth/the-importance-of-cash-flow.html#axzz43tNM3Kre.

The Metropolis Model How to Use the Sharing Economy to Create Standout Thought Leadership Content

THE METROPOLIS MODEL: HOW TO USE THE SHARING ECONOMY TO CREATE STANDOUT THOUGHT LEADERSHIP CONTENT â€Å"It’s easy to admire a thought leader; it’s much harder to become one.† —Adam Grant, Wharton professor and author of Give and Take Content creation in the sharing economy The sharing economy continues to transform nearly every sector of the global economy.   A recent McKinsey report projects that sharing economy revenues will reach $335 billion globally by 2025. Wikipedia defines the sharing economy as â€Å"peer-to-peer based sharing of access to goods and services.† Another definition describes it as â€Å"a socio-economic ecosystem built around the sharing of human, physical and intellectual resources. It includes the shared creation, production, distribution, trade and consumption of goods and services by different people and organizations.† As its impact continues to grow, what does it mean for content creation? Content creation is a challenge for marketers. Statistics from Kapost show that 39% of marketers indicate coming up with ideas is difficult, and that 1 in 2 marketers say they don’t have enough ideas to fuel their content operations. The sharing economy is good news for content creation, offering rich new opportunities for engagement, dialogue, and creative insight. For marketers, the collaborative model is a content strategy resource for generating and developing genuine thought leadership. It takes a metropolis The term crowdsourcing first appeared in 2006 to reference an organization looking outside its own resources and employees for ideas and problem solving. The title of Hillary Clinton’s famous book, published ten years earlier in 1996, offers a useful metaphor for crowdsourcing: It Takes a Village. In 2016, however, it takes a metropolis. The metropolis model is a shared production model that leverages your entire peer community. In the sharing economy era, optimizing your resources and harnessing the power of your entire â€Å"metropolis† to generate thought leadership content is a key strategy for success. Applied to content creation, the metropolis model is a roadmap for utilizing the collective wisdom of your entire ecosystem—in-house resources, customer feedback, subject-matter expertise, and industry influencers—to develop standout thought leadership content. Revisiting thought leadership why it matters While thought leadership has become a marketing buzzword, it’s essential for brands whose strategy includes establishing and maintaining a thought leadership role. 43% of marketers identified thought leadership as one of the top three goals of content marketing, along with lead generation and brand awareness, in a recent LinkedIn Technology Marketing Community survey. Although it’s been said that the first rule of thought leadership is not to call it thought leadership, it’s worth revisiting the definition of the term. In their book #Thought Leadership Tweet: 140 Prompts for Designing and Executing an Effective Thought Leadership Campaign, Liz Alexander and Craig Badings offer a useful definition: â€Å"Thought leaders advance the marketplace of ideas by positing actionable, commercially relevant, research-backed, new points of view. They engage in â€Å"blue ocean strategy† thinking on behalf of themselves and their clients, as opposed to simply churning out product-focused, brand-centric white papers or curated content that shares or mimics others’ ideas.† In a conversation with Curtis Kroeker, CEO of Scripted, an online marketplace that connects businesses with writers, he defined thought leadership as â€Å"content that’s thought-provoking to people who already know a lot about that particular topic. So it’s a pretty high bar.† With the increasing importance of thought leadership as a content marketing strategy, how can you effectively meet this standard? How can you create content that offers genuinely new ideas, insight, and solutions? Using the metropolis model to develop thought leadership content The metropolis model is an effective way to tap into your entire community of talent and resources to develop thought leadership content. Using the metropolis model, you can crowdsource and collaborate with your network of in-house teams, customers, SMEs, and influencers to generate content that meets thought leadership standards. Here’s how. 1. Know the defining issues and trends Author and marketing strategy consultant Dorie Clark recommends immersing yourself in the existing industry conversation as the first step toward breaking new ground. Become conversant with the culture and current thought leadership in your industry. Be familiar with the topics, issues, research, and perspectives other experts are presenting. Armed with that knowledge, you can then start to identify what’s missing from the dialogue and where there are opportunities to contribute new thinking.   2.  Crowdsource for new ideas During the ideation phase of thought leadership content creation, your best resources are the citizens of your metropolis: your in-house teams and your customers. Kroeker says crowdsourcing is key for effective content development, and for thought leadership content in particular. â€Å"If you’re not tapping into the crowd, you’re going to miss out on perspective, expertise, and ideas,† he told us. â€Å"Even if someone is particularly well-versed in a certain area, it’s only going to be one person’s opinion. Crowdsourcing lets you tap into multiple perspectives and make for a much richer conversation and richer content creation.† Mobilize in-house teams Explain your thought leadership mission to your internal colleagues and solicit their input to develop new topics and ideas. Involve your entire team including IT, developers, analysts, designers, sales, and customer service. SMEs are another important resource for ideation. One strategy for soliciting input from SMEs is to simply ask them, â€Å"What did you do today?† Their day-to-day roles and processes involve the key issues that directly affect your customers, whether it’s technology, sales, customer service, research, or product development. Almost everything they do is content. Walk through their daily activities and the various components of their jobs to identify relevant topics. Let your team know why their participation is important. As valued in-house experts immersed in the daily workings of your business and customer interaction, their insights are essential. Set up brainstorming or gamestorming sessions that make it fun and pressure-free for everyone to contribute ideas. You can start the ideation with questions like the following: What’s missing from the industry’s current conversation? What areas are underrepresented in our current content strategy? What issues should we be covering? What are your biggest challenges, and why? What challenges and issues do you observe among our clients? What new ideas and trends are emerging in our business? You can also use tools like 15Five and Slack to help solicit relevant topics. Your role is to direct the dialogue and provide moderation and feedback. Let participants know they don’t have to write anything—just contribute ideas. Assign a point person to keep track of the dialogue and take notes. Solicit feedback from customers and users Next, reach out to your users for feedback. Your online community is one of the best sources of intelligence. Customer feedback is an essential means of surfacing new business challenges and issues for your content strategy. Polls, surveys, and incentives are ideal ways to engage with your community. Services like Polldaddy can help you create simple surveys. Begin identifying new content opportunities by generating dialogue with your users around the following types of questions: What’s your biggest business challenge? What question do you most need answered? What information do you need that is not available? What’s the most pressing issue in your business? How could we improve our product or service? Be responsive and stay actively engaged with your community to monitor the discussion. Solicit and leverage comments to create and maintain a topic- and issue-oriented dialogue. Encourage debate around contrasting viewpoints. Engaging in a dialogue with your audience will help you generate useful data that can be developed into content. By asking your users about their needs and showing you care about their challenges and their opinions, you invest in them as co-creators. 3. Engage with experts and influencers Tap SMEs for knowledge and expertise Subject-matter experts are critical allies in your thought leadership strategy. They can contribute the deep technical, practical, or instructional expertise you need in specific topic areas. Develop a set of targeted questions for them to respond to in writing or in an interview. Depending on the business area you’re focused on and the type of expertise required, you may also want to interview outside SMEs. Leverage the power of influencers Influencer marketing is one of the top marketing trends of 2016. Engaging with influencers not only gives you access to authoritative insights and opinions from people your customers trust. It dramatically scales the visibility, reach, and engagement of your content. New research from Twitter shows consumers now trust influencers nearly as much as their friends. And with a new study by Tapinfluence showing an 11X higher return from influencer marketing campaigns compared to other digital marketing channels, engaging influencers in your content marketing efforts is essential. Find out who’s driving the conversation and who your users are listening to. It could be a highly visible blogger, leader, executive, or industry expert—a recognized name with authority, influence, and a following. LinkedIn can help you identify people of influence who are already in your network. There are also web services that will help you find and engage the right influencers for your business, including InNetwork and Traackr. Reach out to the influencers you’ve identified and begin cultivating relationships. Be familiar with their work—read their book and follow their blog, for example—and ask them to participate in your thought leadership initiative. Invite them to contribute their perspective, analysis, and insight. Explain how you’ve identified this issue and why you believe they’re uniquely qualified to contribute fresh thinking. Thought leadership partnerships should be mutually beneficial. When you approach an influencer, be prepared to offer something of value in return. Maybe you can offer publicity. Or maybe your offer can be tied directly to the product or service you provide—a membership, free trial, or special access of some kind. In essence, be prepared to answer the question: what’s in it for me? If your influencer is a blogger, he or she may be willing to write something on the topic themselves. Alternatively, working with your team and/or a writer, you can craft questions, interview the influencer, and create the content yourself based on his or her input. 4. Putting it all together: creating your content When you’re ready to write and publish your content, ensure a professional, well-written presentation. While good writing alone doesn’t turn generic content into thought leadership, good writing skills are essential for clearly communicating new business insights. In a recent LinkedIn Technology Marketing Community Survey, 57% of marketers said â€Å"engaging and compelling storytelling† was among the top three criteria that make content effective. â€Å"Without good writing, you risk your insights being lost because they aren’t communicated effectively,† says Kroeker. â€Å"Good writing ensures that those powerful insights are communicated in a way that’s clear and that resonates with the target audience.† Infographic by Kirsten Kohlhauff Creating thought leadership content is a kind of alchemy. Done right, it: Addresses new issues, ideas, and challenges Provides context, analysis, and synthesis of multiple perspectives Weaves a coherent, engaging narrative that offers new information and actionable solutions Is well-written and tells a compelling story â€Å"Being able to collaborate effectively and directly is critical to the creation of great thought leadership,† says Kroeker. As a marketer, you’re at the center of your metropolis, collaborating with your community to generate meaningful thought leadership content worthy of the name.

Aldi and Lidl Essays

Aldi and Lidl Essays Aldi and Lidl Paper Aldi and Lidl Paper In our globalized world it Is becoming more and more challenging for companies to create their own unique brand. Competition is high and companies have to decide which strategy is the best for their business evolvement. This report is focused on two different companies Lidl and Aldi operating in the food retailing industry. Lidl and Aldi mostly was entering markets through Greenfield investments. These two companies chose greenfield investment as they wanted to have a full control over their business, promote their own brand and manage their business on their own. Advantages and disadvantages of entering market through greenfield investment is included in this report. Aldi’s main objective, when entering other market like UK and Switzerland, is ‘recognising customers needs and meeting the requirements of the demand in that country’. Lidl and Aldi have completely different strategies in global expansion. Aldi was entering big markets like the USA and Australia and this was good strategy for company’s expansion as target markets of such countries are much bigger than European target market. But it takes much more effort to control such big markets. As for Lidl’s future I would recommend to expand in other European countries before entering big markets like Russia, although it would be a great opportunity for Lidl to enter Russian market. About Aldi and Lidl Both companies Aldi and Lidl were founded in Germany. Aldi was founded in 1946 by two Albrecht brothers and Lidl was founded eleven years after Aldi was founded by Dieter Schwarz. These two companies were opening and still open, grocery discount stores which means selling products at the lowest price possible reducing its costs on companies promotion, rental fees or purchasing prices of properties as well as having a basic outlet format stores. German company Aldi started to go global after Second World War, time characterised by common market in European countries, which means it was time when trade barriers were reduced and goods and production factors ( labour, capital, technology) could freely move from country to country. As this company was already big enough to invest in other country it firstly invested in Austria, country which borders on Germany. Austria was mostly influenced by Germany culture, so it was a good idea for the company’s first experience in investing abroad as the culture differences were not so big. The same as Aldi, Lidl company focuses on discount markets, larger supermarkets and cash and carry wholesale markets. At first, Lidl copied Aldi as much as possible, although in time Lidl took completely different strategy and added more articles to their assortment and new innovative approaches. 1. a Market entry strategy of Aldi and Lidl FDI (foreign direct investment)is an equity mode for companies which want to export their products or services. Aldi and Lidl decided to invest abroad to expand their business and some of the benefits of doing so are : cheaper labour costs, infrastructure quality , economic growth or market size of the host country. Aldi and Lidl are both ‘grocery discounters’ and to save money these companies build up their stores in suburban areas and remote districts where they can save money on rent or on purchase prices of properties and being a ‘grocery discounter’ Is a good strategy to expand their business abroad. Economic and political environment in the home country is influential on company’s decision to go international. Power and prestige is another influence on Aldi’s and Lidl decision going global. The companies want to become successful, popular and powerful. They want to become an example for the rest of the world and gain global market power. That is why Aldi and Lidl decided to go global. Aldi and Lidl were mostly entering other countries markets through Greenfield investment. Greenfield investment is a form of foreign direct investment which means setting up an entirely new foreign facility in the host country. These two companies wanted to keep their brand all over the world and have full control over their business. Although Greenfield investment is not always the best way to enter the foreign market. Although in Aldi’s and Lidl’s case it was the best way to enter the foreign market, as the primarily aim for these two companies was to promote their own brand and to manage their business in the way these two companies wanted. So in some cases companies should go for Greenfield type investment and in other cases acquisitions are more beneficial. Advantages and disadvantages of entering market through greenfield investment are discussed further. . b Advantages and disadvantages of greenfield investment For the host country, it is beneficial if a company invests through greenfield type of investment, although the effects of FDI (foreign direct investment) differ in different regions and countries. For example, Brazil have attracted foreign direct investment but mostly it was non Greenfield, while India attracted mostly Greenfield investments although it is possible to suggest that generally it has failed to attract any FDI. But Indian economy is growing whereas Brazil has remained without any improvements. So some examples also show that Greenfield investments are more beneficial for the host countries. Although such point of view can be argued. As, for example, in Aldi’s case entering different countries markets in 1950th (after the Second World War, when the time faced shortage of goods) was beneficial for host countries as such companies as Aldi was bringing market growth to the host country at that time. Comparing to acquisition’s type of investment Traditionally acquisitions or privatizations of stated-owned enterprises were considered as evolvement of developed countries , although in years the situation had changed. It became beneficial for developed countries invest in developing countries through cross-border acquisitions , as these countries could buy enterprises assets at cheap prices . But it was also beneficial for developing countries for their opportunity for market growth. Investing through cross-border acquisitions can be beneficial for those who want to enrich their multinational experience, international strategy , cultural differences between the home country and host country and other. That is why Aldi entered Austria (first country abroad) via acquisition. This company did not have any multinational experience and entering through acquisition helped them to learn a lot about different country, understand how other markets operate and gain experience in creating new international strategies. Andersson and Svensson (1996) came to the conclusion that a firm with strong organizational skills prefer acquiring an existing company in the host country, while firms with strong technological skills favour greenfield operations. Applying this study it is possible to consider that Aldi and Lidl have strong technological skills. Investing through greenfield investment means operating fast, being organised and meet the requirements of the demanding customers. And case study proves that: ‘with their altered product and service strategies, Lidl and Aldi are trying to meet the requirements of their demanding local customers. ’ Another interesting finding is that Greenfield FDI has a stronger positive impact on GDP compared to that of domestic investment, (as in Austria where Aldi invested. It is one of the richest countries comparing Gross domestic product per capita ), a country with strong and stable economy attracts Greenfield investment more, whereas Greenfield investment is more attractive for underdeveloped countries. Advantages of greenfield investment The economic growth of the host country is one of the most important determinants for Greenfield investment considerations. Such investment was primarily considered by Aldi and then by lidl because the companies wanted to promote their own brand, and they promoted their names in the host countries. These companies did not need to share any profit with anyone else as well as controlled and operated their business and organizational culture in their own way and in the way they wanted it to. They also created new production capacity and linkages to the global marketplace. For the host countries where Lidl and Aldi invested, greenfield investment was beneficial as such investments create new job opportunities , the companies invest in research and development and invest in additional capital programs. Disadvantages of greenfield investment  Although starting from the scratch ( investing through the Greenfield type investment) was not easy for them. Aldi and Lidl did not understand anything about the host country’s culture, market or country’s regulations in which they wanted to invest. Investing in the host country through the Greenfield investment was also risky because the companies did not know how well local companies were established in the country, they did not understand how did everything work in that country , so it took a long time for them getting to know that country. So reactive reasons ( actions for getting the information about the foreign market) were not enough to get understanding of the foreign market. Also Greenfield investment costs much more than cross-border acquisition investment, so mostly only big companies ( like Aldi and Lidl) which can invest good amount of money in another country can afford to invest through the Greenfield investment. Also such investments were dangerous for domestic companies, as competition was growing and domestic companies could lose their market share while international companies Aldi and Lidl were growing and expanding in the home country. . a Aldi’s strategy in the UK and Switzerland Entering such markets as UK or Swiss high-price market, meant creating a new strategy of enlarging Aldi’s products and offering higher level of service. As for example, Switzerland market was mostly shared by three largest companies Micros, Coop and Denner ( 80% of market) , so it was firstly, brave enough entering such market, and secondly, if entering such market that meant creating new more attractive product offers for customers with high level of services. Aldi in UK and Switzerland was trying to concentrate on 700 products for daily use in these two countries as well as adapting to new eating habits and consumption habits typical for the customers. As from the case study, director Martin Bailie explained : ‘It’s not all pan-European buying; we have to look what UK customers want’. Also it is important to note that entering Swiss market meant making prices higher so that they could adapt to Swiss market and provide necessary level of service. Having said so, the company had strategy to become the cheapest underclass-discounter in UK and Switzerland fulfilling costumers needs. Buying goods in great volume from the same supplier , not spending money on brand promotion and fancy displays approach helped Aldi to achieve their guaranteed price range and become successful in the markets. Buying goods from the same supplier gave them opportunity to investigate product quality in special test kitchens and improve products quality if it was necessary. Saving money on fancy displays and advertisements helped them reduce goods prices. As from the case study, Aldi realized that by adaptation to local needs the company can successfully develop a foreign market and become prospering in different countries, as Switzerland and UK. 2. b risks of taking such strategy It is clear that UK and Switzerland have different culture than Germany, so customers approach to shopping also differs. As from the case study : ‘In Germany, cheap equates to value. By contrast, in the UK low prices are not necessarily equated with value and are more associated with poor quality. ’ That is why grocery discounter may seem suspicious for them. People might think that low price goods means not really good quality, especially if customers realise that the company grows and prospers. So customers might not want to buy bad quality products (especially food) even knowing that it is cheaper. So the biggest risk for grocery discounter in such countries is bad reputation. 3. a Aldi and Lidl Internationalisation Although it is possible to say that Lidl copied Aldi’s business their strategy became completely different. Achieving strategic advantage was primarily influence on Aldi deciding to open stores in Europe, Australia and in the USA or on Lidl restricting their expansion in particular European countries till 2009. Strategy decision-making depended on company’s targets , planning and volume of expansion . Aldi and Lidl are competitors so it was obvious that these two companies would try to differ their strategies in different ways. It is possible to consider that Lidl was trying to build its strategy decision-making on Aldi’s experience, but Lidl’s strategic advantage achievements became more adventurous . So Aldi’s and Lidl’s strategies were focused on different goals. As from the case study, Lidl was focused on expansion in markets where ‘no competitor had been present previously’, whereas Aldi would wait till retail sector matured. Also as it was said previously, Lidl was mostly focused on expansion in European countries whereas Aldi expanded in USA, Australia and Europe. There are advantages and disadvantages of Aldi’s strategy. Advantages The USA and Australia are very big countries and these countries have huge target market. Exporting there means selling more than in Europe. Consumers in these countries are generally interested in products as in UK, and Aldi has experience in selling its products in UK. So selling in these countries for Aldi means selling more goods and better promote the brand. Disadvantages So Aldi promotes its brand worldwide, but to that the company needs a lot of resources to control it. It is much harder to control the business in the USA and Australia as these countries are very big. Whereas selling in Europe is easier to control and manage. Also controlling the company in such countries as USA and Australia means creating strategies for each region separately whereas selling in Europe Lidl can create only one strategy for all countries . So it is a huge responsibility for Aldi to manage its business all over the world. 3. b Lidl strategy until 2020 The impact of the Lidl name outside the German borders is astonishing when considering that very little information is leaked to the publicity about its future plans. ’ (M. Moesgaard Andersen Flemming Poulfelt, 2006) Although from the case study it is clear that Lidl plans are to expand its business in Brazil, Mexico, Russia and the USA. The countries where Lidl want to export are culturally completely different as well as geographically much bigger than Europe. So internationalisation to these countries needs new and well-organised strategies to each of the countries. As Lidl was mostly focusing on Europe it will be a big challenge for the company to enter these markets. So considering this, firstly, I would recommend to expand its business in countries where its main competitor Aldi hasn’t stores. Countries in which Lidl operates at the moment. This map shows in which countries Lidl operates at the moment. There is a list of countries in which ALdi operates at the moment: Australia Austria Belgium Denmark France Germany Great Britain Hungary Ireland Luxemburg Netherlands Poland Portugal Slovenia Spain Switzerland USA As from the map it is clear that Lidl was mostly focusing on Western countries, so I would recommend to enter Baltic countries markets and other Eastern European countries first. There is no Aldi in Baltic countries as well, and if talking about these countries markets they are not as competitive as other European countries. So it would be a great opportunity for Lidl. Entering the Baltic countries markets and other Eastern European countries would help Lidl to gain recognition of European countries as ‘strong brand throughout Europe’. Afterwards, I would recommend to enter Russian market. Russia is the biggest country in the world and target market is huge. Russia doesn’t have very competitive market and supermarkets, I would say , would become very popular over there. Also Aldi doesn’t have any store there. Although this country’s culture differs from other European countries and at first it would very challenging for Lidl. Conclusion To conclude with, the grocery retailing industry will always be profitable, especially knowing that worldwide annual sales volume ofâ‚ ¬ 3. trillion in 2007 and an average annual sales growth is 2. 7 percent during the past ten years. And it is obviously the most important sector in the world as people cannot survive without food , drinks and other groceries. Although companies operating in this sector and considering going global must decide which strategy would be best for their expansion, promotion and prosperity. Lidl’s and Aldi’s expansion became very successful and for the future these two companies must consider their expansion very carefully to achieve their goals and enlarge their revenues.