Competition and Market Analysis for Red Bull

Competition and Market Analysis for Red Bull This paper investigates the competition analysis of Red Bull energy drink in the market and deciding about its competitive advantage if there is any. Some information about the energy drink market in general is presented. This is followed by product, company background and history is presented. Then we analyzed Red Bulls brand positioning and direct competitors. Afterward, analyze and classify the features of Red Bull through macro and micro factors to determine the strength of competition. This followed by looking at Red Bulls marketing mix. We will identify the problems and opportunities of Red Bull. For that part we are going to search for data about market segments and market share of Red Bull and its competitors. To support all this we are going to make a local market quantitative survey in the city of Abu Dhabi using a questionnaire targeting youth aged 18-34. The Market When looking into Energy drinks market, we can notice a doubling increase since they were first introduced into the United States and Europe. The current U.S. domestic market may be around $4 billion and is expected to reach an estimated US $15 billion by 2011. The reasons for the increasing demand for energy drinks are attributed to consumers concerns about time stress to keep balance between work-life and private life. Consequently the market is bombarded with many new energy drinks, with strange names and claims of a higher energy increase compared to the prior brands to find their way in the market. There are, however, a few major energy drinks that control most of the market and do not have too much amounts of caffeine. In addition to caffeine, a range of other energetic ingredients as taurin, Guarana, and B vitamins are added into energy drinks to make them more effective. New probable developments are geared toward increasing the health functionality of energy drinks which will increase market approval due to a growing society obsessed by health. The Energy drink market is not only limited to products or brands competing with each other but it also includes the whole non alcoholic drink market. Many outside factors have influenced the demand for this market such as the increasing attractiveness of health lifestyles and sports club membership. -Company and Product Review Red Bull is classified as a soft drink. It is a non alcoholic stimulus drink with an absolutely exclusive formulation consisting of  two natural substances and important metabolic transmitters such as, amino acid, taurin and glucuronolacton in addition to stimulating caffeine, vitamins and carbohydrates. It gives stimulation and revitalizes the body after effort and activates the human performance both mentally and physically. The industry is capital-intensive: average annual profits per production worker are about $700,000. History of Red Bull market expansion In 1982, Dietrich Mateschitz, originator of Red Bull and Chalerm Yoovidhya, decided to enter the market of energy drink which was controlled by Japan and Thailand at that time. In 1987, the product was first introduced to Austria which was a difficult market for Red Bull to carry on. Shortly Mateschitz developed a marketing strategy and as a result the product became well known in Austria and extended into Hungry and the rest of Germany. After that Red Bull has been successfully recognized world-wide and has reached a market leader position in 20 countries- in Europe, Asia and the USA. By 1997, Red Bulls buzz marketing strategy proved successful in the U.S. The following timeline shows the expansion of Red Bull in the market.  [1]   Date Market Expansion 1987 Austria 3.5. (not mature market) 1994 UK, Germany and Eastern Europe 3.6. 1997 US and South Africa 3.5. 3.6. 2006 Japan 3.7. (very mature market) When Mateschitz realized that a great sporting event could be useful, Red Bull started sponsoring about 500 extreme sports athletes and hosting stylish parties. Events are now hosted by Red Bull throughout the world such as the Xgames and the Red Bull Air Races and thus their tagline, gives you wings is known worldwide. Product Review The following table sums up the product review  [2]   Cost $2.00 Cost Per Ounce $0.25 Active Red Bull Ingredients Caffeine, Taurine, B-Vitamins, Sugar Taste Rating 7.5 Kick Rating: 8.0 Final Judgment Rating: 9 Its the original energy drink! Red Bulls mission is to stretch their wings over the world. It is a short phrase that communicates vivid information about the brand. This slogan which is used in all Red Bull campaigns worldwide is creating strong brand awareness of the product and is connecting between the brand and the product type. They are expanding rapidly into global market. They are keen on keeping Red Bull values, while maintaining the control position in the energy drinks category by delivering better-quality customer service in a highly experienced and commercial manner. Direct Competitors Although Red Bull still maintains a dominant position in many significant markets, it is no longer the only player. The major challenge to Red Bulls leading position has come from US-based imitators: Monster, Rockstar and Full Throttle which have introduced price competition to the segment and this is possible to have become more and more important during the depression periods. Monster energy drink does its best to be like Red Bull. The taste is similar, the ingredients are identical, and they target the male/18-25 demographic. Though, they do have one different advantage over Red Bullquantity. The Monster energy drink comes in a 16 oz. can, whereas Red Bull only offers 8.3 oz cans. So, youre essentially getting twice the product at the same price ($2 per can) Rockstar competitive energy drink whose motto is party like a Rockstar, targeted at the younger consumers who want to be wild and crazy and spend all night dancing. There are a number of flavors of Rockstar cola, energy drink, and juiced. The energy drink is similar in taste to all the others, whereas the cola product has the best taste. The juiced version is said to be 70% real fruit juice and 100% energy. They were the first to use the 16oz larger size, and this has fixed and become the standard. Only Red Bull continues to market the smaller cans, which is part of their image. Full Throttle is manufactured and owned by Coca Cola, just like their Coke Blak mixture of coffee/cola drink. Full Throttle energy drink is marketed as a rebellious drink, with erupting flames on the can. An 8 oz. serving has 110 calories (comes in a 16 oz can) and 29g of sugar. It also includes things like ginseng extract and plenty of caffeine. Full Throttle comes with a citrus taste and a red can. Full Throttle was first introduced to the market in 2005. It is targeted at 20-30 year old men, and contains Taurine like Red Bull. From the above stated information we can find that: 1-Monster is similar to Red bull in taste, but only targets males. It has two advantages over RB in price and quantity which is double size of RB. 2- Rockstar is double the size and Price as it is 1.99$ so it is cheaper than RB. 3-Full Throttle has the same taste and ingredients as RB, but it has advantage of quantity and price There are also other industries where Red Bull GmbH  competes such as sports, leisure and recreation. The Brand Positioning In spite of the competition, Red Bull resembles a new type of drinks called the energy drinks. In this new market sector Red Bull has a branding as a top border brand product. The brand positioning of Red Bull comes from the benefits of the product and the brand image. The positioning message of Red Bull is Red Bull vitalizes Body and Mind. This positioning idea has become the unique brand personality of Red Bull, which can be explained below. Sarcastic Self confident Intelligent Innovative Humorous, charming Individualist Impulsive It can be assumed that the positioning idea of Red Bull has created the best energy drink status among the target market. It is also clear that customers appear to be attracted to the general appearance and brand of Red Bull. The positioning strategy of Red Bull aims at best product, top price and top profitability. As for the price, Red Bull has a position in which it can command a best price because there is nothing to compare it with. It is an exclusive useful drink, promising and offering benefits that cannot be offered by any other drink. Threats of new entrants The most significant development in the market of energy drinks and the main direct competitor to Red Bull is the new product from Coca Cola, Relentless. It is also cheaper because it is sold in can double the size of Red Bull but the same price. -First-mover advantage has disappeared as the market has matured. Red Bull is the giant of the stimulant drink industry, in comparison to Coca Cola and Pepsi in the cola market. Red bull has achieved economic level which would allow them to be the most competitive price in the market. Although there is a price gap between Red Bull and other cheaper energy drinks, it seems that Red Bull has surmounted the position segment of the market due to its marketing strategy which is considered a huge barrier to entry. Red bull has a strong brand power that impresses loyal customers and consequently they can charge high prices even when competition comes from Coca Cola. Analysis of Macro and Micro factors affecting the attractiveness of Red Bull in the market Macro factors Political and Legal Forces When Red Bull was first introduced into the market as a new non-alcoholic drink labeled with a new idea as an energy drink, the Health Organisation was doubtful that Red Bull could be an appetizer medicine. Rumors saying that Red Bull contains ingredients like bulls galls, added to their doubts. But confidence in the product increased due to the fact that Red Bull has been used in the Australian market for 9 years and in the Asian market for 30 years without any registered complaints. Moreover a study conducted by an independent institute (ISME) in 1998 proved that although Red Bull has stimulating effects like caffeine, it does not lead to addiction. On the other hand Red Bull still needs approval from each country to be sold. This procedure is time consuming and consequently costly. Some countries still have suspicions about Red Bull. According to msnbc.com in May, 2009, Six German states have asked retailers to stop selling Red Bull Cola energy drinks after a test found a trace amount of cocaine. However authorities say the drug level was too low to cause a health risk. Countries such as Denmark, Norway, and France have banned the sale of Red Bull. This means that legal factors have a high negative effect on RB Economical Factors Red Bull is hardly affected by economic periods of expansion and contraction because it is a particular drink, serving a niche market. Red Bull target market includes sportsmen/women as well as hard working people. The main consumers of the product are Athletes, night clubbers, shift workers, executives and long-distance drivers. Despite the availability of few substitutes, the sales of Red Bull are increasing through their well positioned advertisements. This factor has low influence on RB. Socio-Cultural Factors When the product was first introduced people had doubts about the product and nobody wanted to try it. But now due to change of peoples lifestyle, people are now much more open for new experiences. In addition they are confident to try it, because any health concerns were cleared by organisations like the ISME. The consumers are male and females regardless of age who are very sporty or work very hard. Longer working hours as well as increased road traffic led to more need for energy boost. Nowadays Red Bull has a very stylish image and is sold in a lot of supermarkets and clubs (See the graph which illustrates the categories of males and females consumers)  [3]   Technological factors Red Bull is totally manufactured in Austria where it is exported to 28 countries. There are two reasons why it is not manufactured in any other country; first, to guarantee taste reliability and to make sure that Red Bull tastes the same all over the world. Secondly in that way the formula will be kept securely in one place. Red Bull is normally produced in 250ml cans, but glass bottles are an alternative jus in case they do not have enough cans as it once happened. Energy drink Red Bull, uses electronic points of sale (EPOS) data. This system allows customers research team to check the distribution of Red Bull. This system points out the gaps that can be returned to the retailers. Environmental factors Red bulls cans are environmentally friendly because they are made of recyclable aluminum. Glass bottles can also be recycled and therefore do not damage the environment either. This might give the product a competitive advantage when rules become stricter and more equal throughout Europe as well as in the rest of the world. http://researchwikis.com/Energy_Drinks_Market Micro Factors 6.1 Bargaining Power of Buyers: Top 4 Energy Drinks by 2010 Market Share Rank Energy Drink Parent Company Market Share 1 Red Bull Privately Held 42.6% 2 Monster Hansen Natural 14.4% 3 Rockstar Privately Held 11.4% 4 Full Throttle Coca-Cola Company(KO) 6.9% By working out the concentration ratio of the 4 top energy drinks brands as seen in the above table it will be possible to come to the relative size of the products in relation to the industry as a whole and to determine the market form of the industry. By using the four-firm concentration ratio we find that it is 75.3% which is high, and is bordering between oligopoly and monopoly, In this concentrated market the customers dont have high bargaining power which enables Red Bull to position high prices. Moreover, other products may find it difficult to compete with the brand loyalty due to the huge advertising spending of Red Bull. Consumers in energy drink market are not actually aware of price because they are Consumer with high income and buy it when it is required to regenerate their energy after a long day of hard work. The relationship between the manufacturer and retailer has developed along the market lifecycle resulting in swing of power. The fame of energy drinks has created a market pull where retailers have no real bargaining place. The extent of bargaining power differs according to the distribution channel. Bargaining Power of Suppliers: Red Bull production process is to some extent simple therefore the power of the suppliers is apparently rather low. The added value at each stage leads to large profits. Suppliers can only enter energy drink market through the brand-owner, thus the balance of power is in the favour of the brand owner. -Threats of substitute products Red Bull is a fast moving consumer product and, consequently, it mainly depends on desire purchasing. Although price sensitivity is a low factor inside the target segments, handiness is the average purchase criteria. Red Bull has successfully created a position where product substitution threats are low due to the brand power and customer loyalty. On the other hand, there are other products substituting the need for caffeinated drinks with less sugar and a better blend of carbohydrates and protein that give a greater energy enhancement. Also drinking plenty of fluids, such as water and herbal tea are useful. The market is full of better alternatives than relying on expensive energy drinks that only give you a momentary feeling of energy. The Marketing Mix Strategy Red Bull has its own marketing which is different from the Marketing Mix Theory based on the 4 P ´s. Red Bulls own  Marketing Mix Strategy is consisting of [ 1] the mediaadvertising category, [2] sports-and event sponsoring and [3] sampling. In 2008, Red Bull spent on marketing approximately more than 1 million$ which equals 30% of its revenue. Media Advertising Red Bull uses all the available media channels such as cinema, TV, radio, press and the internet in order to reach its main target market-young people. Thus they successfully advertise in TV shows like T.F.I. Friday and in magazines like Time Out and mens health. By doing so, they let the consumers understand the product and decide about the moments they can use it themselves. Red Bull realizes this by an amusing and humorous cartoon campaign, through which they easily send the message that this energy drink helps you to escape by giving you wings. The idea of communicating with the consumer in the form of a simple cartoon makes the people enjoy the campaigns and at the same time remember the brands name and the message it delivers. Sports-and Event-Sponsoring The company also uses sponsoring in their marketing mix strategy. Red Bull does event sponsoring either by creating its own events (i.e. Red Bull Music Academy .) or by promoting other events (i.e. Speed Ski World Championship). This strategy means that Red Bull brand appears in the form of logos and stickers and that the product  ´s target market is accurately defined. The image, the reliability and the visibility of the product are supported by sponsoring specific events where the peoples attention is drawn to the product. Red Bull sponsors the athlete target market where Red Bull is always needed in extreme sports such as free climbing and motorsports and fun sports as well. Sampling Sampling is another very important part of their three component -marketing system. The methods used are well tested and proven in other markets. The main purpose of Red Bull is to boost the company samples at the right place and at the right time by finding its precise target market such as driving, studying, working night shifts and sports. Sampling is conducted in a charming way by extremely motivated and cultured employees of Red Bull. All their equipment is the product, a free range of clothes and a small, but very attractive sampling car. Red Bull is following the basic sampling rules consisting of: never force the product always explain the benefits of the product drink always a full can ( 250 ml) It must always be cooled being cautious about whom are sampling the product Surveying the local market To have some information about Red Bulls brand image and how the people see it, we made a questionnaire of 3 sections including 13questions. The survey targeted males and females whose age is between 18-34 living in or near Abu Dhabi. 22 % of the respondents are females, whereas 78 % are males. We used Emails to send and collect back the questionnaires. Significant findings The energy drinks market proposes the following drinks: Red Bull, on top then come power Horse, and Monster, The best known beverage is in the city of Abu Dhabi and avenues, is Red Bull as 88 % of the respondents have tasted it and the majority of these people find it good (41 %). The other data have no significance. The most common consumption rate for energy drinks is occasional: 80 % drink occasionally drink and 20 % frequently. With relation to Red Bull, which of the following is important to your purchase?     For 58 % of the people, find the physical boost is important. 36.4 % of the total respondents are influenced to buy Red Bull because it is sponsored by athletes and some related it to formula 1.the taste of the beverage is an extremely important criterion. The smell and the energizing properties are very important (with respectively 45 % and 42 %). The design of the can does not influence so many consumers: 9.1%  buy the drink because of the design. Where do you buy Red Bull? 80% present of the respondents buy it from supermarkets whereas 20% buy it from fending machines at petrol stations. What is the first word that springs to mind when you hear the words Red Bull? 60% said superman, 30% wrote formula1, and 10% said flying in the air Which tag line, if any, do you most associate with Red Bull? 70% chose Brain and body energy, whereas 30%chose Gives you wings Which sports do you most associate with Red Bull? 55% Formula1 and 25 % said motorbikes, 10%responded Golf and 10% chose Athletic 90% described Red Bull as the best energy drink in the market and 10% finds it suitable for their lifestyle Result People dont buy Energy drinks because they really need it but because this need is created by the manufacturer. It is the big advertising campaign which has convinced people to accept this product. Red Bull has been the first energy drink in the market. Red Bulls target is people who need energy and concentration such as sportsmen and students. For that reason, the company sponsors numerous sports events: Formula 1, Xtreme competition. Red bull gives you wings. It is the famous slogan that makes consumers think that Red Bull gives more energy than usual. The result is that the Red Bull has quickly got success by young people. Red Bull keeps on marketing by this young generation. more Conclusion When Red Bull was first introduced, it was easily imitated because the ingredients were printed on the can and the product was not patented. Although the taste of Red Bull did not do well in taste tests, it succeeded due to the marketing strategy. It can be said that Red Bull was not only the first energy drink to be in competition with soft drinks but also created the new energy drink type in the majority of markets. After Red Bull hit the market in the late 90s till the present, many other companies entered the energy drink market but unable to compete with it. Red Bulls has approximately 100 major competitors and the main competitors are Monster, Rock Star and Full Throttle. Many substitute products have been introduced and categorized as energy drinks such as Iceà ¢Ã¢â€š ¬Ã‚ T creating an energy drink called Liquid Ice, Nellys Pimp Juice and Lil Johns, Crunk Juice. Although these competitors are present in the market no other energy drink could maintain Red Bulls 70à ¢Ã¢â€š ¬Ã‚  90% of the market share it has in over 100 countries all over the world. Problems and Opportunities: Problems: Red Bull is not a patented drink product, therefore anyone is able to choose a can, read the ingredients on the label and start their own business. That is why the market is flooded by competition. In addition, Red Bull as well as all other energy drinks and supplements, have received negative reports from a medical point of view. Elevated amounts of caffeine and sugar can lead to adverse effects on heart and blood pressure. Opportunities: Red Bull is one of the most popular energy drinks in the world. They earned this position by intelligent, consistent marketing strategy. Red Bull has the opportunity to maintain their position and develop a continuing pace to aim their niche target consumers by seriously using untraditional and traditional marketing strategies. Red Bull has a competitive advantage over its competitors As we have seen Red Bull is an international energy drink that is sold by Red Bull GmbH. In 2006, more than 3 billion cans were sold in more than 130 countries. -Red Bull has a continual international marketing strategy by sponsoring a variety of great sports to promote a cool public image and enhance brand power. -The product has remained the top energy drink throughout its growth due its effective marketing strategy. The product speaks for itself and its consumers do not report any complaints despite of negative publicity Red Bull has developed a sugar free option. -Red bull has this competitive advantage not only because other drinks that follow it are not as appealing in packaging, marketing, but also because Red Bull is aware of their marketing challenges and they are continually changing and developing their marketing philosophy to overcome and avoid possible competitors. Red Bull Consumer Questionnaire This questionnaire is all about Red Bulls consumers and targets males and females between 18 and 34 years old and based in the Abu Dhabi. Section 1(background) Please specify your age group by putting an x in the box that applies to you. 18-21 22-25 26-29 30-34 2) Where do you live? Please specify closest town/city. Abu Dhabi   Shahama Shamkha   Bani Yass Samha 3) What is your gender? M/F Please specify. Section 2( Loyalty) 1) Are you familiar with the Red Bull brand? Yes/No Please enter in the box. If your answer is no then please do not go past question 3 of this section and I thank you for your time. 2) Which of these drinks are you most aware of? Please rank your top three 1 being youre most aware and put an x beside any others you are aware of. Monster Rockstar Red Bull Power Horse Full Throttle Others please state 3) Which of these drinks would you buy, if applicable? Please rank your top three 1 being your first choice Rockstar Red Bull Power horse Full Throttle Others please state 4- With relation to Red Bull, which of the following is important to your purchase? Please rank each option by putting a circle around the appropriate number. Important Un-important Taste 1 A Hydration 1 B Physical Boost 1 C Mental Stimulant 1 D Sponsored Athletes 1 E Price 1 F Availability 1 G Image 1 H Can shape, colours and size 1 I Association with Extreme Sports 1 J Others please stateà ¢Ã¢â€š ¬Ã‚ ¦ and rank 1 5) Where do you buy Red Bull? Please underline all that apply. Wholesaler Supermarket Independent Retailer Vending Machine Restaurant Hotel Other please state : Section 3 Brand Image 1) What is the first word that springs to mind when you hear the words Red Bull? Please specify your word in the box. 2) Which tag line, if any, do you most associate with Red Bull? Please choose a tag line by underlining it Stimulation for body and mind Brain and body energy   Gives you wings   Your sport, our science 3) Which sports do you most associate with Red Bull? Please rank the sports 1-5 with which you most associate Red Bull. 1 being the highest Please also put an x beside any other sports you associate with Red Bull. Golf Formula 1 Skiing/Snowboarding Mountain biking Athletics Cricket Surfing Motorbikes Skateboarding Obscure Extreme Sports 4) Which sports do you partake in regularly? Please list in the box provided. 5) Does any Red Bull advert stand out in your mind? If so please describe the advert in the box provided. 6) Please try to describe Red Bulls packaging. Please describe any colours and/or emblems in the box provided. 7) How would you rate Red Bulls image? Please rank your option by circling the appropriate number. Cool Un-cool 1 2 3 4 5 8) Which of the following statements if applicable best describes why you buy Red Bull? Please make your selection by underlining the appropriate statement. a) Red Bull fits my lifestyle choice. b) Red Bull has an image Id like to be associated with. It provides me with a welcome energy boost. c) It gets my mind in gear. d) It provides good value against the competition. e) Its the best energy drink on the market. f) It tastes good on its own or as a mixer.

I Prefer to Live in Big Cities Than in Small Towns

I Prefer to Live in Big Cities than in Small-towns In English, there is a well-known fairy story about a poor country boy, Dick Whittington, who goes to London because he believes that the streets of that city are â€Å"paved with gold†. The story is a tale of â€Å"from rags to riches†. Dick eventually becomes the Lord Mayor of London. Like the hero of that story, I love to take adventure in the cities. I grew up in a small town and then moved to a big city, so I have experienced the good and bad sides of both. I never thought that I would like living in a big city, but I was wrong.Cities contain a great assortment of people. Whenever I walk around a shopping precinct at midday on a weekend, I am fascinated by all the different types of people hurrying around the shops. Sometimes, I just sit on a public bench and simply watch the variegated streams of shoppers. Today, in the age of globe-trotting transport and communications, city life is more mixed than it has ever be en. Capital cities are not cosmopolitan, and eager to attract foreign trade currency. There is a contemporary English joke which tells that â€Å"you can never find an Englishman in London†.The United States is made up of people of different races, religions, abilities, and interests. However, you seldom find such a variety of people in a smaller town. I think that living in an area where everyone was just like me would quickly become boring. Whether rightly or wrongly, I love the excitement of big cities. Small towns have a slow pace. Large cities mean you have to adapt to a variety of situations, like finding a new route to work or trying a new restaurant. I enjoy that challenge very much. Another pan of the excitement of city living is the variety of cultural activities available.There is a wide assortment of theatre, music and dance performances available in big cities. These things are rare in small ones. Governments and local authorities usually build public amenities i n the big cities. Money is invested in transport, libraries, parks and museums. Often, countries will compete with each other for the best â€Å"show-case† building. Malaysia has built a skyscraper that is taller than is anything in New York. In large countries, region will compete against region: New York against Chicago, Shanghai against Hong Kong and Beijing. All of this is good for the citizen.The magic of the Dick Whittington story is rekindled in me when I enter a library in a magnificent building. If a person is at university studying art or music, a large city usually offers galleries and public performances. Even when I was a teenager, I appreciated the worth of living in a city because two or three times a year there was a rock concert by one of my favorite bands. There is one thing I want to talk is small-towns and big cities both have some problems in terms of transportation. In a small town, you have to own a car to ensure a comfortable living.You can't get aroun d without one because there isn't any kind of public transportation. Big cities generally have heavy traffic and expensive parking, but there you have a choice of taking public transportation. It's not free, but it's often cheaper than driving when you consider gas and time. Especially if you don't have a car, you're better off in the city. And of course, security is a concern, and that's one area where small towns are superior to big cities. Still, I would rather be a bit more cautious and live in a large city than to feel secure but bored.

Critique of Sap System - Free Essay Example

Sample details Pages: 3 Words: 981 Downloads: 8 Date added: 2017/09/16 Category Advertising Essay Did you like this example? Critique of SAP system Introduction: SAP ERP is an integrated enterprise resource planning (ERP) software manufactured by SAP AG that targets business software requirements of midsize and large organizations in all industries and sectors. More than 2,300 customers are using the latest version of mySAP ERP. It is a real-time process system which all the users log on the central platform server. There are many sub-functions of SAP including SAP ERP Financials, SAP ERP Human Capital, Management SAP ERP Operations, and SAP ERP Corporate Services. We only focus on the revenue cycle and expenditure cycle of the SAP system which is direct related to the accounting information system. Expenditure cycle: About master records: The expenditure cycle is composed of purchase system and accounts payable system. The creation of material master records and vendor master records makes the purchase system more efficient. While traditional information system has three databases include customer sales A/R (customer database), production scheduling shipping (Manufacturing database) and vendor A/P inventory (Procurement database). Don’t waste time! Our writers will create an original "Critique of Sap System" essay for you Create order SAP systems a common operational database (customer, production, vendor, and inventory). The problem with traditional system is the lack of effective communication between systems is often the result of a fragmented systems design process. On the other hand, SAP systems use a common operational database that supports communications and present the data in a way that meets all user needs. The material master is the main source of material specific data. It is used by all components in the logistics system. By using the master record, we can avoid data redundancy, and use the data in many other functions other than purchasing data for ordering. Those include posting goods movements, managing physical inventory, inventory valuation, and material requirements planning. Also material master is divided into three levels: client level, plant level and storage level. The advantage of this is the company can set which information is valid within specific department. As to vendor master data, all the vendors’ information is recorded and updated. Different department can always have access to synchronous and up-to-date information. But a faulty transported object such as a configuration change or code for an interface can have an effect on other SAP functionality in the production environment. For instance a change to the HR module within payroll can affect functionality in the FI-CO module. A server failure under this model could leave the entire organization unable to process transactions. However, two linked servers can be connected in redundant backup mode. Just like material master records, vendor master records are divided into three levels: General data (Client level), Purchasing data (purchasing organization level), and Accounting data (company code level). After create a vendor master record, it is linked to the appropriate reconciliation account in General Ledger. The control problem can be who has the authorization to access the data warehouse. The organization should establish procedures to oversee the authorization of individuals at customer and supplier sites that will be granted access to their data warehouse. Unauthorized access of Material Mater records and Vendor master records can lead to the entire expenditure cycle break down. About purchase requisition: When inventory is below a certain level, the SAP system can generate a requisition automatically when predetermined recorder levels are reached. The problem is the goods may be requisitioned for unauthorized purposes. It will be better if purchase requisitions are prenumbered (instead of get a number after creating a Purchase requisition) within each originating department as a control over outstanding requisition to ensure that goods requisition are duly ordered and received. For purchase other than inventory replenishment, requisition authority is granted to specific people. This authority should usually restricted to the value and types of goods and services applicable to the person’s function and level of authority. Special procedures usually apply for requisition plant and equipment or for entering into lease contracts. About purchase order: In SAP, purchase orders can be created with or without reference to a purchase requisition or a RFQ. That increase the risk of purchases made for unauthorized purposes. We can reset the system that except for programmed inventory replenishment, the purchase department issue purchase orders only on the receipt of requisitions properly approved by an employee who has appropriate requisitioning authority. We can also improve the efficiency of the system by centralization of purchasing in a specialized department. The purchase department is better able to negotiate more favorable terms and prices and, by amalgamating orders, can obtain better volume discounts. About receiving: In receiving goods, SAP can suggest data from the purchase order when the goods receipt is entered in the system. That’s the same effect as the blind copy of PO, it is more efficient because the system can tell the receiving department the right amount immediately. But compare with manual process, the SAP system often eliminates the segregation of duties. However, SAP is the best ERP system to help resolve the segregation of duties problem, which is a basic, key internal control. SAP currently provides more than 150 predefined user roles, which act to limit a user’s access to only certain functions and associated data. When the user logs onto the system, a role-based menu appears on the functions of limiting the user to the specified task. When an invoice is entered in the system with reference to a purchase order, the system suggests data from the purchase order and the goods receipt. If there are any discrepancies between order or goods receipt and the invoice, the system warns the users, and blocks the invoice for payment. But sometimes the discrepancies results from mistakes in goods receipt. That would delay the payment too the vendor. So it will be better if the organization set some manual reviews here. When a discrepancy occurs, the special authorized staff investigates the PO, inventory report from warehouse, and the goods receipt report, and defines the mistake as soon as possible.

Essay about The National Labor Relations Board - 1373 Words

The ability for the federal government to regulate businesses’ activity is given in the Constitution. Article 1, Section 8 is known as the commerce clause; it states, â€Å"Congress shall have the Power†¦to regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes† (Reed, 173). Through the commerce clause, the government is able to regulate business activity by the use of administrative agencies, which is defined as â€Å"a governmental regulatory body that controls and supervises a particular activity or area of public interest and administers and enforces a particular body of law related to that activity or interest† (Administrative Agency, 1). There are two types of regulatory authority that agencies may†¦show more content†¦(Reed, 630) To properly examine the NLRB it is imperative to understand how it is organized. The NLRB â€Å"has five members and primarily acts as a quasi-judicial body in deciding cases on the basis of formal records in administrative proceedings. Board Members are appointed by the President to 5-year terms, with Senate consent, the term of one Member expiring each year† (NLRB.gov). In addition to the board members there is a General Counsel, which is appointed by the President to a 4-year term and is independent from the board. The person appointed to the position of General Counsel is responsible for the investigation and prosecution of unfair labor practice cases and for the general supervision of the NLRB field offices in the processing of cases. (NLRB.gov) The NLRB also has a Division of Judges, which is made up of 40 Administrative Law Judges who hear, settle and decide unfair labor practice cases throughout the United States. Next, it is important to understand what the NLRB does and does not have jurisdiction over. The NLRB does not have jurisdiction over 6 types of labors: (1) governmental employees, (2) persons covered by the Railway Act, (3) independent contractors, (4) agricultural laborers, (5) household/domestic workers, and (6) employees who work for their spouse or parents (Reed, 631). Technically the NLRB has jurisdiction over everything else; however, the NLRB has a limited budget as well as time constraints and so must limitShow MoreRelatedThe National Labor Relations Board Essay1790 Words   |  8 PagesAbstract The recent decision made by the National Labor Relations Board granted collective bargaining rights to graduate student workers and researchers. The focus on the decision was primarily based on the wording or a statutory employee as defined in Section (2)3 of the National Labor Relations Act and ultimately the reversal of the 2004 Brown University decision against the groups legitimate reasoning and desire to unionize. University administrators were against student worker unionization andRead MoreNlrb On Behalf Of Mrs. Dawn Vs. American Medical Response Of Connecticut Company Essay881 Words   |  4 Pagesan alternative response to mistreatment at place of work. As indicated in the National Labor Relations Board website, a concerted activity â€Å"requires two or more employees acting together to improve wages or working conditions, but the action of a single employee may be considered concerted if he or she involves co-workers before acting, or acts on behalf of others† (National Labor Relations Board, 2010). In relation to the above argument, it is clear that the activity of Dawn on facebook was concertedRead MoreThe Law Of The United States1512 Words   |  7 Pagesor the legally unsupported Brown University case, decided by one of the most conservative Boards in recent history, held, â€Å"as a matter of policy,† that graduate student workers were students and, and, therefore, could not be employees as defined by the NLRA. Republic Steel, Dannin, supra note 44 at 260–63. Id. See Consol. Edison Co. v. NLRB, 305 U.S. 197, 220 (1938) (holding that the power of the Board to punish an employer who violates the NLRA is â€Å"remedial, not punitive.†); Republic Steel CorpRead MoreNlrb On Behalf Of Mrs. Dawnmarie Vs. American Medical Response Of Connecticut Company Essay881 Words   |  4 Pagesan alternative response to mistreatment at place of work. As indicated in the National Labor Relations Board website, a concerted activity â€Å"requires two or more employees acting together to improve wages or working conditions, but the action of a single employee may be considered concerted if he or she involves co-workers before acting, or acts on behalf of others† (National Labor Relations Board, 2010). In relation to the above argument, it is clear that the activity of Dawnmarie on facebook wasRead MoreHistory Of Labor And Employment Laws1356 Words   |  6 PagesINTRODUCTION In the history of labor and employment laws in the United States of America, things had drastically varies from years to years. The law of slavery, which governed many American workers until 1865, is covered in a separate entry of laws. Beginning with the 1880s, there was a courts development to control workers injunction with the labor relationship, unlike before the American Revolution when there was no field of labor or employment law. The Revolution brought out powerful independentRead MoreThe Role Of The National Labor Relations Act842 Words   |  4 PagesThe National Labor Relations Board (NLRB) is a federal government agency, founded by Congress in 1935 (Galiatsos, 2015). The primary responsibility of the NLRB is to administer the National Labor Relations Act (NLRA). However, the NLRB takes action to safeguard employees right to organize, and to decide whether to have unions serve as their bargaining representative, with their employer (Galiatsos, 2015). The agency also a cts to prevent and remedy unfair labor practices that are committed byRead MoreA Social Media Policy724 Words   |  3 Pagessocial media. The governmental policies revolve around the Constitutional right of the First Amendment and the freedom of speech. While this provides some protection for employees there are limitations and exclusions that resulted in the National Labor Relations Board stepping in and providing opinions for the legality of employer disciplinary actions regarding social media content and participation. Freedom of Speech The use of the First Amendment right to the freedom of speech is not applicableRead MoreThe Employment Laws Of The Workplace974 Words   |  4 Pagesuse of electronic recording devices by employees in the workplace will likely be for protected concerted activity and provided by  § 7 of the National Labor Relations Act (NLRA). As mentioned above, in the private workplace, the employer practically has absolute power in limiting the conduct, activity, and rights of employees. A fundamental precept of labor law is that â€Å"working time is for work.† Since audio and video recording, as well as photography have great potential for consuming work-timeRead MoreLabor Laws Unions737 Words   |  3 PagesLabor Laws and Unions HRM/531 Labor Laws and Unions Unions employ labor laws to protect their members from organizations that operate in violation of the National Labor Relations Board. It is imperative that organizations such as Lewis Lambert have a clear understanding of their union contract and the laws set forth by the NLRB. Lewis Lambert Lewis Lambert is Sheet Metal Contracting entity located in Fort Worth, Texas established in 1965 that pridesRead MoreEssay on National Labor Relations Act1296 Words   |  6 PagesHistory The National Labor Relations Act (NLRA), also known as the Wagner Act, was enacted in Congress in 1935 and became one of the most important legacies of the New Deal. Prior to the passage of the NLRA, employers had been free to spy on, interrogate, discipline, discharge, and blacklist union members. Reversing years of federal opposition, the statute guaranteed the right of employees to organize labor unions, to engage in collective bargaining, and to take part in strikes. The act also