Business Finance Homework Help

Assigned Readings:

Chapter 6. Business Strategy: Differentiation, Cost Leadership, and Blue Oceans

Initial Postings: Read and reflect on the assigned readings for the week. Then post what you thought was the most important concept(s), method(s), term(s), and/or any other thing that you felt was worthy of your understanding in each assigned textbook chapter.Your initial post should be based upon the assigned reading for the week, so the textbook should be a source listed in your reference section and cited within the body of the text. Other sources are not required but feel free to use them if they aid in your discussion.

Also, provide a graduate-level response to each of the following questions:

Suppose Procter & Gamble (P&G) learns that a relatively new startup company Method (www.method@home.com) is gaining market share with a new laundry detergent in West Coast markets. In response, P&G lowers the price of its Tide detergent from $18 to $9 for a 150-oz. bottle only in markets where Method’s product is for sale. The goal of this “loss leader” price drop is to encourage Method to leave the laundry detergent market. Is this an ethical business practice? Why or why not?

Now I need peer responses 

post from Bala: Business-Level strategy is a set of guidelines and approaches to planning, organizing, financing, implementing, monitoring, and controlling strategic business units and corporate strategies, which are likely to impact corporate goals and strategy achievement. The business-Level strategy describes how the business units and their subsidiaries should behave and plan. It represents the types of planning, organizing, financing, implementing, monitoring, and controlling activities that should be undertaken to achieve these objectives. If the organization is pursuing one or more business levels, it must reach the economic, social, and environmental Sustainability of that business level to the greatest extent possible. A company is responsible for its environment and its customers, shareholders, and other stakeholders (David & David, 2017). To be sustainable, the organization should be both environmentally responsible and socially responsible. It is the process of thinking through the various business units of an organization when making decisions and deciding upon business strategies. It is concerned with how an organization manages its business units and, as such, has implications for the whole organization. Business-level initiatives usually focus on new technologies and the selection, distribution, or use of a whole range of resources. Business-Level strategy is defined as an approach to market development of an organization’s activities or processes based on identifying its primary goals and the competitive environment in which it wishes to operate and how it intends to compete. This focus on the environment, strategy, and business strategies lead to the management of business-level strategies in an organization (Ali & Anwar, 2021).A generic strategy is a statement that a company follows to accomplish a given task or achieve a specific goal. It does not specify a particular project or product, but it sets out the general approach toward fulfilling its purpose. Generic Business Strategies seek the maximum return when they use the resources spent on a generic business strategy. This approach is known as short-term thinking. Organizations often make short-term decisions that disadvantage long-run economic development. These short-term decisions result in short-term negative impacts such as economic development being lost, jobs being lost, and there is no incentive to invest in infrastructure for future growth (Ali & Anwar, 2021). Generic Business Strategies are the general view that business strategies should reflect the organization’s needs and should be relevant to the unique, challenging, or complex nature of the business. According to this view, an organization should; describe the business strategy it is trying to achieve; address the concerns of its stakeholders; involve everyone and themselves in making decisions in the organization and; make appropriate use of available organizational resources (Rothaermel, 2020). Generic Business Strategies aims to achieve operational efficiency and competitiveness at a competitive disadvantage to competitors in the market. The main contribution of Generic Business Strategies is that it is based on three core principles; cost-effective, sustainable, and responsible economic growth. The fundamental approach is to achieve sustainable economic growth by combining strategic business decisions and appropriate actions to create sustainable value (David & David, 2017).1. The bid-rigging tactics are also likely to hurt Procter & Gamble’s ability to sell its Tide detergents. It made every offer unique, and the price seemed like a personal call. But with time, competition has gotten out of hand. By selling more of each product, Method’s competitors could easily undercut Price Water-house Coopers, the American company that supplies the product, so that the detergent market was disrupted. By selling fewer products, competitors may also lower prices or may make less profit than initially assumed. One of the most considerable financial pressures for financial institutions is interest rates (Rothaermel, 2020). Banks and other institutions are constantly under pressure to keep their debt-laden balance sheets full. Dish has also cut the price of a popular detergent by twenty-five cents. And for the gallon size of its Pampers brand detergent, the company has eliminated the price increment required to reach price parity with Procter & Gamble. In addition to corporate and home appliances, many companies also face competitive pressure from one another. Detergent, for example, can vary considerably depending on the brands being used. Tide, originally an eighteen-dollar liquid detergent, has recently been lowered to nine dollars, and all other products in its core line have experienced the same decrease in price (Ali & Anwar, 2021).There are also additional reductions in the product line, such as a price cut for Persil in the laundry detergent line and a reduction of the cost of Pampers in the body lotion line. This would be a very unethical move. But then, it became a best-seller in those markets, and that is not unethical (Rothaermel, 2020). Since it is within the company’s right as an ethical business, given its great potential in those markets, it is a mistake to believe that this decision is without legal consequence or falls outside the company’s power to change. If it had, Method would have acted quickly and decisively to correct the price differential and prevent a recurrence of this conflict of interest (Ali & Anwar, 2021). Some markets may not have laws requiring that manufacturers sell at a total price when a product is introduced. In those cases, if the decision is ethically wrong, that is, if the decision reduces sales of the product, the company should modify its decision. To say that a company has a moral duty to lower its prices to its competitors’ costs of doing business implies that the company would do this to some extent; for instance, a firm might not want to be the only company forced to lower its prices when other firms can (David & David, 2017).

post from srinivas

1)   Because of the rapid increase of modernization there was an increased level of telecommunication and technology and also the customers have high knowledge and they are shifting according to the strength of the buyer, and the fact that the companies would never withstand continuously when competing in the red oceans would also proved to be very critical and it would give very less returns. According to many studies that was considered from the year 2001 had given many suggestions that the contesting in the overcrowded companies had no sustainability of the good performance (Vincent et al, 2017). The real probability is to create the blue ocean or in the other way they were also referred as the market spaces which are not contested and also to complete the contesting in the overcrowded companies. Analyzing the strategies of the blue ocean has given that the main focus should be on the value innovation that is depend upon the increasing of the buyer value and also mitigating the cost, that is actually a slightly different type of application to  the traditional generic plans that are explained above. A new type of approach has been introduced towards the growth of the competitive strategies and the many strategists also categorized their plans either as blue or red.  It can also be an additional feature for this new dimension that is to the traditional classification of the generic strategies that are known (Vincent et al, 2017)2)    In any case the company , that was selling the goods at the less prices than its profit margin then the strategy of pricing of the loss leader is need to increase the sales of the other products that is earning the normal profits.  Moreover due to the rapid inflation there was a reduction in the rates in the business as to harm the competition and also elimination from the market. Moreover the main purpose of the business as to mitigate its selling price is actually very difficult to find out but this rules would always help you to evaluate whether there is any competitive predatory pricing is there or not. Because it was reducing the competition so it is the unethical and the business that is giving a discount has a large share of the market for the commodities. In the long time the discount should also become for the long run than any random or the short-term strategies used for the promotion. From the above mentioned example, the Tide decreased rates can be at only one location. The quantity of the specific product that an individual would purchase should not be limited and the products would not be perishable (Sandelands, 1997). The loss leader pricing is actually a business strategy in which a company was offering any product or service at the price that was not profitable , decrease the demand of the other marketers products. This kind of practice is mainly used in case if the business was entered into the market for the first time it was trying to negate the risks of the new entrant. The loss leader prices also established the new or the existing customers are service or the product by giving them a hope of maintaining or building the customer satisfaction and also protecting the revenue which was recurred in the future (Sandelands, 1997).  In this case the PG has been slashed the flagship of the product. The price of the TD  detergent has been reduced  to half as the quantity was remained same.  Therefore, PG has been utilized like the loss leader pricing plan that is mainly to outperform the new detergent of M.  Also this kind of practice is considered to be ethical and it can also be used only for the particular or any negative situations (Prasad, 1997). The products are the situations for which the loss leader pricing can be considered as acetyl are given below: The products which are having very short life shelf such as fruits. The excess inventories should be cleared.Selling the seasonal goods such as fruits and woolen clothes.In case of the long term as to get the market share value and to create the demand. Moreover the PG had considered to be and well established organization and hence, the adherence to such type of practices can be considered as illegal. Due to in all the possibilities the PG would also continue this practices till it outperforms the product of M and it again increases the price of TD. Also such type of practices would create very less expectations from the customer and hence the ceasing it would hamper the company’s reputation and also the demand in the market (Prasad, 1997).