How to respond to low cost competition – A case study

Background Today many large corporations worldwide are facing new competitors that develop good enough products to a low price. This is a well-known problem for large companies and is not an industry specific problem. We have seen new entrants especially from Asia entering, ranging from the airline industry, grocery, retailing, wind energy market, banking to IT services. These are just examples and no industry is presumably immune to this issue. How have successful companies tackled these kinds of threats? Managers at traditional premium corporations are having a hard time to decide what strategy to use while responding to these growing competitors and the change in the business landscape. The company in this thesis, Tetra Pak, is threatened by low cost competitors due to some of its patents have expired. The largest low cost competitor is named Greatview Aseptic Packaging Ltd and is based in China. Greatview is a Non-System Supplier (NSS) and obtains its revenues through using a more focused business model concentrating on a limited product offering. Thesis Objective This thesis consists of two main objectives. The first one is to describe how companies in the B2B manufacturing industry have responded to direct low cost competition and to identify what factors in the market or within the company that has been significant, decisive and descriptive for the choice and outcome of the Companys strategy. These factors will be identified and presented in a normative schematic model. The second objective is to test the hypothesis if the criteria for not being stuck in the middle stated by Michael Porter are true for the case companies utilizing a dual strategy. In addition, the companies actions will be compared with Kumars framework. Research questions What strategy could a company use against low cost competition? Which factors caused the case companies to take action? Limitations This reports focus has been manufacturing companies within the global B2B industry. The report examines six different firms in the mature market, all except one in the B2B industry. The firm that was not a B2B company was requested from Tetra Pak. The numbers of case objects (six) chosen were depending on a time constraint. Furthermore, this thesis puts focus on direct competition in the aseptic packaging industry only. Greatview Aseptic is the leading NSS and therefore that company has been studied thoroughly in this report. Methodology This thesis is based on a comparative descriptive multiple case study. An abductive approach is used. The data consists of both qualitative and quantitative data such as literary books, dissertations, newspapers, databases, annual reports, websites and trade organizations. Conclusions The schematic normative model developed in this thesis is deemed to support management when responding towards low cost competition. Analysis of the empirical findings provided this report with identified factors, which will assist managers to strategize toward low cost competition. Management could then use the model when looking over the competitive environment on a particular market based on how the outside world changes and what internal capabilities the company possess. This can provide an important basis when planning to enter a new market and advise how to develop a strategy against low cost competition. The idea is to bring in new thoughts and assist management with a competition analysis and emphasize a new perspective to rethink and think new in order to improve old thinking patterns. What is interesting to note is that none of the case companies transformed itself to a low cost player. The criteria for not being stuck in the middle stated by Michael Porter are true for the case companies utilizing a dual strategy. Furthermore, the findings about the companies reactions to the low-cost players support Nirmalya Kumars theoretical framework

A commentary on decision-making and organisational legitimacy in the Risk Society

Key concepts of Risk Society as elaborated by Ulrich Beck and others (Beck, U., 1992 (trans. Mark Ritter). The Risk Society. Sage Publications, London. Beck, U., 1995, Ecological Politics in the Age of Risk. Polity Press, Cambridge. Beck, U., 1999, World Risk Society. Polity Press, Cambridge. Giddens, A., 1994, Beyond Left and Right. Polity Press, Oxford. Beck, U., Giddens, A. and Lash, S., 1994, Reflexive Modernisation: Politics, Tradition and Aesthetics in the Modern Social Order. Stanford University Press, Stanford. Beck, U., Bonss, W. and Lau, C., 2003, Theory, Culture & Society 2003, Sage, London, 20(2), pp. 1-33.) are illuminated though a case study of managed environmental risk, namely the hexachlorobenzene (HCB) controversy at Botany, a southeast suburb of Sydney. We observe the way multiple stakeholder decision-making plays out a number of Risk Society themes, including the emergence of 'unbounded risk' and of highly 'individualised' and 'reflexive' risk communities. Across several decades, the events of the HCB story support Risk Society predictions of legitimacy problems faced by corporations as they harness technoscientific support for innovation in their products and industrial processes without due recognition of social and environmental risk. Tensions involving identity, trust and access to expert knowledge advance our understanding of democratic 'sub-political' decision-making and ways of distributing environmental risk. © 2008 Elsevier Ltd. All rights reserved

Comparison of legislation on the safe utilisation of explosives and its application in some European mines

Blasting operations form a central part of any hard rock metal mining operation and are, given its inherent hazards, critical in ensuring safe mine working environments. In order to improve workplace safety in such operations, it is important to select the right explosives and technologies, to issue rules and procedures and to offer adequate training. Because multinational mining companies work under different jurisdictions, they have to comply with different rules with different regulators. Given that the aim is to have no Lost Time Injuries (LTI’s) at any operation within New Boliden, it is important to develop working practices that both comply with various legal requirements, are practically usable and lead to a safe working environment. The aim of the research is therefore to identify applicable legal requirements, technologies and working methods, in order to see if different working practices are compliant with these legal requirements, and whether these requirements and practices can help to meet the requirements of different regulators and Boliden’s mission objectives. This research has identified the legal requirements applying to mining operations in Sweden, Finland and Ireland, and compared working practices in several mines, operated by Boliden Mineral AB in these countries. With a comparable number of relevant legal sources, the legal structure on explosives safety requirements is generally similar. However, Nordic legislation puts more generic responsibilities on the employer, whereas Irish regulations are more specific. Blasting requirements in Finland and Sweden are mostly similar and apply to underground and surface mining operations and civil engineering, whereas Irish legislation is tailored specifically to underground mining operations. Significant differences can be seen when comparing explosives handling, in particular explosives storage, Ireland has a very different approach in this respect. Technologies influencing the explosives handling and blasting safety performance are considered to be the initiation systems used, the reliability of explosives and successful implementation of a digital track&trace system. No events leading to human injury have occurred following the utilisation of explosive materials in Boliden Mines in the past ten years. Using both Boliden and international data, it was found that the main types of explosives- and blasting related incidents are misfires, flyrock, toxic fumes and early detonation. Fault Tree Analysis, adapted forms of reliability modelling and the bow-tie method have been used to identify critical parts of the explosives handling and blasting process. Critical activities are these surrounding evacuation of the blasting area, material failures and explosives materials being unguarded. Most incidents appear to be caused by failures in communication between different departments and insufficient awareness of safety procedures. Considering that there is overlap between the various operations in terms of legal requirements and practices, it is judged to be useful to more closely align these practices, since learning from each other’s practices might improve safety levels. Also, alignment of track&trace systems, and the adoption of electronic initiation systems are recommended. It is deemed less useful to align more national requirements and practices, such as permitting and licensing procedures. In order to exchange best practices, company-wide safety guidelines and reporting based on a clear distinction of responsibilities per activity are recommended. The main conclusion is that alignment of existing safety practices and technology use is achievable given the various legal and operational constraints and is expected to ensure a zero-LTI explosives handling and blasting safety performance

Tax Transparency and Corporate Tax Avoidance

This analysis will look into the emerging global trend for increased tax transparency from large businesses and corporations. Tax transparency has been a growing topic globally and there has been some recent progress in several countries. This analysis will begin by looking into the motivation behind increasing the amount of transparency around a business’ tax affairs. After exploring some key driving factors, a few of the new major tax initiatives and the details encompassed in them will be discussed. The specific countries that will be focused on are the United States, Australia, and the United Kingdom. Overall, this analysis is intended to be an unbiased look into the present developments occurring on how large businesses should deal with their tax affairs. It is apparent that the issue of tax transparency is being addressed in various ways in different countries, and barely addressed at all in some. The future of corporate tax transparency is unclear, but changes are being implemented today that must be followed in order to see their full impact in the future. This analysis will also briefly look into the impact that increasing tax transparency has had so far as well as possible speculations for the future

Revolutionising how we think about infrastructure

We need broad-scale revolutionary, rather than evolutionary, change if all seven billionpeople on the planet now, and those who follow us, are to have the opportunity to live well

Corporate annual report disclosures of obligations pertaining to contaminated sites: an Australian study

The large number of industrial contaminated sites within Australia not only cause harm to the environment, but also require a significant amount of financial resources to fund remediation works. Motivated by the notion that corporations should be held accountable for their actions (or inactions), and providing Australian evidence on the issue of environmental disclosures, this research seeks to explore Australian companies’ disclosure practices as they pertain to contaminated sites and to provide explanations for the current disclosure practices. To achieve this research objective, a four-phase research design is employed. These four phases are separate but related, with each phase forming the basis for the next phase. The first phase of the study described the processes that must be undertaken to identify Australian contaminated sites. This phase revealed that publicly available sources of information are widely dispersed between various state and local government agencies and departments, and when considered together, provide incomplete information about contaminated sites. The second phase of the study, investigated the disclosure practices of four high profile Australian publicly listed companies that have been identified as being in control of contaminated sites. After reviewing these companies’ financial reports, the results showed that there appeared to be uniform non-compliance with the requirements (and spirit) of Australian financial reporting requirements. Phase Three, aimed to explore which theory or theories in social and environmental accounting, offer explanatory power to the findings of Phase Two. This phase provided extensive discussion on each of the two ‘mainstream theories’—legitimacy theory and institutional theory—in both the organisation and accounting literature, as well as the connections between them. An institutional theoretical framework is then proposed in which the concept of organisational legitimacy is incorporated. The last phase, Phase Four, applies the theoretical framework developed from Phase three, to provide explanations for the findings of Phase Two. A qualitative research methodology was employed, and semi-structured in-depth interviews were conducted as the method of data collection. The findings indicated that there is a lack of institutional pressures on contaminated site disclosures and awareness of risks associated with site remediation obligations. This research offers contributions to the social and environment accounting literature and to the central issue of contaminated sites. This research provides empirical evidence that ‘negative’ news such as contaminated site information is often ‘hidden’ and ‘suppressed’ by organisations. Current use of legitimacy theory is challenged for its ignorance of its institutional origin and institutional theory is proposed to have greater potential to be applied to social and environmental accounting. In terms of the central issue of contaminated sites, by highlighting the complexity of the issue, and the difficulties in identifying contaminated sites in Australia, this research also implies that there are a large number of contaminated sites that remain unidentified, and a large amount of remediation obligations remain unaccounted for. Unless all stakeholders collaborate to tackle the issue of contaminated sites, ensuring quality financial information in relation to contaminated sites disclosed in annual reports remains a challenging task

Corporate innovation - the role of internal revolutionaries

This integrating essay reviews three books, Inclusive Leadership, written with a co-author, Brian Hirsh, Ronin and Revolutionaries and The Ronin Age. The essay explores the idea of the internal revolutionary, or Ronin, and examines various models of leadership and influence that have characterised organisational thinking over many years, and the challenges that Ronin pose for leadership and effective management. It also explores the extent to which the focus on innovative thinking is increased by the growing importance of knowledge as a key competitive issue

Occupational Health and Safety (OHS) with the Point of View Employees

 Occupational diseases and accidents suffered by employees, cause many costs for the companies in direct and indirect ways. Instead of expanding their business by making new investments; companies spend their limited resources and power to cover these arising costs. Occupational diseases and accidents are social and economic wounds for the countries as well as the companies. For example, according to the reseach that Ministry of Labour and Social Security Training and Research Centre (Çalışma ve Sosyal Güvenlik Bakanlığı Eğitim ve Araştırma Merkezi - ÇASGEM) had made in 2010, annual cost of occupational accidents is 35 billion TL in Turkey.Sole way to reduce these costs; creating company’s awareness on Occupational Health and Safety (OHS) and to inspire their employees about this awareness. In this case, the actual practitioners of these rules, employees, have a very critical role. While managers demand from their employees to obey OHS rules and expect to bring it into a way of their life; most of the time employees may ignore OHS rules because of some reasons like finishing their job quickly, negligence and the view of protective equipments are limiting factors for their freedom and comfort. Especially the common view within Turkish people: “Nothing happens to me!”; causes unwillingness to use protective equipments.The first aim of this paper is to examine what kind of costs that companies may face in the case of non-compliance to the OHS regulations on the overall dimensions. Another aim is to show how OHS regulations work in a packaging company named Amcor which operates in 43 countries around the world, and looking to OHS with the employees’ point of view by applying a survey research.&nbsp

Guide for Creating Stakeholder Engagement Plans for Contaminated Sites in NSW

The purpose of this step-by-step guide is to provide information that can be used to construct stakeholder engagement plans for contaminated sites within New South Wales (NSW). In addition, the guide can be used to provide advice and feedback on existing stakeholder engagement plans. Guide for Creating Stakeholder Engagement Plans for Contaminated Sites in NSW The purpose of this step-by-step guide is to provide information that can be used to construct stakeholder engagement plans for contaminated sites within New South Wales (NSW). In addition, the guide can be used to provide advice and feedback on existing stakeholder engagement plans. It has been estimated that more than 160,000 sites across Australia are polluted with as many as 75,000 different contaminants. A significant number of these sites are in New South Wales (NSW). Many people may be affected by, or interested in, these sites. These people include residents living near the site, landowners, officers from local government, or public health, environmental or other government regulatory authorities, and members of interest groups. It has become common practice within NSW to develop stakeholder engagement plans that assists with effectively engaging with these people who are affected by, or have an interested in, a contaminated site, and that specifies activities that will be implemented to manage or enhance engagement throughout the life of a contaminated site. “The EPA considers the guide, Step-by-Step Guide for Stakeholder Engagement for Contaminated Sites within NSW, prepared by the Institute for Sustainable Futures provides best practice guidance for contaminated land practitioners to understand and incorporate community perceptions of risk into the remediation planning process. While the EPA will not be approving the guide under the Contaminated Land Management Act 1997 it will refer parties it regulates to the guidance in addition to engagement guidance set out in the National Environment Protection (Assessment of Site Contamination) Measure” (NSW EPA Correspondence, 2020). The guide was developed with the support of a range of organisations that address contaminated sites within the NSW context, including the NSW EPA, NSW local government, Cooperative Research Centre of Contamination Assessment and Remediation of the Environment, and the Australian Land and Groundwater Association. The guide was developed by a team led by Jason Prior of the Institute for Sustainable Futures (UTS ISF), including Irena Connon and Dena Fam (UTS ISF), and Jon Adams and Erica McIntyre (UTS Faculty of Health). A project reference group provided guidance, advice and direction throughout the project. It consisted of representatives of NSW Environment Protection Authority, including Arminda Ryan, Holly Love, Joanna Graham, Jen Byrne, Carolina Olmos; the Australasian Land and Groundwater Association, including Barbara Campany; the Cooperative Research Centre for Contamination Assessment and Remediation of the Environment, including Bruce Kennedy; Bayside Council, including Judith Betts; and the Southern Sydney Regional Organisation of Councils, including Kate Hannan. The reference group and acted as a ‘sounding board’ for the ideas and approaches that were proposed

Spinoff 1997: 25 Years of Reporting Down-to-Earth Benefits

The 25th annual issue of NASA's report on technology transfer and research and development (R&D) from its ten field centers is presented. The publication is divided into three sections. Section 1 comprises a summary of R&D over the last 25 years. Section 2 presents details of the mechanisms NASA uses to transfer technology to private industry as well as the assistance NASA provides in commercialization efforts. Section 3, which is the focal point of the publication, features success stories of manufacturers and entrepreneurs in developing commercial products and services that improve the economy and life in general