CH 3 & 5
Today's class was much like the other classes, expect we didn't watch as many Shark Tank videos as we usually do! :( However, we did watch Beatbox Beverages and I'm really excited to do the update on this company! We also spent a lot of time on the Beatbox beverages price and channeling analysis which I found to be difficult to follow, but I kind of understand it (I talk about it m,ore below).
A few of the interesting things that we talked about in class today were the channel conflicts (which we've talked about before, but it was helpful to get a quick review on them) and Beatbox Beverages price and channeling analysis (which I will break up into multiple concepts).
To start off, channel conflict is a clash of goals or methods of doing things between distribution channel members, and a channel captain is a member from the management team who runs the channel and makes sure things are going smoothly. The two kinds of channel conflicts are vertical conflict and horizontal conflict. Vertical conflict is a channel conflict that happens between different levels in a specific marketing channel, typically between the manufacturer and retailer. Horizontal conflict is a channel conflict between channel members on the same level, and is less serious than a vertical conflict. I can't think of a business example, but when I think of channel conflict, I think of Sophomore Council. There could be vertical conflict in sophomore council when an e-board member has a conflict with another e-board member or when an e-board member gets into a conflict with a general member. There could be horizontal conflict when a general member gets into a conflict with another general member.
We also talked about Beatbox Beverages price and channeling analysis. Personally, I found this very difficult to follow not number-wise, but equation-wise, if that makes sense. I understand that you start from the end, in that you start with the retailers selling price and move forward. Also, I understand where the margins came from and how to use the margins to find the cost - (1-margin)*selling price. also, I understand that the cost from the retailer is the distributors selling price, and the distributors cost is the product selling price, in this case BeatBox. Also, I understood how to get the federal tax and how to take it off the sales revenue. (wow, I understand a lot more than I thought I did!!) However,The confusing part for me is where the CGS - purchases, gross margin, marketing expenses, contribution after marketing and operating expenses come in. (In the bottom right corner) Do you get the net profit when you add them all up? That's really the only part I get confused with.
A few of the interesting things from the book that we didn't talk about in class include World Bank (80), global marketing standardization (72) and the pyramid of social responsibility (41).
I thought the concept of the World Bank was fascinating because as sad as it may seem, as a business major, I didn't know there was such thing as a World Bank! The World Bank is an international bank that offers low-interest loans, helpful advice and information to developing nations.The initial purpose for the World Bank was to help developing nations build infrastructure, but now the World Bank offers loans to relieve their debt burdens. However, to receive these loans, developing nations must pledge to lower their trade barriers and aid private enterprises. The World Bank also founded the International Monetary Fund, which is an international organization which acts as a last resort lender, providing loans to needy nations and promoting world trade through financial cooperation, as well as The Group of Twenty, which is the forum for international economic discussion promoting discussions on key problems related to global economic stability. Overall, the World Bank has become a major helper and contributor for developing and needy nations.
I also read about global marketing standardization, which I also found to be quite interesting. Global marketing standardization is the production of uniform products that can be sold the same way all over the world. An example of a product that is standardized globally is smartphones and tablets, except for the languages they come in (however, they make it relatively easy for the user to change the language). This kind of production allows companies and businesses to lower production and marketing costs, while increasing profits. Some other companies that produce some or all of their products this way are Coca Cola, Colgate and McDonalds.
Another interesting concept was the pyramid of corporate responsibility. This pyramid portrays economic performance as the foundation for the other three responsibilities, which are the legal responsibilities, the ethical responsibilities and the philanthropic responsibilities,
According to they theory, a business is expected to obey the law and do what is right and be a good corporate citizen wile pursuing its profits.
P.S. I posted an updated blog for Nov 30 because I did the wrong chapters last night, so I redid it and wrote about the correct chapters.
No comments:
Post a Comment