Effects of website attributes on customer satisfaction in e-commerce - Free Essay Example

ABSTRACT This study investigates the important attributes of online web stores in e-commerce by examining the possible website elements that determine different aspects of the association between customers satisfaction and e-commerce website attributes. A questionnaire consisting of 24 items was completed by 60 respondents. The instrument for this study was developed on the basis of SERVQUAL using a 5 point Likert scale. There were five independent variables used in the study out of which two were included as a result of stepwise multiple regression model which are: websResponse (accounting for 26.3% of the total variance); and webCustomization (accounting for 5.1% of the total variance). Results of a stepwise regression indicated that two website attributes significantly predict customer satisfaction (31.4% of the combined explained variance). Within the five website attributes in E-commerce website dimension, website response correlated highly with customer satisfaction (26.3% of the explained variance). The results of the study indicate that the two website attributes of e-commerce (website response and website customization) impact the customers satisfaction and other three do not have a significant influence. The study concludes with related implications and design guidelines to enhancing customer satisfaction of e-commerce. Effects of website attributes on customer satisfaction in E-commerce SECTION 1: INTRODUCTION The Internet is no longer a niche technology it is mass media and an utterly integral part of modern life. As our lives become more fractured and cluttered, it isnt surprising that consumers turn to the unrivalled convenience of the Internet when it comes to searching and buying product. 1.1 INTROduction to E-COMMERCE The rise of the WWW gives birth to new phenomena in our daily lives, one of which is e-commerce. The internet has played a vital and important part to encourage selling products and services online which makes life convenient for the audiences, which in an inter-connected world, is well, the whole world. E-Commerce is a subset of an overall e-business strategy consists of the buying and selling of products or services over electronic systems such as the Internet. E-commerce seeks to add revenue streams using the World Wide Web or the Internet to build and enhance relationships with clients and partners and to improve efficiency. E-commerce has given rise to the concept of completely online shops selling products and services, efficiently catalogued and available for the shoppers convenience. There are several websites that stock everything from lifestyle items, collectibles, books, electronic appliances etc. The level of e-commerce use can be measured by using an e-commerce capability indicator. E-commerce capability indicator by Molla Licker: No e-commerce indicates a company without e-mail or an Internet connection. Connected e-commerce represents a company that has an Internet connection and e-mail. Informational e-commerce indicates a company using a Web site to publish basic information about the company and its products/services in a static manner. Interactive e-commerce refers to the ability of users to search the companys product catalogue, make queries, and enter orders. Transactional e-commerce allows online selling and purchasing of products or services including online payment and customer service. E-business applications can be divided into three categories. First is an internal business system in which customer relationship management (CRM), Enterprise resource planning (ERP), and Human Resource management (HRM) type of systems are involved. Second is enterprise communication and collaboration such as content management system (CMS), business process management (BPM) and web conferencing etc. Third is e-commerce that includes Business-to-business (B2B) e-commerce and Business-to-customer (B2C) e-commerce. Online shopping comes under this category on which this study is conducted. Several e-commerce service providers are available on web that provides professional customized web designing services that suit their clients needs. Some common applications related to electronic commerce are the following: Online Shopping (Web Shop) Online Banking Online Marketing CRM etc 1.1.1 Online Shopping Online shopping is the process consumers go through to purchase products or services over the services over the web. Online shopping is a type of business-to-consumer (B2C) transactions. The term web shop also refers to a place of business where web development, web hosting and other types of web related activities take place (Web refers to the World Wide Web and shop has a idiomatic meaning used to describe the place). 1.2 service quality The level of service received on a web site. Dependent on reliability, responsiveness and availability of staff and the web site service. Service quality is comprised of five dimensions. These are: Tangibles: appearance of physical facilities, equipment, personnel, and written materials (Zeithaml, Bitner Gremler, 2006). Reliability: ability to perform the promised service dependably and accurately. Assurance: employees knowledge and courtesy and their ability to inspire trust and confidence. Responsiveness: willingness to help customers and provide prompt service. Empathy: caring, individualized attention given to customers. 1.2.1 Service quality dimensions in e-commerce systems Lets examine how customers judge the five dimensions of service quality in perspective of e-commerce systems. Tangibles refer to the physical appearance of an e-commerce website, its structure, layout, theme etc and referred as website structure. Reliability represented as website adequacy which provides the relevant and needed information provided by an e-commerce system when customer clicked or requested for. Assurance termed as website security refers as the trustworthy service provider that could include a well reputable website, reliable payments methods etc. Responsiveness is the prompt and relevant response to the specific request of users described by website response. Empathy knows internal customers as individual; understanding individual needs and concerns such as by providing recommendations that matches the customers needs which is termed as website customization in world of web. 1.2.2 service quality framework (SERVQUAL) SERVQUAL was originally measured on 10 aspects of service quality: reliability, responsiveness, competence, access, courtesy, communication, credibility, security, understanding or knowing the customer and tangibles. By the early nineties the authors had refined the model to the useful acronym RATER. Reliability Assurance Tangibles Empathy, and Responsiveness SERVQUAL has its detractors and is considered overly complex, subjective and statistically unreliable. The simplified RATER model however is a simple and useful model for qualitatively exploring and assessing customers service experiences and has been used widely by service delivery organizations. 1.2.3 customer satisfaction Customer satisfaction refers to the extent to which customers are happy with the products and services provided by a business. Customer satisfaction levels can be measured using survey techniques and questionnaires. Gaining high levels of customer satisfaction is very important to a business because satisfied customers are most likely to be loyal and to make repeated orders and to use a wide range of services offered by a business. The basic definition of customer satisfaction says that Customer satisfaction is a term, is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is an abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and product/service to product or service. The level of satisfaction can also vary depending on other options the customer may have and other products against which the customer can compare the organizations products or services. 1.3 Customer Satisfaction Based on Perceived service quality of e-commerce systems The overall satisfaction of e-commerce customers can be attained by providing the level of service quality that customers perceive in that system. The five dimensions of service quality are tangibility, reliability, responsiveness, assurance and empathy. The website structure of an e-commerce websites is all about the tangibility dimension. The reliability dimension in this study is measured by the attribute called website adequacy. The website response variable indicates the responsiveness dimension. Website security as another attribute of an e-commerce system refers to the assurance dimension and the empathy dimension described by the website customization The overall customer satisfaction is based on the five service quality dimensions representing various service attributes: tangibility, reliability, assurance, responsiveness and empathy. The detailed model used in this study is presented in figure A. The website design elements are characterized into five different types which are supposed to influence the five service quality dimensions. This study hypothesizes that some website attributes that are based on service quality dimensions has an impact on an online customer satisfaction. In other words, customers satisfaction level will increase if the e-commerce system provides a higher level of service quality through different website attributes. 1.4 Increased trend of Online surfing and shopping in Pakistan The trend of an online surfing is increasing rapidly due to the increased benefits by the use of e-commerce business environment. People visit e-commerce web sites not only for buying but for several other reasons and the smart retailer just should not only focus on boosting online browse-to-buy conversion rates, but should also try to grab the attention of an online visitors who came in for review so as they could become a customer later. Many people feel it comfortable to review the products through an extensive knowledge provided over the internet before actually buying a particular product. For this purpose, e-commerce website provides an interface to the buyers to write their reviews and share their after-purchase experiences. Thus, the e-commerce systems reduce the time and efforts required for the first step of information search in consumer decision making process. That is, by just few clicks a consumer can have a concise analysis for what matches his/her needs. There are some factors emerged as a results of the changes in lifestyle and habits of consumer which has promoted the trend of online searching and shopping in Pakistan. Some of these factors are lack of time, need of convenience and easy access to the desired object. Moreover, e-commerce websites facilitates the visitor in many ways to boost up online browse-to-buy conversion rate. Whenever a new customer lands on an e-commerce website, he/she must be having many questions in their minds regarding the products and services. A well-framed ecommerce site has an enquiry page for their customers. This gives the chance to the visitor to post an enquiry with your site. Main aim of this page is to gather all relevant and necessary information from the customers so that they can be given response in an apt manner. Within the past decade, e-commerce has matured and grown exponentially. The result: now there are many types of e-commerce payment methods available online. If your credit is bad and you cannot afford a merchant account, there are alternative methods of payments on e-commerce websites which can help you. The e-commerce systems give customers controlled access to the data they need. In other words, not only are you managing your relationship with your customers, you are giving your customers the tools to manage their relationship with you. THESIS STRUCTURE This thesis consists of five chapters. Chapter 1 discusses the problem about which the research was carried out and in general about the trends of online shopping in Pakistan. Chapter 2 is about the literature review and the theoretical background is developed. In Chapter 3, researcher describes the methodology adopted including sources of information and data collection procedure is discussed. In chapter 4, the empirical data collected through questionnaire is analyzed and results are concluded on the basis of a survey. In Chapter 5, Conclusions are drawn and necessary recommendations are suggested. 1.5 STATEMENT OF THE PROBLEM Effects of website attributes on customer satisfaction in e-commerce. The main purpose of this research is to find out the different attributes which encourage consumers to visit, search and shop on a particular website. 1.6 OBJECTIVE The purposes of this study are as follows: To identify the most important website element of e-commerce with respect to the customer satisfaction. To examine what is important to the customer regarding website attributes in e-commerce with perspective of website builders. 1.6.1 Possible Research Findings The research will also provide the following significances. Help the organization to better understand what customers expect in e-commerce and how those expectations impact customer attitude. The study will examine what the customer views as major attributes of website in e-commerce. Able to investigate the major customer attitudes associated with website structure in e-commerce. The study will indicate the link between the website attributes and the customer attitudes. 1.7 HYPOTHESES H1: Website structure has a significant association with customer satisfaction. H2: Website adequacy has a significant association with customer satisfaction. H3: Website security has a significant association with customer satisfaction. H4: Website response has a significant association with customer satisfaction. H5: Website customization has a significant association with customer satisfaction. SECTION 2: LITERATURE REVIEW 2.1 Introduction to e-commerce: The propagation of WWW has originated few facts in our daily lives, one of which is e-commerce. A transaction between two or more participants through an electronic medium is defines as e-commerce (Kalacota and Whinston 1997). As an e-commerce is rapidly raising field, therefore for accomplishing success in this market, a top quality information system is necessary (Margherio et al. 1998). An e-commerce system is designed by selectively integrating many technical (e.g. search system) or managerial (e.g. the level of information related to product) design elements (Lohse and Spiller 1998). It is still very difficult, if not impossible; to make use of all the design factors presently available for the e-commerce system although many design factors have been suggested to improve the overall quality of e-commerce system (Selz and Schubert 1997, Lohse and Spiller 1998). This is because of the recent arrival of new design factors resulted by an increase in the interest of Internet (Selz and Schubert 1997). The main goal of this paper is to explore important design elements that have significant influence on the customer satisfaction regarding the performance of e-commerce systems. In this paper, the study presents a conceptual model of e-commerce websites that includes concrete design elements, perceived level of website quality and the customer satisfaction (JINWOO KIM and JUNGWON LEE 2002). There is remarkable potential for e-commerce in developing countries. Online shopping makes it easy to find things, merchants and best offerings and thus economical in terms of time and effort offerings (Balasubramanian, 1997). According to the Malone et al (1989) communicating a same piece of information through communication networks results in decreased cost and improved speed. There is tremendous potential for e-commerce in developing countries because the use of an e-commerce can potentially reduce transaction costs. As per Malone et al (1989) observation, the search costs such as cost of identifying a market (from where to buy a product) and /or a product or service are likely to reduce with the use of e-commerce systems and can be defined as potential e-commerce cost savings. From an organizations perspective, e-commerce systems provide the organization with the better market reach and an ability to provide their customer a customized service that suits their individual needs and preferences. For example the exchange between richness and reach can be minimized by e-commerce (Evans Wurster, 2000). Richness refers to the quality and quantity of information in terms of accuracy, relevance, customization, etc. and reach measures the number of people who can be got in touch with that information. 2.2 Service quality dimensions: The overall customer satisfaction can be measured by the level of service quality of an e-commerce system that customer perceives. Some researchers (Parasuraman, Zeithaml and Berry 1988) stated that consumer satisfaction or dissatisfaction is as an ancestor of service quality. Conversely, modern evidence recommends that it is an outcome of service quality (Woodside, Frey and Daly 1989; Cronin and Taylor 1992). Service quality attributes are the most important factors for the success of an e-commerce systems For example Liu and Arnett (2000) found that organizations that involve in e-commerce can only ensure the success of their system by keenly looking for the ways to improve their service quality. The customers decision whether to continue using a particular e-commerce system is based on the perceived quality of service (Bhattacherjee 2001) as the service quality impacts the overall satisfaction of a customer. Tangibility, reliability, responsiveness, assurance and empathy are the five dimensions of service quality. (Parasuraman et al. 1985, 1991, Pit et al. 1995). The tool that is being used in this study to measure the dimensions of service quality is SERVQUAL According to Brown et al. this instrument has been proved valid and reliable and hence used in various domains. (Brown et al.1993, Fisk et al. 1993, Parasuraman et al. 1985, 1993). On the basis of previous researches, service quality despite being a main interesting field in services marketing for the past two decades (Zeithaml et al., 2000); electronic service quality is still in its early stages in research area. Reil el al in 2001concluded that there has been no theoretical conceptualization emerged for customer evaluation of electronic services that could have been accepted generally. Cox and Dale (2001) has supported this conception by the fact that most out of the dominant research on service quality cannot even be valid to e-business environment. By the year 2002, the existing studies on the determinants of electronic service quality were based on measuring B2C interactions (Gilbert, 2000; Barnes and Vidgens 2000, 2001 and 2002) and few exploratory researches on website quality and e-service quality by Zeithaml et al. In early stages of service quality research, researcher were required to find out what is service quality from customers perspective (Sasser et al.,1979; Lehtinen and Lehtinen,1982; Gronroos,1982). It was normally approved that the judgment of service quality came from comparisons between what customers feel a service provider should offer (expectations) and the actual service performance of the company (perceptions) (Zeithaml et al., 2000). This view was reinforced by Parasuraman Zeithaml (2000) and Berry (1985) in their study of service quality in different service industries with which they discussed the concept of service quality as a function of expectations-perception gap. Parasuraman et als, identified the 10 dimensions that customer uses in their assessment of service quality. These 10 service quality dimensions then shaped the source for the development of a scale (SERVQUAL) to measure service quality in direct service interactions. Research extended in other context and as a result refined the scale and reduced it to 5 dimensions (reliability, responsiveness, assurance, empathy and tangibles) Since the SERVQUAL scale has been widely used to measure service quality in many studies across a range of settings (IS Departments; Airlines; Universities; Ocean Freight Shipping; Professional Services; Health Providers; International Markets; Purchasing; Advertising; Banking; E-commerce). Initially the concept of services were created to capture the nature of service encounters (Meuter et al., 2000) which may not be sufficient to capture the characteristics of customer interactions with self-service technologies such as e-services (Dabholkar et al.,1996). Later on, many approaches have been proposed to study online service. (Gilbert, 2000; Gronroos et al., 2000; Parasuraman and Grewel, 2000; Kaynama and Black, 2000; Zeithaml, et al., 2000; ONeill, et al., 2001) proposed the use of existing service theory as a first type. The second type utilizes generated new categories for self-service technologies such as e-services (Szymanski and Hise, 2000; van Riel, et al., 2001; Wang and Tang, 2001; Ruyter et al., 2001). Third type develops information systems and web quality theory (Barnes and Vidgen, 2000; 2001; 2002; Aladwani and Palvia, 2001). These researches have centered on customer interactions with a variety of self-service technologies such as automated call centre technology, ATMs and Web sites and touch screen technologies. A redefined SERVQUAL instrument to measure the service expectations and perceptions of customers of Internet businesses was used by Gilbert in 2000 in which he concluded that to measure online service quality, the altered SERVQUAL scale was a practical instrument. The features that are useful, accurate, relevant and comprehensive information reflect the reliability of quality information (Bailey and Pearson 1983). Bailey and Pearson (1983) also identified that website reliability depends on to what level the information provided on the website about the product or service is true, precise and also depend to what level a customer can rely on a particular website that it provides enough amount of information available regarding each product. (Luedi 1997) stated that website personalization based on the ability of website to deliver individualized interface for a specific user which generated dynamically as per users needs. This may involve making purchase recommendations and /or providing the list of other relevant products that matchs the customer needs. This can be extracted through the previous data available regarding an individual user such as buying behavior, cart items and the current session contents. Providing customized services is the best way to create a loyal customer and make repeat visits on a website Luedi (1997). The concern over security continues to plague the online world. Variables like perceived security, reputation were included in this study to examine the customer attitude towards buying process. Even though the understanding of credit card transactions perceived secure like a waiters and waitresses, still security is the top concern of people who shop online (Salisbury et at. 2001, Luo 2002. Wilson and Abel 2002). Likewise security is the reason why people do not shop online (Luo 2002). The research variable of Security reflects trust in the online system and the variable reputation reflects trust in the specific vendor. Discovering whether vendors receive repeat business reflects the overall buying attitude of consumers. Overall customer satisfaction at online shopping measures which attributes helps the website meets expectations. 2.3 Website elements: The first phase of consumer decision making process that is the information search starts the minute customers look at the interface of e-commerce website and ends until they decide whether to place the purchase order or not (Schmid 1995). The role of website structure remains important during the phase of information search process such as site maps, navigation, content settings and layout of website etc. The content, structure and website elements should be portrayed explicitly on the e-commerce interface. Website structure that includes the presentation of design elements determines how the information is actually displayed on the screen to acquire the customer attention (Morris and Hinrich 1996). Convenient website structure defined as to what extent a customer feels that the e-commerce website is user friendly, simple and instinctive. (Ki-Han and Shin, 2008) Website adequacy describes the quality and quantity of the information provided in the e-commerce system. Content based on usefulness and comprehensiveness involves the type and scope of information to be included in the system (Morris and Hinrich 1996, Kim et al 1997). After the collection of appropriate information regarding the identified products or services, the contents must be placed in a well organized manner so that the customer can understand the interface easily (Gronroos 1982, Rosenfeld and Morville 1998). A well-defined and properly placed content is a feature of website which indicates the ability to made information easily available to visitors (Ki-Han and Shin, 2008). When adequate and reliable information has been properly dispersed across different web pages within the structure of the e-commerce website, an efficient interaction system must be provided to enable the customer to switch between different pages easily (Kim and Yoo 2000, Park and Kim 2000). Ballantine (2005) has found the impact of interactivity and product related information on customer satisfaction in an online trade setting. He argued in his study that the amount of product-related information affected consumer satisfaction of online shopping. An important design element that relates to the interaction system includes the involvement of website response and website customization ability. Website Customization is referred as the extent to which an e-commerce website can identify a customer and then modify the choice of products and shopping experience for that customer (Srinivasan et al., 2002). Cook and Coupey (2001) in their research argued that the improved accessibility of information on internet is likely to result in informed customers. And educated customers are able to make better quality decisions and will then experience more satisfaction with the visits and purchases they make. The connection between all of the five individual variables describes the basic architecture of web pages (Steinmetz and Nahrsted, 1995). The overall satisfaction of e-commerce customers can be attained by providing the level of service quality that customers perceive in that system. Satisfied customers have more potential to spread positive word-of-mouth (Gremler and Brown, 1999), and they avail further services (Zeithaml et al., 1996). The five dimensions of service quality are tangibility, reliability, responsiveness, assurance and empathy (Parasuraman et al. 1985, 1991, Pit et al. 1995). Attributes related to the website structure such as physical appearance of e-commerce websites are represented by tangibility dimension. For example, the tangibility measures the appeal of the website design of e-commerce system presents to their customers. The ability of the website to provide the dependable, accurate service is represented by reliability dimension. (Pit et al. 1995). For example, the reliability dimension measures how often an e-commerce system provides useful and comprehensive information regarding the relevant products or services. The responsiveness dimension indicates how prepared the website is to promptly response the customer with the clicked option. (Parasuraman et al. 1991). For example, the responsiveness dimension measures how often an ecommerce system voluntarily provides services that are important to its customers such as less loading time. Or it can be measured by how often a website provides accurate and rich information after a user clicked a particular product. The trust and confidence encouraged in the customer by the information provided on e-commerce system refers to the assurance dimension (Parasuraman et al. 1991). For example, the assurance dimension can be measured by extent to which a website is able to give a secure feeling to an online buyer. The empathy dimension described as the individual attention to the customer that is being provided by the dynamic e-commerce website (Pit et al. 1995). For example this dimension measures how often an ecommerce system voluntarily offers recommendations that match to its customers needs in order to provide the individual customers benefit. In summary, the overall quality of an e-commerce system can be measured by the service quality level perceived by its customers and ultimately leads to the customer satisfaction (JINWOO KIM and JUNGWON LEE, 2002). Parasuraman, Zeithaml et al. (1988, 1991) in study on SERVQUAL found that the interactive elements of e-commerce systems are e-business features that help in building relationships with customer and are fall into five main sets that are tangibles, reliability, assurance, responsiveness and empathy. Due to the consistency of research findings stated in literature, it become easy to propose that the five main determinants of e-commerce include website structure, website adequacy, website security, website response and website customization (D. HORN, R. FEINBERG and G. SALVENDY, 2005). In an e-business structure, the customer interaction with the business is through the e-commerce website. Therefore, several original SERVQUAL items were modified to focus on e-commerce website. The definition of an empathy dimension was extended to include personalization or customization, which is the concept of web gurus as they believe the emotional connection between customer and web business (Peppers et al. 1999). The overall appearance and structure of e-commerce website shows its tangibility. The performance of promised services and adequacy of information explains the reliability of an e-commerce website. Responsiveness is the ability of e-commerce system to help and provide prompt response to the website user. The individualized attention and customized service provided by the e-commerce system to an individual customer is described as empathy. Security is the trust on an e-commerce system in protecting personal and financial information (D. HORN, R. FEINBERG and G. SALVENDY, 2005). The major factors that impact the customer attitude are the five main attributes of e-commerce system. The model in Figure 1 describes how these attributes of e-commerce system work together to achieve customer satisfaction. The satisfaction/dissatisfaction of customer is defined as an emotional response to a specific consumption experience (Swan and Oliver 1989). It is determined by to what extent a consumer perceives that the service fulfills his/her needs, wants or desires. Satisfaction is a state inconsistent in that a consumer can be very dissatisfied or very satisfied (Tse, Nicosia and Wilton 1990). SECTION 3: METHODOLOGY 3.1 Survey: 3.1.1 SOURCES OF DATA COLLECTION: According to experts, the best approach and way of building an e-commerce site is by using services of website development providers. A professional team of web developers would take care and work for your ecommerce designing project and give regular feedback about the proceedings therefore for conducting this research, professionals from web development area was selected from five different firms. A survey was conducted by going to the software organizations that are involved in business of web development. Out of the five selected firms, few were chosen from the list of organizations registered on PASHA website and few were preferred on the authentic source of information about the adequate web development experience of these firms. The respondents were web developers, web architects and project managers, 3.1.2 QUESTIONNAIRE The instrument comprised of 24 structured questions was used to collect data (primary) from the targeted respondents. Majority of the questions were anchored using a 5 point Likert scale where 1 means Strongly Disagree and 5 means Strongly Agree and some used a rating scale as 1-for Low impact, 5- for High impact Customer satisfaction items from five SERQUAL dimensions: tangibility, reliability, assurance, responsiveness and empathy are included in this instrument. 3.2 Sample: There are total 1082 IT firms in Pakistan which are doing web development activities as part of their businesses. Out of which 384 are in Karachi. These statistics has been collected from the website of PASHA. On the basis of above information, five companies were selected as a sample in this study, and around ten respondents from each company were requested to fill up the survey form. As a result, total 60 responses were collected, which were divided in gender distribution. Males accounted for 83% of the respondents, and 17% were females. Besides the web development experience, all of the respondents have reasonable web browsing and online buying experience. The majority of the respondents used to purchase items on the web. Of the 60 completed subjects, two interviews were disregarded because of missing responses. Thus, the study used data from the remaining 58 subjects (96.6% of the original sample). This is actually a multi-cluster sampling technique that was adopted as selecting five companies as five clusters and then ten to fifteen respondents from each company. 3.3 METHOD: Analysis and testing of the hypothesis in this research is done on Statistical Package for Social Sciences (SPSS Statistics 17.0) throughout. Before going into the process of actual testing of hypothesis, it was required to check the reliability of data that has been collected to draw the results. In reliability test, we check the internal consistency of a set of variables in what it is intended to measure. In this study, a principle of testing is based on the measurement of Cronbach Alpha. The high value of the Cronbach alpha coefficients in Table 1 indicates that the website attributes measures are reliable enough to proceed to further analysis. Table 1: Test of Reliability Reliability Statistics Cronbachs Alpha N of Items .700 24 There are several attributes defining each independent variable in a questionnaire. Each independent variable was measured by computing an average of all attributes related to the particular variable and thus resulting in five new computed independent variables. Similarly, the dependent variable satisfaction was also computed by an average of all customer satisfaction attributes in a data set. The second step was to apply the log on these five independent variables which resulted in a set of again five new variables that behaved as final independent variables to be used in a regression model. This step was required to ensure the linearity of independent variables. Same was done with the dependent variable. Since all of the hypotheses are related to association questions, therefore further analysis is done be the use of Linear Regression statistical technique. Using stepwise regression, the study was further investigated by examining the Multiple Regression Model between the dependent variable that is the customer satisfaction termed as satisfaction in testing process and the five independent variables termed as webStructure, webAdequacy, webSecurity, webResponse and webCustomization. SECTION 4: DATA ANALYSIS 4.1 ResultS: Table 2: Test of Regression Variables Entered/Removeda Model Variables Entered Variables Removed Method 1 webResponse . Stepwise (Criteria: F-to-enter = 3.840, F-to-remove = 2.710). 2 webCustomization . Stepwise (Criteria: F-to-enter = 3.840, F-to-remove = 2.710). a. Dependent Variable: satisfaction Only two variable webResponse and webCustomization out of five independent variables are added to the model as a result of stepwise linear regression test. In step-1, webResponse and in step-2 webCustomization was added as shown in Table 2. Table 3: Test of Regression Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate Change Statistics R Square Change F Change df1 df2 Sig. F Change 1 .513a .263 .249 .13556 .263 19.949 1 56 .000 2 .560b .314 .289 .13197 .051 4.094 1 55 .048 a. Predictors: (Constant), webResponse b. Predictors: (Constant), webResponse, webCustomization In general, the value of R can range from -1 to +1 with +1 indicating perfect positive relationship, 0 indicating no relationship and -1 indicating perfect reverse relationship. Therefore, as per the values of R in Table 3, both selected variables shows positive relationship with satisfaction. Moreover, according to the Table 3, values are R=0.513 and R=0.560 for webResponse and webCustomization respectively. Keeping in mind the highest value of R, this relationship is neither weak nor quite strong. From the values of R square in Table 3, the combined variance explained by both variables is 31.4% out of which 26.3% variance of satisfaction is explained individually by webResponse and only 5.1% variance in satisfaction explained by webCustomization. Rest of the 68.6% unknown variance is due to other factors. This is a very less percentage of explained variance so the model is not a very good model. Table 4: Test of Regression Coefficientsa Model Unstandardized Coefficients Standardized Coefficients t Sig. Correlations Collinearity Statistics B Std. Error Beta Zero-order Partial Part Tolerance VIF 1 (Constant) .511 .172 2.973 .004 webResponse .575 .129 .513 4.466 .000 .513 .513 .513 1.000 1.000 2 (Constant) .441 .171 2.578 .013 webResponse .461 .137 .411 3.359 .001 .513 .413 .375 .833 1.201 webCustomization .180 .089 .248 2.023 .048 .416 .263 .226 .833 1.201 a. Dependent Variable: satisfaction The following regression model is derived from Table 4: Satisfaction = -0.441 + 0.461 webResponse + 0.180 webCustomization The Tolerance shown is 0.833 in Table 4 which is quite close to 1 which indicates minimal collinearity among independent variables. This means that the selected two independent variables are not highly correlated with each other which is generally considered as a positive sign for a good model, though the model is not very strong in terms of the variance explained by independent variables. Table 5: Test of Regression Excluded Variablesc Model Beta In t Sig. Partial Correlation Collinearity Statistics Tolerance VIF Minimum Tolerance 1 webStructure .056a .472 .639 .063 .963 1.039 .963 webAdequacy .081a .688 .494 .092 .951 1.051 .951 webSecurity .176a 1.548 .127 .204 .999 1.001 .999 webCustomization .248a 2.023 .048 .263 .833 1.201 .833 2 webStructure .024b .203 .840 .028 .944 1.060 .816 webAdequacy .074b .638 .526 .087 .950 1.052 .803 webSecurity .141b 1.246 .218 .167 .969 1.032 .808 a. Predictors in the Model: (Constant), webResponse b. Predictors in the Model: (Constant), webResponse, webCustomization c. Dependent Variable: satisfaction The step 2 results indicate the final rejected variables in Table 5 which shows that two variables are selected and 3 are rejected. The key to accept and reject the hypotheses is the value of significance. If sig. value is less than 0.05 we reject H0 and accept the hypothesis otherwise we accept Ho. On the basis of Sig. values belong to each of the three variables shown in step 2 of Table 5; three hypotheses (H1, H2 and H3) have been rejected while two hypotheses (H4 and H5) stand not accepted. SECTION 5: CONCLUSION 5.1 DISCUSSION: After visiting five web development companies in Karachi and getting 60 questionnaires filled to determine the important website elements of e-commerce that influence customer to visit and shop from e-commerce websites. For this research work, many of the website attributes were taken based on five SERQUAL dimensions. These attributes were re-labeled to more comprehensively cater for the uniqueness of e-commerce websites. Then, the information about all these variables was collected through a questionnaire, which consists of structured questions using a 5 point Likert scale. Based on the Cronbach Alphas value 0.700 in Table 1, the date set has been considered reliable for the further testing an processing. Then the Multiple Regression Model was applied on the data set to check the significance level of all the selected variables, it was found that two variables webResponse and webCustomization has a significant association with customer satisfaction. Hypotheses have been tested on the basis of Table 5 which shows that two variables are selected and 3 are rejected. Therefore two hypotheses (H4 and H5) stand out accepted while three hypotheses (H1, H2 and H3) have been rejected. The result of study shows the weak relationship among the selected hypotheses as well. The value of R square can vary between 0 and 1. Higher value of R square implies the greater explanatory power and better predict the dependent variable. The value of R square for both independent variables in Table 3 implies positive but weak association. Finally, the results of the study have shown a positive response from customers in terms of satisfaction only with the responsiveness and empathy dimensions of service quality. During the study, it was found that respondents believed that the other three website attributes are not appealing with the perspective of customer satisfaction. Although these attributes are important service quality dimensions which leads to the customers satisfaction and are essential part of e-commerce websites. Therefore, it can be stated that a large sample of data might have drawn some other results. 5.2 implications: The identification of major website attributes in e-commerce provides a solid structure to guide further e-commerce research. By understanding that customers view website response and website customization as two main components of website in e-commerce systems, researchers as well as website builders are better able to develop e-commerce websites. The connection between these relationship attributes of e-commerce and customer satisfaction that was shown in this study implies the importance of including relational type characteristics in customer-e-commerce interaction research. A major contribution of this research is that it defines areas on which web development professionals need to focus in design and development of an e-commerce system in order to get their customers satisfied with the service quality of the system and develop more successful e-commerce systems. Insight to what the customer expects from an interaction with an e-commerce website assist designer/developers/architects to better understand how to facilitate customer relationships through the development of proficient e-commerce website. By developing features to meet and exceed customer expectations, the e-commerce enhances both customer satisfaction and customer relationships. This research has recognized two website attributes as important attributes the customer expects while interacting with an e-commerce website. REFERENCES Aladwani, AM and Palvia, PC (2002) Developing and validating an instrument for measuring user-perceived web quality Information and Management, 39 pp. 457-476. Athiyaman A., ODonnell B. Antecedents and Consequences of Educational Service Quality. BAH.FY, J, E. and PEARSON. S. W. (1983) Development of a tool for measuring and analyzing computer user satisfaction, Management Science, 29, 530-545. Balasubramanian, S. (1997) Two Essays in Direct Marketing, Ph. D. Dissertation, Yale University, and New Haven, CT. Ballantine, P. W. (2005) Effects of interactivity and product information on consumer satisfaction in an online retail setting. International Journal of Retail Distribution Management 33(6) 461-471. Barnes, S.J. and Vidgen, R.T. (2000) WebQual: An Exploration of Web Site Quality Proceedings of the Eighth European Conference on Information Systems, Vol. 1: 298-305, Vienna, July. Barnes, S.J. and Vidgen, R.T. (2001) An Evaluation of Cyber-Bookshops: The WebQual Method International Journal of Electronic Commerce, Vol. 6: 6-25. Barnes, S.J. and Vidgen, R.T. (2002) An integrative approach to the assessment of e-commerce quality Journal of Electronic Commerce Research, Vol. 3, No. 3. BHATTACHERJEE , A. (2001) An empirical analysis of the antecedents of electronic commerce service continuance. Decision Support System, 32, 201 214. BROWN, T. J., CHURCHILL, G. A. and PETER, J. P. (1993) Improving the measurement of service quality. Journal of Retailing, 69, 127 139. Burgess, L. A Conceptual Framework for Understanding and Measuring Perceived Service Quality in Net-based Customer Support Systems. University of Wollongong NSW Australia. Chung K., Shin J. (2008) The Relationship among e-Retailing Attributes, e- Satisfaction and e-Loyalty. Management Review, 3, 23-45 Coupey, E. (2001) Marketing and the Internet. Prentice-Hall, New Jersey. Cox, J. and Dale, B.G. (2001) Service Quality and e-commerce: an exploratory analysis Managing Service Quality, Vol. 11, No.2, pp. 121-131. Cronin, JJ and Taylor, SA (1992) Measuring Service Quality: A Reexamination and Extension. Journal of Marketing, vol. 56, 55-68. Dabholkar, P. A., Thorpe, D.I. and Rentz, J.O. (1996) A measure of service quality for retail stores: scale development and validation Journal of the Academy of Marketing Science, Vol. 24, No. 1, pp. 3-16. Evans, P., and Wurster, T. S. (2000) Blown to bits: How the new economics of information transforms strategy. Boston: Harvard Business School. Gilbert, A. L (2000) Online Service Quality Resolving the Paradox Unpublished paper. Gremler, D. D. and Brown, S. W. (1999) The loyalty ripple effect: appreciating the full value of customers. Industrial Journal of Service Industry Management 10(3) 271-291. Gronroos,C. (1982) Strategic Management and marketing in the Service Sector Chartwell-Bratt, London. GRONROOS, C. (1982) Strategic management and marketing in the service sector. Helsingfors, Finland: Swedish School of Economics and Business Administration. Gronroos, C., Heinonen, F., Isoniemi, K. and Lindholm, M. (2000) The Netoffer model: a case example from the virtual marketspace Management Decision, Vol.38, No.4, pp. 243-52. HORN, D., FEINBERG, R., SALVENDY, G. (2005) Determinant elements of customer relationship management in e-business. Behavior Information Technology, 24, 101 109 KALAKOTA, R. and WHINSTON, A. (1997) Electronic Commerce: A Managers Guide. MA: Addison Wesley. Kaynama, S.A. and Black, C.I. (2000) A proposal to assess the service quality of online travel agencies. Journal of Professional Services Marketing, Vo.21, No.1, pp.63-8. KIM, J. (1997) Toward the construction of customer interfaces for cyber shopping malls HCI Research for the Electronic Commerce. Electronic Markets Newsletter, 7, 12 15. KIM, J., LEE, J. (2002) Critical design factors for successful e-commerce systems. Behavior Information Technology, 2, 185199 KIM, J., YOO, B. (2000) Toward the optimal link structure of the cyber shopping mall. International Journal of Human Computer Studies, 52, 531 551. Lehtinen, U. and Lehtinen, J.R. (1982) Service quality: a study of quality dimensions working paper, Service Management Institute, Helsinki. LEUDI, A. F. (1997) Personalize or perish. Electronic Market, 7, 22-25. LIGHTNER, N. J. (2003) What users want in e-commerce design: effects of age, education and income. ERGONOMICS, 46, 153- 168 LIU, C. and ARNETT, K.L. (2000) Exploring the factors associated with web site success in the context of electronic commerce. Information and Management, 38, 23 33. LOHSE, G.L. and SPILLER, P. (1998) Quantifying the effect of user interface design features on cyber store traffic and sales. Proceedings of the CHI98 Human Factors in Computing Systems, 211 218. Luo, X. (2002) Trust production and privacy concerns on the Internet: a framework based on relationship marketing and social exchange theory. Industrial Marketing Management, 31, 111-118, Malone, T., Yates, J., and Benjamin, R. (1989) The logic of electronic markets. Harvard Business Review: 166-172. MARGHERIO, L., HENRY, D., COOKE, S. and MONTES, S. (1998) The Emerging Digital Economy . Washington, DC: US Dept. of Commerce. Meuter, M.L., Ostrom, A.L., Roundtree, R.I., and Bitner, M (2000) Self Service Technologies: Understanding Customer Satisfaction with Technology-based Service Encounters. Journal of Marketing, 64 (July), 50-65. Molla, A., Heeks, R. (2007) Exploring E-Commerce Benefits for Businesses in a Developing Country. The Information Society, 23, 95-108. Molla, A., Licker, P. (2004) Maturation stage of e-commerce in developing countries: A survey of South African companies. Journal of IT and International Development 2(1): 89-98. MORRIS, M. and HINRICHS, R. (1996) Web Page Design: A Different Multimedia. New Jersey: Prentice Hall. PARASURAMAN, A., BERRY, L. L. and ZEITHAML, V. A. (1985) A conceptual model of service quality and its implications for future research. Journal of Marketing, 49, 41 50. PARASURAMAN, A., V. A. and BERRY, L., ZEITHAML, (1988) SERVQUAL: A multiple-item scale for measuring customer perceptions of service quality. Journal of Retailing, 64, 12 40. PARASURAMAN, A., BERRY, L. L. and ZEITHAML, V. A., (1991), Refinement and reassessment of the SERVQUAL scale. Journal of Retailing, 67, 420 450. PARASURAMAN, A., BERRY, L.L., and ZEITHAML, V.A. (1993) More on improving the measurement of service quality. Journal of Retailing, 69, 140 147. Parasuraman, A. and Grewel, D. (2000) The impact of technology on quality-value-loyalty chain: a research agenda. Journal of the Academy of Marketing Science, 28, pp. 168-74. PEPPERS, D. and ROGERS, M., (1999) The One to One Manager: Real World Lessons in Customer Relationship Management New York: Currency Doubleday. ROSENFELD, L. and MORVILLE, P. (1998) Information Architecture for the World Wide Web. Cambridge: OReilly. SALISHLUY, W., PI:ARSON, R., PKARSON. A, and MILLI-R, D. (2001) Perceived security and World Wide Web purchase intention. Industrial Management Data Systems. 101, 165-176. Sasser , W.E., Olsen, R.P. and Wyckoff, D.D. (1979) Management of Service Operations: Text and Cases Allyn and Bacon , Boston, MA. SCHMID, B. (1995) Electronic mall: Banking and Shopping in Globalen Netzen. Stuttgart: Teubner. SELZ, D. and SCHUBERT, P. (1997) Web assessment: a model for the evaluation and the assessment of successful electronic commerce applications. EM-Electronic Markets, 7, 46 48. Srinivasan, S. S., Anderson, R., and Ponnavolu, K. (2002) Customer loyalty in e-commerce: an exploration of its antecedents and consequences. Journal of Retailing, 78, 41-50. STEINMETZ, R. and NAHRSTED, K. (1995) Multimedia: Computing, Communications and Applications New Jersey: Prentice-Hall. Swan, JE and Oliver, RL (1989) Postpurchase Communications by Consumers. Journal of Retailing, vol. 65, Winter, 5 16-533. Szymanski, D.M. and Hise, R.T. (2000) E-satisfaction: an initial examination. Journal of Retailing, Vol. 76, No.3, pp. 309-22. Tse, DK, Nicosia, FM and Wilton, PC (1990) Consumer Satisfaction as a Process. Psychology and Marketing, vol. 7 (3), 177-193. WILSON, S. and ABFL, 1. (2002) So you want to get involved in e-commerce, Industrial Marketing Management, 31, 83-94. Woodside, AG, Frey, LL and Daly, RT (1989) Linking Service Quality, Customer Satisfaction, and Behavioral Intention. Journal of Health Care Marketing, vol. 9(4), 5-17. Zeithaml, V. A., Berry, L. L. and Parasuraman A., (1996) The behavioral consequences of service quality. Journal of Marketing, 60, 31-46. Zeithaml, V.A., Parasuraman, A. and Malhotra, A. (2000) A Conceptual Framework for Understanding e-Service Quality: Implications for Future Research and Managerial Practice. Marketing Science Institute, Report No. 00-115.

Gender Inequality For Women s Sports - 982 Words

Running head: INEQUALITIES FOR WOMEN IN SPORTS Inequalities for Women in Sports T’Keyah Thomas Georgia Southern University Sociology 1101 October 18, 2015 Sociology 1101: Reasearch Proposal Inequalities for Women in Sports Introduction: As an adolescent, I was very interested in sports. In fact, sports were all around me. I was usually the tallest of my friends, therefore I was faced with more opportunities concerning sports. The main sports I played were basketball and softball. At this point in my life, I did not know about Title IX and all of its rules and regulations concerning women in sports; I was just interested because sports were fun for me. Upon starting college, I was done with sports as far as participating on a team. I knew I wanted to be involved wherever I could be. I enrolled in a class titled, â€Å"Girls Women in Sport.† The class was built upon a sociological approach. In this class, I learned the importance of sex versus gender, the role of Title IX in sports, gender roles, as well as the psychological impacts of athletic participation on women. Though there have been some minor improvements of the inequalities of women in sports, there are still many more changes that need to be made. The controversy of the topic allows a wide range of research. From the issues of Title IX to the issues of society and its gender roles, there are still inequalities of women in sports. Sociology 1101: Reasearch Proposal Inequalities for Women inShow MoreRelatedGender Inequality : Sports And Women s Professional Level Of Sport1469 Words   |  6 PagesGender Inequality in Sports Across the world, society holds men and women to different standards. There are precise gender roles and stereotypes that are well established. In the western world, women are supposed to be nurturers, cleaners, and the chef. Whereas men are perceived as strong, independent, and athletic. When these social norms are broken, it is not uncommon for specific labels to be given, such as being called a lesbian. Over the past few centuries, these stereotypes and gender rolesRead MoreGender Inequality Within A Competitive Athletic Workplace870 Words   |  4 Pages101 December 9, 2015 Gender Inequality What are the types of gender inequality in this world? Inequality is when there are two things that are not the same. For example, antonyms, they are when two objects don t have similar qualities. This means there are differences between the two. It can be beneficial or very discriminating. The definition for gender inequality is the unequal treatment, or perceptions of individuals based on their gender. Gender inequality is between the male andRead MoreGender Inequality Within Sports And Sports1197 Words   |  5 PagesAll women athletes worked extremely hard to get where they are now, but with gender inequality in sports their hard work will go to waste. Gender inequality is unlawful because of Title IX, a law that was passed in 1972, that banned gender discrimination in sports (Buzuvis and Newhall). Even though it is against the law, many colleges and sports associations still give unfair benefits to men’s sports, such as more opportunities, better fields, higher salaries, etc, and are not getting punished forRead MoreGender Inequality : Gender Inequalities825 Words   |  4 Pages Karen Cardenas English 4 Sec 03 Sum 17 07 July 2017 Gender Inequalities Thesis: While this could be the best thing the world could accomplish if something changes, Women and men should not be segregated into their own category. Because both genders should have equal rights when it comes to working, money, households, relationships and other categories. This problem has been around for a long time but never been brought to a lot of people s attention, because of this nobody talks about this situationRead MoreGender Inequality : Women And Women1242 Words   |  5 PagesGender Inequality There are hundreds and thousands of athletes all around the world but the main problem in the athlete world is gender inequality, women are not shown equal as men. They are discriminated in many ways such as pay, employment opportunities, value of women s sport, media coverage etc. Despite the federal law passed called Title IX that â€Å"No person in the United States shall, on the basis of sex, be excluded from participation in, be denied the benefits of, or be subjected to discriminationRead MoreImportance Of Sport1702 Words   |  7 PagesWhat is interesting about sport? Sport: small word, big concept. The purpose of this essay is to highlight what aspects of sport are interesting, further linking it to a specific discipline. There are many disciplines within sport that are interesting, however, from my point of view, sociology is the most interesting one as it gives a true picture to what sports is like within society, in addition it emphasises the significance of sport in society since the early nineteenth century (Bell, 2009)Read MoreGender Inequality : Like A Girl1060 Words   |  5 Pagesstrongly due to the fact that women are generally considered inferior to men. Gender inequality is the world we live in now; it is not an issue of the past. Inequality in terms of being equal, or no gender should be given special advantages. While there has been progress, as a society we have not improved enough. There is evidence of this unfairness alive and well today. Unfortunately, this imbalance is most prevalent in sports. More specifically, there is inequality between male and female soccerRead MoreGender Inequalities Of Sports And Gender Inequality1468 Words   |  6 PagesGender Inequalities in Sport Men throughout history have been the dominant gender, from the times of hunting with stone weapons to the modern day metal and automated machines. Many negative connotations are thought of when comparing women to men like strength, but less so when comparing men to women. Is it the society’s view that women are weaker than men or is it a natural fact brought to light? In sports women experience many prejudices, but even so some sports are equal or even female dominantRead MoreAnalysis Of A Miniature Lit 1742 Words   |  7 PagesJarvis Washington Miniature Lit Review Introduction Gender inequality in sport is a hot button issue in our society today. Women, for the most part, have been on the short end of the stick for centuries in reference to participation in sports. Way back in Ancient times, women were not even allowed to watch the Olympics games because they were deemed â€Å"ladylike†. Women slowly began to play sports beginning in the 1800s. Some notable events were the first all-women’s golf tournament in Scotland inRead MoreThe Importance Of Equal Pay, Rights And Opportunity For Women Involved With Sports1629 Words   |  7 Pagespay, rights and opportunity for women involved with sports. This topic was selected because this is evident based on the staggering numbers of women performing and displaying either equal or more in terms of success, achievement or work load and still are behind when comparing salaries between men and women. Hopefully, this podcast will shine some light on this subject and bring awareness. Based on prior res earch conducted the numbers are comparing the USA women s soccer. It is safe to say these

Interview Of Interview Jen Flemming - 979 Words

I chose to interview Jen Flemming. She is a teacher, mentor, mother, wife, and a leader. I first met Jen when she adopted my little sister. My mother was having a hard time and she needed some help, she could not have hand picked a better person to fill her shoes. Jen was a leader then when she took my sister as her own, and she is also a leader in her career. She is a second grade teacher at Calvin Coolidge Elementary School. I remember when I told her that I was changing my major to Elementary Education. She was very excited and eager to help me along the way. She offered me advice, a listening ear, and helped me find a placement for me pre-practicum. I only wish I had been able to be in her classroom for it! Jen is someone who is always positive, always there to listen, and the first to offer support. I knew that there would be so much I could learn from her. For my research portion I wanted to look at the role of mentoring in developing leadership skills. Jen spoke highly both of having a mentor and being a mentor, so it is something I would like to look into further. I also would like to find a way to utilizing what I am learning not only for myself, but to also be able to implement it into my classroom for my students. I am very interested in Science, Technology, Engineering, and Math (STEM), and about learning how to encourage my students, especially the female, into fostering an interest in these fields. I looked at an article titled â€Å"Learning by Leading: using best

Impairment Loss For Cgu’s Excluding Goodwill †MyAssignmenthelp.com

Question: Discuss about the Impairment Loss For Cgus Excluding Goodwill. Answer: Impairment Loss For Cgus Excluding Goodwill Impairment Australian Accounting Standard 136 has defined the impairment as the excess of the amount of the carrying amount of an asset over the amount which is recoverable from the asset at that point of time (AASB 136, 2011). Carrying Amount The value at which the asset is recorded in the books of accounts is known as the carrying amount. Carrying amount is nothing but the book value of an asset which is derived after deducting the depreciation from the cost of the asset. Recoverable Amount InternationalAccounting standard 36 has defined the recoverable amount as the higher of value in use or net selling price (IAS 36, 2014). Value in use is the present value of cash inflows likely to be generated in the future years. These are discounted at the rate equivalent to either the internal rate of return of the company or the cost of capital. Net Selling price is equivalent to the difference between the selling price of an asset and cost of disposing of the asset. Cash Generating Units As per the Australian Accounting Standard 136, cash generating units have been defined as the cluster of asset which is very small and which is easily identifiable and relatable to the particular class of the assets. It has been also defined that the cash flows of one group of assets will be independent of the other cluster. The concept has been introduced because of the fact that some of the assets were not able to provide the economic benefits in terms of the cash flows on their own. Therefore, this small group of assets or the cluster of assets has been made (IAS 36, 2014). Impairment Loss for CGUs excluding Goodwill: Impairment loss is charged to the profit and loss account and is deducted from the value of the asset as shown in the balance sheet. In case there is the situation that the goodwill as shown in the books of the company is not able to allocate on reasonable basis then the following circumstances will follow (Carlin, 2009; Zucca, 2012): Non allocation of Goodwill and company assets Allocation of goodwill only Allocation of company assets only Allocation of few assets of the company. The loss on impairment shall be calculated without including the goodwill in the following manner: At first the cash generating units will be found Then it is ascertained as to which specific asset they belong. Then the cash flows that the each of the cash generating unit will generate will be identified and calculated with reasonable terms (Wines, 2009) Applying the discount rate as mentioned in the company details and the value in use is identified as equivalent to the present value of cash inflows. Calculating the amount which can be recovered from the asset as defined as the net selling price. Calculating the amount recoverable as higher of value shown in (d) or (e) Then the carrying amount will be identified for only of the cash generating units Identifying and calculating the loss on impairment as the difference between the value shown in step (g) and step (f) Revised carrying amount is calculated by deducting the impairment loss from the carrying amount. The huge cash generating unit and calculate its recoverable amount. Finally calculating the carrying amount of this huge cash generating unit and calculating the impairment loss accordingly (Ghazaleh, 2011). Then the amount of the loss on impairment so calculated will at first allocated to the goodwill and then to the assets of the company. References Abu Ghazaleh, C., 2011.Accounting discretion in goodwill impairments: UK evidence.Journal of International Financial Management Accounting,22(3), pp.165-204. AASB 136, (2011), Impairment of Assets, available on https://www.aasb.gov.au/admin/file/content105/c9/AASB136_07-04_COMPjun09_01-10.pdf accessed on 16/09/2017. Carlin, T.M.., 2009. Discount rates in disarray: Evidence on flawed goodwill impairment testing.Australian Accounting Review,19(4), pp.326-336. IAS 36, (2014), Impairment of Assets available on https://www.iasplus.com/en/standards/ias/ias36 accessed on 16/09/2017. Wines, G.., 2007. Implications of the IFRS goodwill accounting treatment.Managerial Auditing Journal,22(9), pp.862-880. Zucca, L.J., 2012. A closer look at discretionary writedowns of impaired assets.Accounting horizons,6(3), p.30.

Strategic Management for Bunkers Indoor Golf Center Essay Example

Strategic Management for Bunkers Indoor Golf Center Paper Bunkers Indoor Golf Center is a great place for people of all golf abilities to enjoy the game of golf all year. Bunkers brings 42 different golf courses from around the world to the people of Spokane. Anyone can play the most popular courses in as little as one hour, if they are playing by themselves or about three hours if playing a foursome. In addition to the great courses Bunkers will offer professional golf lessons, professional club fitting, a nine hole putting green, and four soft white sand bunkers for chipping practice. Bunkers is a great place to learn and enjoy the game. To ensure the business gets off on the right foot management has conducted a SWOTT analysis and a balanced scorecard. We will write a custom essay sample on Strategic Management for Bunkers Indoor Golf Center specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Strategic Management for Bunkers Indoor Golf Center specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Strategic Management for Bunkers Indoor Golf Center specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Strategic Management and Planning Strategic management is the process of creating and implementing decisions that will enable a company to achieve its long-term objectives. It is the process of specifying the companys mission, vision and objectives, developing policies and plans, often in terms of projects and programs that are designed to achieve these objectives, and then allocating resources to implement the policies, plans, projects and programs. Strategic management seeks to coordinate and integrate the activities of the various functional areas of a business in order to achieve long-term organizational objectives. (Wikipedia.org, 2009) To ensure Bunkers Indoor Golf Center is organized properly form the very beginning the company will utilize the four functions of management. These four functions are as follows, planning, organizing, directing and controlling. Strategic Planning is a process for determining what a business could become and how it can achieve that goal. It takes a look at the full potential of the business and tries to link the businesss objectives to the actions and the best way to achieve them. Strategic Planning offers a systematic process to ask and answer questions confronting a management team. The first step to great management is planning. This is the most important step as it will set the stage for everything to follow. Because Bunkers Indoor Golf Center (Bunkers) is a new company it is still working out the bugs; planning is always an ongoing process. The company plans everything from the type of advertising to the way it handles employee performance evaluations and everything in between. During the strategic planning stage management is busy identifying goals, objectives, methods, and the resources needed to carry out those methods, including employee responsibilities and dates for completion of tasks. During this planning stage the owners have employed several types of strategies; the first being a business plan, followed by program planning and strategic planning. In the business plan the owners will identify the growth of the business and set a plan for the first five years. This plan is the most important in the beginning because it is the one the banks look at to determine if the business has direction. It includes financial goals, hiring of additional employees, objectives, a mission and the keys to success. It is a large plan and is used as the blueprint for the other plans. As leaders create the business plan, the company will concentrate on the programs and strategies it will use to gain and retain customers. The programs consist of a discount program, complementary items for customers, and many other considerations. During this planning stage Bunkers tried to find programs that would be beneficial to the company and its customers and help it to retain existing customers and gain new ones. At this point, its owners are making the decisions regarding employee dress codes, code of conduct, the employee hand book, and deciding on the way it should evaluate employee performance. The owners will also decide what steps they would use during employee discipline, and what they could offer employees. Each part of the program planning stage opens the door to another. The strategy phase of planning is essential to the success of Bunkers. It includes the types of advertising, how to gain new customers, how to retain existing customers, how and where to market the business, as well as who to market to. The strategy phase is the most exciting because it offers a chance to be very creative and make new connections. This area of business is very competitive and requires a great amount of time and effort to acquire customers. This phase will be the most enjoyable and is one that can never be stopped, it is essential to continue growing. Knowing how to create and manage a strategic plan is essential to the success of the company both in the beginning and during its continued success. The business owner cannot afford to ignore the planning stages of the business and it is something that cannot ever be stopped. The overall success of any business can be contributed to the effort and dedication put into the strategic plan as well as the management of the plan. It is an essential part of the business and must be maintained and revised as the company grows. Mission Vision Statement An important function of the strategic plan is to create a mission for the company. In some cases this can be difficult, but rewarding to the company if done correctly and honestly. The mission statement should be a clear representation of the companys purpose. It should incorporate meaningful information that addresses concepts such as the moral/ethical position of the company, public image, the target market, products/services, the geographic area and expectations of growth and profitability. (Center for Business Planning, 2009) The vision statement is a different concept altogether, although sometimes confused with a mission statement. A vision statement is a description of a desired outcome that inspires, energizes and helps the company create a picture of the target. The best vision statements for result areas describe outcomes that are five to ten years away, although some look even further out. (Time Thoughts, 2008) To get the business off to a good solid start a mission statement was created. It was done so to give the owner, management, employees and the customers an idea of who the company is and what it wants to do. The following is the mission statement for Bunkers Indoor Golf Center. Bunkers Indoor Golf Center (Bunkers) is an oasis for all golf junkies of all abilities, from low handicappers and weekend golf warriors alike. Bunkers is dedicated to providing enthusiastic customer service and support to golfers who demand the best golf experience possible in an indoor environment. Bunkers is also dedicated to providing the largest and broadest selection of virtual golf courses in Spokane. Bunkers brings together a team of dedicated people who love golf and believe it is their job to help its customers to enjoy this great game even more. Every employee shares the same commitment to excellence, a commitment that will assure that each and every customer has a rewarding and enjoyable golf experience. This simple one paragraph mission statement sums up the company and its goals to help them better enjoy the game of golf. The mission statement gives the customers and employees a general guideline and can help them understand the motivation behind Bunkers. It is important that everyone involved with the company understand this and is ready to help meet and exceed the customers expectations. The vision statement is a completely different process all together. This statement drives the company forward to achieve its long term goals. Bunkers vision statement is relatively simple and direct. Bunkers is committed to making people happy by providing a consistently high quality experience that emphasizes the complete golf experience in an indoor setting. This vision statement is short to the point and shows the commitment that Bunkers has to strive to exceed the golfers expectations. Spokane is a small city and is home to several excellent golf courses. However, due to the logistics of the city, some of the more famous and exciting golf courses are difficult play. The owner has had the opportunity to play some of the countrys best courses and when talking to other golfers found that most weekend golfers would love to play these, but given their ability or finances they would not or could not play them. Bunkers has teamed up with the leading golf simulator company in the world (Full Swing Golf) to offer these famous courses to the golfers in Spokane. Without the cost or fear the golfers of Spokane can play 42 courses from around the world year around without leaving the city. In addition to the low handicappers and weekend warriors, Bunkers would like to work with the local school golf teams to offer a year around practice facility to help develop their skills. The schools can reserve tee times in the same manner as the general public but at a discounted rate. The passion for golf runs deep at Bunkers and as such would like the opportunity to expose as many first time golfers to the excitement the game offers. To aid in this Bunkers wants to work with the Boys and Girls Clubs, Boy and Girl Scouts and Big Brother and Big Sister Clubs. There are so many children that would never have to opportunity to experience golf; Bunkers feels it is necessary to reach out to as many as we can in an effort to promote the game of golf and to broaden the experiences of their life. Golf teaches many life lessons such as patience, determination and perseverance as well as teaching etiquette and promoting health (when walking a course). Todays youth can learn form golf and i t is a sport they can play their entire life. In an effort to meet the desires of all golfers, Bunkers will host virtual golf tournaments, complete with prizes, offer golf lessons, a putting green and soft white bunkers for chipping practice. The tournaments will consist of three rounds and golfers can play their rounds anytime during the week. This will give them the best opportunity to compete and enjoy the experience. Golf is a game that can be fun frustrating, to say the least it is the only game the owner loves to hate. It teaches so much and can be so enjoyable, fresh air, clean environment, polite people, and exercise. This is why Bunkers want to promote the sport year around. Spokane has long winters and as such the opportunity to play is limited to only a few months. Bunkers will be open seven days a week, 12 months a year. With this schedule golfers can keep their golf groove all year and get better and shoot lower scores. Understanding the wants and needs of the customers is essential to the long term success of any business. If a company stops valuing its customers or neglects to listen to their questions or concerns, the company will become stagnant and possibly end up shutting down. Having a road map to the follow in the form of a vision statement is essential to the long term grow and success of the company. The vision statement helps customers and employees see where the company wants to go and the tools it will use to get there and when it plans to do so. Just as important is the mission statement. It is the foundation on which the company is built. Without it the company would most likely not exist. SWOTT Analysis In an effort to create a successful business Bunkers management has conducted a SWOTT analysis. Management conducted the SWOTT and included economic, legal/ regulatory, technological, strategy, structures, resources and culture analysis. Economic SWOTT Economic factors play a large part in building of any business. As a strength to keep business loans to a minimum Bunkers will lease the simulators from Full Swing Golf (FSG). The company offers lease with the option to purchase after 24 months. The simulators are the largest upfront expense; however, the lease gives Bunkers the opportunity to allocate funds to other important categories. Bunkers has found a location that will be convenient to customers, the lease a full service lease that includes garbage, water, electricity and snow removal, it is also a graduated pay format, beginning at the , lowest monthly payment and increasing yearly until the payment meets the full cost. This will be important as the cost will remain low while in the early stages of growth. The need to hire employees that have a passion for golf is necessary, as such Bunkers would like to offer a competitive wage to keep employees excited about work and excited about the game. Washington has a minimum wage of $8.55 per hour. Bunkers intends to pay a starting wage of $10.00 per hour and increasing after a performance review at the six month mark. The business loan will be needed to build the enclosures for the simulators, the platform for the chipping green, the platform for the putting green, and the sand for the greens. Office supplies will also come out of the business loan, computer for the office, cash register/computer, and general office supplies. The weakness for the new business is the need for a business loan. The need to rely on outside funding is necessary; however, it can be a weakness as we will have to pay back a loan for several years. In addition the need for a loan to start, the economy will play a large part in the interest rates the business can get. The recent dip in the economy may force those that would be regular players to cut back or maybe not to play at all. This is the most frightening aspect of the business. To keep people playing we will offer specials and packages that will enable golfers to play regularly. The opportunity portion of the economic SWOTT is the most exciting. This is where Bunkers can be creative and make plans for growth. The opportunity for growth is great. Spokane is a golf friendly community and has long cold winters. The need for a place to keep the golf groove is necessary and offers the potential for growth. Bunkers will also increase customer visits by hosting tournaments and prizes for the winners. IN addition to tournaments, Bunkers will offer golf lessons, swing analysis, club fitting, and a small amount of Bunker logo items, most likely hats and shirts. The threat portion is the most frightening. To be realistic management had to think about the current economic situation and decide if now is the best time to open a business is. Management feels it is a good time. Other factors management took into consideration were will other similar businesses open and offer the same entertainment, will golf shops offer more simulators and simulator activities (swing analysis, club fitting), will employees offer free golf to friends and family, taking away from profits (we will set up family discounts to combat this), great summer weather will be large threat to the business. Legal/Regulatory SWOTT Bunkers would like to develop relationships with the children clubs of Spokane as well as the local school golf teams. The legal aspects of this will be in the creating of a contract that benefits both parties. To avoid having a city business license that is very expensive, Bunkers ahs decided to open the first location in the North Spokane area, it is a growing area ( residents and business are all moving north) where business licenses are less expensive. Starting the business with only a few employees will reduce the amount of payroll tax, unemployment tax and work comp cost. The cost of the permits as well as the time it take to obtain an alcohol permit is a weakness. This is time consuming, it include an in depth look into the past of the person applying for the permit. It takes months to obtain the permit and it is subject to random visits by the state. Bunkers will offer only beer and wine, however the permit is still the same for all businesses selling alcoholic beverages. In addition to the alcohol permit the state also requires the company to obtain a food handler permit. Costly and always requiring training for employees this is also time consuming as well as costly to the company as it has to pay the employees for the time they spend taking the tests. The opportunity to build relationships with the children clubs and schools is a a great opportunity. The contracts will help the children expand their horizons and also give them the opportunity to learn a new game or improve at it. The contracts will include stipulations that state Bunkers is not responsible for the care of the children and a parent or guardian must be present to allow play. The biggest threat to the Bunkers is injury to customers. All customers playing in the chipping area will be required to sign a release of liability. There is always the chance of sand in the eye or getting hit by a club or ball. Under aged drinking is another threat and will be dealt with according the state law. Strict rules will help elevate this problem. Parental guidance is also necessary to avoid injury and to keep the business from the liability of children. Technologic SWOTT Having a business that depends on technology can be exciting and frightening. Full Swing Golf offers the best golf simulator on the market. They are constantly improving the graphics as well as introducing new golf courses. To help increase revenue Bunkers will try to incorporate the newest courses, most recent graphic cards and the best projectors and screens available. As hardware is used it wears out and can slow game play. To combat this issue we will constantly maintain the equipment and run diagnostic test of the machines to ensure fast reliable use. Technology is finicky. Depending on it can be a weakness in its own. Slow computers, projector bulbs, damage to sensors can all create havoc in the business and reduce profits. Full Swing Golf offers maintenance plans to protect against los in revenue. In addition to the maintenance plans Bunkers will contract with Networks Rx a computer networking company to ensure our cash register/computer, office computers and simulators all work and are connected using quality servers and materials. Technology is always changing; this can be an opportunity and a threat. As technology changes we must change with it. New faster servers can create the best game play possible. New courses, new graphics and better graphic can help the company grow and will create lasting customers. Incorporating additional elements such as swing analysis, club fitting, and lessons can also be attributed to changing technology. The largest threat is a down computer system. Bunkers is dependant on technology to function. Having down system will prove a debilitating factor, without it the company cant function and will see a loss in revenue. This will prove fatal if it is a lasting issue. Having Networks Rx at our disposal will help alleviate these potential issues. The biggest trend in technology is always changing computer systems. Faster processors, better graphic cards, more memory in servers and new golf courses will be a great trend. The need to keep up with this is essential and can also be seen as a threat, weakness, trend and strength if utilized. Bunkers will be the place to go in the long cold Spokane winters. Strategy SWOTT Strategy is necessary to compete in a competitive market. Spokane does not have a indoor golf center, and word of mouth advertising, strategic fliers and a radio spots will be necessary to Bunkers growth. Using the school golf teams and the children clubs will be necessary to the word of mouth advertising and the growth of the business. In addition marketing the business, utilizing golf tournaments to increase the customer base will be a great strategy. Bunkers would also like to incorporate professional lessons, club fitting to entice customers. Bunkers is a place a golfer of any age can enjoy a full round of golf, a positive aspect of the courses elderly golfer and young golfers can play a round with out the strenuous effort. Bunkers is a ground up business and is in need of constant marketing and upgrading to keep people interested. That will be the most challenging portion of the business. The management team will need to be proactive when the weather changes and use promotions to keep player coming back during the summer months. Spokane summers are gorgeous and people will want to play outside. Management will need to promote the tournaments, climate controlled area, professional lessons to keep people playing indoors all year. Opportunities will be numerous in the strategy area. Holding tournaments that golfers can participate in any time during the week, professional lessons and club fitting will also be an area that will keep people coming back. Bunkers will use the positive image of working with the boys and girls clubs and schools to its advantage and as a strategic opportunity to gain a hold on the community. To keep customer happy and excited to play Bunkers will offer discounted rates depending on the number of golfers in the group. As always the threat of a new business opening and taking customers is always a threat. The perfect summer weather in Spokane can also be seen as a threat to the strategy Bunkers uses. As noted in prior sections the threat of golf stores using simulations in their shops may reduce the lessons and club fitting. The game play will always be a strong point of Bunkers as it is the main focus of Bunkers. The use of technology to create customer email lists will be a beneficial tool. Management will create the list and email specials, promotions and tournament results. In addition to the above listed uses of email Bunkers will also use this portal for suggestions comments and reservations. The use of email will also fit into the technology strengths and opportunity portion of the SWOTT. Structure SWOTT Bunkers management will seek the best most qualified employees possible. The strengths of this company is based on the golf experience of its management team. The owner and his family are avid golfer and have played some of the best courses in the country. To keep the business moving in the right direction nit is necessary to hire individuals that have a love for the game and like using technology. The application process will include phone calls to previous employers; letters of recommendation from school coaches (for students) and student must maintain at least a 3.0 gpa while employed. To maintain the best possible work force Bunkers will utilize regular performance reviews. Weakness will include hiring students. This is not a weakness in the traditional sense; this will be in the sense that management will have to plan for students to take time off for extracurricular activities like golf tournaments and other school and family activities. Technology is a large part of the business and as such it is imperative to hire those that have a love for technology and passion to keep customers happy. Opportunities to hiring students are to expand their knowledge of technology and to give them real world job experience. By requiring students to maintain a certain gpa will help them achieve long term goals and will help management create a positive atmosphere. Using student part time workers will help the company save money in benefits and unemployment taxes. In addition to broadening the horizons of the students we can help them learn technology skills and problem solving skills that will be beneficial to them as they mature. Threats of having employees are normal to all businesses. Management can reduce these by educating employees, utilizing safety rules, hiring positive, motivated trust worthy people will reduce threats as well. Hiring students may cause an increase in employee turnover. To reduce this we will educate, train them and offer positive enforcement to maintain eh best employees possible. Resources SWOTT Bunkers is owned by an avid golfer, and has access to country club professional golfers and high school golf coaches. In addition to the golf pros Bunkers has built in technology company in Network Rx, that can help maintain and trouble shoot office servers, and networks. Some of the funding will come in the form of bank business loan and personal holdings. The need for a business loans is a weakness for Bunkers. The need to tech support professionals to keep the company moving and to keep customers playing is a weakness to Bunker as well. Every golf simulator has proprietary software that only their technicians can repair. Depending on vendor technical support is costly, time consuming, can reduce the profits, and keep a system closed until the technician can fix it. Opportunities are great for Bunkers. Leasing the simulators on a lease to own helps the company save resource and still own the equipment at the end of the lease agreement. There are currently no indoor golf facilities in the Spokane area. An opportunity to grow and prosper is great in addition to give the people a great winter activity. Spokane is located in the Inland Northwest, one hour east of the Idaho Washington border and two hours south of the U.S. Canada border. Depending on outside tech support it costly and can take a great amount of time to receive new parts or for the technician to arrive to install or repair new parts. A positive trend for golf and Bunkers is the fact that there is always a new golfer. Everyday people try golf and Bunkers offers them a place to try it in a safe controlled environment. We will let children ages five and older participate with the participation or guidance of a parent or guardian. Culture SWOTT Golf has a culture of its own and Bunkers will try and maintain it to the best of their ability. Bunkers will offer a clean safe, environment for people to learn or advance their game. Management will build relationships with the children clubs in Spokane as well as the local golf teams and schools. Teaching children the game of golf can teach them things the can use their whole life, patients, perseverance and dedication. Golf is a game that one can play their whole life and Bunker looks forward to helping them start the right way. There are not too many weaknesses of this business from a culture standpoint. From a business standpoint, this business caters to only one demographic. By opening a business that offers entertainment to golfer only can be seen as shortsighted. However, golfers have the desire to play and in some cases it is a great place for good clean fun. The opportunity to expose someone to golf is something that Bunkers is excited about. Golf is a great game that anyone can play not matter age, color, or athletic ability. There is the chance that someone would never play a round of golf at an outdoor course, Bunkers offers them a place to try the game in a reduced amount of time. A person that has never played may not be excited about playing a game for three to four hours and not enjoying the game. Playing a full 18 holes in one to two hours is more enticing to beginners and people that are short on time. The threat of customers becoming bored with Bunkers is a threat management cannot take lightly. With technology constantly changing Bunkers can try to avoid this by updating courses as often as possible. Offering additional resources like lessons, club fitting, tournaments, snacks and beverages will help keep people interested and coming back. Balanced Scorecard The balanced scorecard is a strategic planning and management system that is used extensively in business and industry, government, and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals. (Balanced Scorecard Institute, 2009) The importance of the balanced scorecard is to improve performance by focusing on what matters, increase focus on strategy and results and to improve the communication of a companys vision and strategy. This company has thought about for several years. He has jotted down plans, ideas, drawn floor plans and talked with bankers and even scouted out locations. Over the years, he has had time to think about the business and how he wants it to operate. The owner has spent a great deal of time trying to get ideas together to make this a place people will want to visit. The owner has planned for the simulators (the main focus of the business), the bunkers, putting green and even how to run a fun, convenient tournament. Before the SWOTT and the Balanced Scorecard, he never put a great deal of thought into the actual numbers and financial goals. Until five weeks ago this was just a dream. Now it is becoming a reality. Over the years the owner worked for several companies and found some of them had great corporate values and it trickled down to the employees and made them feel like they were more than just an employee. That is a feeling the author wants to create for the employees of Bunkers. He found that by giving the employees some basic instructions and letting them make decisions makes them feel they are valued and they are not taken for granted. By doing these little things and not micromanaging a company can reduce employee turnover and reduce expense in training and retraining and utilize those fund in other manners. The long term goals are relatively simple, Bunkers wants to grow and open stores in cities nearby, thereby offering more people the chance to play in a convenient location. In addition to this he wants to link the locations for tournament play. The values of Bunkers are derived from various sources; some personal experiences and others are derived from other successful business models. The author is a business owner and feels he has created a strong employee culture, high employee retention, sound business practices and he feels these same qualities can carry over to Bunkers. The basic values the firm will use in this business are the same that many use in their daily lives: respect, patients, honesty, and integrity. These values have served the owner well personally and will do the same in any business setting. He has created a successful carpet cleaning business with these values and feels he can build Bunker with the same. The mission of any business is to grow and prosper. Bunkers wants to do the same. The firms mission is to create a place where people can come to meet friends, play, learn and enjoy the game of golf. The company want to create a fun comfortable atmosphere where people of any ability can come to play or learn the game that they love. All too often the owner hears people say they do not want to play golf because it takes too long, they cannot walk that far, they are nervous to spend the money on a round and not like it. Bunkers can change that, There are no long walks, no galleries watching and making them nervous, It is a great place to see if golf is for them, and for those that play and enjoy it it is a great place to play courses once thought to be playable once in a lifetime. There is something for everyone young, old, high handicapper or low handicapper; there is a course for anyone. The SWOTT analysis forced the owner to take a good honest look at the business. He was a little intimidated in the beginning, but soon found it to be a valuable part of the strategic plan. After completing the analysis he was even more excited to continue the process and change the weakness to strengths in an effort to build the best most efficient business possible. Bunkers is dedicated to providing quality, safety and fun in a controlled atmospheres. By following the SWOTT and the Balanced Scorecard Bunkers can avoid some of the pitfalls of opening and operating a ground up business. The SWOTT is a necessary tool and should be utilized by the management team of Bunkers Indoor Golf Center. Golf is a great game enjoyed by millions of people and Bunkers want to bring the fun to everyone year around.

Strategies Used by Rite Aid Pharmacy Essays

Strategies Used by Rite Aid Pharmacy Essays Strategies Used by Rite Aid Pharmacy Paper Strategies Used by Rite Aid Pharmacy Paper On the second day of the conference, Samson valued her dream of a new store model that was aligned with health wellness and makes the pharmacy the star of the store. Rite Aid had a new marketing theme, With us. Its Personal, This consisted of a more welcoming corner entrance In the store as well as change to the exterior of the store to look warmer and Included a covered drive through pharmacy. The Interior of the pharmacy was to Include wider aisles and nicer waiting areas for customers. At the end of the conference, Samson reiterated Rite Aids six goals: Marketing, merchandising and ammunitions programs supporting Its Neal ; wellness positioning; Hilling, training and retaining quality store associates; Optimizing the chains infrastructure; Unveiling a new store prototype; Rationalizing the store base; and, Pursuing growth opportunities (Long 2004). Rite Aid continues to value the importance of customer service and puts programs in place to stress the importance of greeting customers and assisting them with their purchases. Rite Aid recently implemented new technology to help employees perform tasks faster and easier which will give them ore time to focus on the customer. In 2012, Rite Aid increased the amount of money they spend on training their employees on their customer service skills. (Rite Aid 2012) Another strategic action that Rite Aid has taken to execute its strategy is the consistency of their training to their employees. Rite Aid created the Rite Aid University to bring their entire employee training in one area and under one rooftop make sure that what they are teaching their employees is staying consistent over time. The Rite Aid University has over 75 different training programs from employee management and time management to being taught to use the pharmacy automated dispensing system. (DEER 1998) By keeping their employees training consistent and investing in the newest technology, Rite Aid is taking steps to maintain a cost leadership strategy. Another strategic step Rite Aid has taken is implementing the wellness + loyalty program in 2010. This is a free program for customers that provide incentives to members who enroll based on how many points they accumulate for prescription purchases. You are able to achieve a Fold, Silver and Bronze level in this program. Rite Aid stated that those involved in the wellness + have higher purchases than their non-member customers and they also achieve larger prescription retentions. Wellness + members can also able to receive more rewards and additional savings for future shopping trips. Rite Aid continues to add more enhancements to this program making it more appealing to their customers. They recently added Loader which is a coupon management program and Rite Aid is the first drug retailer to implement this program. This allows customers to save, manage and redeem Rite Aid and manufacturer coupons available throughout he internet via their wellness + card (Rite Aid 2012). Rite Aid has also formed a strategic alliance with NC under which they have opened over 2,100 NC stores- within-Rite Aid-stores NC is a leading nationwide retailer of vitamin and mineral supplements, personal care, fitness and other health-related products. (Rite Aid 2012) Customer Service is the main target for Rite Aid along with technology. Rite Aid stores have implemented a common information system. This new system allows customers to fill and refill their prescriptions in any Rite Aid store throughout the country. Also, customers are now able to order prescription refills over the Internet through www. Irritated. Com or over the phone and they have also added a mobile phone app that gives them the same options as their online website. Rite Aid continues to enhance their technology to better serve their customers. (Rite Aid 2012) All of these steps that Rite Aid has taken are critical to the companys success and helps to keep them on the path of a cost leadership company. Rite Aids strategic alliance with NC, their wellness+ loyalty program and their common information system and new technology could possibly be sources of temporary or sustainable nominative advantage. To evaluate whether they have a sustainable competitive advantage we must use the BRIO framework. First we will we evaluate Rite Aids strategic alliance with NC. We ask ourselves if the alliance is valuable. Meaning, Do resources and capabilities enable a firm to exploit an external opportunity or neutralize an external threat? I believe the answer to this question is yes. Next, we ask ourselves if this alliance is rare, is It currently controlled by only a small number of competing firms? The answer to this question would also be yes. Regarding the question of immutability, do firms without a resource face a cost disadvantage in obtaining or developing it? Yes. Lastly we ask ourselves if a firm is organized enough to exploit the full competitive potential of its resources and capabil ities. I believe that Rite Aid is able to exploit the potential of this strategic alliance. Therefore, Rite Aids strategic alliance with NC is a source of sustainable competitive advantage. (Barney Westerly, 2012). Next, we will evaluate Rite Aids wellness+ loyalty program. I believe this program to be very valuable but due to the brand loyalty. I also believe that this program is rare. Although, Walgreen has a similar program not many other drug retailers currently have a program this beneficial to their customers. Although this program is valuable and rare, I do not believe it would be costly to imitate. Therefore, Rite Aid only has a temporary competitive advantage over its competitors. Rite Aid also incorporates new technology in their stores. They currently have a common information system as well as smart phone applications and online filling and refilling of prescriptions. I believe their use of technology is ere valuable. Most people now prefer to use the internet and their phones for tasks such as these. It is a convenience to customers who do not want to have to go into the store to deal with their prescriptions. Although this is very valuable in the society we live in now, it is not very rare. Many drug retailers are pursuing and currently have the same technology that Rite Aid does. Because of this, Rite Aid only has competitive parity. Rite Aid and Environment Based on my research of Rite Aid, I do believe that the companys strategies and abilities fit within the drug retailer industry environment. Although many strategies they are pursuing are also being pursued by their top competitors, Walgreen and C.V., they are maintaining competitive parity within the industry. These strategies include their development of technology through managing prescriptions online and smart phone applications. Rite Aids main focus is their customer service and they are able to build brand loyalty through their wellness + program. Although Walgreen NAS a salary program, IT Relate AI Is addle to craw In customers to use their program instead then they will build that loyalty with their customers and have the ability to keep them returning for future purchases. In the industry analysis, my group concluded that the drug retailer industry average level of anticipated performance is high due to the Porter five forces model showing that the risk of entry by possible new customers is moderate because the four barriers to entry are somewhat established. The intensity of rivalry within the industry is moderate. Although product differentiation being low increases the threat of rivalry here are millions of people who need drugs so this reduces the threat. The bargaining power of buyers is moderate, as is the bargaining power of suppliers and the threat of substitutes is very high because of general merchandise stores, supermarkets and superstores. Although Rite Aid is not the industry leader in this industry, I believe that they are positioned to keep growing within this industry. I feel that their strategic alliance with NC, who is a well-known nation-wide retailer, will help them continue to grow as well as their continuing use of technology, their ointment to customer satisfaction and their consistency in employee training.