Du Pont Case

The Lally School of Management & Technology Rensselaer Polytechnic Institute Rev. June 28, 2006 DuPont’s Biomax ®: The Push for Commercial Applications Biomax ®, a polyester material that can be recycled or decomposed, holds up under normal commercial conditions for a time period established in the product specifications.The material itself can be made into fibers, films, or resins and is suitable for countless agricultural, industrial, and consumer products: mulch containers, mulching film, seed mats, plant pots, disposable eating utensils, blister packs, yard waste bags, parts of disposable diapers, blown bottles, injection molded products, coated paper products, and many, many others. In the United State alone, where the average household creates over three tons of disposable waste each year, the number of potential applications for Biomax ® is immense.Its development represents a potentially huge business for DuPont and an important solution to the mounting problem o f solid waste in developed countries. In 1989 at the inception of the project, DuPont executives were pressing research units to find new products with commercial applications. One of these research units had-developed a new â€Å"melt-spun† elastomeric material and was seeking commercial applications through the Success Group, its business development unit. The initial target application was as a substitute for the tapes then used on disposable baby diapers, which at that time used more expensive DuPont Lycra for that purpose.Rather than lose that business, however, the division dropped the price of Lycra. The project had reached its first dead end. A senior research associate of the Success Group, Ray Tietz, had noted the degradable characteristics of this new material. â€Å"One of the problems they had with the fibers we made with this material was that it would disintegrate if you boiled it in water. This was because of the sulphonate in it. I knew that if I made a poly ester with this stuff in it, it would probably hydrolyze quickly. Iit might even be biodegradable. John Moore, the head of the Success Group, was a high energy â€Å"promoter,† as one colleague described him. He was determined to find a customer for whom degradability would be an important benefit-hopefully, a big one. A logical target was Procter & Gamble, a major vendor of disposable diapers. Procter & Gamble first introduced the disposable diaper in 1961 and by 1989 had built it into a huge business. Its success, however, coincided with a period of growing environmental This case was prepared by Mark Rice, Gina O’Connor, Richard Leifer, Christopher McDermott, Lois Peters, and Robert Veryzer, Jr. f the Lally School of Management and Technology, Rensselaer Polytechnic Institute, Troy, NY as a basis for class discussion, and is not designed to present illustrations of either correct or incorrect handling of management problems. All rights reserved  © 2000. To order c opies or request permission to reproduce materials, call 1-518-276-6842 or write Dr. Gina Colarelli O’Connor, Lally School of Management & Technology, Rensselaer Polytechnic Institute, 110 Eighth Street, Troy, NY 12180.No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise, without the permission of the Lally School of Management & Technology. 1 DuPont’s Biomax ® awareness, and it didn't take long before the millions of used diapers sold by P and it imitators were attracting the attention of activists and regulators. By the 1980s, a growing number of voices were talking about either banning or significantly restricting the use of this class of products.Sensing the public mood and nervous about possible regulations, P was more than willing to listen to Moore's pitch about the new de- gradable material. It even rev ealed its interest in the development of an entirely new material, one that was both degradable, and that didn't have the â€Å"crinkly† feel of plastic or the â€Å"rustling† sound of paper. The diaper that P's people envisioned would be a laminate with a cloth-like feel on the inside and a waterproof film on the outside, and they encouraged DuPont to work on a prototype. Sensing a huge potential market, Moore's people were quick to oblige P. We spent a lot of research effort trying to make a degradable polymer that would be tough enough for the job,† Teitz later recalled. Months of effort produced a new laminated material that Teitz and others in the Success group thought would meet P&G's needs. Time and events, however, combined to work against them. Sensing that political pressure for restrictive regulation was on the wane, and that cost-conscious customers would not pay a premium for biodegradable materials, Procter & Gamble discontinued interest in the mate rial under development by Moore's development unit.From Degradable to Biodegradable The Success Group was now at a dead end. Furthermore, the standards for environmental acceptability were changing, becoming more stringent. Being degradable (i. e. , a substance that would disintegrate) had become passe; the new standard was biodegradability. Further, anything that passed itself off as biodegradable had to disappear in a reasonably short period of time. As of 1991, two years into the project, no one knew for sure whether DuPont's new material would qualify as biodegradable.Given these new conditions, senior management was concerned about John Moore's ability to command the respect of the technical community and decided to assign a new project manager, Ron Rollins. Credibility on the issue of biodegradability would be necessary for market acceptance. Obviously, no one would make a commitment to the new material until DuPont had firm data on its snack food appeal to microbes and on the rate at which it would disappear. Some suspected that the big opportunity with P&G had been missed because of the absence of solid test data.To test the material, which by this time had been registered as Biomax ®, and to assure the credibility of it data, the project recruited a highly respected company scientist on a parttime basis. Henn Kilkson was a DuPont Fellow with experience in biodegradation. His job was to design and implement a system for evaluating the biodegradation of the new material. The choice of Kilkson for this job was deliberate; he was, in fact, DuPont's representative to both an international committee and one formed by the American Society of Testing and Materials to set standards for biodegrabability.Before long, Kilkson's researchers were busily making and composting prototype diapers that incorporated the newly developed laminated material. Using a sludge composting facility in Fair- field, Connecticut as a test bed, researchers tossed the 2 DuPontâ€⠄¢s Biomax ® prototypes into the unsavory mess, and at the end of the composting cycle raked through the remains to observe the number and size of the remaining materials. This exercise determined the rate of disintegration, but never answered the question of biodegradability.Meanwhile, Kilkson found a European company that was actively involved in compost testing. A number of trials with Biomax ® samples were conducted; all indicated a favorable rate of biodegradation. However, Kilkson was not satisfied with the validity of these tests. Researchers also struck up a relationship with the city of Charlotte, North Carolina, which had a program for bagging and composing grass, leaves, and other yard wastes. The Charlotte facility used lots of manpower to empty bags of waste into a huge grinder and then transfer the ground waste to a composting pile.If employees could simply toss these bags into the grinder without having to cut them open and dispose of them separately, program mana gers reasoned that they could save substantially on labor costs. Of course, the ground up remnants of these bags would have to disappear — and quickly. The DuPont people gave the Charlotte facility a supply of net bags made from Biomax ® and enlisted their collaboration in testing biodegradable characteristics. Ideally, all remnants of these bags would be undetectable in less than a year.The bags themselves were made at a DuPont plant in Canada using a process introduced by a research associate in an- other laboratory. Employees in that tab were, like Rollins' people, also searching feverishly for commercially attractive projects that the operating units of the company would support. Results at the Charlotte facility were positive. Not only did the bags decompose quickly, but they degraded biologically as well. The Charlotte experiment gave the Biomax team something to cheer about. The bag-making plant in Canada was also elated; it too was looking for a big market to serve. Things were at last looking up. But real customers willing to write out real purchase orders were still illusory. Meanwhile, Down in the Banana Groves †¦ By 1992, the Ron Rollins' Success group had been disbanded and Biomax ® seemed destined to sit on the shelf—-one of many good ideas developed by DuPont scientists for which no market application could be found. Before this happened, however, the material caught the eye of Terry Fadem, head of the Corporate Development Group. Fadem thought that Biomax ® was worth another try.Even though a real customer had not signed on, the new polymer had two important features: first, no major capital investment would be needed to produce it in commercial quantities; and second, the potential market for a biodegradable alternative to the mountains of synthetic materials piling up in the industrialized world was huge-at least in the abstract. European consumer products companies, Fadem knew, were facing much stricter environmental controls than were their North American counterparts. The â€Å"Greens† were an active political force, particularly in Germany. Perhaps he could get some commitment from a European customer.According to Fadem, â€Å"I was of the opinion that if that didn't work, or if we didn't get some break in the market that was big enough, that we should either put the technology on the shelf or sell it off † So Fadem provided funds to support a small team of people working part time to keep the project alive As luck would have it, a break in favor of 3 DuPont’s Biomax ® Biomax ® appeared, but from a source that neither Fadem nor anyone else would have anticipated: the banana plantations of Costa Rica. Steve Gleich was a senior technical researcher working the DuPont's Research Division for Agricultural Products.A chemical engineer by training, Gleich was experimenting with different packaging systems for controlling the delivery of pesticides. One was by means of a wat er soluble â€Å"bio-disappearing† film, as he later described it. The pesticide was distributed evenly through the film; when the film became wet it disappeared into the soil, leaving the chemical behind. Thus, farm workers could lay lengths of the chemical-laden material over a row of strawberries, for example, and the first watering or rain would lay down a perfectly even and prescribed dose exactly where it was needed. Gleich was aware of the Biomax ® project.He was also familiar with work on biodegradables being conducted by a joint venture company owned by ConAgra and DuPont. One day, another packaging engineer told Gleich, â€Å"If you solve the banana bag problem down in Costa Rica, you'll be a big hero. † Banana bag problem? Gleich had no idea what he meant. So the engineer pulled a low-density polyethylene bag from his drawer. â€Å"They use millions of pounds of this stuff in the banana plantations,† he said. â€Å"They put a bag over every banana bunch. Some are impregnated with pesticides, but most are simply used as little hot-houses to ripen the fruit and protect it from bruises. This bit of information flipped on a switch in Gleich's mind. Millions of pounds of nondegradable polyethylene translated into two things: big revenues for the vendor and a massive waste disposal problem for growers. If a bag material could be designed to disintegrate and biodegrade at the right time, growers could eliminate major labor and waste handling costs. Working with contacts in Fadem's development unit, Gleich arranged to have 50 bags made from Biomax ® and sent down to a sales agent working with Delmonte's banana operation in Costa Rica.These bags were used to cover the fruit in the normal way and were observed over a 3-4 month period. As the bananas were harvested, the bags, now brittle, began to break apart into small strips and fall to the ground, where they could easily be raked up and composted. These first bags, however, turned brittle too soon in the cycle of fruit production, causing some bruising. So the enterprising researcher asked for another batch of bags — slightly heavier and formulated to come apart more readily.This second batch worked much better and Delmonte and its competitors, Dole and Chiquita, were soon expressing interest. They also wanted to explore applications for melons, strawberries, and other fruit. Ironically because of an internal squabble between the field manager and his counterpart at the head office, the field manager refused to install the redesigned banana bags and this application reached a dead-end. About this time Steve Gleich was assigned new duties within his business unit and his involvement in the Biomax ® project waned.The little band of part timers continued seeking applications. Some new potential agricultural applications emerged, but the project was going nowhere fast. Finally, Fadem convinced senior management to provide substantial corporate funding fo r a high profile advertising campaign soliciting inquiries. Approximately thirty serious responses were received. 4 DuPont’s Biomax ® They were deemed sufficiently promising that in 1996 Biomax ® was transferred out of development and into DuPont's polyester resins and intermediates business unit.When Fadem's team contacted the business unit manager to initiate the handoff, the manger asked where the prototype materials had been manufactured. She was surprised when Fadem told her that the prototype production had been done in her manufacturing facilities. Additional applications development work was required before significant production could be undertaken, and hence, even after the transfer, Terry Fadem's team remained involved. A product manager in the business unit was assigned the task of completing the technical and market development for Biomax ®.Unfortunately for the project, he had only just begun the effort when he was promoted. The project was at a standstill for almost a year until a new product manager was assigned and brought up to speed. The second product manager forced his team to assess the thirty plus leads that had been generated by the advertising campaign and to select four on which to focus. As of mid 2000, development of the product and the search for commercial applications continued. The new product manager was convinced that the first significant revenues were just around the corner. 5

Andrew Jackson Democracy

He did uphold the principles of the majority rule and not of the supremacy of the government. The bank and its branches received federal funding and they were to be used for public purpose by serving as a cushion for the ups and downs of the economy. Biddle, head of the bank, managed it effectively. But his arrogance led many, including Jackson, to believe that Biddle was abusing his power and was serving the interests of the wealthy. As a result, Jackson declared the bank to be unconstitutional even though it was previously said to be constitutional. In the election of 1832, Clay wanted to challenge Jackson on the issue by trying to persuade Congress to pass a bank re-charter-bill. Jackson vetoed it, saying that it was a private monopoly and that it favored the wealthy, and in turn led to the backfire of Clay’s plan. The majority of the voters agreed on his attack on the â€Å"hydra of corruption. † And as a result of this issue, Jackson got the majority of the votes and won the election. In his second term Jackson killed the national bank by vetoing its re-charter and by removing all of its money. In his veto message Jackson said â€Å"But when the laws undertake to add to these natural and just advantages artificial distinctions, to grant titles, gratuities, and exclusive privileges to make the rich richer and the potent more powerful, the humble members of society who have neither the time nor the means of securing like favors to themselves, have a right to complain of the injustices of their government†. He then took the money and put it into so called â€Å"pet banks† that were located throughout various state banks. He did this because he did not uphold to the ideas of the federal supremacy. Jackson is usually for state’s rights, but not if it leads towards disunion. That is exactly what happened in the issue of nullification. Around 1828 the legislation of South Carolina declared that the Tariff of Abominations, which was and increased tariff, was unconstitutional. According to Calhoun, Jackson’s vice-president, and his nullification theory, each state had the right to decide whether or not to obey it or to declare it void. Daniel Webster, of Mass. , debated against Hayne and attacked the idea that any state could leave the Union. Jackson believed that the Union should be preserved. South Carolina held a convention to nullify both the tariff of 1828 and the newly formed tariff of 1832. The convention determined that the collection of tariffs within a state is against the constitution. Jackson didn’t like this, so he forced military action by persuading the Congress the pass a so-called Force bill to give him authority to use military action in South Carolina. But the troops did not go. Jackson decided to open up for compromise and to lower the tariff. Jackson did not uphold to the principle of majority to rule in this case because it only dealt with one state, but he did for the supremacy of the federal government. In the case of the removal of the Native Americans, the statement is valid. Jackson’s view on democracy did not extend to the Native Americans. Like the majority he did sympathize with the land-hungry citizens who desperately wanted to take over lands held by the Indians. Jackson thought that the reasonable answer was to require the Native Americans to leave their homeland and head towards west of the Mississippi. He signed the Indian Removal Act in 1830, which forced a resettlement of many thousand Native Americans. In 1831 the Cherokees challenged Georgia in the courts, but the Supreme Court ruled in this case (Cherokee Nation vs. Georgia) that the Cherokee’s where not a foreign nation and couldn’t sue in a federal court. In a second case, Worcester vs. Georgia (1832), the Supreme Court ruled that the laws of Georgia had no force within the boundaries of the Cherokee territory. In a dispute between state’s rights and federal courts, Jackson sided with the states. He said, â€Å"John Marshall has made his decision, now let him enforce it. † In a statement by Edward Everett, he said, â€Å"The Indians, as was natural, looked to the United States for protection. They came first to the President, deeming, and rightly, that it was his duty to afford them this protection. They knew he had but one constitutional duty to perform toward the treaties and laws – the duty of executing them. He informed them that he had no power, in his view of the rights of the States; prevent their extending their laws over the Indians. This shows that he upheld the principle of the federal supremacy because he abided. Many presidents that have served in the U. S. have had criticisms against them because of the actions they have performed, Jackson being one of them. The validity of the criticism against Jackson varies with the issues regarding the re-charter of the bank, the nullification crisis and the removal of the Native Americans. His presidency chan ged the way that we look at presidents today. Andrew Jackson Democracy He did uphold the principles of the majority rule and not of the supremacy of the government. The bank and its branches received federal funding and they were to be used for public purpose by serving as a cushion for the ups and downs of the economy. Biddle, head of the bank, managed it effectively. But his arrogance led many, including Jackson, to believe that Biddle was abusing his power and was serving the interests of the wealthy. As a result, Jackson declared the bank to be unconstitutional even though it was previously said to be constitutional. In the election of 1832, Clay wanted to challenge Jackson on the issue by trying to persuade Congress to pass a bank re-charter-bill. Jackson vetoed it, saying that it was a private monopoly and that it favored the wealthy, and in turn led to the backfire of Clay’s plan. The majority of the voters agreed on his attack on the â€Å"hydra of corruption. † And as a result of this issue, Jackson got the majority of the votes and won the election. In his second term Jackson killed the national bank by vetoing its re-charter and by removing all of its money. In his veto message Jackson said â€Å"But when the laws undertake to add to these natural and just advantages artificial distinctions, to grant titles, gratuities, and exclusive privileges to make the rich richer and the potent more powerful, the humble members of society who have neither the time nor the means of securing like favors to themselves, have a right to complain of the injustices of their government†. He then took the money and put it into so called â€Å"pet banks† that were located throughout various state banks. He did this because he did not uphold to the ideas of the federal supremacy. Jackson is usually for state’s rights, but not if it leads towards disunion. That is exactly what happened in the issue of nullification. Around 1828 the legislation of South Carolina declared that the Tariff of Abominations, which was and increased tariff, was unconstitutional. According to Calhoun, Jackson’s vice-president, and his nullification theory, each state had the right to decide whether or not to obey it or to declare it void. Daniel Webster, of Mass. , debated against Hayne and attacked the idea that any state could leave the Union. Jackson believed that the Union should be preserved. South Carolina held a convention to nullify both the tariff of 1828 and the newly formed tariff of 1832. The convention determined that the collection of tariffs within a state is against the constitution. Jackson didn’t like this, so he forced military action by persuading the Congress the pass a so-called Force bill to give him authority to use military action in South Carolina. But the troops did not go. Jackson decided to open up for compromise and to lower the tariff. Jackson did not uphold to the principle of majority to rule in this case because it only dealt with one state, but he did for the supremacy of the federal government. In the case of the removal of the Native Americans, the statement is valid. Jackson’s view on democracy did not extend to the Native Americans. Like the majority he did sympathize with the land-hungry citizens who desperately wanted to take over lands held by the Indians. Jackson thought that the reasonable answer was to require the Native Americans to leave their homeland and head towards west of the Mississippi. He signed the Indian Removal Act in 1830, which forced a resettlement of many thousand Native Americans. In 1831 the Cherokees challenged Georgia in the courts, but the Supreme Court ruled in this case (Cherokee Nation vs. Georgia) that the Cherokee’s where not a foreign nation and couldn’t sue in a federal court. In a second case, Worcester vs. Georgia (1832), the Supreme Court ruled that the laws of Georgia had no force within the boundaries of the Cherokee territory. In a dispute between state’s rights and federal courts, Jackson sided with the states. He said, â€Å"John Marshall has made his decision, now let him enforce it. † In a statement by Edward Everett, he said, â€Å"The Indians, as was natural, looked to the United States for protection. They came first to the President, deeming, and rightly, that it was his duty to afford them this protection. They knew he had but one constitutional duty to perform toward the treaties and laws – the duty of executing them. He informed them that he had no power, in his view of the rights of the States; prevent their extending their laws over the Indians. This shows that he upheld the principle of the federal supremacy because he abided. Many presidents that have served in the U. S. have had criticisms against them because of the actions they have performed, Jackson being one of them. The validity of the criticism against Jackson varies with the issues regarding the re-charter of the bank, the nullification crisis and the removal of the Native Americans. His presidency chan ged the way that we look at presidents today.

Expanding Market for Chinese Mobiles Research Paper

Expanding Market for Chinese Mobiles - Research Paper Example The paper tells that China mobile limited is vigorously active to seek market opportunities for the fourth-generation telecommunication technology in foreign countries today because for the past years China has remained behind in establishing abroad markets. Through actively looking for the overseas market, China is aiming to have 30 to 60 million of 4G mobile type users worldwide by this year. As a result, through growth or expansion, this will assist China to emerge as a market decider in the future as shown by the analysts. The company’s management has aimed to hire international personnel or explores for new markets overseas, an international plan can help increase and spread a business. Therefore, China is the active concern with entry strategies in both non-equity, which includes export and contracts agreements with foreign nations and equity mode. This includes joint venture and wholly owned subsidiaries activities in order to venture into international markets. On the other hand, the pictures outlined marketing strategies which are put in place to expand Chinese mobiles in the market. Additionally, the resume principle acts as a pillar to hold the business in the market. This is the first and most common strategy in order to become an international company. There should be an adequate import of goods from the foreign nations. Importing is the process of buying goods or services in another country. This will help to improve interrelationship between China and foreign nations. As a return, foreign nations will engage in exchange terms where China will have the opportunity to export its mobile phones to these foreign nations. Export is the process of selling goods or services produced in one country to other countries. Export can be either direct or indirect. Indirect export means that products are carried abroad by other agents and the parent firm does not have special activity connected with the foreign market since sales abroad are treated as the domestic one.

The key benefits and drawbacks of ICD-10 coding system Assignment

The key benefits and drawbacks of ICD-10 coding system - Assignment Example This explains why experts of the (WHO) developed a coding system with a better structure and capacity to accommodate the coding of additional diseases and symptoms. With the increasing technology and the innovation of new procedures in medicine, the globe needed a coding system that could allow for detailed coding. An efficient coding system cannot receive any form of underestimation because it is of critical significance in quality evaluation of patient care. This paper will present background information of ICD-10 and highlight the benefits and drawbacks associated with the coding system. In addition, the paper will present an example of a disease coded using this system. As mentioned above, ICD-10 is a coding system is a coding system developed by the World Health Organization in 1992. However, the entire coding system was launched in its full version in 1994. In 2002, translation of the ICD-10 coding system into 42 languages formed the initial benchmark in its adoption by different countries (‘Query challenges coming with ICD-10-PCS’ 2014). Worth noting is the fact that out of the 42 languages, six of them included the official WHO languages. Implementation of ICD-10 has been taking place over time in different countries. Current statistics reveal that 138 countries have adopted ICD-10 for mortality records. However, only 99 countries are using the system for mobility records. Current users of the ICD-10 coding system include the United Kingdom, France, Australia, Nordic countries, Belgium, Germany, and Canada (Rahmathulla et al, 2014). According to these statistics, it emerges that most of the industrialized countries have adopted the ICD-10 coding system replacing ICD-9. The main reason why ICD-10 was a critical development is the fact that ICD-9 did not present any room for expansion (Abdusamadovich, 2013). Therefore, the continued use of ICD-9 would

Theological Reflections Research Paper Example | Topics and Well Written Essays - 1750 words

Theological Reflections - Research Paper Example Rather, they require the servants of Christ to utilize different degrees of commitment2. The forthcoming co-worker appreciation dinner will require increased levels of commitment that seek to go beyond charity. Rather, it will be important to recognize the workers for their unwavering commitment to the Sisters of Mercy’s mission, their hospitality, and their service. As Catholic employers, Mercy has the ability to show support for their poor and lowest paid co-workers through showing preferential option for the poor and vulnerable, as well as showing respect for their dignity. The Preferential Option for the Poor and Vulnerable The theological concepts of dignity and providing preferential treatment for the poor are concepts that have always been at the forefront of our core values and mission at Mercy. Providing preferential treatment for society’s poor also applies to lowly paid co-workers at Mercy, as well. It is our belief that touching the needy is akin to touching Jesus Christ. The last judgment has an essential role to play in our traditional Catholic faith; especially because the church teaches that we stand judged by what we elect to carry out towards the prisoners, homeless, sick, thirsty, and hungry3. In modern times, the Church teaches us the same through the preferential option for the poor. ... We are asked to do this by the church and failure to do so will break the required balance that holds society as one, which will be to the detriment of the whole society4. Preferential treatment for the poor is referent to the trend of giving preference to the life and wellbeing of society’s powerless and poor, as we are taught by the commands of God, the Church, as well as righteous people and prophets. Christ himself spoke to us about judgment day, contending that God will seek to know from each one of us what we did in aid of the poor and the needy5. He told us that whatever we do for the least of his brothers, we did for him, which is also reflected in the canon laws of our Mother Church. Catholic faithful, the law tells us, are obliged to go out and promote justice for all in society and that we must remain mindful of the Lord’s precept to help those who are in need and poor. Nevertheless, how does the appreciation dinner at Mercy accomplish this? The quoted doctri ne asks us as Catholics to show compassion and solidarity with the poor through our deeds, as well as our prayers. For this reason, when instituting any measures at Mercy, it is essential that we always ensure to keep at the forefront the preferential option for the poor. The doctrine’s implications are that any society’s, including Mercy, moral test lies in how we treat our poor and vulnerable members6. We are asked to ensure that the policies and activities at Mercy must factor in the vulnerable and the poor. Pope Francis has begun his journey with teachings on why the Church must now become one with the poor. He has taught love for the needy, the sick, prisoners,

Team Case Study 2 The Deepwater Horizon Part 1 Example | Topics and Well Written Essays - 250 words

Team 2 The Deepwater Horizon Part 1 - Case Study Example e, it becomes essentials to ask the difficult yet factual questions in order to obtain every possible view in the management of such disasters even in future. BP just as any other large multinational corporation understood the nature of their industry and the risks expected in such industries. As such, the company should have developed an effective crisis response and management team in order to contain the effects of the accidents. Despite such assumptions, the company could not contain the problem whose effects continued for weeks. Additionally, the company would later spend billions of dollars in an extensive public relations campaign as it sought to absolve itself and reestablish its reputation. Such occurrences portray laxity in the company’s management. Among the factual questions, thus include whether the accident was an act of either omission or commission in the management’s functions, whether the management acted promptly or not and whether the management of the multinational corporation valued the life of its employees and the ecosystem as it envisioned (Weiss

Critical Analysis of Microsoft Monopoly Power Essay

Critical Analysis of Microsoft Monopoly Power - Essay Example Moreover, the firm will stand to benefit from the economies of production and the cost per unit of products will be lowered (Baumol & Blinder 2011). This will create entry barriers to new entrants. There are various sources of monopoly power. The first source of monopoly power is the control of an important factor of production that is fundamental in the production process (Allen 2003). A firm that has exclusive control on an important factor e.g. technology, land, or production process is likely to acquire monopoly power and hence lock out competitors. Secondly, monopoly power may also be attained from the government where the government licenses only one firm to be the sole supplier in the industry thus prohibiting entrance from competitors. The monopoly power may also be attained because of the market size i.e. where the market is small; one supplier may supply the whole market. Finally, the amalgamation and mergers of firms in the industry could also create monopoly power. Firms may merge to benefit from the economies of scale production or to avoid competition that could cause losses to the firm. Such factors may lead to monopoly in an industry (Learning & Moyer 2010). In the case of the software industry, Microsoft has enjoyed monopoly position by creating entry barriers to their potential competitors. Entry barriers arise in terms of high costs, time, quality, and lack of resources to advertise in order to make successful entry. One of the strategies that Microsoft used to lock out their competitors was the large number of applications that were necessary to make an operating system preferred by the end users (Kobie 2009). The ends users require software that can be used to execute the different functions at once and this will ensure that they get the convenience they require. It would thus expensive for a new entrant to develop software with many applications that will compete those of Microsoft (Kobie 2009). The users of computer software are also like ly to remain loyal to Microsoft application software because of the multi application that the soft ware can perform. The second way of creating entrance barrier is by entering into exclusive agreements whereby a firm will enter into agreements that prohibits the use of their competitors’ products. In the case of Microsoft, the company created exclusive agreements in which the company’s operating software would be solely used in their PC’s (Meller 2009). As a result, their competitors or potential competitors would lack the market for their software and this would make them incur heavy losses that lead to their termination or dissolution. This anti competitive strategy is not healthy for the users of the products, as they will lack a variety of products to make choices from (Mankiw 2008). They will thus be compelled to adhere to the available and little viable option. These therefore deny the consumers their sovereignty making Microsoft monopoly unjustified. In addition, Microsoft used their financial power and strength to keep their competitors at bay. Monopolists firms make large profits that is can use in lowering the selling price or giving offers that are meant to make their products cheaper compared to those of the competitors (Kobie 2009). Due to this new entrants or existing smaller competitors will be barricaded from accessing the market and hence the continuation of the