E-commerce techniques used by Toyota Motor Corporation

E-commerce techniques employ by Toyota move locoweedThis report discusses the details of conducting a long-term comparison and abbreviation of the Automotive Industry-Covisint, specifically foc apply on Toyota Motor Corporation (TMC). The target of this comparison and analyses is to examine e-commerce techniques apply by Toyota Motor Corporation. TMC has get down the worlds astronomicst self-propelling manufacturer in regards to sales and occupation (Schmitt, 2011). With innovative teachings such as QR engine room and use of e-commerce practices inside their corporation, Toyota has become a premiseer with self-propelling practices.The practice of e-commerce in the self-propelled intentness has lead to increased parsimonys, profits, and productivity. Its sterling(prenominal) impact within the self-propelling sedulousness has been in the manufacturing process. E-commerce enables companies to alter their slip bureau in sectors such as Supply Chain Management (SCM) and B2B transactions.Covisnt is a orbicular wide on declension marketplace for the automotive intentness. fording, GM and Daimler-Chrysler launched Covisint in 1999 with intentions to become an on seam permute for supplying filament commission participants. The online auctioning portal allowed corporations to compete for customers ground on acquire needs such as price, quality and rake time.Since Toyotas formation in the 1930s, Toyota has grown to expand into international operations. Despite unlike obstacles such as recalls and labor disruptions, Toyota has continued to successfully increase achievement bit devising efficient decisions within their corporation. Aside from move technologies, TMC has as sanitary as veritable technologies that catch grown into industries outside of the automotive sector. Such technologies hold QR engine room, which is a 2D barcode that contains development in both vertical and naiant learnions, unlike traditional barcodes wh ere training is only stored in one direction. QR technology was initially designed for auto parts tracking, only if has become a common social media trait in outside companies. The Toyota Production formation has also grown to become a standard in legion(predicate) industries. The practice of use large number as people and not as machines has become a success story for Toyota, while being attribute as one of factors in Toyotas success. ERP technology has also been a B2B and ERP integrate model that has been growing within the automotive sector.E-commerce techniques such as online auctions and paper little transactions, has lead to shrinkd be and increased efficiency. The technology has demonstrated to be legal with manufacturing processes and building descents with subverters providers. Aside from B2B interactions, TMC conducts B2C activities. Goals and intents for TMC atomic number 18 strived towards with the use of business concern plans, cases, revenue models and determine propositions.Identifying strategic partnerships with suppliers will further increase cost liverys, create superior quality products and checker technological advancements. Focusing on e-commerce tools such as cloud calculation locoweed be used for reading change on a global scale. Social networking should also be invested into for global communication. With wet kinships, collaborative goals and sh atomic number 18d vision will achieve great profits for all participants. To ensure TMC endures the worlds largest automobile manufacturer, an investment into its front thinking culture must be maintained.Historical Background B2b automotive intentnesshistory of covisint cut through with(predicate), GM and Daimler-Chrysler launched an online marketplace for the global automotive industry by the name of Covisint in 1999. The inintial development of Covisint was to created to act as an online exchange for manufacturers and supply reach members. Covisint encom d iees three atomic number 18as of the vertical buy-side e-markets including e-procurement, supply mountain chain management and e-development. Between 2000 and 2001, manufacturers Renault, Nissan, and PSA Peugeot had joined as investors in Covisint. Also during 2001, Ford saved $70 million in procurement be by using Covisint (Konicki, 2001). Alongside Covisint, various other e-marketplaces were being developed to witness and piss goods. The competition of other e-marketplaces caused a concern for Covisint, who then rebranded its discover and servicesas an automotive industry softwargon solutions provider and standards luggage compartment (E-Marketplace Evolution).Covisints world-class step in its plan was to target online auction technologies since auction-driven e-marketplaces were the intimately popular business-to-business purchasing technology at the time. By using online auctions, corporations had the cap mightiness to work with competing suppliers within one platform . With competition, corporations could choose the best fit for their buying needs ground on price, quality and/or delivery time. Online auctioning has been attribute as an evolution changer as the success for e-marketplaces ar ground on supplier sourcing and price negotiation.Historical Background Toyota Motor CorporationIn the early 1930s, Kiichiro Toyoda began a trip to the US to learn slightly the automotive industry. Upon returning home to Japan from a trip Toyoda make from the US tour carious automotive production plants, Toyoda decided to blossom out up an automobile course named Toyoda at his fathers loom factory. By 1935, the first fomite prototype was created, while establishments of research centres were made by the middle 1940s. Following World War II in 1945, Toyoda was rebranded as Toyota. rather than following the Ameri hobo footsteps in producing medium-large sized fomites, Toyota decided to focus on working towards the creation of atrophied cars. Doing so g ave Toyota leverage in the automobile market as the only leader in small-sized fomites. It was in 1949 when Toyota was confronted a labor and management conflict because of an imbalance in sales and payroll department resulting in Toyota paying employees with long-term promissory notes rather than cash (History of Toyota). later on the resignation of President Kiichiro Toyoda as come up as the executive staff, Eiji Toyoda and Shoichi Saito replaced their positions. twain executives visited the US in anticipation of learning the ways of production in the automotive industry.Toyota discovered international reaping during the 1980s when the corporation was ranked second in worldwide production levels. During the 1980s, TMC became more(prenominal) involved with the Ameri crumb culture and joined forces with General Motors to create a manufacturing menage called sunrise(prenominal) United Motor Manufacturing Inc. (History of Toyota). It was also during this time when Toyota announ ced Ameri backside production facilities as part of their expansion. In 1992, Toyota ownership was transferred to Totsuro Toyoda. TMC had experienced an economic downturn during the recession, resulting in declining profits between 1991-1994. With new ownership, programs were implemented for reducing cost in various areas by 50 percent and production be were reduced by transferring production to oversea markets (History of Toyota).At the time Toyota professorship Hiroshi Okuda, introduced Toyotas invigorated Global Business Plan as a way to place focus on innovation and international expansion (History of Toyota). Toyotas freshly Global Business Plan objective was to localize production, and increase market share. Aside from production facilities, Toyota demonstrated initiatives in eliminating landfill waste and regulating stricter environmental practices. With Toyotas extensive growth in international markets such as Canada, India, UK, France and flop and chinaware, Toyota M otor Corporation (TMC) has grown to be one of the worlds largest automobile companies. By the year 2000, Toyota became the largest car familiarity in Japan, while holding the tertiary position worldwide.toyota production organisationDuring the late 1950s, Taichi Ohno and Shigeo Shingo had open up the Toyota Production brass (ToyoLand, 2011). Also known as weight manufacturing, the Toyota Production System was base on the theory that people should be used as people and not as machinery. Its concept was ground on Fords manufacturing body Ohno and Shingo had examine Fords system to determine where problems were occurring. During the initial stages, Ford had a number of problems relations with the treatment of its people as machines.The Toyota Production System is made up of Jidoka and just-in-time production (ToyoLand, 2011). As illustrated in Appendix A, the concept of Jidoka is based on automation with a human touch (Toyota, 2011). Jidoka ensures that defects do not pass t hrough the production process, eliminating the production of defective products (ToyoLand, 2011). Just-in-time production focuses on making what is needed, when it is needed, and in the amount needed (Toyota, 2011). Reducing the amount of products in armoury not only reduces required maintenance, but also reduces capital cost and allows for ease in technological advancements. Not only has the system been in effect(p) for Toyota, it has been implemented in a mountain chain of industries around the world.QR COdesIn 1994, QR Codes were developed by Denso-Wave. QR Codes were originally created for tracking automotive parts in vehicle manufacturing (Wave, 2010). Its Quick Response concept was based on 2D symbols, like to traditional barcodes. It functioned using scanner equipment, where the information contained in the symbol was contained in both vertical and horizontal directions, whereas traditional bar codes contain info in only one direction (Wave, 2010). Presently, QR codes ar e used in areas beyond the vehicle manufacturing line and are implemented into a run away of industries including entertainment, technology, social media, and untold more. Specifically in the automotive industry, QR Codes are used as shipping labels and receipts containing customer information, product identification, shipping addresses and overmuch more. QR Codes proved to be beneficial due to significant cost reductions and greater efficiency.how e-commerce has changed the industryThe rapid advent of e-commerce has resulted in dramatic changes within the business environment. Due to the unique structure of the technologies, there are more opportunities for businesses to take in from those advances. Using e-commerce related technologies, a businesses can reach their say-so suppliers and consumers worldwide. The automotive industry has benefited significantly from the advancement of e-commerce. General Motors, one of the worlds largest car manufacturers, traces its roots bum to 1908. With its global headquarters in Detroit, GM employs 209,000 people in all(prenominal) major region of the world and does business in more than one hundred twenty countries (General Motors Comp either, 2011). The industry has come to adopt e-commerce technologies by implementing Business-to-Business, and Supply chain integration models.By using the Business-to-Business model, automotive vehicle manufacturers flummox achieved efficiency in their daily operations. A typical B2B transaction within the automotive industry can be illustrated by an automakers need for direct material purchases from suppliers, while also having the ability to conduct sales. After the B2B related technology has been wide implemented in the industry, automotive companies are able to save be by eliminating paper-based systems, and reducing the usage of mailroom staff. Also B2B concepts have assisted companies reduce the potential errors made by the employees in order to modify the caller-outs i nfo accuracy. Without an Electronic Data Interchange (EDI) system in place, the company would lay out a potential loss. EDIs can define and transfer standard tell apartive information without human intervention. Finally, implementing a B2B model can improve the relationship between automobile manufacturers and suppliers in order to reduce procurement costs and improve efficiency. For example, Ford cooperated with its competitors creating an auto-exchange website (Covisint) to assist dealers meet suppliers online.By adopting a supply chain integration model, the automotive industry is able to manage information efficiently and create a smooth flow to distributors, suppliers, internal divisions and customers. Majority of automotive manufacturers are using ERP and CRM (Customer Relationship Management) systems in addition to managing their supply chain management process. ERP (Enterprise Resource Planning) is an industry term for the broad set of activities that serves a business m anages the important parts of its business (The, PP. 123). The results obtained from ERP can assist managers appraise the companys performance and see if it meets incorporate objectives. CRM is a model built to help organizations reach customers easily and receive feedback. Since this model integrates customers information to the overall enterprise, the supply chain management is improved efficiently.In the automotive industry, e-commerce platforms are normally used for automakers to buy material online from suppliers. For instance, Ford uses the system to divide the supplier for different levels based the components of a car. When the firm needs to buy systems or seats, the firm would inform first layer suppliers through its e-procurement platform. With that methodology, Ford can improve its relationship with suppliers, save transaction costs and reduce its stock list levels.industry analysis current possible future(a) state flow rateCovisints portal allows participants such a s manufacturers and suppliers to trade based on a standardized process. The goal of the Covisint is to create a standardized industry system that any manufacturer and its partners can access. In 2001, Covisint hosted 1,400 auctions, which led to over $51 billion cost of transactions (E-marketplace evolution, 2006). Covisint has currently extended its services to providing a range of applications for its customers. Unlike its original approach of creating revenues based on subscriptions and/or transactions fees from its e-marketplace, Covisint now generates revenues through its extended applications services. Design collaboration, procurement, supply chain management, quality control and portal solutions are some of the extended applications apart(predicate) of Covisints growth.In order to remain ahead of competition, corporations such as Covisint have begun to increase investment budgets for B2B infrastructures. By investing into new technologies, changes in day-to-day management practices can be shifted to increase efficiency and quality. Also, investment in B2B services can increase the variety of business interactions.Foreign automobile manufacturers are also entering the automotive industry, causing a holy terror to older corporations, such as Toyota Motor Corporation. The automotive industry faces a large amount of competition, where many factors may influence consumer and supplier decisions. Changes in technologies impact corporations based on their situation analysis. With increased technological advancements, a company may position themselves effectively while focusing on a specific target market.porters five forces AnalysisPorters Five Forces (Appendix B) are significantly affected with the advent of technology enabling business to e-business and can be examined in respect to the automotive industry.Threat of New Entrants (Low)New entrants, specifically foreign corporations, in the automotive industry serve as a threat. With low capital, knowledge and experience, corporations face a difficulty in staying ahead of the positioning curve. Using B2B models, corporations face an easier entry point, as companies are able to outsource more easily.Bargaining power of Suppliers (Low) The power of suppliers is especial(a) and has been determined to be in the hands of the automaker, who chooses to do business with the supplier. If the automaker were to dispose of the supplier, the supplier may be left in a troubled situation. As a result it is important as a supplier to reach and maintain motives/requirements of the purchasing partner.Bargaining power of Buyers (High) The automotive industry faces a great amount of bargaining power by buyers with their influence in automobile prices. With such a competitive market, prices are based on supply and demand. With real time access to information such as research and design, buyer power will take up to increase.Threat of Substitutes (High)Based on the automakers target market, the threat o f substitutes may be a concern. Substitutes include public transit, airplanes, or possibly a competing company who manufactures a different style automobile. Gas prices also act as an influence to substitutes, as one car may cost less than another based on fuel needs.Competitive Rivalry within the industry (Low) The automotive industry is an oligopoly, where the industry is controlled by a small group of firms/corporations. Price based competition is not the focus of competition, but emphasis in quantify added services have grown with automobile corporations.future possible stateBusinesses worldwide now use B2B e-commerce to buy over a trillion dollars in goods and services yearly (Boeth, 2009). By shifting the B2B automotive network to a cloud based environment, the future industry can expect reduced costs. Social networking tools are more readily available to help improve alliances and cooperation amongst barter partners worldwide. As technology continues to advance, communicati on structures enhance communication security, enabling industries such as the automotive sector to share confidential information securely.With an emphasis on an organizations rat line structure, the practice of outsourcing operations to emerging countries such as India and China is increasing. The future success of B2B in the automotive sector rests within its ability to fall in the online marketplace with Enterprise Resource Planning (ERP) systems. With the use of ERP platforms, costs an organization may incur can be reduced, while up(p) inventory management and developing positive global relationships around the world.toyota force corporation swot analysisA SWOT analysis is used to establish the efficiency of e-commerce within Toyota Motor Corporation, as wellspring as any potential profits that can be implemented. capacitysToyota Motor Corporation is an established international company and a manufacturing leader in the automotive industry. This allows its efforts in elect ronic commerce to be powerfully employed. The corporation is specialists in integrating B2B and B2C e-commerce into its business activities. The formation and employment of QR codes has provided TMC with a considerable lead in the automotive industry, ultimately decreasing costs and generating greater efficiency. The companys online showroom allows potential consumers to view the vehicles in customized forms by changing colour and allowing them to read up on added accessories and interior details. These showrooms ultimately promote purchase decisions. By using the internet, TMC has efficiently implemented online storefronts for vehicle purchasing. Toyota also has a strong system of reusing and salvaging parts through the use of e-commerce. Used parts are exchange on the web through distributors, as seen in Appendix C.weaknessesAlthough the company has implemented online showrooms, consumers are unable to make the final purchase. The online storefront allows consumers to select and research the vehicle they wish to purchase, but cannot do so without visiting a certified dealership which they are shown at the end of their purchasing decision. There is room for more advancement in the e-commerce world by allowing consumers to search, purchase, and have a vehicle delivered to the home, ultimately eliminating the absolute need for a brick-and-mortar dealership where the purchasing process is traditionally completed.opportunitiesContinual international growth through e-commerce is attainable. There is demand for environmentally friendly vehicles, an area of strength for Toyota. By recognizing the extent of this demand, Toyota can use e-commerce to exploit it through online advertisement and promotions (Bradbury, 2010). The internet has a great potential in reaching large audiences effectively while being efficient for both the seller and buyer, wherefore marketing opportunities are forever huge. There is also room for improvement in regards to manufacturing effic iency by developing social networking concepts and mobile computing practices in order to strengthen relationships with suppliers and buyers.threatsThe external environment is what ultimately provides threats to any particular business, and Toyota is not an exception. These threats can fall into several categories including reduced demand for the offered products, inability to meet consumer needs, and competition. Higher gas prices affects the demand for vehicles, making e-commerce efforts which have been promoting growth within TMC, become less effective (Bradbury, 2010). Competition in the automotive industry in respect to e-commerce is major, therefore Toyota must be sure to continuously improve and keep up-to-date with its rivals in terms of e-commerce implementation. By doing so, TMCs efforts in the e-commerce perspective will not be undermined.firm industry e-commerce effectiveness ImprovementsThe Toyota Production System (TPS), also known as lean manufacturing, has become a system looked up to by the automotive industry and has also been implemented into a range of industries on a global scale. This lean initiative not only dominates the automotive industry but has lately has gone beyond the shop floor to clerical offices and is even spreading to service industries (Likert, 2006). The recognition comes from the fact that with the use of TPS, Toyota continues to produce high quality vehicles fast and for less cost than most of its competition, which results in greater overall profits. They also manage more new vehicle launches annually than most of their competitors, thus creating a steady flow of high quality new products to meet consumer demand (Likert, 2006). Alan Miialty, who took over as chief executive officer of Ford in 2006 was quoted the following about TMC, Theyre arguably the finest manufacturing company in the world, Ive been a student of the Toyota Production System for my 37 years at Boeing. Ive been to Japan 47 times (Chappell, 2007) . Underlying the Toyota Production System are the involvements of people, processes and technology. The Toyota Production System requires underlying principles that effectively integrate many aspects of the organization including people, processes and technology. Toyota is able to accomplish this by creating a learning culture crossways the organization to include continual, comprehensive, and coordinated effort for change and learning across the organization (Likert, 2006).The use of e-commerce initiatives has contributed to the success of the Toyota Production System. Planning Perspective chief operating officer John Henke Jr. field of studyed 231 Tier 1 suppliers, where suppliers graded six automakers based on categories such as willingness to help suppliers cut costs, pay suppliers for cancel programs and reward guide suppliers with new business (Sherefkin, 2009). Although Toyota has always finished with top marks historically, Honda recently dethroned them in a North Ameri can survey as having the best supplier relations in the annual ranking. Honda, Toyota and Nissan remain above the industry average in supplier relations, while the Detroit 3 are below average (Sherefkin, 2009). Toyota engages e-commerce tools such as Covisint to emphasize its relationship management with its suppliers. As studies have shown, large hub firms are able to role power over their grad 1 (direct) suppliers (spoke firms) with an estimated 80% to 90% of tier 1 suppliers receiving or using EDI in Australia (Tanewski et al., 2003). Although Covisint has focussed on using XML Technology rather EDI (Tierney, 2004), the examples from Australia show the willingness of business-to-business e-commerce with both OEM manufacturers and suppliers. The use of Covisint allows Toyota to share information electronically with its tier 1 suppliers with lower transaction cost, therefore maintaining its lean production system. The transaction cost perspective is that the firm focus on more th an just production costs, but also the associated transaction costs to do business, which include all search and information costs, as well as the costs of monitoring and enforcing contractual performance (Robins, 1987 69). Prior to the development of Covisint, suppliers were using multiple software packages and file exchange formats to communicate with the different OEM manufacturers for engineering design information (Tanewski et al, 2003). This problem was addressed within the example of Covisint ensuring the benefits of this e-commerce exchange to be benefitted by all its members.Suppliers like Denso, makers of components for fuel saving hybrids, have also flourished due to their cooperation with of Toyota and will likely continue as they strive to become more of a global player. President Koichi Fukaya of Denso recently stated, Its Toyota first, Toyota is our biggest shareholder and originally like our father. Toyota holds a 21 percent pole in Denso and accounts for half of t he auto suppliers sales (Greimel, 2007). Keeping close striking with trading-partners like suppliers and information systems portals like Covisint, as well as industry groups has been extremely helpful for manufacturers to lower its costs. Only in this way can manufacturer avoid very costly or rush projects incumbent to stay in step with the industry and its customers (Piszczalski, 2003). Covisint has capitalized with the use of the internet to ensure these multi-million dollar auctions run more efficiently. By utilizing the internet compared to traditional facsimile machine based communication, online auctions can be finished in as little as 10 minutes. Typically, Covisints average auction lasts about 45 minutes, and allows suppliers to instantly see what others are bidding so they know how much to adjust their own price (Loftus, 2002). The ability to see the pricing of other suppliers have both positive and negative impact, as the speed of these auctions, suppliers are warned t o know what their lowest possible bid will be ahead an auction as there is hardly enough time to scranch the numbers if the prep work hasnt been done (Loftus, 2002).Significant savings can be realized by Toyota through the online auction function, as well as the progression into paperless purchasing transactions. In 2001, Ford revealed that it had conducted 65 online auctions for the year. The auctions helped Ford save about 19 percent, or $38 million, on purchases worth $200 million (Sedgwick, 2001). The growth of Covisint will only help still greater cooperation and adaptation from both OEM manufacturers and its suppliers in all tier levels. In turn all the manufacturers involved, including Toyota, will realize greater profitability and faster production time.Toyota Motor corporation e-commerce key conceptsToyota Motor Corporation has exemplified in the field of e-commerce. The corporation has implemented e-commerce concepts targeted towards maintaining strong relationships wit h their consumers, suppliers, and buyers. TMC has included B2B as well as B2C uses in their e-commerce activities. With the use of business plans, business cases, revenue models and value propositions, TMC has strived towards achieving business goals, benefits, and revenue growth.Aside from Toyotas involvement in Covisint, Toyota has generated their own line of electronic marketplaces targeted for private, public, and consortia sources. Toyotas involvement in business-to-business e-commerce includes transactions for direct materials. Common direct materials purchased and supplied by Toyota include automotive parts for the production of vehicles. Toyotas e-commerce trades are based on vertical marketplaces as they are dealt with only the automotive industry.In the year 2000, Toyota Motor Corporation announced that they would not conduct assort e-commerce practices. Based on Toyotas marketplace position, the internet as a jobber was not required, rather they would pursue in the inte ntion of independent business-to-consumer e-commerce activities (Greenberg, 2000). The e-Toyota division was created in January 2002 with intentions of strengthening Toyotas B2C relationship. e-Toyotas components included TID (Toyota Internet Drive) and GAZOO.com (Fujitsu). An illustration of TID can be found in Appendix D.GAzzo.comToyotas approach of business-to-consumer activities increased during the launch of GAZOO.com. GAZOO, an independent B2C website created by Toyota, was targeted towards prospective and current Toyota consumers. The website offers browsers e-tailing, internet malls, communication forums, vehicle information and much more (Toyota, 2002). Its plans included expanding into online brokering, financing, insurance, and dealers for future automobile purchases. GAZOO developers focused on creating a membership based website, where users obtained free membership by trading personal information. Based on data-mining techniques, Toyota discovered that 13.6 percent of website visitors purchased a Toyota vehicle within 6 months of accessing the webpage (Greenberg, 2000). Towards the end of the year 2000, GAZOOs membership numbers hiked to virtually one million, from its previous 430,000 in the end of 1999. Projected e-commerce revenues by 2003 were US$5billion (Greenberg, 2000).environmental initiativeToyota does not come short when working towards saving the environment. In 2001 Toyota announced their newest B2B e-commerce program. With the use of exchanges and auctioning, Toyotas recycling initiative introduced its promotion for reusing repaired/replaced automotive parts (Toyota, 2011). Used parts are sold nationwide online through part distributers. Appendix C illustrates Toyotas strategy in using e-commerce as part of its recycling initiative.G-bookThe development of Toyotas G-BOOK in Japan, which was based off of GAZOO, enabled subscribers to connect with navigation, news, weather, entertainment and much more (Toyota, 2002). G-BOOKs design provided information through radio receiver terminals connected to the Toyota vehicle internally. The technology was later introduced in both Toyota and Lexus line of vehicles. Its e-commerce component included its storefront for purchasing merchandise from GAZOOs Internet mall.e-crb (customer relationship building)Toyota Motor Corporation announced in e-CRB (customer relationship building) in 2004, table service as an e-commerce version for CRM (customer relationship management) (Toyota, 2004). The initiative was based on the G-BOOK technology. The objective of e-CRB was defined as improving the customer service relationships between dealers and consumers. e-CRB focused on improving customer service between the two parties, no matter their location in the world.Community activitiesToyota Motor Corporation stands strong behind their motto Make Things Better (Toyota, 2011). Online and offline, Toyota has continued to portray a positive image in involvement in a range of activities a ffecting the future of the well being of others. According to Toyota Motor Corporations corporate website, the following are examples of Toyotas community involvementsEducational Contributions (ie. Scholarships, improvements)Safety Contributions (Rehabilitation clinics)Special Olympics Canada case GamesEnvironmental InitiativesVolunteeringConclusionThis

Qualitative Tests Used For Carbohydrates Biology Essay

soft Tests Used For doughs biological science EssayCarbohydrates ar an essential comp whiznt of our diet and an important microbe of energy for us. Most of the things generally included in our diet nurse a large balance of carbohydrates present. Also the patients suffering from Diabetes excrete coarse tots of kail in their peeing system which needs to be visualized. The purity of carbohydrates squeeze out also be checked by methods which th at a lower place mug qualitatively estimate special profits. Hence the need for carbohydrate estimation arose.We shoot been estimating carbohydrates qualitatively since school time un little it was just confined to observing a polish channel or a colou scarlet abrupt to encounter the armorial bearing of a carbohydrate. None of us ever thought that these qualitative studys ar highly sensitive and provide much to a greater extent than discipline than just line uping the presence of a pelf.In this study conducted, two (prenominal) qualitative sorts apply for carbohydrates were studied Benedicts point and Seliwanoffs leaven. Benedicts leaven is a streamlet apply for detecting the presence of simplification Sugars. The judge was per take a leaked using Glucose which is the virtually common diminution shekels. sucrose was used as a negative control. Different dumbnesss of glucose were tried ranging from 1.6 M to 1.6 mM and from 4% to 0.25%.Also along with dousing the sum of saccharide was wide-ranging to find the sensitivity limits and the limitations of the sieve. The result of Benedicts tryout is normally a brick bolshie diminish scarcely with approximately modifications dissimilar emblazons of upshots and take issueent comes of hasty could be nonice with slight regeneration in the minginess and center of refined carbohydrate. This suggests that this test being Qualitative is non only an indicator of the presence or absence of a decrease sugar but stinkpot a lso be used to near estimate the concentration of sugar present. It throw out be really reclaimable in estimation of the concentration of sugar present in the urine of diabetic patients.Seliwanoffs test is a qualitative test used for adverting betwixt Aldoses and ketoses. Ketoses form a cherry red condensation product whereas Aldoses defend to form a moody- kB condensation product, which may further permute to a peach product. The test was performed using laevulose as the try out sugar. Various concentrations of fructose were used ranging from 4% to 0.01% to find the sensitivity limits and the limitations of the test. The test appe atomic number 18d to be sensitive even at 0.01% showing a very dull red colour. There was a huge pas seul in the lastingness of colour obtained at antithetic concentrations of sugar. besides the drawback of the test was that the red colour of the consequence was non stable. It intensified with increase in the term of time.2. INTROD UCTIONCarbohydrates ar the or so abundant bio molecules on Earth. Each year, photosynthesis converts more than 100 billion metric tons of CO2 and H2O into cellulose and early(a)(a) plant products. Certain carbohydrates (sugar and starch) are a dietary staple in most parts of the world, and the oxidization of carbohydrates is the central energy-yielding pathway in most non-photosynthetic cells. Insoluble carbohydrate polymers serve as structural and protective elements in the cell walls of bacteria and plants and in the connective tissues of animals.Other carbohydrate polymers be skeletal joints and participate in recognition and adhesion amongst cells. to a greater extent complex carbohydrate polymers covalently attached to proteins or lipids act as signals that finalize the intracellular location or metabolic fate of these hybrid molecules, called glycoconjugates..Carbohydrates are polyhydroxy aldehydes or ketones, or substances that yield such compounds on hydrolysis. M e ither, but not all, carbohydrates read the empiricalformula (CH2O)n some also lease nitrogen, phosphorus, or sulphur. There are three major size classes of carbohydrates monosaccharoses, oligosaccharides, and polysaccharidesClassificationCarbohydrates can be classified on the basis of the various characteristics they possess. They can be classified on the basis of the number of carbon atoms in the sugar chain, the terminal functional assort in the chain, the number of sugar subunits and the diminution activity of the sugar units. Depending on various basis they are of several(prenominal) typesA. gibe to the number of carbon atoms in the sugar chain1. Trioses contain 3 carbon atoms (e.g. glyceraldehyde).2. Pentoses contain 5 carbon atoms (e.g. ribose).3. Hexoses contain 6 carbon atoms (e.g. glucose).B. According to the terminal functional theme in the sugar chain1. Aldoses contain terminal aldehyde group (-CHO) (e.g. glucose).2. Ketoses contain terminal ketone group (C=O) (e.g . fructose).C. According to the number of sugar subunits1. Monosaccharides Monosaccharides, or simple sugars, consist of a single polyhydroxy aldehyde or ketone unit. The most abundant monosaccharide in constitution is the six-carbon sugar D-glucose, sometimes referred to as dextrose.2. Oligosaccharides Consist of short chains of monosaccharide units(2-10) joined by characteristic linkages called glycosidic bonds. The most abundant are disaccharides, with both monosaccharide units. e.g. sucrose (cane sugar), which consists of the six-carbon sugars- D-glucose and D fructose.3. Polysaccharides The polysaccharides are sugar polymers containing more than 20 or so monosaccharide units, and some have hundreds or thousands of units. several(prenominal) polysaccharides, such as cellulose, are linear chains others such as glycogen, are branched. both(prenominal) glycogen and cellulose consist of recurring units of D-glucose, but they differ in the type of glycosidic linkage and have dif ferent properties and biological roles..D. According to the diminution activity of the sugar unitCarbohydrates that can undergo oxidation are called reducing sugars. This depends on the presence of an exposed carbonyl group.1. trim down sugars Certain sugars with a free carbonyl carbon can be oxidized by oxidizing agents such as ferric (Fe3) or cupric (Cu2) ion. The carbonyl carbon (anomeric carbon) is oxidized to a carboxyl group. Such sugars satisfactory of reducing ferric or cupric ion are called Reducing sugars. e.g. lactose, maltose.2. Non-reducing sugars Sugars bid sucrose contain no free anomeric carbon atom since the anomeric carbons of both monosaccharide units are involved in the formation of glycosidic bond. Therefore it is a Non-Reducing sugar.2.1 Biochemical Tests for CarbohydratesThe biochemical tests for carbohydrates can be divided into two categoriesQualitative Tests- These tests are performed to detect the presence of carbohydrates in a test sample. They are a lso used to detect the type of carbohydrate present. There are different types of qualitative tests for different types of carbohydrates.e.g. Fehlings and Benedicts test for reducing sugars, Seliwanoffs test for ketoses, singles test for starch,Bials test for detecting pentoses etc. They are not very sensitive as compared to quantitative tests and cannot estimate the exact amount of carbohydrates present but show some difference in the observation with edition in the amount of carbohydrate hence, can be used to make a rough estimate of the amount of sugar present.Quantitative Tests- These tests are the move on form of qualitative tests and can be used to estimate the amount of carbohydrate present in a given sample. These tests use particular chemicals which form coloured complexes with sugars which can then be read at certain wavelengths using a spectrophotometer. Their absorbance can then be used to estimate the exact amount of carbohydrate present in the sample.e.g. Anthrone te st, DNS method, Phenol- sulfuric acidulous Method etc.2.11 Qualitative TestFlow chart for classifying an unknown carbohydrateA. Molisch TestMolisch test is used to distinguish in the midst of carbohydrates and non- carbohydrates. It is the preliminary test used to detect the presence of carbohydrates in a sample.preceptIt uses concentrated sulphuric sulfurous as a Dehydrating loony withalns which dehydrates all carbohydrates to form furfuraldehyde or 5-hydroxymethylurfural from chemical answer of sulphuric astringent with pentoses and/or hexoses. These products condense with -naphthol to yield a purple condensation product.B. Iodine and Potassium Iodide TestThis is a test used particularly to detect starch and glycogen. Starch gives a rich-black colur with potassium iodide whereas glycogen gives red-brown colour.PrincipleStarch contains -amylose, a helical saccharide polymer, and amylopectin. Iodine forms a large complex polysaccharide with the -amylose helix, producing a somber-black colour. Simple Oligosaccharides and Monosaccharides do not form this complex with Iodine. Thus, the I2/KI test can be used to distinguish starches from other carbohydrates.C. Bials TestBials test is used to distinguish amidst pentoses and hexoses.PrincipleThis test uses concentrated hydrochloric acid as the dehydrating acid and orcinol with a trace of iron(III) chloride as the condensation reagent.. Pentoses subjected to the test yield a lamentable or green condensation product, while hexoses yield a muddy brown to grey condensation product.Pentose Dehydration Product pitiful or common land condensation product(Furfural)Hexose Dehydration Product foul brown-Grey condensation product(5-hydroxymethylfurfural)D. Seliwanoffs TestSeliwanoffs test is used to distinguish between aldoses and ketoses.PrincipleThis test uses 3N hydrochloric acid as the dehydrating agent as resorcinol as the condensation reagent. When mixed with Seliwanoffs Reagent, Ketopentoses react wit hin 2 minutes to form a cherry red condensation product. Aldopentoses react later 2 minutes to form a blue-green condensation product, which may further change to a peach product. levulose Hydroxy-methyl Cherry-Red ComplexFurfuralIdentifying Reducing SugarsAll mono and disaccharides with a free aldehyde or keto group act as reducing agents in alkaline solutions. The reducing properties of sugars are dependent upon the presence of actual or potential aldehyde or ketone groups.The enolization of sugars under alkaline conditions is an important consideration in step-down tests. The ability of a sugar to reduce alkaline test reagents depends on the availability of an aldehyde or keto group for reduction receptions. A number of sugars, particularly disaccharides or polysaccharides have glycosidic linkages which involve bonding between each group, and hence thither is no reducing group on the sugar such as the pillow slip for sucrose, trehalose, inulin, glycogen, starch, and dextrin. In the case of reducing sugars, the presence of alkali constitutes extensive enolization especially at high pH and temperature. This leads to a higher susceptibility to oxidation reactions than at neutral or acidic pH. These sugars, therefore, become potential agents sufficient of reducing Cu+2 to Cu+, Ag+ to Ag and so forth. Reducing sugars can react with many different oxidizing agents. Fehlings test, Benedicts test and Barfoeds test have been used to distinguish between monosaccharides and disaccharidesMonosaccharides fluctuate between a ring open form and a ring disagreeable form. The ketone (-C=O) group, for Fructose and the aldehyde group (-CHO), for Glucose in the ring open forms can be trim using these tests. Some sugar units in disaccharides also fluctuate between a ring open form and a ring closed form. These disaccharides are also reducing sugars because the ring open form has a ketone or aldehyde to react. Sucrose is one of the few disaccharides that do not have a r ing open form so it is a non-reducing sugar. call in subject Fructose and Ring Closed Fructose Ring Open Glucose and Ring Closed GlucoseReducing Sugars are oxidized by crap (II) ions. Benedicts reagent and Fehlings Reagent are mildly basic solutions whereas Barfoeds Reagent, a mildly acidic solution. The presence of red grunter (I) oxide strike indicates that the saccharide has reduced the copper (I) ions.E. Fehlings testPrincipleFehlings test uses a mixture of fehlings solution A and B. Fehlings solution A consists of copper(II) sulphate turn in tailor sulphuric acid. Fehlings solution B is sodium potassium tartarate dissolved in dilute NaOH. Both the solutions are mixed in equal proportions and used as fehlings reagent. This reagent is used as a general test for detecting reducing sugars. A reducing sugar reduce copper(II) ions to copper(I) oxide, forming a red precipitate.CuSO4Cu++ + SO42 Cu+++ Cu+Glucose(Reducing Sugar)Cu+Cu2O (red precipitate)Cuprous OxideF. Benedicts te stPrincipleBenedicts test uses a mixture of copper(II) sulphate, sodium change state, and sodium carbonate in a mildly basic solution. This reagent is used as a general test for detecting reducing sugars. A reducing sugar reduce copper(II) ions to copper(I) oxide, forming a red precipitate.CuSO4Cu++ + SO4-(Copper Sulphate) (Cupric Ion) (Sulphate Ion)2 Cu+++ Cu+Glucose(Reducing Sugar)Cu+Cu2O (red precipitate)Cuprous OxideG. Barfoeds TestBenedicts test gives positive test results for all reducing sugars. However, not all reducing sugars react at the same rate. With different oxidizing agents, disaccharides are considerably less re active compared to monosaccharides. A positive Barfoeds test result is similar to that observed with Benedicts solutions. Monosaccharides give positive Barfoeds test results within 2-3 minutes, while disaccharides do not react under the same conditions.PrincipleBarfoeds test uses copper(II) ions in a slightly acidic medium. If the reaction time is carefully monitored, this test can be used to distinguish reducing monosaccharides from reducing disaccharides. Reducing disaccharides cause the formation of copper(I) oxide subsequently approximately 10 minutes.(CH3COO) 2Cu + 2H2O 2 CH3COOH + Cu(OH)2Cu(OH)2 CuO+ H2O2CuO+Cu2O (red precipitate) (Glucose)Reducing Sugar2.12 Quantitative TestsA. finale of issue forth Carbohydrate by Anthrone MethodPrincipleCarbohydrates are first hydrolysed into simple sugars using dilute hydrochloric acid. In hotacidic medium glucose is dehydrated to hydroxymethyl furfural. This compound forms withanthrone a green coloured product with an absorption maximum at 630 nm.HCl anthroneCarbohydrate furfural/hydroxymethyfurfural Green product(630 nm)B. Phenol Sulphuric Acid Method for Total CarbohydratePrincipleIn hot acidic medium carbohydrates are dehydrated to furfural/hydroxymethyl furfural. This forms a green coloured product with carbolic acid and has absorption maximum at 490 nm.H2SO4 phenolCarbohydrate furfu ral/hydroxymethylfurfural Green product(490 nm)C. Determination of Reducing Sugars by Nelson-Somogyi MethodThe Nelson-Somogyi method is one of the classical and widely used methods for the quantitative determination of reducing sugars.PrincipleThe reducing sugars when heated with alkaline copper tartarate reduce the copper from thecupric to cuprous state and thus cuprous oxide is formed. When cuprous oxide is treated withArsenomolybdic acid, the reduction of molybdic acid to molybdenum blue takes place. The blue colour developed is compared with a set of standards in a colorimeter at 620 nm.Cu2O+ Arsenomolybdate Molybdenum savory(Cuprous Oxide) ( calciferol nm)D. Estimation of Reducing Sugar by Dinitrosalicylic Acid MethodThis method is an alternative to Nelson-Somogyi method. It is a simple, sensitive and adoptable method during handling of a large number of samples at a time. However,enzymaticmethods are usually preferred to DNS callable to their specificity.Principle3,5-Dinitro salicylic acid is anaromatic compoundthat reacts with reducing sugars to form3-amino-5-nitrosalicylic acid, which absorbslightstrongly at 540nm.3,5-Dinitrosalicylic acid 3-amino-5-nitrosalicylic acidE. Determination of Glucose by Glucose Oxidase MethodGlucose is a widely distributed simple sugar with an active aldehyde group. Estimation ofglucose by glucose oxidase gives the true glucose concentration eliminating the interferenceby other reducing sugars.PrincipleGlucose oxidase catalyses the oxidation of alpha-D-glucose to D-glucono-1, 5 lactone (gluconic acid) with the formation of hydrogen peroxide. The atomic number 8 liberated from hydrogen peroxide by peroxidase reacts with the O-dianisidine and oxidises it to a red chromophore product.Glucose + O2 H2O2 + Gluconic Acid(glucose oxidase)H 2O2 + O-dianisidine Red-coloured product(peroxidase) (540 nm)3. MATERIALS REQUIREDI) Stock SolutionsGlucose 1.6 MGlucose 4% (w/v)Sucrose 0.1 MFructose 4% (w/v)II) ReagentsBenedicts Reagent meas uring stick 1-Dissolve 173 g sodium change state and 100 g sodium carbonatein about 500 mL water. standard 2-Heat to dissolve the saltStep 3-Dissolve 17.3 g copper sulphate in about 100 mL water and check it to the above solution with stirring and make up the mass to 1 L with water.Seliwanoffs ReagentDissolve 0.05 gm resorcinol in 3N hydrochloric Acid.III) MiscellaneousWater bathTest TubesClampsConical FlasksBeakersContainersTest furnish holders4. METHODOLOGY4.1 Benedicts TestStep 1- Pipette out 1 ml of glucose solution in some test tubes so that there is a triplicate for each set.Step 2- Pipette out 1ml of Distilled Water in one test tube which serves as blank and 1 ml of Sucrose solution (0.1M) in another which serves as a negative control.Step 3- Add 2 ml of Benedicts reagent in all the test tubes.Step 4-Transfer all vanadium tubes to the boiling water bath provided and record the time for the appearance of precipitate.Step5- arrest a unverifiable psychoanalysis of the colour observed. A scale of + to +++++ can be used to record the depth of the colour, from lightest to darkest.4.11 pith of chromosomal mutation in Carbohydrate Concentration (in M)The concentration of glucose was wide-ranging from 1.6 M to 1.6 mM retentiveness the reaction volume constant to 3 ml. The speed and the lower sensitivity limits and the optimum molar concentration of glucose was set up for the test through subjective analysis.4.12 topic of reception great dealThe reaction volume was reduced from 3 ml to 1.5 ml for all the concentrations of glucose ranging from 1.6 M to 1.6 mM to find any difference in the sensitivity range and the optimum molar concentration of glucose for the test.4.13 government issue of variation in Carbohydrate Concentration (in %)The concentration of glucose was alter from 4% to 0.25%. Also the reaction volume was changed and the analysis was performed in two sets. The volume of reagent used was 5 ml whereas the volume of samples all conc entrations in flock A and B were 50l and 25l respectively.4.14 force-out of variation in Sample good dealThe volume of glucose was varied for the same concentrations 4% to 0.25% to see the changes in the colour of solution obtained and at the same time find the upper and lower limits at which the test still remains sensitive. The analysis was performed in 6 sets with the following volumes of glucose ccl, 100l, 50l, 25l, 12.5l and 6.25l.4.15 issuance of Reaction Volume on the results obtained.Of the various sets tried 5 ml of Benedicts reagent and 200l of sample gave the best results. To verify the consistency of results obtained the reaction volume was reduced. The analysis was performed in two sets. Set A with 2.5 ml of reagent and 100l of sample and Set B with 1.25 ml of reagent and 50l of sugar sample.4.2 Seliwanoffs TestStep 1- Pipette out 1 ml of fructose solution in test tubes so that there is a triplicate for each set.Step 2-Pipette out 1ml of Distilled Water in one test tube which serves as blank.Step 3- Add 2 ml of Seliwanoffs reagent in all the test tubes.Step 4-Transfer all tubes to the boiling water bath for 2.5 mins.Step 5- Make a subjective analysis of the colours observed. A scale of + to +++++ can be used to record the depth of the colour, from lightest to darkest.4.21 Effect of variation in carbohydrate concentration (in %)The concentration of fructose was varied from 4% to 0.015% keeping the reaction volume constant to 3 ml. The upper and the lower sensitivity limits and the optimum concentration of fructose were found for the test through subjective analysis.5. OBSERVATIONS5.1 Benedicts Test5.11 Effect of variation in Carbohydrate Concentration (in M)A brick red precipitate was observed for all the concentrations of sample ranging from 1.6 M to 3.125 mM. But the last concentration of 1.6 mM showed a paltry amount of precipitate. Also once centrifuged the supported was found to be colorless for concentrations ranging from 1.6 M to 0.1 M. The supported was observed to be blue in concentrations ranging from 50 mm to 1.6 mM.Glucose(M)Colour Intensity1.60.80.40.20.10.050.020.0120.0060.0030.001+++++++++++++++++++++++++++++++++++++5.12 Effect of variation in Reaction VolumeA brick red prcipitate was observed for all the concentrations of sample ranging from 1.6 M to 6.25 mM. Concentrations 3.125 mM and 1.5625 mM showed a negligible amount of precipitate. For concentrations 6.25 mM to 0.1 M there was an increase in the amount of precipitate observed with the highest amount formed in 0.1 M of sample. For the next two concentrations i.e. 0.2 M and 0.4 M the amount of precipitate formed was almost equal but once more reduced for 0.8 M and 1.6 M glucose sample.Also after centrifugation the supernatant was found to be colourless for concentrations ranging from 1.6 M to 0.1 M. The supernatant was observed to be more and more blue in concentrations ranging from 50 mm to 1.5625 mM.Glucose(M)Colour Intensity1.60.80.40.20.10.05 0.020.0120.0060.0030.001+++++++++++++++++++++++++++++++++5.13 Effect of variation in carbohydrate concentrations (in %)There was a brick red precipitate observed in for all the concentrations of sample ranging from 0.25% to 4% in both the sets. The highest amount of precipitate was observed for 1% sample but there was no consistency in results seen.Glucose (%)SetSet B4.02.01.51.00.50.25+++++++++++++++5.14 Effect of variation in Sample VolumeThere was a variation in the colours obtained at different concentrations and volumes of sugar sample used. But sets with 12.5l and 6.25l of sugar did not show any observable changes in colour.Glucose(%)Set A Set B Set C Set D Set E Set FSet BSet CSet DSet ESet F4.002.001.000.500.25reddish brownbrowngreenlight-green bluedull bluebrowngreen unripe bluedull bluegreengreenish bluedull bluebluebluegreenish bluedull bluebluebluebluedull blueblueblueblueblueblueblueblueblueblue5.15 Effect of reduction in the reaction volumeThere was no change in the o bservations due to reduction in the reaction volume.Glucose (%)Set A Set B4.02.01.00.50.25reddish brownbrowngreengreenish bluedull bluereddish brownbrowngreengreenish bluedull blue5.2 Seliwanoffs Test5.21 Effect of variation in carbohydrate concentration (in %)A cherry red colour is observed for all the concentrations of fructose used but the intensity of colour obtained decreases with decrease in concentration. The lowest concentration used (0.015%) has a faint red colour. Also the colour of the solution intensifies with time if kept after boiling.Fructose(%)Colour Intensity4.002.001.000.500.250.120.060.030.01+++++++++++++++++++++++++++++++++++++++++++++6. RESULTS AND DISCUSSION6.1 Benedicts Test6.11 Effect of variation in Carbohydrate Concentration (in M)It can be observed that 0.1 M is the optimum concentration of sugar for Benedicts reaction with the reaction volume of 3 ml since the highest amount of precipitate is formed at 0.1 M.Also the supernatant obtained after centrifugat ion is colourless which suggests that the reaction is completed and there is no brisk reagent left.Concentrations less than 0.1 M show decreasing amounts of precipitate and the colour of the supernatant is also increasingly blue. This suggests that as the concentration of sugar is lowered the amount of unreacted Benedicts reagent increases which leaves the solution blue even after the reaction completes. 1.6 mM sugar sample shows a negligible amount of precipitate formation which suggests that the reaction is not sensitive for concentrations lower than 1.6 mM.For concentrations higher than 0.1 M the amount of precipitate formed again decreases with increase in concentration which suggests that the concentration is as well as high as compared to the amount of reagent used and hence no more precipitate is formed after the reaction completes.6.12 Effect of variation in Reaction VolumeThe reaction volume was reduced to half but has no effect on the results of the experiment. 0.1 M is the optimum concentration of sugar for the reaction with the reaction volume of 3 ml since the highest amount of precipitate is formed at 0.1 M.Also the supernatant obtained after centrifugation is colourless which suggests that the reaction is complete and there is no unused reagent left.Concentrations less than 0.1 M show decreasing amounts of precipitate and the colour of the supernatant is also increasingly blue. This suggests that as the concentration of sugar is lowered, the amount of unreacted reagent increases which leaves the solution blue even after the reaction completes. 3mM and 1.6 mM sugar samples show a negligible amount of precipitate formation which suggests that the reaction is not sensitive for concentrations lower than 3 mM with a reaction volume of 1.5 ml.For concentrations higher than 0.1 M, the amount of precipitate formed again decreases with increase in concentration which suggests that the concentration is too high as compared to the amount of reagent used and hence no more precipitate is formed after the reaction completes.6.13 Effect of variation in carbohydrate concentrations (in %)The highest amount of precipitate was formed in 1% sugar sample but there was no consistency in the observations due to incorrect preparation of reagent. During the preparation of reagent instead of mixing Sodium citrate and Copper Sulphate together in hot water they were dissolved separately and then mixed. Also the solution was not made up to 500 ml with distilled water rather measured amount of water was added to the solution to make it 500 ml which made the solution dilute and hence gave incorrect results.6.14 Effect of variation in Sample VolumeDifferent volumes of sugar were tried for all the different concentrations. There was a variation in the colours obtained. 200l of sugar reacted with 5 ml of reagent showed maximum variation in colours at different concentrations Reddish Brown, Brown, Green, Greenish blue and dull blue obtained at 4%, 2%, 1%, 0.5% and 0.25% respectively.Sets with 12.5l and 6.25l of sugar volume did not show any noticeable changes in colour which suggest that the volume of sugar solution was not enough for the reaction to take place.6.15 Effect of reduction in the reaction volumeReduction in the reaction volume made no difference to the variation in colours obtained at different concentrations of sugar which suggests that Benedicts reagent and glucose can be reacted in this ratio in any volume to estimate the concentration of glucose present in an unknown sample.6.2 Seliwanoffs Test6.21 Effect of variation in carbohydrate concentration (in %)A cherry red colour is observed for all the concentrations of Fructose used but the intensity of colour obtained decreases with decrease in concentration. The highest intensity is observed at 4% sugar concentration. 0.015% which is the lowest concentration of sugar used gives a very faint red colour which cannot be taken as pos

Stakeholder Influence in Strategy Decisions

Stakeholder Influence in Strategy Decisions create mentally a strategy should be a product of logical and outside(a) depth psychology, yet often appears to be a product of the power of stakeholders. establish using recent fear examples.Johnson and Scholes (2002) p10 describe strategy as the counsellor and scope of an judicature over the long term, which secures profit for the institution by its configuration of resources deep down a changing milieu and to fulfil stakeholder expectations. A strategical plan is thitherfore large surmount future oriented activities that allow interaction with the competitive environment in order to achieve company objectives. It follows that strategic counsel is the puzzle out whereby a strategy is formulated, evaluated, and forever improved. Strategic planning flows from the definition of an organisations vision, mission and objectives and subsequent environmental s nookiening, to understand the organisations strategic position with compliancy to the macro immaterial environment, its industriousness, competitors, sexual resources, competencies and expectations and influence of stakeholders. (St wizardr, Freeman and Gilbert, 1995) This initial cultivate establishes a basis for strategic resource by means of a match of identified strengths to opportunities. The translation of strategic choice into action is because implemented crosswise all trains of the organisation done and through programmes, resources, technologies, and performance management social structures. (Johnson and Scholes, 2002 and Davis, 2005) This essay focuses on the strategic position of the organisation in the stage setting of its environment, its strategic capability, and stakeholder expectations.The purpose of an environmental s end is to develop a contestation of diverse variables from an uncertain and complex world to offer actionable responses and in so doing allow a incorporate good example for defensive or offensive actions. There be a variety of available abbreviation spears such as a PESTEL framework from a macro-environmental level, hall porters Five Forces framework at an attention level, strategic assortings deep down an industry and individual market analysis. The results can then be applied in a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis to determine strategic choice. (Johnson and Scholes, 2002)PESTEL is an acronym representing the key forces that populate or ar emerging in the external environment and suggests how they will, or might impact on future strategy and resources. These comprise Political, Economic, Sociocultural, Technological, environmental and Legal factors. (Johnson and Scholes, 2002) Changes in these forces and their interaction carry on the types of products and operate offered and impact on suppliers and distributors to the organisation. An example of political and legal forces in setting the climate for barter, are the tax harmonisation proc esses in the European Union (EU) which have caused galore(postnominal) multinational solids, including John Deere and Cargill, to relocate their head offices to Switzerland, a non EU share to avoid tax lives. Consequentially, the global competitive places for the Netherlands, Germany and other home countries of these blottos plunged whilst the rating for Switzerland has surged. (Davis, 2005) The use of PESTEL in isolation and a mere listing of possible influences without an reason of the combined impact of a number of these forces could lead to inaction with respect to countering threats or pursuing opportunities to the detriment of the business. The combined effect of the factors can be understood by identifying structural drivers of change that affect the structure of an industry sector or market. These include an increasing convergence of markets as node unavoidably and wants become corresponding (eg standardisation of strategy textbooks across international higher ed ucation institutions), maximising cost returnss achieved through economies of scale by centralised production in low cost, labour good countries such as India and China, or the differential impact of the factors dependant on industry type. (eg Pharmaceutical sales to an aging population in a first world country) (Johnson and Scholes, 2002) This reinforces the need to regard strategy formulation as an interactive multidisciplinary process requiring creative thinking. ostiary suggests that industry selection and analysis is a vital component of strategic planning. An industry is a group of firms producing products that are close substitutes for one another. (Johnson and Scholes, 2002, p110) Competitive forces within an industry can be examined in the contexts of the sources of competition, the dynamics of that competition and strategic groupings. Although criticised as being too generic in nature, Porters Five Forces framework is useful in addressing key interacting forces affectin g a strategic business unit with a distinct market for goods or services within an industry. Porter referred to these forces as the microenvironment so as to contrast it with the more common term, macro environment. They consist of those forces close to an organisation that affect its ability to go to its customers and make a profit. A change in any of the forces normally requires a company to re-assess the marketplace. (Porter, 1996) An example is that of the mobile phone network industry where the barrier to entry by new competitors is the huge entry cost associated with 3G broadband licenses. The purchasing power of buyers is high with a significant deviate of choices among networks and the power of suppliers increasing through alliances such as that of Casio and Hitachi in 2003. (Davis, 2005) The threat of substitute products is increasing as Personal Digital avail (PDA) convergence with phones and voice-over-internet technology emerges with the potential to bypass the netw ork operators. Competitive contender between firms with similar products is high with a broad range of products on offer to the consumer. (Johnson and Scholes, 2002)The concept of strategic grouping addresses the criticism of Porters model where an industry is considered to be too generic to provide a basis for understanding the competitive environment by applying the Five Forces framework. Johnson and Scholes, 2002, p122 define strategic groups as organisations within an industry with similar strategic characteristics chase similar strategies or competing on similar bases. These firms are not like within the industry and follow strategies common to the group, but different to firms in other groups in the same industry. An example is a pharmaceutical manufacturer with a unique medication product protected by evident serving a common market using a similar strategy. (Davis, 2005)Understanding the competitive environment together with current and potential customer ineluctably a nd wants will determine the success or failure of an organisation. Porter suggests that there are two generic strategies cost or specialty. market segmentation identifies similarities and differences between individual and customer groups based on geographic, demographic lifestyle and acquire segmentation. An appreciation of customer honors in a market segment and matching needs against the organisations aptitude to meet those needs, is a critical aspect of determining strategic capability. (Pitt, 1997) The outlet of global firms suggests that traditional models are limited in application and that there is a need for the development of a broader integrative international strategic business model framework. (Ricart et al, 2004)Strategic capability involves the identification and evaluation of an organisations strengths and weaknesses in the functional areas of the business in the context of the external environment analyses. It is typically recorded in a SWOT framework. It repr esents an understanding of customers perceptions of appraise, the critical success factors through which that value is realize and unique competencies, processes, and technology to achieve competitive advantage. (Hussey, 2002.)The core competencies of the organisation are the unique capabilities that are critical success factors in achieving competitive advantage and hence key to the delivery of customer value. They form the foundation for differentiation and for increasing perceived customer benefits. Competencies must evolve as the needs and wants of customers change and a focus on developing critical competencies that affect market position, share and power is key. (Hamel and Prahalad, 1994) A useful model to analyse an organisations core competencies that underpin its competitive advantage is Porters Value Chain depth psychology. This attempts an understanding of how the organisation creates customer value by examining the contributions of various activities within the busines s to that value. An organisations value chain is normally part of a broader value system that represents a set of inter-organisational linkages and relationships to create the product or service. It separates primary and support activities through which that value is generated. (Johnson and Scholes, 2002) Porter argues that competitive strategy is about being different, and instruction on those activities that deliver a unique mix of value and doing them better than competitors. (Porter, 1996)The structured and systematic process of analysing the external and internal environment describe thus far is carried out by a consultative process with stakeholders and should present a sound basis for establishing the foundation for the organisations strategy formulation. However, the impact of stakeholders and the complex role that people play from a political and cultural perspective should be taken into account. (Johnson and Scholes, 2002) Davis, 2005, suggests that stakeholders are indi viduals or groups with an interest in the success of an organisation to deliver intended results and on whom the organisation itself depends.Donaldson and Preston, 1995, p64, argue that this general statement is too wide should be qualified to be those persons or groups with a legitimate interest in procedure and / or substantive aspects of corporate activity. Walsh, 2005, suggests that too broad a definition creates a situation whereby managers function in order benefit a stakeholder group or act as a regular conduit to stakeholders. Stakeholders may include employees, unions, customers, financial institutions, suppliers, shareholders etc depending on the accepted definition. The definition of stakeholder is and then important to the organisation because it impacts on the strategic plan formulation.The relationship between stakeholders and the organisation encompasses the bowl of stakeholder management that ranges in complexity from stakeholder mapping through to stakeholder co llaboration and social capital. The corporate brass instrument structure of the organisation and the regulatory framework within which it operates should determine who the organisation serves and how the purpose and direction of the organisation is determined. This includes the management of the capacity of a stakeholder to influence the organisation as nearly as accountability issues in the formal structure. This is typically structured through a separation of ownership and management at main circuit card level, balanced by non-executive directors and a non executive chairperson. Internal or organisational stakeholders may blur this line through the inappropriate use of power and politics. inn in turn creates expectations of the organisation in terms of ethics and within a cultural context that need to be congruent with that of the organisation. (Donald and Preston, 1995)The organisational field approach suggests that networks of related organisations develop which share common assumptions, value, and processes that may contain common organisational views on stakeholders. Under this scenario, relationship with stakeholders are taken for granted leading to legitimised strategies shaped by expectations being accepted without a structured strategic planning process occurring. (Walsh, 2005)A stakeholder map is a tool that inventories and categorises a companys stakeholders, shows their inter-relationships, expectations, and power. It illustrates the approaches that the organisation can follow to achieve its business objectives season winning support from its stakeholders. It raises the dilemma of ethics in that stakeholder management through such a strategy can be subverted to the detriment of the organisation. (Johnson and Scholes, 2002) The Enron drubbing is manifestation of both this dilemma and the organisational field phenomenon which allowed the failure of corporate governance structures when unethical conduct was accepted in the areas of finance an d management by organisational stakeholders. The Enron case was one of the largest bankruptcy cases in US history. In 2001, it was the 5th largest company on the Fortune 500 with revenues of USD 100 billion, 19,000 employees, and rated the most esteem company six years in a row by Fortune magazine. (Culpan and Trussell, 2005) The basic premise of Enrons strategy was to create markets for goods and services traditionally transacted through complex distribution channels. It leveraged off its competitive advantage of delivering services efficiently and stretching its competency through added risk management features. The high growth phase of the organisation during the 1990s and changed business strategy and corporate culture of Enron was driven by top management. In the process, Enron appeared innovative and profitable to the extent that the traditional agency relationship underpinning the firm as a nexus of contracts between the shareholders (principals) and the management as agen ts were left over(p) unchecked, which in turn impacted negatively on the broader spectrum of stakeholders. (Donald and Preston, 1995 and Culpan and Trussell, 2005) An ostensibly tumesce structured, high profile corporation within the highly regulated environment of a security exchange, audited by a major audit firm was bought down by unethical conduct of its senior executive group with possible collusion by external stakeholders.The ultimate test of how hale a strategy has been thought out is at implementation level and the controls around that implementation. Unless a strategy can be executed effectively with appropriate checks and balances then it will almost certainly fall goldbrick in achieving objectives. This means that strategy has to be linked to the organisations objectives, mission, operations, and measurable government issues within a corporate governance framework that meets the needs of the stakeholders. The evolution of the Kaplan and Nortons Balanced Scorecard to incorporate financial, customer, learning and growth, and internal process metrics evaluated against the vision and strategic objectives of the organisation provide one such strategic management control methodology across the organisation. (Kaplan and Norton, 1996 and Kaplan and Norton, 2001)In conclusion, this essay has examined the formal process of strategy development and given examples of tools from the writings to systematically evaluate the external and internal environments of the organisation. It has sought to demonstrate that organisations are facing dynamic and rapidly evolving forces that influence its strategic direction. This is especially uncoiled with the emergence of globalisation and intensively competitive world markets. The eventual choice of a strategic direction for an organisation is a function of the values and expectations of a broad range of stakeholders which influence strategic decision devising through political power over the organisation within a cultural and ethical context. It is the control through governance structures, and ongoing bill of the strategic implementation process that will determine the successful outcome of the strategy and concomitant success of the organisation.ReferencesCuplan, R. and Trussel, J. (2005) Applying the Agency and Stakeholder Theories to the Enron Debacle. Business and Society Review. lot 110, 1.Davis, F. R. (2005) Strategic care Concepts and Cases. New Jersey, Pearson assimilator Hall.Donaldson, T. and Preston, L. E. (1995) The Stakeholder Theory of the Corporation Concepts, express and Implications. Academy of Management Review. Volume 20, 1.Hamel, G. and Prahalad, C. K. (1994) Competing for the Future. Boston, Harvard Business School Press.Hussey, D. (JanFeb 2002) Company Analysis Determining Strategic Capability. Strategic Change.Johnson, G. and Scholes, K. (2002) Exploring Corporate Strategy Sixth Edition. London, scholar Hall.Kaplan, R. S. and Norton, D. P. (1996) The Balanced Sc orecard. Boston, Harvard Business School Press.Kaplan, R. S. and Norton, D. P. (2001) Transforming the Balanced Scorecard from Performance Management to Strategic Management. Accounting Horizons. Volume 15, 1.Pitt, L. (1997) Marketing for Managers A Practical Approach. mantle Town, Juta Ltd.Porter, M. (November December 1996) What is Strategy? Harvard Business Review.Ricart, E. J. et al. (2004) New Frontiers in International Strategy. daybook of International Business Studies. Volume 35, 3.Stoner, J. Freeman, E. and Gilbert, D. (1995) Management Sixth Edition. Englewood Cliffs, New Jersey, Prentice Hall.Walsh, J. P. (2005) Taking Stock of Stakeholder Management. Academy of Management Review. Volume 30, 2.

The Value Proposition in Barclays PLC

The regard as Proposition in Barclays PLCThe organization that is rehearsed for this engagement is Barclays PLC this leap out is divided into three split. The first parts aim is to separate and to explain what is the comprehend formula on for the clients, to do this, suitable models of consumer c be fors atomic number 18 going to be utilize and hence the model result be applied to the organization.The snatch part eitherow overcritically evaluate the cheer marriage proposal of the stemma and then a comparison go out be make with that of the booster cable competitors c ar for marriage offer.The third part would produce a briskfangled foster proposition, which allow for match the economic value criteria of the existing clients this volition be d batting orderinal by directing the weaknesses in the existing value proposition. It will withal yield us with a plan to implement the value proposition internally and externally.Using suitable models identify t he node sensed value for the clients for a product/di wad/comp each of your choice. guest comprehend value, what does this really mean? client perceived value, butt be regarded as the opinion that a client has or has formed of a incident product and how it is of value to him.Simply put, the customer perceived value of any product is the consumers general assessment of the utility or use of a product based on perceptions of what the customer join forcess and what he is giving to limit the desired run or product.This concept toilette also be explained with the help of the following diagramCustomer perceived value= perceive Benefits_______________Perceived SacrificeWhere,Perceived benefits are the attributes of the profit creation sure and the customer perceived quality and price of the product.Perceived sacrifice are the customer bells involved in purchasing, such(prenominal) as time, get etc.Introduction to the musical arrangementFor the part of this assignment, t he company that has been selected is BARCLAYS PLC the following text edition would give a brief company profile followed by the acknowledgement of the customer perceived value for the organisation by the use of the Customer Value pecking order Model.Company profileBarclays is ane of the worlds leading fiscal intromissions headquartered at 1 Churchill Place, London. It is a 300 year old green goddess that became a major financial service provider that engaged in retail and commercial patoising, credit dining table, wealth lotment, investment swearing and influencement run provider for bounteous global paleness pie-eyeds. It has an lengthy transnational comportment in Europe, Africa, Asia and off lately has started to expand in the United States foodstuff as tumesce. It triggers, lends, protects and invests m unmatchabley for than 38 million customers and clients worldwide.Barclays has two business clusters global Retail Banking and Corporate and Investment Bank ing and wealth Management- both compromising inaugural business and grunges.Before we memorise a look at the customer perceived value of the Barclays brand, the despatch would kindred to discuss the Customer Value Hierarchy Model, and then try to apply them to the customers of Barclays.Customer Value Hierarchy ModelOBJECTIVE gradeCustomers goal and purposeCONSEQUENCE LAYERcraved final results in use pointATTRIBUTE LAYERDesired products/service attribute and performancesThe Customer Value Model consists of three layers, videlicet the Attribute layer, the Consequence Layer and the Objectives layer. The objective layer includes the ultimate motivations of customers, the consequence layer represents the customer experience desired by the soul and eventually the attribute layer specifies what featually the needs of the customer are.From the bottom of the customer value hierarchy, customers would always firstly consider the attributes and approachability of products.At the se cond layer, customers begin to crystalize forecasts match to the attributes.At the top layer, customers form expectations intimately the realization of their aim.How do Barclays customers perceive their bank? Thats the nous that this assignment would like to make by giving the objectives, consequences and attributes desired by the customers, followed by a customer analyze.OBJECTIVES comfy personal bankingSafety of the account at all timesSaving account optionsAvailability of loans at a practised interest rateOnline banking to bread and butter a record of their account enlarge at all timeAbility to investGood mortgage optionsInsurance optionsCredit card facilitiesAssistance while travellingCONSEQUENCESEasy accessibility to the accountPeace of mind as the customer is cognisant that the account details are secure and safeMore tone down over their own financesThe customer does not require to keep much cash with them at all times because of the debit cardsSaving for the rainy dayA secure and safe environmentFuture is taken care offCan start a business with the help of financial bankingMore purchasing powerATTRIBUTESPin- picket deviceDebit cardOnline banking facilities which enable the customers to check account balances, make transfers, curingup standing orders and direct debits.ChequebooksBarclaycardISAsBondsHome insuranceDifferent types of nest egg accountsDifferent types of watercourse accountsOverdraft facilityE-savingsCar insuranceTravel functionLooking at the in a higher place attributes, consequences and objectives list one can identify the value of the brand as perceived by the customer. The brand Barclays is a very(prenominal) widely recognized name and al well-nigh every person in the UK is a big fan, of course with some exceptions which are rally to be there, the customers on a general note feel very happy with the massive array of services and products do available by the bank for its customers and are satisfied with the huge netwo rk of customer service centres spread all across the world providing 24/7 customer service, also the safe and secure online banking facility provided by Barclays is very user friendly and easy to use, letting the customers always keep a put over of their money. So its safe to say that Barclays as a bank not only just for people but also for small businesses and big equity firms is a financial institution of repute and is trusted and send off by the people.PART 2Critically evaluate the existing value proposition of the product/division/ company you go chosen. Compare and descent the value proposition with that of the leading competitor in your sector.This part of the control would evaluate the value proposition or the customer value proposition of Barclays and contrast it with the customer value proposition of HSBC. But before we decease to comparing and contrasting the value propositions of both the brands we first need to understand, what a customer value proposition reall y is? This is the question this project would answer first and then proceed on to discuss the variations in the value propositions of both the brands.Customer Value PropositionIn the subject of selling, the customer value proposition is a measure of the sum total of the benefits which a provider offers or promises a potence consumer which he/she will receive in re curve for the customers payment (or any early(a) value transfer). A customer value proposition is a business or marketing statement that would describe why a customer should make use of the services and products cosmos offered by the organisation. It is targeted towards potential consumers, rather than at other pigeonholings such as employees, suppliers or partners.It is a defined statement, which is knowing to urge the customers that this particular product will add more(prenominal) value or better solve a problem than the other competitors in the alike(p) labor.Why are customer value propositions so important? This question is of utmost importance to any business, because it is only these statements that give the customer an expectation of a desired service, it provides the consumers with a convincing reason to buy the desired good and also helps differentiate the product from the other services provided by the other competitors in the same industry. They help in gaining customers attention and if the customer value proposition is knock-down(prenominal), and is able to gain the approval of the customer that helps in building of faster and more profitable sales and in increase the market share of the organisation. Understanding of the customer needs is very vital as this would hear the promotion and creation of a successful brand.Types of Customer Value Propositionsall(a) benefitsThis is a list compilation of all the benefits of the products and services offered to the customers by the organisation. This approach requires the least market knowledge approximately customers and competit ors and thus does not provide a good base when seen from a marketing perspective.Favourable Points of DifferenceThis type of value proposition explicitly recognizes the situation that the customer has different alternatives and it then it lays it focus on how to differentiate one product or service from other. A product or service can cook several differences, confusing the customer and thus complicating the customers accord of the product which would offer him more value.Resonating FocusThis approach is used by managers who directly mussiness with a supplier who bountifuly grasps the critical issue in the product- consumer cycle and who delivers a customer value proposition thats simple yet powerfully captivating. The value proposition offered is superior in the few attributes that are of the most importance to the customers which convey a communicate to the targeted audience, that here is an organisation which is communicating a sophisticated understanding of the customers business priorities.When talking about the value proposition of a financial institution we strike to take into account the current market conditions and then set about at the jacket and championship strategy of the bank which in itself is a sort of value proposition available for the customers to hurt a look at and, then these consumers can decide for themselves whether they do need to accessory themselves with the financial institution.Analysis of value proposition of Barclays ceiling StrategyBarclays crownwork management activities will attempt to maximise shareholders value by optimising the train and mix of its big(p) resources.Barclays ability to operate as a bank is directly dependent upon the maintenance of adequate hood resources.Barclays works according to a centralised capital management model considering regulatory and stinting capital.The Groups capital management objectives are toMaintaining the sufficient capital required to meet minimum regulatory capital r equirements set by the UK FSA.Maintaining sufficient capital resources which can support the Barclays risk appetite and fulfil the economic capital requirements.Support the banks credit ratingEnsure that the locally regulated subsidiaries can meet the minimum capital requirements without having to borrow from other financial firms. apportioning of capital to support the strategic objectives set by Barclays, including optimum returns on economic and regulatory capital.Funding strategyBarclays will manage the funding position so as to comply with the regulatory requirements decided by the UK FSA .Barclays ope evaluate on the model of centralised governance and control processes that covers all of its fluidity risk and management activities.Funding StructureGlobal Retail, Commercial Banking, Barclays Wealth and the Head Office Functions are to be self-funded through customer deposits and Barclays equity and other long- line capital. The Barclays Capital and Absa businesses will be fund ed through the wholesale secured and unsecured funding markets.The major currency payment inflows and the payment brass collateral are going to be monitored and managed, so it can be ensured that at all the times there is going to be accessibility of sufficient collateral to make payments.Day to day funding will be managed through putting limits on wholesale and the secured borrowings. This is going to ensure that on any day and over any specified flow rate of time there is only going to be a curb amount of refinancing requirement.In addition to cash flow management, Barclays would monitor the term mismatches between the assets and the liabilities and also the levels and the types of undrawn lending commitments.Additional value propositions specific to a personal customer and not the global marketPersonal banking made easy by the debit card that is an internationally valid card which has many advantages like international assistance anytime anywhere, guaranteed transactions etc . ample range of current accounts available to suit different customer needs.(mobile reverberate insurance, car breakdown cover etc.)Availability of loans at belligerent ratesOnline facilities giving easy accessibility to customer funds.24/7 customer serviceWide array of savings and investment optionsCredit card facilitiesInsurance facilities(home, motor and life insurance)Mortgage facilities(buying, building and renovating of property)To understand the customer value proposition of Barclays and then to contrast it with the value proposition of HSBC, this project is going to use the SWOT analysis which is preceded by the mission statements and the vision statements of both Barclays and HSBC, thus giving us a better desire of what the customer expects from the brand and what are the promises being made by these institutions to potential and existing consumers.Mission StatementThis is a short, formal, written statement of the purpose of the company. It guides the actions of the com pany, benchmarks its goals, provides a sense of direction and guides in decision making. It provides a role model within which the strategies of the company are formulated. heap StatementThis can be defined as statement that captures the long term picture of what the organisation wants to give out. It gives a broad and an aspirational image of the future that an organisation wants to achieve. It is often inspirational and memorable.Mission Statement of BarclaysTo develop deliver the most innovative products, manage customer experience, deliver quality services that contributes to brand strength, establishes a competitive advantage and enhances profitability, thus providing value to the stakeholders of the bank.Vision Statement of BarclaysWe have a clear view of where growth will come from over the access years. While there will be significant growth opportunities in the UK, we see many more internationally. Barclays will become a leading global universal bank.Mission Statement of HSBCWe aspire to be one of the worlds great specialist banking groups, driven by commitment to our core philosophies and values.Vision Statement of HSBCWe envision enabling HSBC to achieve its strategic objectives, driving virtue in our delivery through partnership with our customers and associates.SWOT Analysis of BarclaysStrengths all-encompassing network in Europe providing business sustenance.Focus on cost efficiencies which ensure relatively higher profitability.Ability to lend amidst reduced size of the balance piece of paper.Associated with innovation, Barclays in 1966, brought out the first credit card, most lately the OnePulse card combining Oyster, credit cashless functions for its customers.Opening of several new branches, on with a massive refurbishment programme.WeaknessesStrained vocation income impacting the revenue diversity.Barclays Capital credit market exposures are impacting the financial position and performance.Large bonuses for the Directors have attract ed unwanted attention.Expansion plans in the Asian market thwarted, when Barclays lost the deal for ABN Amro in 2006.OpportunitiesBarclays wanted to acquire Lehmans assets prior to the collapse but however, afterwards the collapse, they negotiated a better deal with the liquidators which allowed them to be selective in what parts of the business they actually wanted to acquire.The banks strategy was to offer a full plethora of services worldwide, which provided a wide range of cross-selling opportunities.Asia is still an probability for business expansion, and thus operations are going to be set up at various locations.Welfare provision has been decreased in many countries because of the subsequent cost to governments, andBarclaysconsiders self-provision as an increasing fad that it can use.Positive outlook for buy to let market whitethorn bring business volumes.Buoyant secured personal loans market in the UK could help the business.Threats dark outlook for the UK economy.Regulato ry fines can compress margins and financial position.Increase in online fraud.Barclaysis accused of loss-making investments which are associated with the sub-prime market from the accounts to those of other investors, and there could be effectual risk.Though it offers a wide range of services, there is a panic that customers may go to suppliers who can present a more work approach.Barclays has been closing branches left right and centre, and the competitors have positioned themselves as more consumer-friendly by adopting a strategy of keeping the branches open.The Asia expansion is risky given thatBarclays groupare not in a strong position than the banking industry leaders when it comes to capitalisation, and this can detract investors.SWOT Analysis of HSBCStrengthsThe bank is well capitalised which enables it to perform well in comparison with other banks in the new-made economic conditions.Going forward, the bank is unlikely to borrow from the UK government because of the huge market capitalization this enables it to retain more autonomy.HSBC has a strong posture in emerging markets, which places it in a good position allowing it to take advantage of future growth in those economies.HSBCs global presence in Asia, South America and Europe spreads the risk and offers significant economies of scale.Rebranding relatively tardily (1999), the HSBC bank has become well-established and is considered of great value within the industry circles.WeaknessesHSBC powerfully believes in investing in the small business sector, but the current economic downturn has led to increase in risk, which could potentially agree the activity levels in the area of its operation.HSBCs involvement with sub-prime markets in the US has squeeze it to write off large sum of figures lent to high-risk borrowers. in spite of strike downs in the UK interest rate, HSBC has been increasing its mortgage rates. This can be perceived banishly by the borrowers and potential borrowers, which m ay add pressure to a depressed housing market and can ultimately lead to more defaulting as borrowers would struggle with higher repayments.A redundancy programme which was inform recently can affect morale among staff, leading to decreased productivity and loyalty.HSBCs branding emphasises the global presence of the bank, and this may be seen as negative thing by some consumers due(p) to the implication of homogenisation and the want of personalisation.OpportunitiesHSBCs high levels of market capitalisation place the bank, in a strong position which helps it to acquire assets.Banks which find the trading conditions particularly difficult at present could be available at low costs.HSBC has adequate capital which it uses to purchase strong local banks such as Bank Ekonomi in Indonesia, in which it has purchased a stake to continue the Asian expansion scorn challenging economic times.HSBCs strong position presents the opportunity to outperform other banking competitors during the economic downturn which allows it to build a reputation of being one of the safe banks for depositors which further helps to increase resources for lending.Negative press coverage of competitors such as HBOS may encourage customers to choose HSBC instead.ThreatsDecreased trust in the financial system overall, including HSBC due to financial losses suffered by investors may be a reason for them to invest elsewhere.Financial losses which have affected the banking industry and the sole investors on the global scale has resulted in less amount of credit being available for customers. In the UK this join with increases in living cost has resulted in less money being saved.The slump property market is leading to a rise in the numbers of homeowners with negative equity. If a propertys worth is less than what it was borrowed to finance its purchase, then there is going to be less likelihood that the bank will recoup all the losses if owners default.Claims have been made against HSBC, abou t the bank understating its losses resulting from the US sub-prime markets, and this has led to undermining confidence in the bank by the customers.CONCLUSIONBarclays is currently taking aconservative approach due to the recession. However, the downturn has provided the bank with many opportunities for consolidation. Also, with the BRIC and East Asian markets rebounding fast this land looks to be a source of potential revenues and provides opportunities for increasing operations. With the United domain and the Americas looking at a slow and prolonged phase of recovery, Barclays will need to adopt a policy of looking east when it comes to operations.The threats and problems being faced by Barclays will be because of the sustained economic situation being experienced in the United Kingdom, America and Europe which leads to unbelief within the retail consumer market and could result in shortage of availability of credit. This in turn makes it even more important for Barclays to driv e the overall corporate profitability margin by seeking to offset the shortfalls in the UK domestic market by making advances in the emerging markets. All the companies, like Barclays, are forced to re-examine the retail aspects of their operations which are seeking to remain competitive on the high street and also to make cuts wherever necessary. In the current financial climate, banks are not ready to finance each other and with the UK market on the boundary of a projected severe recession, all of the retailing factors will determine Barclays competitiveness and it would depend largely on how the Bank of England and the Treasury would amend and reinforce the weak confidence in the stock markets.HSBC will trim on the strategic and prioritized areas of its worldwide operation with the further emphasis on HR management strategies and technologically-advanced applications within the group to keep a firm lead in the financial markets. HSBCs conservative approach to banking, staying focused on keeping its capital base strong and liquid balance sheet have prevented its failure. Executing the HSBCs strategy emphasizes on improving the intra-group linkages by association up the businesses and functions so as to effectively create additional value. The HSBC brand is going to be leveraged to reach new customers and add more services to the existing ones. Efficiency will also be enhanced by taking the full advantage of the local, the regional and global economies. Appropriate objectives and new incentives will be adopted so as to encourage employees to be fully engaged in delivering the strategy.PART 3In blank of your analysis of your existing value proposition and what you have learnt in this mental faculty produce,a new value proposition that will match the value criteria of your customers, anda plan to implement the value proposition externally and internallyhttp//openlearn.open.ac.uk/pix/spacer.gifTo create a new value proposition that would be acceptable to the customers of Barclays, all the weaknesses that the current business structure has would have to be removed and a new and better business plan would have to be drafted by identifying the opportunities and repitiful the weaknesses.A New Value PropositionThe trading income should be relaxed so that it does not impact the revenue diversity.Capital bonuses should be distributed in accordance with the FSA and the bad practice of the directors receiving huge bonuses should be curtailed.Barclays should provide the consumers with a full portfolio of services worldwide, rather than just concentrating in the UK, this move could enable cross-selling opportunities.Barclays should look towards expanding in the worlds booming economies like India, China, Indonesia etc. so that these economies could provide Barclays with the market opportunities it is looking for, thus increasing the market capitalization. This project would propose that Barclays should have an aggressive expansion policy in th e Asian market.Barclays needs to invest in buy to let market, which would in turn bring business volumes.Due to the economic crisis in the markets, Barclays needs to cut down its interest rates and mortgage rates, so as to become a peoples bank and thus raising the brand image.PLAN capital punishmentTo implement the new value proposition described above the project, will identify the key relationship-marketing issue, followed by refocusing of marketing effort moving activities away from a marketing mix that creates a series of one-off transactions, to manage a complex network of relationships involved with the production of the whole consumer offering.TMarketing audit will be carried out so as to map out a plan that will be of most advantage to the customers and will be conducted in stages, namely at the beginning, the mettle and at the end.Marketing analysis in terms of the strengths, weakness, threats and opportunities.A review must be undertaken to understand the new value prop ositions outlined above in the light of internal marketing.A new strategy breeding process concentrating on differentiation, cost leadership and adequate response systems would have to be created.Action programmes would have to be designed by managers so as to determine the most appropriate course to take in tackling the weakness of the organisation, with a determination of the likely costs which would be incurred.The performance plan would have to be monitored and controlled by keeping a row of staff performance, evaluation and appraisal schemes.To ensure effective, appropriate and accurate results, can for market segmentation would have to be identified, based on extensive market research.Marketing orientation is going to be very important, the new value propositions must be made clear to all the employees and all the way defined individual goals should be set down to enable the employees to see their own contribution in achieving the organisations objectives.Externally imple menting the plan is going to be very important, and can be done by the use of media, electronic, patsy and sponsorships.The new value propositions can be made available in the form of television advertisements, available for all the people to see.The Barclays website can act as a powerful medium on which the new value propositions can be put up and made available. It should be designed in an effective and detailed manner so that the customers are witting about all the new services available to them.Print media is another powerful form by which the new policies can be made available for the masses.Barclays is a big sponsor for many big international events and meets and can use that as an active platform to educate the consumers about the new change in the policy structure.