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Executive Summary
Captain Kimo and Sam formed a company called Ocean Adventures who were into the Ocean parasailing business. Ocean adventures were located at the Waianae boat harbour which was on the west shore of the Oahu Island. The harbour on the other hand was owned and maintained by the department of transportation harbour’s division, state of the Hawaii. Ocean adventures and Blue Hawaiian Parasail (BHP) both were assisted by the state government to run their businesses by providing concessions and grants to them. Ocean adventures came into existence in the year 1980 by partners Captain Kimo and Sam, only because of the love and passion they had for the sport and the ocean. In the year 1984, OA was able to buy another second hand boat to cater to the growth in business.
Ocean adventure mainly spread its awareness through the medium of advertisements, in which Captain Kimo liked to advertise himself as the brand ambassador for the business. They also gained noticeable amount of customers by Advertisements in magazines and word of mouth publicity. Being the first ones to start this business, OA were also fortunate enough to do business in a completely monopolistic market for many years. When time came to deal with competition they thought more of the short term solutions rather than preparing themselves for the long term ones. Hence, they had to lower their price and they could not gain enough profits even to cover their operating costs.
The first competitor who came forward and challenged the market share of ocean adventures was a former employee, Lynelle. Lynelle saw the loop holes in OA and saw this as an opportunity. She solely started this company because she was aware that even after giving a big discount to customers a good amount of profit can be made. Lynelle was unable to handle the pressure as OA also responded with equally competitive price.
BHP was formed by Edward who first entered into the market with a different product to offer to the customer. His main aim was to cater to the needs of those customers who were quite experienced and wanted longer and higher sailing rides. This went on for 3 years till Edward established himself and saw a potential market in commercial parasailing. He started offering lower prices to the entire market and started to attract the major market share that was of ocean adventures. Further also they provided attracted commissions to its employees as well. BHP used very aggressive and sometimes unethical tactics to attract customers.
Captain Kimo who was the owner of the ocean adventures on the other hand had an experience of 20 years in the parasailing market and had a transactional leadership style. The company came into existence only because captain had a passion about parasailing and also had attained a thorough and deep understanding and knowledge about the market demands. The other hand one thing that annoyed captain Kimo was that his competitor was using illicit and unethical business tactics to steal the customers of ocean adventures.
Therefore ocean adventure also extended a hand of friendship towards BHP so that both the businesses could work together hand in hand with mutual benefits; however this was again an unsuccessful attempt due to lack of trust. Ocean adventure also launch its own company called the Ocean Sail Hawaii, which would offer a brand image at lower prices, in order to cope with the price fluctuations that BHP was causing. This could have worked if they planned it well.
Example: Qantas airlines, Australia was suffering from all the competition by other no frill airlines. Qantas couldn’t afford to reduce prices to that of no frill airlines as they would then suffer losses. Hence, they setup Jetstar to compete with other smaller airlines.
In the case of Ocean Adventures this failed because they used the same boats and the same staff. And hence this move may look misleading to customers.
Saturday, 22 May 2010
Starbucks Coffee Company in the 21st Century
Executive Summary
“If Starbucks is one full text twenty chapters of books just but turn to chapter three for the moment.” commented by Howard Schultz.
Starbucks Coffee was established in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker in Seattle. Since 1982 Howard Schultz became the market and retailing department managers Starbucks had the huge changed at the coffee market. Four years later, he bought the Starbucks.
Since Starbucks Company is listed, the record of the sales amount is improving by 20% annually. Even when economic depression, the state of retail business is very bad, the volume of the flow of passengers of Starbucks cafe still keeps 6% for every year. The more peculiar one is, Starbucks hardly advertises, the enterprise planning of marketing is pitiably little too, the expenses that it uses for the advertisement only accounts for percent of its annual income.
During 1989 to 1999, Starbucks has already opened a lot of branches all over the world, its mispronounced character of green bottom, sea maid who wore crown have already become the person who has liked coffee in the whole world to know very well. Starbucks expands by way of frank camp, not advertising either, but the income exceeds the sum of the stock market incomes of big companies such as Pepsi Cola, coca-cola, Microsoft, etc. Report “vigorous new brand and retailer most” a lot of finance and economics magazine too, the sea maid indicate that swims over to all parts of the world, create the legends of global enterprises.
However, the fail of Starbucks had been seen for the past few years. Due to the rapid extended and ignored its organized systems. At the end of the report, we had listed few suggestions for Starbucks which would feet the next decades and survive with the shock of Chinese Culture.
Table of contents
1. Corporate Mission 4
1.1 Relations of staff 4
1.2 Customer’s relation 4
1.3 Supplier’s relation 4
1.4 Relation of cooperating trader 5
2. Industry structure 5
2.1 Market orientation 5
2.2 The commercial circles chooses 6
2.3 Tactics of site selection 7
2.3.1 Procedure of site selection 7
2.3.2 Site selection standard 8
2.3.3 Feasibility analysis 9
3. SWOT analysis 10
Strengths: 10
Weaknesses 11
Opportunities 11
Threats 12
4. Core competencies and competitive advantage 13
5. Strategy recommendations 19
6. Potential fallout 21
7. Bibliography: 22
1. Corporate Mission
“The relation theory “is Starbucks’ key values; important equally with curing the high-quality coffee bean. Key values of Starbucks run through company business all the time, such key values origin and around on interpersonal “relation“.
The relation assets of Starbucks include four respects:
1.1 Relations of staff
Success of Starbucks benefits from attention in “the relation theory “mainly relationship with staff. Starbucks, no matter which market is entered, all never advertise on the media, and totally rely on the staff to do marketing. The each inter-dynamic between staff and consumer are the greatest decisive factor of Starbucks’ brand impression. The staff will influence consumers’ quality, if the staff has low morale. So use expenditure of advertisement for change welfare and training to use for staff actually Starbucks. Starbucks creates the environment and encourages staff improving oneself, exchange and cooperation still through the valid reward policy. Because all staff has an option, they are called as “the cooperative partner “. Starbucks plans to train loyal staff with “the relations of staff “, and the staff have just served out the highly loyal customer, this is Starbucks real advantage.
1.2 Customer’s relation
As market competition being fierce day by day, the concern about customer’s relation of enterprises intensifies sharply. So Starbucks regards customer’s relation as a kind of assets of the company, has established good “the relation “ and become the strategic core of Starbucks with the customer.
1.3 Supplier’s relation
To any enterprise, the relation with supplier is essential and especially key goods and supplier of the additional service. Starbucks consumes a large number of manpower, material resources, financial resources to develop a supplier, so hope to keep the relation steady in a long-term, it is but not only the simple supervision price to cooperate and control prices actively. As to Starbucks, the supplier is just like the staff; need to cost a lot of fund and training them.
1.4 Relation of cooperating trader
In order to make customers experience the service of Starbucks in more places, besides branch of Starbucks, Starbucks through and airport, bookstore, hotel, department store, etc. whether cooperation come sell products. The assets management of the cooperation of Starbucks still displays in the relation with house owner. Starbucks pays great attention to the relation with owner to manage, is devoted to creating the win-win way of running a shop with the owner together.
2. Industry structure
In the coffee chain trade of the world, Starbucks has become the goal that everybody studies and imitates. Starbucks can have such behavior, benefits from its accurate market orientation, original commercial circles and location of shop to choose the tactics, and design the distinctive shop.
2.1 Market orientation
Starbucks position oneself independent family, work “the third space” beyond being, market of its goal is that one group pays attention to enjoying, lying fallow, advocating the middle class of knowledge, urban white collar.
Correspond with market orientation, Starbucks always appears in the metropolitan flourishing shopping center, it is “the luxury goods which the majority can afford to bear “that its price makes a reservation, inherit” work hard, the value that enjoyed and lived actively” is advocated. Because the coffee drink is its products of main profit, for the commercial ability to guarantee coffee of Starbucks, it has been never disconnected that the glamour that Starbucks is devoted to the main drink is built; this makes it get consumer's more favors than the competitor.
In Starbucks, while people buy coffee who buys a kind of very important things at the same time as well; An experience, a life style.
2.2 The commercial circles chooses
The choice of the commercial circles is concerning the range, level, scale of the shop, number of the cost of investment of cafe consumers, retrieving aspect questions such as the quantity of benefit and branch, etc. Hence Starbucks when selecting where one stays commercial circles, have two plant, click, want it and management variety, price of cafe, fit up scale, grade link up, confirm the place to run a shop; Second, understand with the local conditions and customs and agreeing with of the life style, consider local population parameter and other parameter synthetically, predict, select area a future one expansionary. In addition, will investigate the competition capability of the same trade or business and determine the focal point of management finally.
As to Starbucks, choose to be a key to its rapid development in success of the commercial circles, because people can not often patronize the insufficient or too far cafe of a “the convenience” absolutely, so, Starbucks runs a shop only in the quintessence location of urban area intensively, until letting competitors have no space getting involved at all.
2.3 Tactics of site selection
The place is primary factor managed in coffee chain store. Selecting site correctly of the chain store, not only it’s prerequisite to success, but also realize standardization of chain operation, simplifies, specialized precondition and foundation. Starbucks can obtain so brilliant achievement; can not separate instead of the successful site selection tactics. Site selection tactics of Starbucks include procedure of selecting site.
Site selection tactics of Starbucks include: procedure of selecting site, select site standard and feasibility analysis:
2.3.1 Procedure of site selection
The affirmation of the position to running a shop specifically of Starbucks, have a set of independent procedure of oneself. First of all, Starbucks will choose from the commerce which raise the body architecturally, is unified by the owner and hired out but not sold to the outside, this is first-selection of Starbucks. Because the trade company hired out wholly, is usually large-scale commercial facilities, they will have localization of the whole, until what kind of conduct to the requirement of trade company it will be each stage (train, develop, extend and mature period), there is very detailed planning, this facilitates propaganda popularization of Starbucks. Secondly, Starbucks will choose the large-scale show surface externally which is the first layer of positions at the front, as a result had shown, the convenience increase letting customers enter and leave in such a position.
2.3.2 Site selection standard
Starbucks has special real estate, structure, building and designs the team, have a group of specialized realtor, designer and artist, specially offer for Starbucks shop of the whole world and select site and design guidance.
Can strengthen the brand image:
Starbucks poses as masterpiece coffee so run a shop in the position and insist on according with the location of masterpieces, as if the financial building or World Trade Center is the good place to run a shop.
The sufficient flow of the people:
Starbucks hopes to offer another place very clear and bringing consumer's attention directly on the cafe most, the more important thing is to measure one's own target consumer's flow of the people, elect the location suitable most from it.
The properties of commercial circles are good:
Judge the properties of commercial circles, then compare with the commercial circles that Starbucks has done one to predict relevantly.
Rely on the good neighbour:
Coffee retail business is one of the industries of paying attention to the atmosphere of sales field most, consumer's consumption is absolutely not merely a cup of coffee, whom they value experiencing the atmosphere while consuming coffee. It is not enough that this kind of feeling depends on hotel owner's own environment designs only, need cooperation of environmental style of neighbor border. So Starbucks, while choosing the location of shop, should consider the neighbour, the good neighbour can make a show of power each other.
2.3.3 Feasibility analysis
Accurate feasibility is analyzed, is the key that Starbucks runs a shop and succeeds. In the feasible analysis report of Starbucks, include such contents:
The analysis of the place:
Analyze the future development of the whole place. Besides analyzing the advantage of the place, consider coming in the contingent inferior position. The only development of the competition situation to future analyzes, carry on the assessment with some relevant uncertain factors.
The detailed financial affairs are analyzed:
The financial affairs of Starbucks are analyzed, not only make fixed cost analysis but also make the cost analysis of flow ability.
For every place, Starbucks will consider within one's own planning:
Starbucks does a plan every five years, locks general development position and reason. Furthermore, Starbucks have independent expansion department responsible for, select some matters, choice, investigation, design, and instrument the shop.
3. SWOT analysis
Strengths:
Deep brand leader, whole world heavy coffee chain store most that favor knowing how, collocating fittings sell
1. The brain drain rate is low
2. Brand awareness is high
3. Issue of frequent visitor's certificate
4. The products are diversified
5. The straight camp sells
6. Combine the peripheral products
7. Know-how of the parent company
Starbucks Company is a very lucrative organization, in 2004, it charges over 5,000,000,000 dollars to gather together the camp over 600,000,000 dollars and company. This it is one global coffee brand that set up in one reputation good product and service. This company is a respect employer's values, its workforce. Deserve the statement with very strong ethical values and ethical mission of the organization as follows, Starbucks is devoted to a role's environmental leader's business in each aspect of enterprise.
Weaknesses
On sale throughout color too serious and selling and costing an arm and a leg, not setting up and sucking Yan district
1. The seats are insufficient in the shop
2. Branch's misdistributions
3. The commodity price is on the high side
4. The money of right is high
5. Backward undertaking
New product development and creativity are Starbucks' good reputation. However, they are still very fragile, easy possibility; its innovation may waver as time goes on. This organization has a strong existence, over 3/4 are set up and competed on the domestic market in U.S.A. People often argue, they need to seek a country of investment combination, in order to propagate the risk on the business. This organization is to depend on a main competition advantage, coffee of the retail business. Unless so it can make by them the slow, in order to dispersing to departments other, should necessary problem.
Opportunities
Making the best of the large figure of chain store gives play to the advantage of the large-scale production to enter into an alliance with tactics
1. The living standard is improved
2. Hide the great business opportunity
3. Concept of the third space
4. Set up e-commerce
5. Open-up of the overseas investment market
6. The exhibition shop is fast
Starbucks is very good at utilizing the opportunity. In 2004, company this create one CD cook, record, serve, in their California Santa Monica (California of U.S.A.) ,Coffee house and Hewlett-Packard, which place is the customer in, creates one's own music CD. New products and service can be in their coffee house at the retail price, such as implementing the fair trade products. This company has an opportunity to expand its global business. The country of the area is beginning to appear for new coffee of market such as along India and the Pacific Ocean. Food and beverage of common brand and other manufacturer, and the franchises of brand, other goods and service of the manufacturers of Israel are all potential.
Threats
Tall tree catches the wind, market of coffee has already become ripe, substitutes have been numerous and easy to imitate
1. The traditional compounding type of bake house, management of the chain coffee house
2. It is low to enter the obstacle
3. Health consciousness resumes
Who knows that in the future, if will increase to buy coffee on the market, staying and agreeing and customer, the beverage of another type or recreation activity, will replace coffee? It is numerous that success of Starbucks enables and enters the market
4. Core competencies and competitive advantage
4.1 chain operation and management
Success of Starbucks has attracted a lot of investors to demand to cooperate by way of shop allied. Develop in adopting the straight camp's chain inside Starbucks, emerge and dispute in or franchise operation development.
Generally speaking, the way of chains can be divided three kinds different chains: Straight camp's chain, voluntary chain, chain of licensing.
However Starbucks insist on going in the straight camp of the companies foreign all the time, do not all need the shop allied in the whole world.
For over 30 years, Starbucks has insisted on going in the straight camp of the company all the time externally, does not need the shop allied in the whole world. If the mode allied that Starbucks adopts “traffic the right of joining“ like a lot of leaders is expanded, its development speed is certain to be much quicker than now, but unfavorable to the control on quality of Starbucks. For example Starbucks for offer customer best coffee, never stingy to scrap supplies. But if join right open, it is very difficult to require the boss of each shop allied insists on increasing the cost and scrapping. Meanwhile, joining development will encounter all sorts of risks, for example expand blindly, cause the operation level of the whole system to be different, take shape - The shop sustaining economic losses in large batches, reduce Starbucks' brand value finally. In addition, Starbucks must also possess very strong legal affairs handling capacity, with should to with various legal questions of producing of joining etc. So, in order to prevent Starbucks' brand from receiving the unnecessary interference, Starbucks determines not to open right of joining.
Outwardly, in these kinds of cooperative ways of Starbucks and enterprises from all parts of the world, it is the same as joining type of operation that it does not take shares, authorize management way completely. However, Starbucks is in one country or one area such as Singapore, Beijing (authorize and manage Starbucks on the market of North China of China) Wait, look for a more strong big company to carry on authorized cooperation, it is not the same category with the usually said joining chain.
The advantage of straight camp's development is very obvious, but there is sizable limitation. The quantity wants the restriction of the scale raised funds to run a shop, development speed will be generally developed slowly in franchise operation. In addition, it is entered that some monopoly areas are very difficult, such as airport etc.. So, Starbucks has adopted the flexible tactics, on the basis of insisting on the principle that the frank camp develops into the main fact, develop a small amount of franchise operation shops too. In 1991, Starbucks authorized Murray special company of the airport of Hal, Ou of Chicago to manage Starbucks cafe for the first time, all took the mode allied at several airports and some campuses from then on.
In addition, take flexible investment and cooperative way in market situation still on the basis of the all parts of the world of Starbucks.
Generally speaking, the stock right that Starbucks general headquarters holds in a certain area is the larger in proportion, mean the more important to it the market of this place is. In addition, Starbucks has also made the strict choice cooperator's standard, comprises, for example, the cooperator's reputation, control ability of quality, with training the staff with the standard of Starbucks.
The development way in China's Mainland of Starbucks is comparatively flexible too. In fact, Starbucks has taken the authorized way in the area in China's Mainland, the person who licenses area invests money in developing the straight camp's shop oneself, itself is straight camp and a kind of association of mode allied. It is exactly such flexible investment tactics and cooperative way, make Starbucks group while having an optimistic view of the Chinese market, strengthen investment, increase shareholding ratio to 50%. This has indicated U.S.A. is to the attention of this area, there will be more input in the future.
4.2 Standard homework
The standard and meaning the high efficiency in unison is the key content of the modern chain's operation and management. Under the operating systems of standard and unity, each chain store carries on homework and management according to the unified standard; realize the normal and best benefit. The chain should combine management of the materials, qualitative analysis with managing live, make a set of standardized homework norms. Everybody guard norm rigidly, could can't control factor bring minimum down to, can also prevent personal fault from cause damages to whole enterprise at the same time.
A word like this spreads in IT industry: "It is a winner who makes the standard whom." Intel has created the standard of the IT industry; Starbucks has created the standard of the coffee trade. This old trade, there was not a standard in the past, not merely there is a standard of coffee now, even water, temperature, milk and cup, Starbucks has all redesigned, standardize it.
Starbucks lets people think coffee has sagacity, very romantic thing. It redesigns the machine which is made coffee, then coffee rubs and makes, cooks different, there are new standards.
The standard of Starbucks involves operating and managing the different fields, not merely including coffee bean is cured and the staff serves, still display it in their strict standard for selection to the coffee bean.
The coffee raw materials chosen carefully send coffee of Starbucks to cure the room in time, accept curing and mixing of the experienced operator according to the strict standard, is put into the freshness protection package and transported to the chain store of Starbucks or whole seller's handed subsequently.
The freshness protection package is specially designed by Starbucks, prevent air and moisture from entering in order to keep the products fresh, Starbucks stipulates to this strictly: Once open the freshness protection package, the coffee bean among them must be sold within seven days out, otherwise pour out.
In every Starbucks, each staff must remember, give customer " perfect coffee " Starbucks thick to contract coffee, the machine is with the high pressure, high temperature (generally from 18 seconds to 23 seconds) Go out of a cup of coffee, send to customer within ten seconds. If has not reached this standard, coffee should pour out, can be regarded as the running cost. Starbucks, in order to let the customer smell once entering the shop coffee is fragrant, but not destroyed by other smell, can't smoke in the shop, the staff go to work even perfume can't use the time.
The standard of Starbucks still embodies in their very nitpicking coffee bean, from variety to form of the producing area, particle, etc., every link has a strict standard; Starbucks has not been allowed not judging strictly by the expert definitely. Coffee bean last market, judge it cost coffee to judge 100,000 cup more than every year expert it’s the coffees. Comment with cup France choose coffee bean, determine perfect intensity of curing, make to have flavour can at all release alone every coffee.
In addition, Starbucks has made the strict cooperator has chosen accurately: The cooperator's reputation, commitments to quality, with training the staff with the standard of Starbucks.
4.3 Communicate and manage
In Starbucks, have communicated into the focal points of coffee chain management and administration in an all-round way, its concrete content includes the communication with the staff, with the customer's communication and with three respects of the supplier's communication.
With the staff's communication
The open way of communication is a part of Starbucks' principle. In Starbucks, disclose the forum to open for several times in one year, tells the staff the major issue that the company happens recently, explain the financial situation, allow the staff to question to senior administration and supervision authorities, bring new information to administration and supervision authorities at the same time. In addition, the company publishes to the staff and writes letters regularly, these letters are usually questions about company's development; there are employee welfare and shareholder's scheme too.
In order to make the staff of the enthusiastic work have an opportunity to put forward one's own good idea, improve the work of the company in time, the manager of Starbucks Company comes and goes and holds employee's discussion between each city every whole season, collect and advise, discuss from working environment to various questions on sale throughout the tactics. People propose various queries, discuss the thing that they care about, criticize and praise at the meeting, or only state one's views on how to take on the management.
With the customer's communication
Starbucks thinks their products are not merely coffee, and the experience of the cafe. For experience to strengthen customer, Starbucks pay attention to especially communication of customer. One of its main competitive strategies, but exchange with the customer in the cafe, every waiter should accept a series of to train, for instance basically sell skill, coffee ABC, coffee making skill, etc. Starbucks requires every waiter to expect the customer's demand.
With the supplier's communication
Confirm cooperation, of both sides representative conference meet three once 4 in first year, do strategic business to assess every half a year or one year later. The more strategic products or strategic region is, the more frequent top personnel got involved. Later, Starbucks will also send the supplier for year of cooperation of two and evaluate the report, the content involves being in many aspects, including the supplier's output, needing the improved place, etc.. In addition, both sides will also develop and frequently keep in touch on production efficiency, raising the quality, new product. For example: How to improve the competence of supplying after the supplier, how to control the expenditure rationally by supplying, will also appraise to the happy intensity of mutual cooperation finally, both sides all need improved place, etc. after pointing out.
5. Strategy recommendations
By the marketing analysis of four C:
Customer
Clear, lock particular consumption group, product except diversification, incorporate local life at the same time, let the customer feel cordial and is familiar with, can meet customer's demands.
Convenience
Starbucks all sets up the retail sales in a dozen countries of the whole world, only the retail sales has already spread to every area of throwing etc. at present in Taiwan, but prove its convenience consumed.
Cost
Though the price hits the high price, basically most consumers can all consume the products enjoyed.
Communication
The inter-dynamic relation between paying much attention to and guest, the service is intimate and good. In addition, use and experience marketing and let the customer assert the products, and then produce the acceptance, sense of ownership.
Hence, Starbucks have these weakness points:
(1) The price is a little bit high
Though in many aspects good than other terms of house, so respect of price high to can be regarded as naturally even a bit. How much but difference to lie in high and high, some are the customer who is consumed ethnicity of par after all; it is very possible because of the level to the price, and transfer to other hotel owner's sale. It will have resulted in losing one group of consumers.
(2) Application of science and technology
Have already created the cafe with scale now, certainly will add much more from hand this way, but manpower is limited, if use and come to assist the staff more on science and technology, perhaps at efficiency add the result divided so, probably shrink by one in cost too.
(3) The exposing rate of advertisement is extremely low
Though Starbucks regards staff as a way of marketing, can understand the customer's demand and establish good relation even more, but the range that can propagate is limited after all, so lack some persons and does not know Starbucks, so a lot of most customers consuming for the first time consume via relatives and friends' introduction, so should strengthen the exposing rate of advertisement of Starbucks, expand market share and encourage adopting the action of buying.
6. Potential fallout
As Starbucks extend rapidly, the standard of management would be ignored which includes: consumers’ abilities, employees’ qualifications, and the 25 seconds of coffeemaker.
Brand and Fashion were the reason of Starbucks’ success. And it stood with high standard insisted. In fact, as we studied how successful of Starbucks. There were 600 shops closed and more then 12,000 people layoff in USA 2006.
The reason would not only the economics but also the loss of fresh.
As the mention above: prices, spread by employees and advertisement. Furthermore, the culture shock will be the mainly issue of the next decades.
In China, we have both well known the abilities of consumers. Starbucks won’t be longer existed if they could not change the tactic of straight camp's chain.
There are some suggestions for Starbucks that would maintain its leader position of coffee market:
1. Keep the qualifications of employees’ training
2. Cost down every unnecessary out bone.
3. Maintain the profits and benefits for “bean stock” and stock holders.
4. Face to Chinese Culture; to set up a tactic system.
That is the older aphorism “use Chinese to face Chinese culture”.
Believe or not, Starbucks still have the good reputation and finance. Intensify its strong points to cover the threats. Or disappear in next decades.
7. Bibliography:
http://baroque888.webdiy.com.tw/news-detail.asp?lang=1&doc_id=67 accessed by 2nd May 2010
http://coffee.24h.com.tw/ accessed by 1st May 2010
http://editorjoe.blogspot.com/2008_07_13_archive.html accessed by 17 May 2010
http://manage.org.cn/Article/ShowArticle.asp?ArticleID=8 accessed by 17 May 2010
http://manager.china-ef.com/article/2010-03-19/182931.shtml accessed by 11 May 2010
http://shs.tngs.tn.edu.tw/essay/post/upload/9310/9310_63 accessed by 12 May 2010
http://www.1to1.com.cn/Article/content.asp?id=2391 accessed by 13 May 2010
http://www.businessweekly.com.tw accessed by 16 May 2010
http://www.cheers.com.tw/content/030/030042.asp accessed by 10May 2010
http://www.i18.cn/newscenter/news/guojinews/2004-7-8/17583.shtml accessed by 15 May 2010
http://www.lmcafe.com/web2.html accessed by 11 May 2010
http://www.starbucks.com accessed by 13 May 2010
http://www2.worldvision.org.tw/See.asp?serial=994 accessed by 15 May 2010
Mark Pendergrast（2000）：Uncommon Grounds: The History of Coffee and How It Transformed Our World。
“If Starbucks is one full text twenty chapters of books just but turn to chapter three for the moment.” commented by Howard Schultz.
Starbucks Coffee was established in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker in Seattle. Since 1982 Howard Schultz became the market and retailing department managers Starbucks had the huge changed at the coffee market. Four years later, he bought the Starbucks.
Since Starbucks Company is listed, the record of the sales amount is improving by 20% annually. Even when economic depression, the state of retail business is very bad, the volume of the flow of passengers of Starbucks cafe still keeps 6% for every year. The more peculiar one is, Starbucks hardly advertises, the enterprise planning of marketing is pitiably little too, the expenses that it uses for the advertisement only accounts for percent of its annual income.
During 1989 to 1999, Starbucks has already opened a lot of branches all over the world, its mispronounced character of green bottom, sea maid who wore crown have already become the person who has liked coffee in the whole world to know very well. Starbucks expands by way of frank camp, not advertising either, but the income exceeds the sum of the stock market incomes of big companies such as Pepsi Cola, coca-cola, Microsoft, etc. Report “vigorous new brand and retailer most” a lot of finance and economics magazine too, the sea maid indicate that swims over to all parts of the world, create the legends of global enterprises.
However, the fail of Starbucks had been seen for the past few years. Due to the rapid extended and ignored its organized systems. At the end of the report, we had listed few suggestions for Starbucks which would feet the next decades and survive with the shock of Chinese Culture.
Table of contents
1. Corporate Mission 4
1.1 Relations of staff 4
1.2 Customer’s relation 4
1.3 Supplier’s relation 4
1.4 Relation of cooperating trader 5
2. Industry structure 5
2.1 Market orientation 5
2.2 The commercial circles chooses 6
2.3 Tactics of site selection 7
2.3.1 Procedure of site selection 7
2.3.2 Site selection standard 8
2.3.3 Feasibility analysis 9
3. SWOT analysis 10
Strengths: 10
Weaknesses 11
Opportunities 11
Threats 12
4. Core competencies and competitive advantage 13
5. Strategy recommendations 19
6. Potential fallout 21
7. Bibliography: 22
1. Corporate Mission
“The relation theory “is Starbucks’ key values; important equally with curing the high-quality coffee bean. Key values of Starbucks run through company business all the time, such key values origin and around on interpersonal “relation“.
The relation assets of Starbucks include four respects:
1.1 Relations of staff
Success of Starbucks benefits from attention in “the relation theory “mainly relationship with staff. Starbucks, no matter which market is entered, all never advertise on the media, and totally rely on the staff to do marketing. The each inter-dynamic between staff and consumer are the greatest decisive factor of Starbucks’ brand impression. The staff will influence consumers’ quality, if the staff has low morale. So use expenditure of advertisement for change welfare and training to use for staff actually Starbucks. Starbucks creates the environment and encourages staff improving oneself, exchange and cooperation still through the valid reward policy. Because all staff has an option, they are called as “the cooperative partner “. Starbucks plans to train loyal staff with “the relations of staff “, and the staff have just served out the highly loyal customer, this is Starbucks real advantage.
1.2 Customer’s relation
As market competition being fierce day by day, the concern about customer’s relation of enterprises intensifies sharply. So Starbucks regards customer’s relation as a kind of assets of the company, has established good “the relation “ and become the strategic core of Starbucks with the customer.
1.3 Supplier’s relation
To any enterprise, the relation with supplier is essential and especially key goods and supplier of the additional service. Starbucks consumes a large number of manpower, material resources, financial resources to develop a supplier, so hope to keep the relation steady in a long-term, it is but not only the simple supervision price to cooperate and control prices actively. As to Starbucks, the supplier is just like the staff; need to cost a lot of fund and training them.
1.4 Relation of cooperating trader
In order to make customers experience the service of Starbucks in more places, besides branch of Starbucks, Starbucks through and airport, bookstore, hotel, department store, etc. whether cooperation come sell products. The assets management of the cooperation of Starbucks still displays in the relation with house owner. Starbucks pays great attention to the relation with owner to manage, is devoted to creating the win-win way of running a shop with the owner together.
2. Industry structure
In the coffee chain trade of the world, Starbucks has become the goal that everybody studies and imitates. Starbucks can have such behavior, benefits from its accurate market orientation, original commercial circles and location of shop to choose the tactics, and design the distinctive shop.
2.1 Market orientation
Starbucks position oneself independent family, work “the third space” beyond being, market of its goal is that one group pays attention to enjoying, lying fallow, advocating the middle class of knowledge, urban white collar.
Correspond with market orientation, Starbucks always appears in the metropolitan flourishing shopping center, it is “the luxury goods which the majority can afford to bear “that its price makes a reservation, inherit” work hard, the value that enjoyed and lived actively” is advocated. Because the coffee drink is its products of main profit, for the commercial ability to guarantee coffee of Starbucks, it has been never disconnected that the glamour that Starbucks is devoted to the main drink is built; this makes it get consumer's more favors than the competitor.
In Starbucks, while people buy coffee who buys a kind of very important things at the same time as well; An experience, a life style.
2.2 The commercial circles chooses
The choice of the commercial circles is concerning the range, level, scale of the shop, number of the cost of investment of cafe consumers, retrieving aspect questions such as the quantity of benefit and branch, etc. Hence Starbucks when selecting where one stays commercial circles, have two plant, click, want it and management variety, price of cafe, fit up scale, grade link up, confirm the place to run a shop; Second, understand with the local conditions and customs and agreeing with of the life style, consider local population parameter and other parameter synthetically, predict, select area a future one expansionary. In addition, will investigate the competition capability of the same trade or business and determine the focal point of management finally.
As to Starbucks, choose to be a key to its rapid development in success of the commercial circles, because people can not often patronize the insufficient or too far cafe of a “the convenience” absolutely, so, Starbucks runs a shop only in the quintessence location of urban area intensively, until letting competitors have no space getting involved at all.
2.3 Tactics of site selection
The place is primary factor managed in coffee chain store. Selecting site correctly of the chain store, not only it’s prerequisite to success, but also realize standardization of chain operation, simplifies, specialized precondition and foundation. Starbucks can obtain so brilliant achievement; can not separate instead of the successful site selection tactics. Site selection tactics of Starbucks include procedure of selecting site.
Site selection tactics of Starbucks include: procedure of selecting site, select site standard and feasibility analysis:
2.3.1 Procedure of site selection
The affirmation of the position to running a shop specifically of Starbucks, have a set of independent procedure of oneself. First of all, Starbucks will choose from the commerce which raise the body architecturally, is unified by the owner and hired out but not sold to the outside, this is first-selection of Starbucks. Because the trade company hired out wholly, is usually large-scale commercial facilities, they will have localization of the whole, until what kind of conduct to the requirement of trade company it will be each stage (train, develop, extend and mature period), there is very detailed planning, this facilitates propaganda popularization of Starbucks. Secondly, Starbucks will choose the large-scale show surface externally which is the first layer of positions at the front, as a result had shown, the convenience increase letting customers enter and leave in such a position.
2.3.2 Site selection standard
Starbucks has special real estate, structure, building and designs the team, have a group of specialized realtor, designer and artist, specially offer for Starbucks shop of the whole world and select site and design guidance.
Can strengthen the brand image:
Starbucks poses as masterpiece coffee so run a shop in the position and insist on according with the location of masterpieces, as if the financial building or World Trade Center is the good place to run a shop.
The sufficient flow of the people:
Starbucks hopes to offer another place very clear and bringing consumer's attention directly on the cafe most, the more important thing is to measure one's own target consumer's flow of the people, elect the location suitable most from it.
The properties of commercial circles are good:
Judge the properties of commercial circles, then compare with the commercial circles that Starbucks has done one to predict relevantly.
Rely on the good neighbour:
Coffee retail business is one of the industries of paying attention to the atmosphere of sales field most, consumer's consumption is absolutely not merely a cup of coffee, whom they value experiencing the atmosphere while consuming coffee. It is not enough that this kind of feeling depends on hotel owner's own environment designs only, need cooperation of environmental style of neighbor border. So Starbucks, while choosing the location of shop, should consider the neighbour, the good neighbour can make a show of power each other.
2.3.3 Feasibility analysis
Accurate feasibility is analyzed, is the key that Starbucks runs a shop and succeeds. In the feasible analysis report of Starbucks, include such contents:
The analysis of the place:
Analyze the future development of the whole place. Besides analyzing the advantage of the place, consider coming in the contingent inferior position. The only development of the competition situation to future analyzes, carry on the assessment with some relevant uncertain factors.
The detailed financial affairs are analyzed:
The financial affairs of Starbucks are analyzed, not only make fixed cost analysis but also make the cost analysis of flow ability.
For every place, Starbucks will consider within one's own planning:
Starbucks does a plan every five years, locks general development position and reason. Furthermore, Starbucks have independent expansion department responsible for, select some matters, choice, investigation, design, and instrument the shop.
3. SWOT analysis
Strengths:
Deep brand leader, whole world heavy coffee chain store most that favor knowing how, collocating fittings sell
1. The brain drain rate is low
2. Brand awareness is high
3. Issue of frequent visitor's certificate
4. The products are diversified
5. The straight camp sells
6. Combine the peripheral products
7. Know-how of the parent company
Starbucks Company is a very lucrative organization, in 2004, it charges over 5,000,000,000 dollars to gather together the camp over 600,000,000 dollars and company. This it is one global coffee brand that set up in one reputation good product and service. This company is a respect employer's values, its workforce. Deserve the statement with very strong ethical values and ethical mission of the organization as follows, Starbucks is devoted to a role's environmental leader's business in each aspect of enterprise.
Weaknesses
On sale throughout color too serious and selling and costing an arm and a leg, not setting up and sucking Yan district
1. The seats are insufficient in the shop
2. Branch's misdistributions
3. The commodity price is on the high side
4. The money of right is high
5. Backward undertaking
New product development and creativity are Starbucks' good reputation. However, they are still very fragile, easy possibility; its innovation may waver as time goes on. This organization has a strong existence, over 3/4 are set up and competed on the domestic market in U.S.A. People often argue, they need to seek a country of investment combination, in order to propagate the risk on the business. This organization is to depend on a main competition advantage, coffee of the retail business. Unless so it can make by them the slow, in order to dispersing to departments other, should necessary problem.
Opportunities
Making the best of the large figure of chain store gives play to the advantage of the large-scale production to enter into an alliance with tactics
1. The living standard is improved
2. Hide the great business opportunity
3. Concept of the third space
4. Set up e-commerce
5. Open-up of the overseas investment market
6. The exhibition shop is fast
Starbucks is very good at utilizing the opportunity. In 2004, company this create one CD cook, record, serve, in their California Santa Monica (California of U.S.A.) ,Coffee house and Hewlett-Packard, which place is the customer in, creates one's own music CD. New products and service can be in their coffee house at the retail price, such as implementing the fair trade products. This company has an opportunity to expand its global business. The country of the area is beginning to appear for new coffee of market such as along India and the Pacific Ocean. Food and beverage of common brand and other manufacturer, and the franchises of brand, other goods and service of the manufacturers of Israel are all potential.
Threats
Tall tree catches the wind, market of coffee has already become ripe, substitutes have been numerous and easy to imitate
1. The traditional compounding type of bake house, management of the chain coffee house
2. It is low to enter the obstacle
3. Health consciousness resumes
Who knows that in the future, if will increase to buy coffee on the market, staying and agreeing and customer, the beverage of another type or recreation activity, will replace coffee? It is numerous that success of Starbucks enables and enters the market
4. Core competencies and competitive advantage
4.1 chain operation and management
Success of Starbucks has attracted a lot of investors to demand to cooperate by way of shop allied. Develop in adopting the straight camp's chain inside Starbucks, emerge and dispute in or franchise operation development.
Generally speaking, the way of chains can be divided three kinds different chains: Straight camp's chain, voluntary chain, chain of licensing.
However Starbucks insist on going in the straight camp of the companies foreign all the time, do not all need the shop allied in the whole world.
For over 30 years, Starbucks has insisted on going in the straight camp of the company all the time externally, does not need the shop allied in the whole world. If the mode allied that Starbucks adopts “traffic the right of joining“ like a lot of leaders is expanded, its development speed is certain to be much quicker than now, but unfavorable to the control on quality of Starbucks. For example Starbucks for offer customer best coffee, never stingy to scrap supplies. But if join right open, it is very difficult to require the boss of each shop allied insists on increasing the cost and scrapping. Meanwhile, joining development will encounter all sorts of risks, for example expand blindly, cause the operation level of the whole system to be different, take shape - The shop sustaining economic losses in large batches, reduce Starbucks' brand value finally. In addition, Starbucks must also possess very strong legal affairs handling capacity, with should to with various legal questions of producing of joining etc. So, in order to prevent Starbucks' brand from receiving the unnecessary interference, Starbucks determines not to open right of joining.
Outwardly, in these kinds of cooperative ways of Starbucks and enterprises from all parts of the world, it is the same as joining type of operation that it does not take shares, authorize management way completely. However, Starbucks is in one country or one area such as Singapore, Beijing (authorize and manage Starbucks on the market of North China of China) Wait, look for a more strong big company to carry on authorized cooperation, it is not the same category with the usually said joining chain.
The advantage of straight camp's development is very obvious, but there is sizable limitation. The quantity wants the restriction of the scale raised funds to run a shop, development speed will be generally developed slowly in franchise operation. In addition, it is entered that some monopoly areas are very difficult, such as airport etc.. So, Starbucks has adopted the flexible tactics, on the basis of insisting on the principle that the frank camp develops into the main fact, develop a small amount of franchise operation shops too. In 1991, Starbucks authorized Murray special company of the airport of Hal, Ou of Chicago to manage Starbucks cafe for the first time, all took the mode allied at several airports and some campuses from then on.
In addition, take flexible investment and cooperative way in market situation still on the basis of the all parts of the world of Starbucks.
Generally speaking, the stock right that Starbucks general headquarters holds in a certain area is the larger in proportion, mean the more important to it the market of this place is. In addition, Starbucks has also made the strict choice cooperator's standard, comprises, for example, the cooperator's reputation, control ability of quality, with training the staff with the standard of Starbucks.
The development way in China's Mainland of Starbucks is comparatively flexible too. In fact, Starbucks has taken the authorized way in the area in China's Mainland, the person who licenses area invests money in developing the straight camp's shop oneself, itself is straight camp and a kind of association of mode allied. It is exactly such flexible investment tactics and cooperative way, make Starbucks group while having an optimistic view of the Chinese market, strengthen investment, increase shareholding ratio to 50%. This has indicated U.S.A. is to the attention of this area, there will be more input in the future.
4.2 Standard homework
The standard and meaning the high efficiency in unison is the key content of the modern chain's operation and management. Under the operating systems of standard and unity, each chain store carries on homework and management according to the unified standard; realize the normal and best benefit. The chain should combine management of the materials, qualitative analysis with managing live, make a set of standardized homework norms. Everybody guard norm rigidly, could can't control factor bring minimum down to, can also prevent personal fault from cause damages to whole enterprise at the same time.
A word like this spreads in IT industry: "It is a winner who makes the standard whom." Intel has created the standard of the IT industry; Starbucks has created the standard of the coffee trade. This old trade, there was not a standard in the past, not merely there is a standard of coffee now, even water, temperature, milk and cup, Starbucks has all redesigned, standardize it.
Starbucks lets people think coffee has sagacity, very romantic thing. It redesigns the machine which is made coffee, then coffee rubs and makes, cooks different, there are new standards.
The standard of Starbucks involves operating and managing the different fields, not merely including coffee bean is cured and the staff serves, still display it in their strict standard for selection to the coffee bean.
The coffee raw materials chosen carefully send coffee of Starbucks to cure the room in time, accept curing and mixing of the experienced operator according to the strict standard, is put into the freshness protection package and transported to the chain store of Starbucks or whole seller's handed subsequently.
The freshness protection package is specially designed by Starbucks, prevent air and moisture from entering in order to keep the products fresh, Starbucks stipulates to this strictly: Once open the freshness protection package, the coffee bean among them must be sold within seven days out, otherwise pour out.
In every Starbucks, each staff must remember, give customer " perfect coffee " Starbucks thick to contract coffee, the machine is with the high pressure, high temperature (generally from 18 seconds to 23 seconds) Go out of a cup of coffee, send to customer within ten seconds. If has not reached this standard, coffee should pour out, can be regarded as the running cost. Starbucks, in order to let the customer smell once entering the shop coffee is fragrant, but not destroyed by other smell, can't smoke in the shop, the staff go to work even perfume can't use the time.
The standard of Starbucks still embodies in their very nitpicking coffee bean, from variety to form of the producing area, particle, etc., every link has a strict standard; Starbucks has not been allowed not judging strictly by the expert definitely. Coffee bean last market, judge it cost coffee to judge 100,000 cup more than every year expert it’s the coffees. Comment with cup France choose coffee bean, determine perfect intensity of curing, make to have flavour can at all release alone every coffee.
In addition, Starbucks has made the strict cooperator has chosen accurately: The cooperator's reputation, commitments to quality, with training the staff with the standard of Starbucks.
4.3 Communicate and manage
In Starbucks, have communicated into the focal points of coffee chain management and administration in an all-round way, its concrete content includes the communication with the staff, with the customer's communication and with three respects of the supplier's communication.
With the staff's communication
The open way of communication is a part of Starbucks' principle. In Starbucks, disclose the forum to open for several times in one year, tells the staff the major issue that the company happens recently, explain the financial situation, allow the staff to question to senior administration and supervision authorities, bring new information to administration and supervision authorities at the same time. In addition, the company publishes to the staff and writes letters regularly, these letters are usually questions about company's development; there are employee welfare and shareholder's scheme too.
In order to make the staff of the enthusiastic work have an opportunity to put forward one's own good idea, improve the work of the company in time, the manager of Starbucks Company comes and goes and holds employee's discussion between each city every whole season, collect and advise, discuss from working environment to various questions on sale throughout the tactics. People propose various queries, discuss the thing that they care about, criticize and praise at the meeting, or only state one's views on how to take on the management.
With the customer's communication
Starbucks thinks their products are not merely coffee, and the experience of the cafe. For experience to strengthen customer, Starbucks pay attention to especially communication of customer. One of its main competitive strategies, but exchange with the customer in the cafe, every waiter should accept a series of to train, for instance basically sell skill, coffee ABC, coffee making skill, etc. Starbucks requires every waiter to expect the customer's demand.
With the supplier's communication
Confirm cooperation, of both sides representative conference meet three once 4 in first year, do strategic business to assess every half a year or one year later. The more strategic products or strategic region is, the more frequent top personnel got involved. Later, Starbucks will also send the supplier for year of cooperation of two and evaluate the report, the content involves being in many aspects, including the supplier's output, needing the improved place, etc.. In addition, both sides will also develop and frequently keep in touch on production efficiency, raising the quality, new product. For example: How to improve the competence of supplying after the supplier, how to control the expenditure rationally by supplying, will also appraise to the happy intensity of mutual cooperation finally, both sides all need improved place, etc. after pointing out.
5. Strategy recommendations
By the marketing analysis of four C:
Customer
Clear, lock particular consumption group, product except diversification, incorporate local life at the same time, let the customer feel cordial and is familiar with, can meet customer's demands.
Convenience
Starbucks all sets up the retail sales in a dozen countries of the whole world, only the retail sales has already spread to every area of throwing etc. at present in Taiwan, but prove its convenience consumed.
Cost
Though the price hits the high price, basically most consumers can all consume the products enjoyed.
Communication
The inter-dynamic relation between paying much attention to and guest, the service is intimate and good. In addition, use and experience marketing and let the customer assert the products, and then produce the acceptance, sense of ownership.
Hence, Starbucks have these weakness points:
(1) The price is a little bit high
Though in many aspects good than other terms of house, so respect of price high to can be regarded as naturally even a bit. How much but difference to lie in high and high, some are the customer who is consumed ethnicity of par after all; it is very possible because of the level to the price, and transfer to other hotel owner's sale. It will have resulted in losing one group of consumers.
(2) Application of science and technology
Have already created the cafe with scale now, certainly will add much more from hand this way, but manpower is limited, if use and come to assist the staff more on science and technology, perhaps at efficiency add the result divided so, probably shrink by one in cost too.
(3) The exposing rate of advertisement is extremely low
Though Starbucks regards staff as a way of marketing, can understand the customer's demand and establish good relation even more, but the range that can propagate is limited after all, so lack some persons and does not know Starbucks, so a lot of most customers consuming for the first time consume via relatives and friends' introduction, so should strengthen the exposing rate of advertisement of Starbucks, expand market share and encourage adopting the action of buying.
6. Potential fallout
As Starbucks extend rapidly, the standard of management would be ignored which includes: consumers’ abilities, employees’ qualifications, and the 25 seconds of coffeemaker.
Brand and Fashion were the reason of Starbucks’ success. And it stood with high standard insisted. In fact, as we studied how successful of Starbucks. There were 600 shops closed and more then 12,000 people layoff in USA 2006.
The reason would not only the economics but also the loss of fresh.
As the mention above: prices, spread by employees and advertisement. Furthermore, the culture shock will be the mainly issue of the next decades.
In China, we have both well known the abilities of consumers. Starbucks won’t be longer existed if they could not change the tactic of straight camp's chain.
There are some suggestions for Starbucks that would maintain its leader position of coffee market:
1. Keep the qualifications of employees’ training
2. Cost down every unnecessary out bone.
3. Maintain the profits and benefits for “bean stock” and stock holders.
4. Face to Chinese Culture; to set up a tactic system.
That is the older aphorism “use Chinese to face Chinese culture”.
Believe or not, Starbucks still have the good reputation and finance. Intensify its strong points to cover the threats. Or disappear in next decades.
7. Bibliography:
http://baroque888.webdiy.com.tw/news-detail.asp?lang=1&doc_id=67 accessed by 2nd May 2010
http://coffee.24h.com.tw/ accessed by 1st May 2010
http://editorjoe.blogspot.com/2008_07_13_archive.html accessed by 17 May 2010
http://manage.org.cn/Article/ShowArticle.asp?ArticleID=8 accessed by 17 May 2010
http://manager.china-ef.com/article/2010-03-19/182931.shtml accessed by 11 May 2010
http://shs.tngs.tn.edu.tw/essay/post/upload/9310/9310_63 accessed by 12 May 2010
http://www.1to1.com.cn/Article/content.asp?id=2391 accessed by 13 May 2010
http://www.businessweekly.com.tw accessed by 16 May 2010
http://www.cheers.com.tw/content/030/030042.asp accessed by 10May 2010
http://www.i18.cn/newscenter/news/guojinews/2004-7-8/17583.shtml accessed by 15 May 2010
http://www.lmcafe.com/web2.html accessed by 11 May 2010
http://www.starbucks.com accessed by 13 May 2010
http://www2.worldvision.org.tw/See.asp?serial=994 accessed by 15 May 2010
Mark Pendergrast（2000）：Uncommon Grounds: The History of Coffee and How It Transformed Our World。
Data Warehouses and Transactional Databases
1.0 Introduction Data Warehouses and Transactional Databases
Data Warehouses is a kind of information system store the theory, this theory puts emphasis on utilizing some special materials to store the way, let materials included, help, analyse and process especially, in order to produce valuable information and make decision according to this.
Data Warehouses utilizing the storage way of the materials to be preserved, have once store in, the characteristic not changed with time, the materials stored in at the same time must include time attribute, usually a materials storage will all contain a large number of historical materials, utilize the particular analysis way, since explore particular information out among them.
Transactional Databases Can be considered as the materials collection that can be inquired and revised automatically. The database has many kinds of model, store, have various materials of forms get, can carry on magnanimity large-scale system widely used from a most simple one in all fields database that materials store
2.0 Data Warehouses
The materials storage, proposed in 1990 by father W.H.Inmon in the materials storage, the main function was to deal with (OLTP) the organization through the on-line trade of the information system A large number of materials accumulated for years, store the structure through the peculiar materials of storage theory of materials, doing one has systematic analysis to put in order, analyse and process (OLAP) on-linely by various analytical methods of profit , the materials mining (Data Mining) It goes on, and then support it like DSS (DSS) , in charge of information system (EIS) Setting-up,it help policymaker can getting more effective fast last valuable information since a large number of materials, draft in order to make policy and the external environmental change of fast reaction, help builds and constructs the commercial intelligence (BI) .
Generally speaking, materials storage can by getting related database, set up for materials one degree of databases of multidimension that storage develop specially, if set up by one degree of databases of multidimension, its structure can be divided into a written complaint of a star and snow flake form structure, include several and link one degree of information forms, and a fact information form.
The organizational system of the materials storage is not merely only the application of the tool technological side of information, draw and carry out surface need, have deep understanding to industry knowledge, marketing management, market orientation, tactics rule person who paint relevant terms even more in rule, could really give play to materials storage and follow-up to analyze the value of the tool, improve the competitiveness of organizing.
2.1 Data Warehouses Characteristic
Subject-Oriented: Different from general OLTP system, the materials modelling of the materials storage, classifies materials according to their meanings to the same theme district (subject area) emphatically ,Called the theme direction. Give an example such as Party, Arrangement, Event, Product,etc.
Integrated: The materials are combined and identical in the materials storage from the enterprise every OLTP system.
Time-Variant: The change of the materials, is able to note down and track and change in the materials storage, facilitate reflecting the materials orbit that can vary with time
Nonvolatile: Once the materials will not be replaced or deleted after confirming writing into, even if the materials are also wrong
2.2 Data Warehouses function
Merge the materials of the source of the heterogeneous materials into the single homogeneity structure. To analyzing the efficiency that inquires but not dealing with the trade, organize the materials with the simple structure. Include effective identical equal to alreadying and and direct against and analyze the conversion materials formatted. Offer the steady materials recorded on behalf of the commercial affair.
Fixed newer with other materials, but not carry on the frequent trade. Simplify security requirement.
3.0 Transactional Databases
Databases have many kinds of models. For example used in large-scaly to the one that store as like Network Database ,RelationalDatabase, Object-Oriented Database, DAP and Hierarchical Database .
Form according to just a few array in form generally. General, every tabulation of China shows one According to the type, according to existing in different forms that walks among them.
3.1 Disadvantage and Advantage
The advantage of the database:
Reduce the materials or data to repeat (Reduced Redundancy)
Combine the materials (Integrated data)
Integrality data type (Integrity)
Compatibility of the materials
Can protect the security of the materials and personal informatiom
The disadvantage of the database:
increase the cost
The system is complicated
Need to back up frequently, otherwise the unexpected state will cause the great injury
Manage the teacher (DBA) in database Non- easy to train
3.2 Data classification
Distinguish in accordance with the materials model
Hierarchical data model : Make up this arborescent stratum way of the materials, to put it briefly regard the materials as the type attitude of a group of arborescent structure
Network data model : A database, its sub element can to put it briefly regard the materials as the type attitude (research and develop first) of a group of reticular formations to the one or more mothers element
Relational data model : To put it briefly have relevant forms to regard the materials as some each other, succeed in most with database of this kind of at present ( Probably because the idea is simple in order to do in fact) .
Database: Include a lot of tables.
Form: Include a lot of record.
record: Include a lot of ields
The advantage of combined the materials:
1. reduce the materials to repeat, improve the sharing and combining
2. make the materials independent of procedure: for example, Can utilize one database administrative system come interconnected system manage materials jointly, and every procedure down the order to the administrative system of the database and then.
3. close and related and organization among the materials, the inquiry of the user can do the fast response.
4. security and control of concentrating on melting: for example the centralized management of the materials, can increase the controlling and guarantee security, it is big in the materials amount, can set up the database and manage the teacher (database administrator) To maintain the database system.
3.3 The basic function of the administrative system of the database
The materials are defined: Must be able to define and the materials projects of different types of management. The materials are dealt with: To user offers is ability more about materials,(the newly-increased and revising, inquiring and deleting) .
The materials are safe: Can set up user's account, password and authority and prevent the materials from letting out or destroying.
The materials are backed up: Offer the materials to back up, can reduce to the state backed up and reduce losses while damaging unfortunately.
What the user touches is application program, and that is really exposed to with the real materials is that the administrative system of the database hides the real environment of database, represent abstract structure, needn't consider magnetic rail, indicator, overflow location true issue of environment make application program of designing, and enable and design simplifying.
3.4 Database Management System (DBMS)
The administrative system of the database (database management system) Advantage separated form application program.
The first, simplify and design: Ex: In the dispersing type database, it is very complicated that the materials are stored, if there is no DBMS that the procedure must all know all materials.
The second, strengthen one to look at: The access of all restriction databases is all dealt with by one DBMS, it is simple to deal with a one that look at and change.
Third, it is materials independence.
3.5 On-Line Transaction Processing system
The On-Line Transaction Processing system (OLTP), the related type database is most suitable for the materials which manages the modification. Usually, these related type databases will have several users to carry out the trade that will alter the instant materials at the same time. Though the user's specific materials require that usually only need to consult a few materials to tabulate, but will send out a lot of requirements at the same time.
OLTP database is to design usedding for letting the trade type application program only write into and deal with the materials needed in single exchange as soon as possible. OLTP database will generally carry out the following projects:
Support the to run side by side a large number of user to be fixed and newly-increased and revising the materials.
Display the modification of organizing state continuity, but does not store its record.
Contain a lot of materials, including using for verifying a large number of materials of the trade.
Have complicated structure.
Can make fast response to trade activity to change to.
Offer the technological infrastructure, in order to support the daily job organizing.
The specific trade can deposit and withdraw a small amount of data relatively by finishing rapidly. OLTP system is to design and adjust usedding for dealing with and entering several hundred or thousands of transactions of the database at the same time.
The materials in OLTP system will be organized and supported the trade such as the following projects mainly:
Record the order from the sales outlet terminal machine or Web platform.
The order when the volume of stock is dropped to appointed standard time, in order to require more source of goods.
Follow the trail of and assemble in the factory for the component of the final products.
Record staff's data.
4.0 Data Warehouses VS Transactional Databases
In brief, the database is a affairs -oriented design, the data warehouses faces theme design. The Transactional database generally stores the on-line trade materials, it is generally historical materials that the data warehouses is stored.
The design of database is to try hard to avoid being redundant, generally adopt the rule to accord with normal form to be designed, data warehouses it designs to be inclined to introduce redundant, adopt, design against normal form way.
The database is designing to catch the materials, the data warehouses is designed to analyze the materials, two basic elements of it link forms and fact form. It is the angle such as time looking at problem to link, the department, the ones that linked forms and put are the definitions of these things, the materials that will be inquired about are put in the fact form, there is ID linked at the same time.
Only speaking from the concept, a bit hard to understand. Any technology is for employing serving, combine and employ and can understand very easily. Take banking as an example. Database affairs materials platform of system, customer will write database into in every transaction that bank make, written down, here, can be interpreted as keeping accounts with the database briefly. The data warehouses is the materials platform of a analyticl system, it obtains the materials from the affairs system, gather, process, offer the basis of decision to policymaker. For example how much trade does it take place some some one month such as branch such as bank, what branch this balance of deposits at present. If deposit many, consumption trade also more, this area set up ATM while being necessary then.
Obviously, trading volume of bank enormous, even ten million calculate with a million usually. The affairs system is real-time, this requires prescroption, the customer takes dozens of seconds to be stood to deposit a sum of money, this requires the database to store the materials of very short period. And the analyticl system is afterwards, it should offer to pay close attention to all valid materials in time slot. These materials are magnanimity, calculate and stand up a little slower too in summary, but, have achieved the goal if can offer the valid analysis materials.
The data warehouses , under the condition that already a large number of has existed for the database, in order to further excavate the resources of the materials, need and produce in order to make policy, it is by no means the so-called ‘large-scale database’'. Then, the data warehouses is compared with traditional database, what difference is there? Let us read W.H.Inmon definition about the data warehouses first: The theme -oriented, integrate one, materials set correlated with and can't be revised time.
5.0 Conclusion
Data warehouse has multidimensional data structures and OLTP(Online transaction processing) has 3NF(The third normal form) data structure. The multidimensional design of data warehouse enabled end-user with different interests to look at the data from difference cross-section. 3NF data of OLTP enabled efficient data manipulate and simple query.
Database tables of data warehouse have much more indexes about OLTP. Indexes can enhance the efficiency of conducting data analysis. It involve large amount of data in data warehouse. While too much indexes in OLTP may hurt the performance for data manipulation.
Data redundancy in data warehouse is common to make better about the efficiency of data analysis. On the otherhand, Data redundancy in OLTP is rare and to facilitate data manipulation.
Data in data warehouse are historical data(see chapter 2), it inculdes derived and aggregated values of RAW data. Data in OLTP inculdes derived data and aggregated values.
6. Reference
MSDN, viewed February 1
Database outline is explained elementarily, viewed February 2
< http://www.e-zone.com.hk/discuz/viewthread.php?tid=6561 >
The detailed introductions of difference of the database and Data warehouse viewed February 1
< http://bbs.flash2u.com.tw/dispbbs_155_80485.html >
"The Story So Far". 2002-04-15. viewed February 1
Pendse, Nigel and Bange, Carsten "The Missing Next Big Things", viewed February 10
< http://www.olapreport.com/Faileddozen.htm >
Gray, J. and Reuter, A. Transaction Processing: Concepts and Techniques, 1st edition, Morgan Kaufmann Publishers, 1992.
Kroenke, David M. and David J. Auer. Database Concepts. 3rd ed. New York: Prentice, 2007.
Beynon-Davies, P. (2004). Database Systems. 3rd Edition. Palgrave, Houndmills, Basingstoke.
Connolly, Thomas and Carolyn Begg. Database Systems. New York: Harlow, 2002.
Data Warehouses is a kind of information system store the theory, this theory puts emphasis on utilizing some special materials to store the way, let materials included, help, analyse and process especially, in order to produce valuable information and make decision according to this.
Data Warehouses utilizing the storage way of the materials to be preserved, have once store in, the characteristic not changed with time, the materials stored in at the same time must include time attribute, usually a materials storage will all contain a large number of historical materials, utilize the particular analysis way, since explore particular information out among them.
Transactional Databases Can be considered as the materials collection that can be inquired and revised automatically. The database has many kinds of model, store, have various materials of forms get, can carry on magnanimity large-scale system widely used from a most simple one in all fields database that materials store
2.0 Data Warehouses
The materials storage, proposed in 1990 by father W.H.Inmon in the materials storage, the main function was to deal with (OLTP) the organization through the on-line trade of the information system A large number of materials accumulated for years, store the structure through the peculiar materials of storage theory of materials, doing one has systematic analysis to put in order, analyse and process (OLAP) on-linely by various analytical methods of profit , the materials mining (Data Mining) It goes on, and then support it like DSS (DSS) , in charge of information system (EIS) Setting-up,it help policymaker can getting more effective fast last valuable information since a large number of materials, draft in order to make policy and the external environmental change of fast reaction, help builds and constructs the commercial intelligence (BI) .
Generally speaking, materials storage can by getting related database, set up for materials one degree of databases of multidimension that storage develop specially, if set up by one degree of databases of multidimension, its structure can be divided into a written complaint of a star and snow flake form structure, include several and link one degree of information forms, and a fact information form.
The organizational system of the materials storage is not merely only the application of the tool technological side of information, draw and carry out surface need, have deep understanding to industry knowledge, marketing management, market orientation, tactics rule person who paint relevant terms even more in rule, could really give play to materials storage and follow-up to analyze the value of the tool, improve the competitiveness of organizing.
2.1 Data Warehouses Characteristic
Subject-Oriented: Different from general OLTP system, the materials modelling of the materials storage, classifies materials according to their meanings to the same theme district (subject area) emphatically ,Called the theme direction. Give an example such as Party, Arrangement, Event, Product,etc.
Integrated: The materials are combined and identical in the materials storage from the enterprise every OLTP system.
Time-Variant: The change of the materials, is able to note down and track and change in the materials storage, facilitate reflecting the materials orbit that can vary with time
Nonvolatile: Once the materials will not be replaced or deleted after confirming writing into, even if the materials are also wrong
2.2 Data Warehouses function
Merge the materials of the source of the heterogeneous materials into the single homogeneity structure. To analyzing the efficiency that inquires but not dealing with the trade, organize the materials with the simple structure. Include effective identical equal to alreadying and and direct against and analyze the conversion materials formatted. Offer the steady materials recorded on behalf of the commercial affair.
Fixed newer with other materials, but not carry on the frequent trade. Simplify security requirement.
3.0 Transactional Databases
Databases have many kinds of models. For example used in large-scaly to the one that store as like Network Database ,RelationalDatabase, Object-Oriented Database, DAP and Hierarchical Database .
Form according to just a few array in form generally. General, every tabulation of China shows one According to the type, according to existing in different forms that walks among them.
3.1 Disadvantage and Advantage
The advantage of the database:
Reduce the materials or data to repeat (Reduced Redundancy)
Combine the materials (Integrated data)
Integrality data type (Integrity)
Compatibility of the materials
Can protect the security of the materials and personal informatiom
The disadvantage of the database:
increase the cost
The system is complicated
Need to back up frequently, otherwise the unexpected state will cause the great injury
Manage the teacher (DBA) in database Non- easy to train
3.2 Data classification
Distinguish in accordance with the materials model
Hierarchical data model : Make up this arborescent stratum way of the materials, to put it briefly regard the materials as the type attitude of a group of arborescent structure
Network data model : A database, its sub element can to put it briefly regard the materials as the type attitude (research and develop first) of a group of reticular formations to the one or more mothers element
Relational data model : To put it briefly have relevant forms to regard the materials as some each other, succeed in most with database of this kind of at present ( Probably because the idea is simple in order to do in fact) .
Database: Include a lot of tables.
Form: Include a lot of record.
record: Include a lot of ields
The advantage of combined the materials:
1. reduce the materials to repeat, improve the sharing and combining
2. make the materials independent of procedure: for example, Can utilize one database administrative system come interconnected system manage materials jointly, and every procedure down the order to the administrative system of the database and then.
3. close and related and organization among the materials, the inquiry of the user can do the fast response.
4. security and control of concentrating on melting: for example the centralized management of the materials, can increase the controlling and guarantee security, it is big in the materials amount, can set up the database and manage the teacher (database administrator) To maintain the database system.
3.3 The basic function of the administrative system of the database
The materials are defined: Must be able to define and the materials projects of different types of management. The materials are dealt with: To user offers is ability more about materials,(the newly-increased and revising, inquiring and deleting) .
The materials are safe: Can set up user's account, password and authority and prevent the materials from letting out or destroying.
The materials are backed up: Offer the materials to back up, can reduce to the state backed up and reduce losses while damaging unfortunately.
What the user touches is application program, and that is really exposed to with the real materials is that the administrative system of the database hides the real environment of database, represent abstract structure, needn't consider magnetic rail, indicator, overflow location true issue of environment make application program of designing, and enable and design simplifying.
3.4 Database Management System (DBMS)
The administrative system of the database (database management system) Advantage separated form application program.
The first, simplify and design: Ex: In the dispersing type database, it is very complicated that the materials are stored, if there is no DBMS that the procedure must all know all materials.
The second, strengthen one to look at: The access of all restriction databases is all dealt with by one DBMS, it is simple to deal with a one that look at and change.
Third, it is materials independence.
3.5 On-Line Transaction Processing system
The On-Line Transaction Processing system (OLTP), the related type database is most suitable for the materials which manages the modification. Usually, these related type databases will have several users to carry out the trade that will alter the instant materials at the same time. Though the user's specific materials require that usually only need to consult a few materials to tabulate, but will send out a lot of requirements at the same time.
OLTP database is to design usedding for letting the trade type application program only write into and deal with the materials needed in single exchange as soon as possible. OLTP database will generally carry out the following projects:
Support the to run side by side a large number of user to be fixed and newly-increased and revising the materials.
Display the modification of organizing state continuity, but does not store its record.
Contain a lot of materials, including using for verifying a large number of materials of the trade.
Have complicated structure.
Can make fast response to trade activity to change to.
Offer the technological infrastructure, in order to support the daily job organizing.
The specific trade can deposit and withdraw a small amount of data relatively by finishing rapidly. OLTP system is to design and adjust usedding for dealing with and entering several hundred or thousands of transactions of the database at the same time.
The materials in OLTP system will be organized and supported the trade such as the following projects mainly:
Record the order from the sales outlet terminal machine or Web platform.
The order when the volume of stock is dropped to appointed standard time, in order to require more source of goods.
Follow the trail of and assemble in the factory for the component of the final products.
Record staff's data.
4.0 Data Warehouses VS Transactional Databases
In brief, the database is a affairs -oriented design, the data warehouses faces theme design. The Transactional database generally stores the on-line trade materials, it is generally historical materials that the data warehouses is stored.
The design of database is to try hard to avoid being redundant, generally adopt the rule to accord with normal form to be designed, data warehouses it designs to be inclined to introduce redundant, adopt, design against normal form way.
The database is designing to catch the materials, the data warehouses is designed to analyze the materials, two basic elements of it link forms and fact form. It is the angle such as time looking at problem to link, the department, the ones that linked forms and put are the definitions of these things, the materials that will be inquired about are put in the fact form, there is ID linked at the same time.
Only speaking from the concept, a bit hard to understand. Any technology is for employing serving, combine and employ and can understand very easily. Take banking as an example. Database affairs materials platform of system, customer will write database into in every transaction that bank make, written down, here, can be interpreted as keeping accounts with the database briefly. The data warehouses is the materials platform of a analyticl system, it obtains the materials from the affairs system, gather, process, offer the basis of decision to policymaker. For example how much trade does it take place some some one month such as branch such as bank, what branch this balance of deposits at present. If deposit many, consumption trade also more, this area set up ATM while being necessary then.
Obviously, trading volume of bank enormous, even ten million calculate with a million usually. The affairs system is real-time, this requires prescroption, the customer takes dozens of seconds to be stood to deposit a sum of money, this requires the database to store the materials of very short period. And the analyticl system is afterwards, it should offer to pay close attention to all valid materials in time slot. These materials are magnanimity, calculate and stand up a little slower too in summary, but, have achieved the goal if can offer the valid analysis materials.
The data warehouses , under the condition that already a large number of has existed for the database, in order to further excavate the resources of the materials, need and produce in order to make policy, it is by no means the so-called ‘large-scale database’'. Then, the data warehouses is compared with traditional database, what difference is there? Let us read W.H.Inmon definition about the data warehouses first: The theme -oriented, integrate one, materials set correlated with and can't be revised time.
5.0 Conclusion
Data warehouse has multidimensional data structures and OLTP(Online transaction processing) has 3NF(The third normal form) data structure. The multidimensional design of data warehouse enabled end-user with different interests to look at the data from difference cross-section. 3NF data of OLTP enabled efficient data manipulate and simple query.
Database tables of data warehouse have much more indexes about OLTP. Indexes can enhance the efficiency of conducting data analysis. It involve large amount of data in data warehouse. While too much indexes in OLTP may hurt the performance for data manipulation.
Data redundancy in data warehouse is common to make better about the efficiency of data analysis. On the otherhand, Data redundancy in OLTP is rare and to facilitate data manipulation.
Data in data warehouse are historical data(see chapter 2), it inculdes derived and aggregated values of RAW data. Data in OLTP inculdes derived data and aggregated values.
6. Reference
MSDN, viewed February 1
Database outline is explained elementarily, viewed February 2
< http://www.e-zone.com.hk/discuz/viewthread.php?tid=6561 >
The detailed introductions of difference of the database and Data warehouse viewed February 1
< http://bbs.flash2u.com.tw/dispbbs_155_80485.html >
"The Story So Far". 2002-04-15. viewed February 1
Pendse, Nigel and Bange, Carsten "The Missing Next Big Things", viewed February 10
< http://www.olapreport.com/Faileddozen.htm >
Gray, J. and Reuter, A. Transaction Processing: Concepts and Techniques, 1st edition, Morgan Kaufmann Publishers, 1992.
Kroenke, David M. and David J. Auer. Database Concepts. 3rd ed. New York: Prentice, 2007.
Beynon-Davies, P. (2004). Database Systems. 3rd Edition. Palgrave, Houndmills, Basingstoke.
Connolly, Thomas and Carolyn Begg. Database Systems. New York: Harlow, 2002.
MetalBenders Industries, Inc
Case Study - Executive Summary
This presentation is analyzed and a d suggestion for Case of MetalBenders Industries, Inc. first of all, we talk about the background. Analyze this case MetalBenders is a classic case of a family owned business that started strong under its founder and became weaker in its second generation. Compounding the problem was the unexpected death of the second generation heir with the business now under the control of his widow, Maria, a woman of Hispanic origin, not trained in the world of business, and a person who was content to let her husband run the firm. As a reluctant leader of the firm, she must determine how to improve the firm’s profitability, to not only allow her to maintain her lifestyle, but also to position the firm for sale in the future. It is intended to furnish students with an opportunity to gain new insights into the many challenges faced by a small, second-generation family-owned business.
From this case we point five points to analyze:
n MetalBenders Industries, Inc : 33 years(1969)
n Maria as a CEO: 6 years(1996~2002)
n Past 3 years the sales ranged ($1.4 million to $1.7 million)
the breakeven point is $1.5 million
n Reputation from customers:
¨ always willing to take on spur-of-the-moment jobs
¨ A good company, they do good work, but they're always late
¨ Communication is below average
¨ so anxious to please the customer that they don't say no to any job. Nothing's too small, or too inconvenient
n No manage system (-), no standard product (+/-),
can’t increase profits for several years may get worse.
Then, there is compendious compare and discussion who is a qualified person can lead this company to the future amount mark, ted and jose, and the analyse depend on leadership theory show that there are no people can lead this company and the current leader Maria also can not play the role because she how to lead and use employees and do everything like depend on her habits. Such as, she does not like to listen to Ted and Mark.
Whereafter, some useful and accurate leadership policies would talk about as follow. Leadership style is the manner and approach of providing direction, implementing plans, and motivating people. The three major styles of leadership are:
o Authoritarian or autocratic
o Participative or democratic
o Delegative or Free Reign
Although good leaders use all three styles, with one of them normally dominant, bad leaders tend to stick with one style. The authoritarian style should normally only be used on rare occasions. If you have the time and want to gain more commitment and motivation from your employees, then you should use the participative style. Using participative style is of mutual benefit -- it allows them to become part of the team and allows you to make better decisions. Delegative is not a style to use so that you can blame others when things go wrong, rather this is a style to be used when you fully trust and confidence in the people below you. Do not be afraid to use it, however, use it wisely!
In the end of this presentation we suggest some Recommendation which include. Chance: ISO9000 certification, Risk equal chance, Maria has to change herself rather than complain and Maria cannot depend on her habits to lead the company, like Jose. It can be seem in the future the core-man will leave for sure.
Bluetooth LCD Display Sunglass
Excusive Summary
To Realize a Dream of Human Being
~ ~Bluetooth LCD Display Sunglass ~~
Recently, the Bluetooth technologies have been mature. This product report is made from the old ideas around the world. With popular of the BT technology, the Bluetooth LCD Display Sunglass would be considered as the next generation’s product. Combining with BT and Soft-LCD display technology, The BLDS can take part in a common communication tools. It is not only an extend product of BT but is an evolution of recent technology; bring the whole human beings to a really virtual world. Hence, the BLDS should be the bridge of technology and virtual dream world.
However, as far as the results of latest technologic reports, the soft-display technology still stays in the develop stages which means the technology would still take times waiting for mature. On the other hand, the BLDS can realize the virtual dreams of human beings.
This report would content the product purpose, technical plans, the figure of the product and marking plans. And it also includes the Low‐fidelity Prototyping and Evaluation which means it also contents the prototypes and the testing reports. The appendix includes three testing reports from different countries and different cultures. The results had showed the highly interesting of this product. The BLDS could be seen able to expect.
Also, the presentation is contenting the summary of this product. For this product realizing should still need some times, but it definitely would be produced in the short future.
Table of contents
1. Purpose……………………………………………………………………..……………………. 4
1.1 Introduction………………………………………………………….…………………… 4
1.2 Mission Statement…………………………………………………………….……………4
2. Technical Plans…………………………………………………….…………………...…………5
2.1 Technical Features ……………………………………………..………………………….5
2.2 Product Testing…………………………………………………....……………………….5
3. Product Contents Plans…………………………………………………………………………..6
3.1 The concept product figure……………………….……………………………………….6
3.2 Main Structure………………………………………...……………..…………………….6
4. Marketing Plans………………………………………..…………………………………………7
4.1 Target Audience……………………………………………………………………………7
4.2 Promotion plan…………………………………….…….………………………………...7
4.3 Why to choose this product……………………………………...………………………...8
4.4 Internet promotion ………………………………………………………………………..9
4.5 Analysis marketing……………………………………………………….………………..9
5. Prototype Screen shot ……………………………………………………………………….10
TYPE A…………………………………………………………………………..……………10
TYPE B…………………………………………………………………………..……………12
6. Tasting Report…………………………………………………………………….……………..12
Prototype A……………………………………………………………………..…………..…12
Prototype B………………………………………………………………………..………..…13
7. Summary of testing………………………………...……………………………………………13
8. Conclusion………………………………...……………………………………………………..14
9. References………………………………..….…………………………………………………..15
10. Appendix: ……………………………….……………………………………………………..15
1. Purpose
Since human beings have memory, people pursue the steps of progress would never stop. In 1964, the first operating system, Multiplexed Information & Computing Service (Multics), opened and showed the age of computer coming. Fast and surely, the 21 century is a computer age. People can design and develop any program and software as they want. Many virtual dreams can be realized. This product “Bluetooth LCD Display Sunglass (BTLDS)” is one dream in our childhoods
1.1 Introduction
With the mature technology of Bluetooth, the data and images can be transferred easier and faster. The following is this BTLDS what would want to realize.
n Using the BT transfer technology, we can transfer data and images to the LCD monitors.
n By using Soft LCD monitor technology, we can display images with half-transparent on the sunglass lens.
n Realize the virtual-dream of movies;
Some evidences and examples are showing people who aspire to this idea could be come true:
1. The Japanese cartoon around 25 years ago, The Dragon Balls, the abilities sensor.
2. In the film of
3. Famous game, The Biohazard 4, they used the sunglasses to transfer images and data, even setting the bomb on the sunglasses.
4. Another Japanese cartoon in 2008, Apple Seed – ex Machina, there also is many applications by using these similar sunglasses to transfer public information.
That is, people have been searching the virtual display dreams for a long time. And, nowadays, the LCD technology and the BT technology had been mature and reliable.
n We can see this product which is a application of technology combination.
n In the future, we believe these kinds of utilization will use widely with more useful applications.
1.2
n To transmit about fashion and a real time information.
n To provide high services and conveniences to human being.
n To Integrated services and produces on sale.
n To realize the virtual dream and high technology with portable life.
2. Technical Plans
This session will show the technical part of product design. It will include the program language of website, database and the system platform. Also, it will show the proper internet browsers and make sure this product can be linked with other mobile and portable devices using BT in present.
2.1 Technical Features
n The coral operation system will use Linux coral which is smaller and stable. And this product should be both considered the IC-chip design and software design.
n Program Language & Database: C++ and SQL-database.
n Soft-LCD selection: the selection condition should be also determined by the sunglass producer.
n Bluetooth dongle selection.
n Speaker and earphone selection: studio and sensitively manufactures.
Consider the safety and normal user friendly, thus, the BTLDS just design with one side of glassed.
2.2 Product Testing
The BTLDS will undergo both function and usability testing prior to release. Functionality will be check by the developers and designers. This testing will use at least the following browsers and configurations:
Hardware checking:
n The product BTLDS and should be light and suitable with people wearing.
n IC-chips modules and BT dongles should be designed as small as possible.
n As present the BT technology, it performs the real time mp3 and radio transfer. Therefore, BTLDS should present the equal qualities.
n Meanwhile, the remote control would be written the base connection protocol to offer the mobile factories downloading drivers and suitable connection programs.
Software checking:
The softwares of currently using should be offer the display to the screen of BTLDS such as WAP, email checking, and GPS.
Browsers checking:
n Internet Explorer 6 and 7
n Mozilla 1 and 2
n Firefox 1,2,3
n Broadband connection and speed testing
n Domain Name setting and make sure the globe connecting linking (e.g.
n OS testing will include:
l MS Windows95/98/ME/NT/2000/XP/Vista;
l Linux as much as possible distribution (e.g. Red hat, Mandriva, Blue linux etc..)
l Macintosh OS
3. Product Contents Plans
3.1 The concept product figure
3.2 Main Structure
The Bluetooth LCD Display Sunglass is a product which is designed to make more convenient for daily life of human being. This product can be seen as the extend product of Bluetooth. It can be used by Mobile phones or remote controls to receive the information and print-out to the soft-LCD screen. Therefore, the functions of currently PDA-mobile phone can be also displayed on the screen. The functions would be listed by following;
1. Brower: web, search, mail, SMS etc.
2. GPS, Java.
3. Entertainment: music, MTV etc.
The advanced extended
4. Build-in Camera on the sunglass. It would have more interaction with information community and data-transferability. Also, it can provide more real time services such as 2D-Code and image-scan application.
5. The night scene mode; another experience at night time. And it can also use for weapon application.
6. The human body temperature sensible system.
4. Marketing Plans
4.1 Target Audience
The BTLDS Main target Audience will separate several kinds of type:
l The people who really aspire with new technology.
l The people who want to catch the new and fashion style lives.
l The people who had the dream to the virtual worlds.
l This product also can be connected with the game platforms such as PS3, Wii and X-BOX, if this product is getting popular and have suitable driver designs.
The range ages of audience would be mainly focus on 15~40 years old who have above specify characteristics.
4.2 Promotion plan
The target market is Aussie aged among 15 to 40. We plan to charge a little more expensive than our competitors; hence making our strategy based on differentiation, according to Porter’s Generic Strategies (cited in Allen and Helms, 2006).
A good advertisement on TV and internet will be the main marketing strategies to introduce and promote our new products. The hot-sale point is that we are new and modern, and it is essential for all Australian, especially youths.
4.3 Why to choose this product
Our product has at least two innovated concept for customers, such as follows:
n 
It can be regarded as the further used of Bluetooth Technology that it admits users to remote their mobile phones, remoter, receivers, etc through the sunglass. It will display all the information that they can see in mobile in the sunglass.
n For examples:
· Web browsers, searching engines, email support, SMS etc.
· GPS service.
· Multi-Media Entertainment service.
· Control Mode Menu Display.
· Signals when you receive any new information of the sunglass.
· Basic on the Bluetooth Technology, it’s possible to send all the information, included visual info, sounds, controlling orders, through its support. For this convenient technology, we can have more extended uses of our sunglass.
n A mini camera can be built into the camera to detect the information inside of your visual fields.
n It can also give out the night shot function for armies.
n Basic analysis of the objects properties you see inside of your visual fields, etc.
It would be very excited for most of Aussie because they will never feel dark only when they use sunglass to prevent from sunburn of eyes, but also get funny information and multi-media enjoyment through our product.
Also we have to establish a web site to introduce this product, offer information and downloading drivers. Furthermore, we can directly receive the feedback from customers. The following is the strategy of how to promote the website with necessary.
4.4 Internet promotion
l Search Engine Optics (SEO) will put the website on each protocol search Engine.
l The key word will show portal site on popular Search Engine
l Electronic invitational system (regular sent E-PAPER and E-DM)
4.5 Analysis marketing
Aim on advertisement
Select target and discover the correct consumers on the Internet
n Focus on consumers’ behaviours and background
–According to our purpose, select correct group
–According to our conditions sent advertisement to designated groups
Specific advertising time and messages
n Focus on specific festival sends advertisement.
n Sending advertisement on suitable the opportune time.
Demography
Integrated Services and relish
n Provide popular information and report to members
– gender、age、interesting、career
n Counting audience click times from advertisement
–understanding advertising position
–understanding audience’s interesting level
n Understanding advertising effect and revision advertisement immediately
Tracing adverting report
Tracing consumers’ behaviours
n pay attention on consumers’ behaviours when advertisements on-line
n collect consumers feel back and response
n Analyze advertising effect on different pages and units on web site
n Recognize who are first to visit our web site
Consumers’ behaviour report
Understanding consumers’ behaviours and their interesting
n Analyze members information
n Provide separable information to members and browsers
n Web site will make data base system to store statistics to improve service
n Differentiate Consumers behaviours and interesting to improve promotion
Internet survey
Deeply understanding member’s attitude
n Diversification and modulus to surveys
n Doing surveys for different group to ensure accuracy
n On-line surveys is the best method to understanding people and don’t need too much money
n Advertising test board, can understand member’s attitude and thinking，
Polarization intensity on advertising effect
Create human being system on advertisement
n Permit any originatively advertisement on different channels
n Regular check survey’s result to confirm advertising effect
n Maximum of benefit
–Reduce time on documents delivery by people
–easy to understanding want is member’s requirement and future Consumers’ direction
–every day change and innovation
5. Prototype Screen shot
TYPE A
The screen shot is when the BLDS programs boot
The screen shot is when the BLDS programs are running the Browser
The screen shot is when the BLDS programs are playing the movie
TYPE B
6. Tasting Report
The testing reports have been put into the Appendix. There are eight reports (two for each person). The following two tables are the average of results.
Prototype A
| Option (from 0 to 10, the most agree lever is 10) | ||
| Idea Testing | ||
| 1 | Idea (what do you think about the BTLDS?) | 8.25 |
| 2 | Executive Feasibility (what do you think this product would be realized?) | 6.75 |
| 3 | If the products really become true, what do you think this would be popular? | 8.25 |
| User Interface (UI Design Testing) | ||
| 4 | Page’s appearance | 5.75 |
| 5 | Color | 6.25 |
| 6 | Font | 6.75 |
| 7 | Pictures | 6 |
| 8 | Languages | 4.5 |
| 9 | Help/ Error messages | 4.5 |
| Navigation | ||
| 10 | Easy to locate an item | 5.25 |
| 11 | Useful search functions | 6.75 |
| Content & Structure | ||
| 12 | Purpose of the product | 7.75 |
| 13 | The content of the product is well-organized | 6.25 |
| 14 | Sequence of pages | 6.75 |
| Overall Questions | ||
| 15 | Overall, I am satisfied with this product | 8 |
Prototype B
| Option (from 0 to 10, the most agree lever is 10) | ||
| Idea Testing | ||
| 1 | Idea (what do you think about the BTLDS?) | 8 |
| 2 | Executive Feasibility (what do you think this product would be realized?) | 6.25 |
| 3 | If the products really become true, what do you think this would be popular? | 7.5 |
| User Interface (UI Design Testing) | ||
| 4 | Page’s appearance | 7.75 |
| 5 | Color | 6.75 |
| 6 | Font | 6.5 |
| 7 | Pictures | 8 |
| 8 | Languages | 5.25 |
| 9 | Help/ Error messages | 7.25 |
| Navigation | ||
| 10 | Easy to locate an item | 7.25 |
| 11 | Useful search functions | 6 |
| Content & Structure | ||
| 12 | Purpose of the product | 8.25 |
| 13 | The content of the product is well-organized | 6.5 |
| 14 | Sequence of pages | 6.75 |
| Overall Questions | ||
| 15 | Overall, I am satisfied with this product | 8.25 |
7. Summary of testing
According to the testing report, people seem like this idea and product. As the previous mention, this idea would be every childhood dream. This product can be separated to two different ways of developing. One is seen to the extended BT product; the BTLDS do just receiving data from mobile phone and show on the monitor (glass). The other way is to do more special functions which build in the BTLDS. That is, we can do more communicate in both direction (input and output). Such as the camera with the scan function and offer more real time services.
These two different types of designing would be decided by the market survey reports and the foundation. Also, the patent right is the first issue and should apply at the beginning stages. Therefore, the concept of the BTLDS had focused on how to promote the mainly idea.
8. Conclusion
Bluetooth LCD Display Sunglass is concerned about the needs for Aussie and their values. We are creating a huge market to combine sunglass and modern Bluetooth display technology into one product so that they can get the conveniences and benefits when they trade in certain stuff. Our product will be sold on the east coast of
The researching shows that this kind of project would be used in several fields such as commercial communities and military weapon. As far as I know, in
There is no doubt that the idea is not the brand new concept, somehow, the realized steps are difficult cause the present LCD monitor all have using the block cover at the back and there is still no way make the LCD presenting images with half-transparent. The ITRIT are trying to overcome the base technological theory of LCD monitor. They are developing the soft LCD monitor. If this technology can overcome and mature I think definitely that dreams would come true. Since the 19th century the industry evolution, people had realized inestimable dreams of whole human beings. In the future, there is nothing impossible, if the desire and aspiration of people on the earth are keeping the peace and the development to improve the human’s lives.
9. References
- Allen, R. S., & Helms, M.M., (2006). Linking strategic practices and organizational performance to Porter’s generic strategies. Business Process Management Journal, 12 (4), 433-454
10. Appendix:
The testing reports of four people who come from different countries and have the different cultures. Each testing report both have type A and B.
Low‐fidelity Prototyping and Evaluation -- Testing application form.
No.1 - A
| 2009040101 | Date | 21st 4, 2009 | |||
| Name | Cody Chou | Sex | male | ||
| Nationality | | Age | 30 | ||
| Position | student | Major | MIT/MBA | ||
| Testing prototype | Type A | ||||
| Option (from 0 to 10, the most agree lever is 10) | |||||
| Idea Testing | |||||
| 1 | Idea (what do you think about the BTLDS?) | 9 | |||
| 2 | Executive Feasibility (what do you think this product would be realized?) | 7 | |||
| 3 | If the products really become true, what do you think this would be popular? | 10 | |||
| User Interface (UI Design Testing) | |||||
| 4 | Page’s appearance | 7 | |||
| 5 | Color | 6 | |||
| 6 | Font | 8 | |||
| 7 | Pictures | 9 | |||
| 8 | Languages | 2 | |||
| 9 | Help/ Error messages | 5 | |||
| Navigation | |||||
| 10 | Easy to locate an item | 9 | |||
| 11 | Useful search functions | 8 | |||
| Content & Structure | |||||
| 12 | Purpose of the product | 9 | |||
| 13 | The content of the product is well-organized | 7 | |||
| 14 | Sequence of pages | 6 | |||
| Overall Questions | |||||
| 15 | Overall, I am satisfied with this product | 9 | |||
| Comments | |||||
| The idea of product is fantastic, however, the executive possibility still has long way to go. As I know, there are many company around the world are doing similar projects. Therefore, the product will show on the earth shortly. I can provide two different ways to execute this project. One is just seen this as a extended BT product. It can just use the application as transfer data to the screen. Otherwise, to produce this product using your own programs has to fit most mobile currently, it is a very huge project to realize the dream. Thanks for the information sharing. | |||||
No.2 - B
| No. | 2009040101 | Date | 21st 4, 2009 | ||
| Name | Cody Chou | Sex | male | ||
| Nationality | | Age | 30 | ||
| Position | student | Major | MIT/MBA | ||
| Testing prototype | Type B | ||||
| Option (from 0 to 10, the most agree lever is 10) | |||||
| Idea Testing | |||||
| 1 | Idea (what do you think about the BTLDS?) | 9 | |||
| 2 | Executive Feasibility (what do you think this product would be realized?) | 7 | |||
| 3 | If the products really become true, what do you think this would be popular? | 9 | |||
| User Interface (UI Design Testing) | |||||
| 4 | Page’s appearance | 8 | |||
| 5 | Color | 8 | |||
| 6 | Font | 7 | |||
| 7 | Pictures | 8 | |||
| 8 | Languages | 5 | |||
| 9 | Help/ Error messages | 7 | |||
| Navigation | |||||
| 10 | Easy to locate an item | 6 | |||
| 11 | Useful search functions | 7 | |||
| Content & Structure | |||||
| 12 | Purpose of the product | 9 | |||
| 13 | The content of the product is well-organized | 8 | |||
| 14 | Sequence of pages | 7 | |||
| Overall Questions | |||||
| 15 | Overall, I am satisfied with this product | 9 | |||
| Comments | |||||
| The type of virtual version is similar to the film. Somehow, maybe it can be the reference of how to make people accept this new product. | |||||
No.3 - A
| No. | 2009040101 | Date | 21st 4, 2009 | ||
| Name | Mei Chen | Sex | female | ||
| Nationality | Chinese | Age | 21 | ||
| Position | student | Major | Diploma | ||
| Testing prototype | Type A | ||||
| Option (from 0 to 10, the most agree lever is 10) | |||||
| Idea Testing | |||||
| 1 | Idea (what do you think about the BTLDS?) | 9 | |||
| 2 | Executive Feasibility (what do you think this product would be realized?) | 8 | |||
| 3 | If the products really become true, what do you think this would be popular? | 7 | |||
| User Interface (UI Design Testing) | |||||
| 4 | Page’s appearance | 5 | |||
| 5 | Color | 7 | |||
| 6 | Font | 6 | |||
| 7 | Pictures | 4 | |||
| 8 | Languages | 5 | |||
| 9 | Help/ Error messages | 6 | |||
| Navigation | |||||
| 10 | Easy to locate an item | 4 | |||
| 11 | Useful search functions | 6 | |||
| Content & Structure | |||||
| 12 | Purpose of the product | 8 | |||
| 13 | The content of the product is well-organized | 6 | |||
| 14 | Sequence of pages | 7 | |||
| Overall Questions | |||||
| 15 | Overall, I am satisfied with this product | 8 | |||
| Comments | |||||
| Good, I saw on the movies. If this product would become true. I like to buy for fun. | |||||
No.4 - B
| No. | 2009040101 | Date | 21st 4, 2009 | ||
| Name | Mei Chen | Sex | female | ||
| Nationality | Chinese | Age | 21 | ||
| Position | student | Major | diploma | ||
| Testing prototype | Type B | ||||
| Option (from 0 to 10, the most agree lever is 10) | |||||
| Idea Testing | |||||
| 1 | Idea (what do you think about the BTLDS?) | 8 | |||
| 2 | Executive Feasibility (what do you think this product would be realized?) | 5 | |||
| 3 | If the products really become true, what do you think this would be popular? | 6 | |||
| User Interface (UI Design Testing) | |||||
| 4 | Page’s appearance | 7 | |||
| 5 | Color | 7 | |||
| 6 | Font | 7 | |||
| 7 | Pictures | 8 | |||
| 8 | Languages | 5 | |||
| 9 | Help/ Error messages | 7 | |||
| Navigation | |||||
| 10 | Easy to locate an item | 7 | |||
| 11 | Useful search functions | 6 | |||
| Content & Structure | |||||
| 12 | Purpose of the product | 9 | |||
| 13 | The content of the product is well-organized | 7 | |||
| 14 | Sequence of pages | 7 | |||
| Overall Questions | |||||
| 15 | Overall, I am satisfied with this product | 8 | |||
| Comments | |||||
| Still Good | |||||
No.5 - A
| No. | 2009040101 | Date | 22nd 4, 2009 | ||
| Name | Michelle Kim | Sex | Female | ||
| Nationality | Korean | Age | 24 | ||
| Position | student | Major | MPA | ||
| Testing prototype | Type A | ||||
| Option (from 0 to 10, the most agree lever is 10) | |||||
| Idea Testing | |||||
| 1 | Idea (what do you think about the BTLDS?) | 8 | |||
| 2 | Executive Feasibility (what do you think this product would be realized?) | 4 | |||
| 3 | If the products really become true, what do you think this would be popular? | 9 | |||
| User Interface (UI Design Testing) | |||||
| 4 | Page’s appearance | 5 | |||
| 5 | Color | 5 | |||
| 6 | Font | 6 | |||
| 7 | Pictures | 5 | |||
| 8 | Languages | 4 | |||
| 9 | Help/ Error messages | 4 | |||
| Navigation | |||||
| 10 | Easy to locate an item | 3 | |||
| 11 | Useful search functions | 6 | |||
| Content & Structure | |||||
| 12 | Purpose of the product | 7 | |||
| 13 | The content of the product is well-organized | 6 | |||
| 14 | Sequence of pages | 8 | |||
| Overall Questions | |||||
| 15 | Overall, I am satisfied with this product | 8 | |||
| Comments | |||||
| Cool, I had a dream that one day that I can wear this glass on the road. There are many interest things but I have to go back home and check. If this product can be true. What’s the big apple! | |||||
No.6 - B
| No. | 2009040101 | Date | 22nd 4, 2009 | ||
| Name | Michelle Kim | Sex | female | ||
| Nationality | Korean | Age | 24 | ||
| Position | student | Major | MPA | ||
| Testing prototype | Type B | ||||
| Option (from 0 to 10, the most agree lever is 10) | |||||
| Idea Testing | |||||
| 1 | Idea (what do you think about the BTLDS?) | 7 | |||
| 2 | Executive Feasibility (what do you think this product would be realized?) | 5 | |||
| 3 | If the products really become true, what do you think this would be popular? | 8 | |||
| User Interface (UI Design Testing) | |||||
| 4 | Page’s appearance | 8 | |||
| 5 | Color | 7 | |||
| 6 | Font | 5 | |||
| 7 | Pictures | 8 | |||
| 8 | Languages | 5 | |||
| 9 | Help/ Error messages | 7 | |||
| Navigation | |||||
| 10 | Easy to locate an item | 8 | |||
| 11 | Useful search functions | 5 | |||
| Content & Structure | |||||
| 12 | Purpose of the product | 7 | |||
| 13 | The content of the product is well-organized | 5 | |||
| 14 | Sequence of pages | 6 | |||
| Overall Questions | |||||
| 15 | Overall, I am satisfied with this product | 8 | |||
| Comments | |||||
| The two prototypes are similar. But I cannot wait for this product on the market. | |||||
No.7 - A
| No. | 2009040101 | Date | 22nd 4, 2009 | ||
| Name | Mizue Jikiumaru | Sex | female | ||
| Nationality | | Age | 18 | ||
| Position | student | Major | Hotel management | ||
| Testing prototype | Type A | ||||
| Option (from 0 to 10, the most agree lever is 10) | |||||
| Idea Testing | |||||
| 1 | Idea (what do you think about the BTLDS?) | 7 | |||
| 2 | Executive Feasibility (what do you think this product would be realized?) | 8 | |||
| 3 | If the products really become true, what do you think this would be popular? | 7 | |||
| User Interface (UI Design Testing) | |||||
| 4 | Page’s appearance | 6 | |||
| 5 | Color | 7 | |||
| 6 | Font | 7 | |||
| 7 | Pictures | 6 | |||
| 8 | Languages | 7 | |||
| 9 | Help/ Error messages | 3 | |||
| Navigation | |||||
| 10 | Easy to locate an item | 5 | |||
| 11 | Useful search functions | 7 | |||
| Content & Structure | |||||
| 12 | Purpose of the product | 7 | |||
| 13 | The content of the product is well-organized | 6 | |||
| 14 | Sequence of pages | 6 | |||
| Overall Questions | |||||
| 15 | Overall, I am satisfied with this product | 7 | |||
| Comments | |||||
| I had seen many movies having this manufactory. Especially I saw the apple-seed. It is amazing story. While I watched the films I was so good if I could have this machine. I have to go home and watch the movies again. Is it the second part? Am I right? Thanks for the information. I love it. | |||||
No.8 - B
| No. | 2009040101 | Date | 22nd 4, 2009 | ||
| Name | Mizue Jikiumaru | Sex | female | ||
| Nationality | | Age | 18 | ||
| Position | | Major | Hotel management | ||
| Testing prototype | Type B | ||||
| Option (from 0 to 10, the most agree lever is 10) | |||||
| Idea Testing | |||||
| 1 | Idea (what do you think about the BTLDS?) | 8 | |||
| 2 | Executive Feasibility (what do you think this product would be realized?) | 8 | |||
| 3 | If the products really become true, what do you think this would be popular? | 7 | |||
| User Interface (UI Design Testing) | |||||
| 4 | Page’s appearance | 8 | |||
| 5 | Color | 5 | |||
| 6 | Font | 7 | |||
| 7 | Pictures | 8 | |||
| 8 | Languages | 6 | |||
| 9 | Help/ Error messages | 8 | |||
| Navigation | |||||
| 10 | Easy to locate an item | 8 | |||
| 11 | Useful search functions | 6 | |||
| Content & Structure | |||||
| 12 | Purpose of the product | 8 | |||
| 13 | The content of the product is well-organized | 6 | |||
| 14 | Sequence of pages | 7 | |||
| Overall Questions | |||||
| 15 | Overall, I am satisfied with this product | 8 | |||
| Comments | |||||
| Only one word, cool! | |||||
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