Strategic management Coursework Example | Topics and Well Written Essays - 1500 words

Strategic management - Coursework Example This specific strategy of Ferrari paid off due to its ability to supplement a large technical team that was dedicated to engine design and development. Another important strategy utilized by Ferrari was giving of high value for its reliable technical solutions. In particular, Ferrari tried to translate the driver’s senses into reliable technical solutions. After all, the drivers can actually say a lot of things about the entire performance of the car and its engine. In line with this, Ferrari is significantly on the right course in order to obtain its competitive advantage. With a highly reliable technical team, Ferrari can always have the great chance to maximize its potential in translating the needs or opinion of the drivers about the car’s general performance. Another important strategy used by Ferrari was its investment in highly talented drivers. Car-racing activity requires a highly and specially skilled driver due to its high level of risk and pressure towards e xcellence. In the end, it was not just the whole engine and car design that would matter, but the drivers in great detail. Thus, this was one of the major reasons why Ferrari was able to translate driver’s senses into reliable technical solutions. 2. Ferrari faced problems in the early 1970s because of some important strategic reasons. Their entire performance was based on its strategic activities done in order to plunge in the competition. However, such strategies they implemented in 1970s were not so remarkable compared to what they applied in between 1975 and 1978. Ferrari in the first place rarely attended car racing and focused so much time on car manufacturing. In this regard, Ferrari tried to rely on media and his advisors for information leading to being politicized most of the time. Furthermore, his first love was motor racing. Thus, there is a great possibility that lesser enthusiasm will be given to car racing even that the said activity gave a great amount of mone y for funding of his business. However, Ferrari was good at sourcing funds for his business. The merger with Fiat proved to be remarkable for outsourcing funds, but substantial pressure was packaged with it especially that competition for engine design proved to be a substantial trend in the market. Ford Motors was able to come up with Ford DFV engine which particularly dominated F1. Since Ferrari was good at giving focus on car manufacturing there was a good chance to dominate in the competition. However, due to age and health condition, Ferrari could not stand long to manage the entire business. Thus, the only good thing left was to hire for new technical in-charge and a new team boss. That was when Mauro Forghieri and Luca di Montezemolo were hired in the team. This paves way to a good starting point for the entire management of Ferrari and his team. Thus, it was clear enough that Ferrari just needed to have organized the management team in order to give so much focus on whatever is necessary in its entire business. From the start, Ferrari was losing focus on some major aspects of its business and one of them was forgetting to organize a highly organized and managed team. 3. The key elements of a successful F1 team include the utilization of human resource, cutting-edge technology and integrate them into one big marketing activity. The first element was the creation of drivers’ association through F1 and its drivers’

Elasticity Research Paper Example | Topics and Well Written Essays - 2000 words

Elasticity - Research Paper Example Most of the strategies are designed to overcome the ‘elasticity’ factor. Availability of credit being the important element in the scheme, the seller’s ability to arrange finance for the consumers to buy their product plays an important role with the highly developed financial services sector to-day. Exchange rates and interest rates are the important considerations while buying on credit. The supply side constraints on account of events such as monsoon failure, industrial unrest and natural disasters and the regulation of supply through collusion under monopolistic conditions vitiate the market conditions. The pharmaceutical companies taking advantage of the protection given under patents fix the prices at exorbitant levels for their products, the demand for which are inelastic in nature. This paper seeks to analyze elasticity of demand from a comprehensive perspective. Key words: Elasticity, Demand, Price, Branding & Marketing. ELASTICITY OF DEMAND Price Elastic ity of Demand Law of demand states that other things being equal, the quantity demanded extends with a fall in price and contracts with a rise in price. (Mandal, 2007, p. 73) Under the dynamic market conditions, there are several factors which may influence the demand irrespective of change in price. Apart from the accepted exceptions such as prestige goods consumed by rich people which forms the basis for conspicuous consumption and speculative goods like shares where the demand will be more when the prices rise and demand for hoarding purposes due to scarcity or hyper inflation, technically the law of demand does not apply to necessaries of life where the demand is said to be inelastic. Robert Giffen discovery could be the real exception in this case. He found that poor people will demand more of inferior goods if their prices rise. They reduce their expenditure on superior goods to conserve their little income to spend more on inferior goods. The quantum of change is explained by elasticity of demand or rate of change. The ratio of a relative change in quantity to a relative change in price is called as elasticity. Mankiw states that economists compute the price elasticity of demand as the percentage change in the quantity demanded divided by the percentage change in price. That is, Percentage change in quantity demanded Price elasticity of demand = ----------------------------------------------------- Percentage change in price (2012, p.91) The concept of price elasticity of demand is the primary force behind the innovations that we have witnessed during the last few decades. For instance, rising cost of fuel has forced the car companies to manufacture fuel efficient cars. The rise in fuel cost has been compensated by the increased mileage provided by the cars. (Annexure I) Hughes, Knittel, & Sperling concluded in their study that â€Å"results suggest that technologies and policies for improving vehicle fuel economy may be increasingly important in reduc ing U.S. gasoline consumption." (2006)The same concept leads the car manufacturers to concentrate their attention on electric cars. The depleting natural resources and their increasing cost make the industrialists to concentrate on alternative renewable energy sources. The price elasticit