Friday, April 10, 2020
Consumer Driven Health Care Essay Example
Consumer Driven Health Care Paper Executive Summary The issues surrounding the full adoption of consumer driven health care range from cost pressures, employer concerns and the need of effectively engaging the consumers in decision making through the provision of adequate choice and information. Until now the government has been supremely instrumental in propelling the consumer driven health care system. While the merits remain engulfed in hot debates, the fact that consumer driven health care simultaneously creates both the movement, the financial responsibility, as well as the involvement in health care choices of the consumers has created serious concerns. As the evolution moves on, all stakeholders in the health care system are going to be affected. The plans will enable the consumers to personally navigate the system and directly engage with the providers. On the other hand, the pharmaceutical sector may become educators and an intermediary consumer movement may serve to satisfy the fact that transparent information will have bec ome a necessity for health care decisions. Leveled in line with these demands, the ensuing discussion analyzes the impacts on health care in terms of costs, efficiency and effectiveness in addition to the impacts with regard to the new consumer, and the stakeholders; notably the pharmaceutical sector. We will write a custom essay sample on Consumer Driven Health Care specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Consumer Driven Health Care specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Consumer Driven Health Care specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Introduction            Descriptively, consumer driven health care system allows individuals to draw from their Health Savings Accounts or their Health Reimbursement Arrangements or such similar payment products to directly meet routine health care expenses while protection from catastrophic health expenses is guaranteed by a high deductible health insurance policy. These policies cost less as the consumer meets routine medical claims from a pre-funded spending account. Should the balance in the account run out, medicals claims are paid just like in a regular deductible. Yearly unused balances increase future balances that can be invested for future medical expenses. The term â€Å"consumer driven health care†applies because routine medical claims are paid through a consumer controlled account verses a fixed insurance benefit. This scenario allows the consumers to occupy the role of a primary decision maker as regards the nature of health care they re ceive. Patients are therefore more likely to choose less expensive options and for those with chronic conditions, the system would promote compliance to treatment regimes(Goodman 2006).            Proponents of such a health care system argue that in the long run, Americans will pay less for health care provision because of reduced monthly premiums and increases free market variability. Market variability due to the use of Health Savings Accounts fosters competition which in turn lower prices and stimulate improvements in the quality and delivery of health care services. Opponents of the system cite the fact that individuals who are less wealthy and less educated will tend to avoid the health care cost burden, when this is coupled to the inability to make informed decisions, then the result is lowered health outcomes. Additionally, since the system simply shifts the cost burden to the patients, those with chronic conditions will never be able to save anything. In the end, inequality in health care quality and delivery may reign(Gross 2007).            Basically, consumer driven health care system is a derivative of the business model for health e-commerce ventures which were designed to enable consumers of health products and services to engage more directly with the providers in making the health care purchases. In essence, consumer driven health care is geared towards giving individuals more choice in making health care decisions and to help stabilize these costs. This system is a product of the same theories that sought to capitates payments to providers. The rejection of such a prompt gave rise to the consumer driven health care system(Kovner 2008). In the initial conceptual model, cost and quality of the relevant information was made available through the internet. The primary model relied on the creation of Health Savings Accounts(HSAs) before the inclusion of a second model; the Health Reimbursement Arrangements(HRAs) which are funded by the employers who receive tax benefits for funding such accounts(Grudzien 2006).            Impacts of Consumer Driven Health Care            The phrasal representation â€Å"consumer driven health care†is in itself a revelation of the transformation in health care where consumers of health care services and goods are gaining more and more importance in health care industry. The consumers being the purchasers of goods and services in the health care industry suggests an existence of economic relationships between the consumers and the suppliers. The word driven implies that the supplier is going to be compelled to react according to the consumers’ demands and position as regards the provision of these goods and services. Implicitly, the complete phrase can thus be used to describe a situation where there exists a two way business interaction that is able not only to transform the health system structure but also reconfigure the health industry to engage in a competitive conduct. Such a paradigm shift in the management of health care is bound to present strong chal lenges, advantages and disadvantages.            What effect will such a system of health care have on the effectiveness and efficiency of health care provision? Currently in the United States, over $ 1 trillion dollars is spent annually on health care. Critically analyzed, this is 15% of the Gross Domestic Product and is more per capita that anything spent in other developed countries. The magnitude of the expenditure itself calls for a need a novel idea such as consumer driven health care. If such a system of health care were to be adopted, then what forces will shape the new consumer of health care services? On this basis, it is prudent to discern the effects of the key players such as employers, insurers, providers, and government entities. All these forces will only support such a system if most beneficial to them. A third scale of analysis desires that we look into the ways in which the industry is going to change. This analysis borders on the certainty of a fundamental restructuri ng of the system through a set of rules governing the new competitiveness. These structural changes will most certainly be orchestrated by the new nature of buyer-supplier relationship(Ferrari 2004). The Effect of Consumer Driven Health Care on the Efficiency and Effectiveness            To understand the changes that may occur in the efficiency and effectiveness after the transition to consumer driven health care, it is prudent to establish the objective function which measures productivity. Generally, productivity is descriptive of the magnitude of outputs achieved for a given level of inputs. In the health care industry, the physical inputs like labor, capital and supplies should be able to achieve certain levels of health outcomes. In essence, this means that productivity will be used in providing improvements on the management or treatment of diseases since this is the fundamental production process of the health care system. However, the simplicity of the productivity measure can only be taken to be useful and sustainable if it is coupled to the variety of other societal entanglements as well as other complexities in health care provision.            Given that the current health care system in the United States is the most expensive system in the world, a comparison with other developed countries on the basis of mortality and life expectancy attests that the system is less productive. However, on the basis of four disease states (diabetes, cholelithiasis, lung cancer and breast cancer), evidence suggested that it was more productive comparative to Germany and the United Kingdom. The high costs were attributable to the high administrative costs, higher compensation of doctors and other medical personnel. Consumer driven health care poses as the most reliable option in changing features which contribute to productivity hence health outcomes. For instance, a transformation to prospective payment from cost plus system of reimbursement for health institutions. Other reimbursement plans that supremely focus on the health outcomes rather that the activity also furthers the gains(Ferrari 2004 ). Customer driven health care has the ability to create incentives for providers to adopt more efficient technologies hence increasing productivity due to the underlying market competitiveness.            Since this transformation does not in any way threaten the existence of a competitive market, the cornerstone of such a market will have to be an informed buyer who has the capacity to make an accurate judgment of the value of outputs received with reference to the level of inputs injected into the system. This would usher in an era of comparative shopping among the suppliers as well as differentially reward the suppliers who provide the best goods and services at the least cost. Moreover, the system would also allow the buyer to choose a level of productivity that is desirable and affordable and trade off other savings for needs outside the health care system. Given the nature of the transformation and the rewards consequent to the paradigm shift, it is reasonable to expect an increase in productivity, improvement in health outcomes and the improvement on the efficiency and effectiveness of the health care system(Forster 2007). Forces Shaping the New Consumer            There are two major forces that possess the potentiality of shaping the evolution and the pace of the novel system. The first force is the degree to which the buyers of health care goods and services become empowered to spend their own financial resources and making their own buying decisions. The second force is the quality of health care provision and the accessibility of the relevant information that pertains to the inputs and the outcomes in the health care process.  In the case of marginalized consumers with inadequate heath care information, there is going to a continuity of the turbulence as seen in the health care system today. Such a scenario slows down the transformation to consumer driven health care system. On the other hand, when marginalized consumers have the benefit of adequate information, the consumer as the main driving force in the system retains a marginalized role in the purchases but is also associated in the trade-offs(Herzlinger 2004). The end result is an unstable relationship among the players since consumers are well informed and possess the power to make their own decisions in seeking out productive suppliers.            Empowered consumers with inadequate information may create a scenario where there is a rush for the establishment of a brand making consumers to almost completely rely on the value associated with a brand. It is on the basis of such information that consumers will make their buying decisions. With the help of interpreters, superior information may be passed to consumers or alternatively, the interpreters may broker the brand to the consumers(Ferrari 2004). However, the best scenario is when there are empowered consumers in possession of adequate information. This scenario aptly captures the spirit of the productive economic system. It implies that the market is awash with consumers buying on their own account. The existence of such a scenario itself may eliminate the need for intermediaries. Not that there is going to be a vacuum where these intermediaries had occupied but that such a space will be occupied with a different faction, for instance, it may be the marketing or sales front end of the provider entities(Herzlinger 2007). This would demonstrate the productivity of the providers(suppliers of health services) to the consumers. Alternatively, the space may be occupied with an aggregator of consumers which may leverage the consumers’ volume power in negotiating a unit price for making the buying decisions.            In the end, the trend towards informed consumers who are able to make their own health care purchasing decisions will lead to an unprecedented change in the nature and quality of services and goods offered. These changes are not only positive in nature as they will shift the burden of health care costs on the shoulders of individuals. Such a change greatly challenges the deeply rooted societal perspectives on the roles of democratically elected governments. The creation of new consumer oriented intermediaries may usher in another era of misguided government regulatory intervention. Assuming that such a scenario does not arise then a consumer driven health care system has the potential to move health care provision to anew level of productivity hence better health outcomes for the United States citizenry.            On the contrary, because of these sub classifications of consumers based on empowerment and availability of information, individuals who are less educated and healthy may avoid the needed health care services due to the cost burden coupled to the ability to make well informed and appropriate health decisions. Moreover, as Jonathan Oberlander; a political scientist at the University of North Carolina, Chapel Hill reiterates, the system simply shifts the health care cost burden back to the patients. Patients suffering from chronic health sicknesses may not be able to afford such costs, since with a deductible of between $ 3000 to $ 4000, these patients will thus be unable to save anything in their accounts. Employers are specifically impressed because the system is beneficial to them. They will not adequately fund replenish the employees health care accounts even though they will save money(Gross 2007).            The success of the consumer driven health care is dependent on the ready access to relevant information on health services, products and pricing. Due to the absence of free market variables in the health care industry, the lack of transparency will saddle consumers with additional expenses. This means that despite the theory that health insurance based on higher deductibles results in consumers shopping around for better products and services(based on quality and price), the inadequacy of such pertinent information practically goes against the attainment of benefits in a consumer driven health care model(Shearer 2007). Impacts on the Pharmaceutical Industry Currently the pharmaceutical industry has been shouldering the blame for the double digit increase in health care costs. Between the year 2001-2002, the consumer price index for health care increased by 4.4% while the industry index grew by 5.5%. A simple analysis of these percentages shows that the industry can only account for all the increase in the event that all other health care components shrunk. These statistics aside, the expenditure pent on informing consumers; $ 2.8 billion and a further $ 13.2 billion on informing doctors invariably increase the costs of health care in the long run. Therefore, unless new products are distributed for consumption without additional costs from these activities of pharmaceutical industries, the health care costs will continue to be high(Herzlinger 2004). Consumer driven health care has the potential of eliminating these costs hence advancing quality health care at lower costs.            Health care markets are extremely sensitive to the presence of a market power. Medical device companies and pharmaceutical companies retain monopoly over devices and drugs for a considerably long period of time due to the patent laws. It is during this period before the expiry of the monopoly period that these companies earn monopoly rents, in effect leading to higher drug pricing. This is unlike the traditional neoclassical supply curve(Jost 2007). This trend will be reversed as consumers will be looking out for cheap but equally effective therapeutic alternatives, hence bringing the prices down in the long run.            With the death of the intermediary between the suppliers and the consumers, the pharmaceutical industry has started to align itself with the consumer of its products through direct to consumer advertising. This has only become necessary after the FDA lifted restrictions on direct to consumer advertising. This move has been viewed by many as a gap that allows the pharmaceutical companies to foist their drugs on the gullible public in the name of providing pertinent drug information. Moreover, the use of billions of dollars in advertising only increases the overall costs of the drugs.            On the other hand, there are those who view direct to consumer advertising as being revolutionary and instrumental in promoting consumer involvement. Such an exposure of drugs to consumers acts as an educational tool and helps the consumers to be more informed in making decisions in health care. Apart from getting information direct from the pharmaceutical companies, information technology is increasing consumer empowerment making them seek high quality but less expensive choices(Mason et al 2007). Therefore, even though the pharmaceutical companies bypassed the physicians and moved directly to the consumer in advertising and promotion, consumer empowerment means that the era in which the extra expenditures were passed onto the consumers will be long gone. Such an eventuality will stimulate a dramatic restructuring of the industry. Conclusion            The potential of a consumer driven health care system to improve the efficiency and effectiveness of the quality and delivery of health care are huge. However, the fact that access to health care is hinged on the ready access to relevant information remains the main obstacle in the realization of the full benefits. Health care and market forces are mutually exclusive. The existence of a competitive market; the cornerstone of which is an informed buyer increases the capacity of the buyer to make an accurate judgment of the value of outputs received with reference to the level of inputs injected into the system. So long as information is easily and cheaply accessible and transparency in the health care industry is promoted, the system may well be the answer to age old failures of the current most popular health care system. By putting insurance money under the complete control of the patients themselves, giving the employers cost relief, and eliminating the intermediary in the doctor-patient relationship, the system will undoubtedly achieve its health outcomes. References Ferrari, T. Bernard. (2004). Where Will Consumer Driven Health Care Take the Health Care      System. In Consumer-driven Health Care: Implications for Providers, Payers, and    Policymakers. Regina E. Herzlinger(Eds). John Wiley and Sons. p. 399-403 Forster, R. (2007). Market Forces and Health Care are Mutually Exclusive. Intelligently  Connecting Institutions and Expertise. Gerson Lehrman Group. Goodman, John (2006), Consumer Driven Health Care, Networks Financial Institute Policy      Brief, Indiana State University Gross, T. (2007). Fresh Air from WHYY, July 9, 2007. Diagnosing U.S. Health Care and Sicko,          Too. Terry Gross interviewing Jonathan Oberlander, associate professor, University of            North Carolina, Chapel Hill. Grudzien, L. (2006). Can Consumer Driven Health Care, Health Reimbursement Arrangements           and Health Savings Accounts Save Employer Sponsored Health Care Reform From Ruin.      Benefit Express. Herzlinger, Regina. (2007). Who Killed Health Care? Americas $2 Trillion Medical Problem    and the Consumer-Driven Cure. McGraw-Hill Press. Herzlinger, Regina E. (2004). Consumer-Driven Health Care: Implications for Providers,          Payers, and Policymakers. San Francisco: Jossey-Bass Publishers. Jost, S. T. (2007). Health care at risk: a critique of the consumer-driven movement. Duke           University Press. Kovner, R. A., Knickman, J., Jonas, S. (2008). Jonas and Kovners Health Care Delivery in  the United States. Springer Publishing Company. Mason, J.D., Leavitt, K. J., Chaffee, W. M. (2007). Policy politics in nursing and health care.            Elsevier Health Sciences. Shearer, G. (2007). Testimony of Gail Shearer, Director, Health Policy Analysis, Washington     Office, Consumers Union before the Joint Economic Committee, on Impact of   Consumer-Driven Health Care on Consumers.            http://www.consumersunion.org/pub/0225JECTestimonyNoSummary.pdf.
Monday, March 9, 2020
Omnico Case Study Essay Example
Omnico Case Study Essay Example Omnico Case Study Essay Omnico Case Study Essay Omnico Inc Case Study Anne Floros Keller Graduate School Table of Contents Title Page†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦1 Table of Contents†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦2 Statement of the Problem†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦3 Summary of the Facts†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 3 Analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã ¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 3-5 Recommendations†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 5 Conclusion†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 5 †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦6 Statement of the Problem Omnico Inc is well below industry average in customer retention. Knowing that it costs more to attract new customers than it does to retain existing customers how should Omnico go about facing this challenge? Summary of the Facts Buddy Towers is an experienced member of the sales field at Omnico Inc. He has been the top salesperson 20 out of the last 35 years; therefore, he knows how to interact with the customers. He currently holds the position of sales manager and wants his employees to build relationships with their clients to strengthen their bond and retain their loyalty. However, he is very adamant that his employees are going to have to do this type of relationship selling on a golf course where not everyone feels â€Å"at ease. †A successful sales representative Laura Kilburn, who has been with the company five years backed up this sentiment by stating, (Rich, Spiro, Stanton 2008) Buddy you’re still old school. Today’s customers don’t come back to us because they’re our golfing buddy; in fact many of mine don’t even golf. Customers not re-buy from Omnico only when our products and service improve their bottom line. Follow-up is important, surebut it involves a lot more than playing stupid games with the customer. Analysis Both Towers and Kilburn have substantial arguments. However, first Towers argument of relationship selling is going to be looked at first. According to Spiro, Rich Stanton (2008) relationship selling involves trust, cooperation, commitment and information. These are very intricate concepts to get customers to â€Å"buy†into. The customer wants to believe that they’re a unique individual with their own set of wants/desires and not just someone that is going to be receiving the same sales speech as the rest of the general public. The major element in to achieving this is through open communications and building rapport with the customer. If it’s a product that’s being sold to them the salesperson has to access their needs. Why are they purchasing the product or service? Is it a situational factor? Maybe it’s someone who is selling snow plowing tools and will just need this equipment during the winter months. Maybe the customer is trying to solve a problem as in if they don’t receive â€Å"x†amount of plows by 8am Tuesday morning all city employees will have a delay in getting to work. Maybe the snow plow the company is currently using only holds 2 tons of snow, but the ones we’re selling hold 4 tons of snow. Therefore, they become more efficient and productive by having our equipment on the line. By involving that customer in the process they feel you’re specifically looking to solve their problem not just make another sale. If the customer is concerned about the cost there could be a possibility that they need to see the benefits of obtaining the service. For example, the service employee might say, â€Å"Your employees will be off the roads by 11am versus 1pm with our special plowing system enabling them to get to other tasks at hand. If you purchase them now since you’ve been a long term customer of ours I will offer you a 10% discount if paid within the first 30 days. †However, this needs to be able to have the employee empowered to make these decisions as well. In Tower’s case he wants to build the relationship by doing a round of golf. However, as Kilburn pointed out not all employees or customers are entertained with golfing. This is where it becomes imperative that employees are empowered to make this call on how/where to build this relationship with the customer. The employee could find out if there are any common interests they share and discuss business while potentially going on a morning jog, sharing a cup of coffee at a local Starbucks, getting dinner at the trendy new Thai restaurant, or just even speaking over the phone if the customer is too busy to meet in person. It is the customer that keeps the company in business so it is the employers business to keep the customer content. Finding out how much time the customer has ahead of time and preparing their presentation beforehand will lead to less objections and unnecessary follow-ups. It could be possible the customer is more business focused and doesn’t want a friend but wants to get straight into business. In this case a phone conversation might be the best bet. Recommendations It is necessary for Omnico to set an obtainable objective, for example to retain 70% or more of customers by 3rd quarter of 2012. According to Abrams (2009) these are some great examples of keeping the relationship with the customer and maintaining loyalty: * Contact top customers (list of at least 10-25) quarterly * Keep the company name out there by advertising with emails, newsletters and networking * Give current customers good deals so they don’t feel new customers are prioritized before them * Keep a database of all past and current customers to be able to contact them quickly Also, have the customers leave feedback on the website and (or) respond to surveys. This way the company could continue to build upon their strengths but also improve their weaknesses as well. Conclusion It is critical in order for Omnico to remain as a leader in the business market to implement relationship selling in their strategy. It is imperative to know the needs of the customer and ask the appropriate questions to see what their concerns/needs are and follow-up with the pertinent information necessary. If Omnico retains 70% of all current customers that only leaves 30% that they will need to attract as new customers. Abrams, R. (2009, March 25). Strategies: make customer retention priority no. 1. Retrieved from usatoday. com/money/smallbusiness/columnist/abrams/2009-05-29-customer-retention_N. htm Spiro, Rich, Stanton, R. L, G. A. , W. J. (2008). Management of a sales force. New York City, NY. : McGraw Hill.
Saturday, February 22, 2020
Strategic Objective of Amazon.com Essay Example | Topics and Well Written Essays - 2750 words
Strategic Objective of Amazon.com - Essay Example Other competitors include Tesco, Wal-Mart’s ASDA, Argos.com and HMV’s online shopping.  The strongest competitor, however, remains eBay and Amazon needs to extend its product mix further. Wal-Mart and Tesco are also major competitors because of the wider customer base that these stores serve owing to the physical as well as online retail outlets.  Although the online business model greatly facilitates as e-commerce uses the uniform standard of e-commerce and technical expertise yet, on the other hand, Amazon has to consider the different laws in the countries it operates in.  Further, the case study states that the increase in annual disposable income will reach to US$5,000 and 617 million households will have access to the internet retailing option, out of which 143 million will be from the Asia Pacific.  There has been a change in consumer lifestyles which entails that consumers now prefer convenience because of the busy lifestyles and the hassle of going to different retail outlets for different things, they prefer buying from one retail outlet.  Shopping online means there are fewer car fumes, fewer carbon emissions and fewer impacts of global warming and pollution hence it is widely in acceptance to the global standards of environmental protection.  The customer database is maintained so that customers are provided with greater interactivity in the form of recommending similar products to customers, offering reviews by other users and online sales staff. Â
Thursday, February 6, 2020
Investment Promotion ( Jordan ) Case Study Example | Topics and Well Written Essays - 500 words
Investment Promotion ( Jordan ) - Case Study Example Multinational corporations are often motivated to invest in foreign countries because these locations have lower regulations which reduce compliance costs. Another reason to invest in a foreign country is to take advantage of lower materials costs. Often companies choose to establish a physical presence in a foreign country to take advantage of the demand for their product in the domestic marketplace. For instance if a country has a high demand for electronics, but the local producers are not satisfying the demand it makes sense for an electronics company to establish a physical presence in that country to exploit the business opportunity. Another reason companies penetrate certain international locations is due to governmental incentives and tax shelters. The presence of free trade agreements with the United States persuades many manufactures to operate in countries that offer these types of benefits. One of the most attractive features that Middle East countries provide to companies looking to invest in this region is a high availability of cheap labor. Due to the high employment rate in the region a company that establishes itself in the Middle East would not have any problem recruiting workers since thousands of people would apply for jobs. Jordan in particular offers several advantages to companies. Jordan offers preferential tax treatment to companies that invest in certain industries. If a company invests in rural or remote areas of Jordan the government offers a 75% tax exemption for a ten year period. Companies that invest in the Amman region are eligible for a 25% tax exemption for a ten year period. The Jordan government offers new investors a duty free privilege on imported equipment. Jordan is a particularly attractive location for U.S. investors. The Jordan-U.S. Free Trade Agreement eliminated tariffs on some Jordanian goods exported to the United States. In order fo r this benefit to
Tuesday, January 28, 2020
War in Central America Essay Example for Free
War in Central America Essay Central America is the southernmost part of the North American continent. It lies south south of Mexico and form the land connection with South America. Central America is commonly defined as including Guatemala, Belize, Honduras, El Salvador, Nicaragua, Costa Rica, and Panama. The total land area is roughly 200,000 square miles (518, 000 km2), about three-fourths that of Texas. Central America is long and narrow, tapering to a width of barely 30 miles (48km) in parts of Panama. On the east is the Caribbean Sea, on the west, the Pacific Ocean. Both coasts are deeply indented in places, and offshore islands are numerous, especially in the Caribbean. The land is mostly mountainous, with scattered active volcanoes. Except for the coastal plains, which are narrow in most places, there is little flat land (Woodward, 1999). In the early 1900’s, there was unrest in several Central American countries. The United States intervened militarily in the region several times to restore order and protect its interests. After World War II, most Central American countries had dictatorial governments. In 1951, the Organization of Central American States was formed to promote economic and cultural cooperation among the countries. One of its achievements was the creation of the Central American Market in 1960. Cooperation began to break down, however, when national antagonists started to resurface in the late 1960’s. Many of the countries experienced violence between the left- and right- wing political factions, as well as guerrilla insurgencies, inflation, and foreign debt (Woodward, 1999). Political turmoil increased in the 1980’s. Nicaragua’s government was controlled by a leftist group called the Sandinistas, which restricted political freedom in Nicaragua and was accused of supporting a strong Communist insurgency in El Salvador. The United States began giving aids to rebels called contras, who were trying to overthrow the Sandinista regime. There were also abuses of human rights and restrictions of political freedom in other countries in the region. In 1987, the governments of El Salvador, Guatemala, Honduras, Nicaragua, and Costa Rica signed an agreement designed to end the region’s civil wars and foster democracy. The author of the agreement, Costa Rican president Oscar Arias, received the Nobel Peace Prize (Woodward, 1999). This paper discusses and compares two countries of Central America, Guatemala and Panama, focusing on the challenges for democratic consolidation and economic development. II. Background A. Guatemala Guatemala or republic of Guatemala is an independent country of Central America. Its borders Mexico, Belize, Honduras, and El Salvador and lies between the Pacific Ocean and the Caribbean Sea. Guatemala has an area of 42, 042 square miles. Maximum distances are roughly 280 miles north-south and 250 miles east-west. Narrow lowlands run along the pacific and Atlantic coasts. Between them lie the highlands, covering about half of the country. Dominant features are mountains, volcanoes, high plateaus, broad basins, and many valleys. Forests are one of Guatemala’s richest resources. The Atlantic lowland and the Peten are largely covered by tropical rain forests. Savannas predominate along the drier pacific coast. The highlands are covered by grasslands and forests that are deciduous at low elevations and coniferous higher up. B. Panama Panama or Panama City or Republic of Panama is a city and the capital of the republic. It is on the bay of Panama at the Pacific end of the Panama Canal, 38 miles southeast of Colon on the Atlantic. The city’s economy is largely supported by the canal and by tourists. Products include furniture, beer, handicrafts, and clothing. Panama is a hilly country crossed by several mountain ranges, the highest of which are in the west. Near the Costa Rican border is Volcan Baru, an extinct volcano rising 11, 401 feet above sea level. III. Discussion A. Guatemala †¢ Government Under the constitution of 1985, which went into effect in 1986, Guatemala is a republic governed by a president and one-chamber Congress, both elected for four years popular vote. A council of ministers is appointed by the president. The judiciary is headed by a nine-member into 23 administrative departments. Voting is mandatory for all literate citizens age is 18 or over (Grandin, 2000). †¢ History The Maya Indians inhabited Guatemala as early as 2400 B. C. They developed an advanced civilization and flourished there, but declined after 900 A. D. In the 16th century, the Mayas were subdued by Spaniards under Pedro de Alvarado. He governed the captaincy general of Guatemala, which included all Central America except Panama. For nearly three centuries the region was under Spanish rule (Lovell, 2002). In 1821, the five provinces making up captaincy general of Guatemala declared their independence, but the next year they became part of the New Mexico Empire under Agustin de Iturbide. When Iturbide was driven from power in 1823, the province gained independence as a confederation called the united provinces of Central America. During 1838-39, the confederation collapsed. Guatemala became an independent state in 1839 (Grandin, 2000). Rafael Carrera, leader of the conservative forces that helped to bring about dissolution of the confederation, made himself president of Guatemala in 1844 ands became the dominant political figure in Central America. In 1854, he was made president for life. He died in 1865. Vicente Cerna, one of Carrera’s generals, succeeded him as president but was overthrown in 1871. General Justo Rufino Barrios, a liberal, came to power in 1873, and the nation made economic progress under his rule. He was killed in 1885 in a war with El Salvador, while attempting to set up a union of Central American states. In 1898, Manuel Estrada Cabrera became president. In 20th century, Estrada Cabrera ruled as a despot for 22 years. He favored the wealthy classes and encouraged industrial development. He was overthrown in 1920. Relative order prevailed until 1930, when economic depression led to another uprising. In 1931, General Jorge Ubico came to power. Under his dictatorship, order was maintained and economic stability restored. In 1944 an alliance of students, liberals, and dissident members of the army forced Ubico out of office and seized control of the country. Many social and economic reforms were introduced by presidents Juan Jose Arevalo and Jacobo Arbenz Guzman. During their presidencies, Communist influence in the government began to grow. When Arbenz instituted land reforms and encouraged the growth of labor unions, his opponents claimed that he was under Communist control. The army, with covert aid from the United States, overthrew Arbenz in 1954 and outlawed the Communist party. Two corrupt and largely ineffective military dictatorships followed (Grandin, 2000). In 1963, Colonel Enrique Peralta Azurdia led a successful revolt. He governed by decree, but promised to hold elections after a new constitution was enacted. The constitution took effect in 1965 and a civilian government was elected. In attempted economic and social reforms, but its programs were blocked by resistance from conservative businessmen and wealthy landowners. Reform was also delayed by a civil war that raged for several years between Communist guerrillas and the army. Both sides used terrorism, including assassinations and kidnappings. In the 1970’s a series of conservative military governments held power and suppressed the insurgents. A presidential election was held in 1982. Soon after, the government was overthrown by the army, whose leaders promised a return to democracy. A new constitution was approved in 1985, and later that year Marco Vinicio Cerezo was elected president. †¢ Economy Guatemala’s economy is still in an early stage of development. Private enterprise prevails; government regulation is negligible. A small group controls most of the nation’s wealth, while the vast majority of the people, especially the Indians, live in extreme poverty. Guatemala is largely an agricultural country, one favored by a diverse climate and rich soils, especially the volcanic soils of the highlands. Peasant landholdings are usually small and crudely worked, but provide a livelihood, at the subsistence level, for most of the people. Corn and beans are the main crops. In contrast, commercial plantations specialize in export crops and are generally large, modern, and owned. Coffee is the leading export; cotton ranks second. Bananas, sugar, and meat are also significant exports. Livestock consists mainly of beef cattle, sheep, and pigs (Grandin, 2000). B. Panama †¢ Government Under the constitution of 1972, and later amendments, Panama is a republic. The president, assisted by a cabinet, exercises executive power. He is elected by popular vote to a five-year term and may not serve consecutive terms. The legislature consists of the National Legislative Council (the upper house). Members of both houses are popularly elected. Assembly members serve four-year terms; Council members serve for six years. The judiciary is headed by a supreme court of nine justices, appointed by the president for 10-year terms. Each of the nine provinces is headed by an appointed governor and is divided into municipal districts. Panama has a military force known as the National Defense Force (Hedrick, 2000). †¢ History The Caribbean coast of Panama was explored by a Spanish expedition under Rodrigo de Bastidas about 1500. The region was inhabited by several tribes of Indians, the Cuna being the largest. In 1502, Christopher Columbus sailed along the coast to the central part of the isthmus and claimed the area for Spain. The northern coast of Panama was the location of the first Spanish settlement on the mainland. In 1509, the Spanish government issued licenses to Alonso de Ojeda and Diego de Nicuesa to settle the regions explored by Bastidas and Columbus. The first colonies were established in 1510 at San Sebastian (on what is now the northern coast of Colombia) and Nombre de Dios. They did not flourish, however, because of disease, famine, and conflicts with the Indians. The first successful settlement, Santa Maria, was founded in 1510, when Vasco Nunez de Balboa convinced the settlers at San Sebastian to move to a new location on the west shore of the Gulf of Darien. The Indians at the new site were quickly subdued and Balboa became governor of the new colony. In 1513, balboa made his way across the isthmus and discovered the Pacific (Hedrick, 2000).
Monday, January 20, 2020
Essay --
Andrew Almeida Huck Finn Self Reliance This quote from Lauren Oliver speaks volumes on the mindset of Huck Finnà ¾ â€Å"I’d rather die my way than live yours.†Huck Finn is a young kid growing up in at a very chaotic time in America. Many ideas and bias are either forced upon him or he has no help but experiencing. Rather than putting up with this Huck decides he would be better off on his own as opposed to trying to adapt to everyone else's standards. Living by himself lead to many more challenges and opposing forces than a kid of only 13 should have to be faced with. This lead to Huck being more mature than other kids his age because he had to constantly rely on himself to solve his problems and come up with his own morales on what is right and wrong without the guidance from others.Along with how this changed Huck as a person for better or worse. Huck Finn is a very independent character. Being without a father figure and parents of any kind leads him to have to grow up by himself. In doing so creating a character who is able to react and make decisions to help himself get out of the mess he or his friends have gotten him into. Huck at such a young age is forced to look for jim to guidance on the river but Jim is no more educated than Huck is. This leads to Huck having to not only lead himself but also try and take a leadership role to get Jim to safety. A great example of where Huck is able to take his fate into his own hands by making an elaborate tale is when he is on shore dressed as a girl. He is caught in a lie but instead of risking the fate of Jim he thinks quick and saysà ¾Ã¢â‚¬ I told her my father and mother was dead, and the law had bound me out to a mean old farmer in the country thirty mile back from the river, and he treated... ...hing because he is able to do it all himself. Nobody at that time period in the south was willing to help him so he simply did what was right with no caution as to whether not people would judge him à ¾"Well, I did. I said I wouldn't, and I'll stick to it. Honest INJUN, I will. People would call me a lowdown Abolitionist and despise me for keeping mumâ€â€but that don't make no difference. I ain't agoing to tell, and I ain't agoing back there, anyways. So, now, le's know all about it." (8.52, 8.53). This self reliance and separation from society is what allows Huck to be more accepting of new ideas and ultimately is what makes this story takes place in the first place. Without Huck’s self reliance none of this ever would have been possible and Huck would have most likely never left the small town with his drunk deadbeat father and slave owning Miss.Watson and Miss.Douglas.
Sunday, January 12, 2020
Analyzing SQ3R Process
Associate Level Material Appendix H SQ3R Worksheet Selected reading: p 193 Chapter 7 SurveyDescribe the value of surveying the reading. Surveying the reading is almost like skimming the assignment. In my opinion, it is like the appetizer of the assignment, almost the teaser to the full reading that will be done in the near future. QuestionWhat questions did you ask as you were reading? †¢What are the important points? †¢What are the new vocabulary words? †¢What is the topic and how does the reading pertain to it?ReadHow did surveying and questioning help you read better? I like surveying an assignment before I start really reading it thoroughly. Surveying allows me, in a sense, to whet my appetite for the reading assignment. Plus, surveying and asking questions gives me a chance to highlight key words and passages. ReciteHow did you decide what parts of your reading you needed to recite? For me, I personally recite the words that are highlighted and the words that are in bold type.These are word that I do not know or in some cases, words I need to learn. In my process of studying, these words are the ones I write out and then type to learn them better. ReviewHow often do you plan to review? My process for reviewing occurs pretty frequently. When I was learning medical terms, I had a cd I would listen to in my car while I drove. I also review every evening with vocabulary by using index cards. I find these methods to work the best for me personally.Wrap-up questions: How successful was the SQ3R process in helping you grasp the concepts in the section you selected? Will you use SQ3R in the future as a way to master the content in academic readings? I think the SQ3R method is an excellent way for me to learn. I think it is very similar to the way I already do my studying so I would have no trouble incorporating it into my studies. Not everyone uses these methods, but I definitely find them to be simple for me.
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