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MY CULTUTAL BACKGROUD
INTERCULTURAL COMMUNICATION
TONY GALVEZ SANDOVAL
PROFESSOR DARIA ISRAEL LA’SHANNON
July 30, 2015
2
I will start by introducing myself as a Mexican-American citizen who enjoys both cultures
equally, the Mexican culture and the American culture. Among these two different cultural
societies communication and traditions differ in both. On one side I have the BBQs, and on the
other hand I have Dia de Campo. However, my cultural background and heritage will be
Spanish-Mexican. On this paper I will talk mostly about three different but important aspects of
Mexica culture since it is a fascinating and intriguing community full of cities, small rural
communities, traditions, and enormous historic background. I will be talking about three very
distinctive traditions and elements of Mexico very well-known at an international level. These
customs and traditions are the Mariachi, Tequila, and Dia de los Muertos (Day of the Dead).
Much of Mexican culture is structure around religious values, the church, concept of family, and
some pre-Historic Mayan elements as part of the faith.
The Mariachi is a band of musicians formed to play very traditional and fun music. The
Mariachi existence first dates back to the 1850’s; however, no one knows the origins of the
name “mariachi.” Some people derived the name from the French word for marriage meaning
“wedding,” and another theory suggests the word came from an Indian tribe indigenous taken
form the native word for Pilla of Cirmio tree; wood used to make guitars (History of Mariachi).
The sounds of the Mariachi band is a combination of Spanish, native, and African
sounds. The band consists of at least two violins, two trumpets, one Spanish guitar, one
vihuela, and one guitarron; but sometimes the band is integrated by more than twenty
members (History of the Mariachi). Mariachi music is very often played at weddings,
Quincianeras, birthdays, and special celebrations to make a party more fun and alive. The
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Mariachi music comes from all over Mexico; however, its true origins are from the state of
Jalisco. One of the most popular songs ever played by Mariachi is “La Negra.”
Tequila is a very traditional Mexican drink which originates in Jalisco, Mexico. The word
“tequila” itself is a mystery. It is surrounded by many stories, myths and legends. The roots of
“tequila” date back to pre-Hispanic times when natives fermented the maguey plant to make a
drink called pulque. The word “tequila” is an ancient Nahuatl term which means “the place of
harvesting plants” (Tequila-A Bit of History of Tequila). Agave is the plant which tequila is
distilled from. The first license manufacturer ever stablished was Cuervo by the family name of
Jose Antonio Cuervo, Sr. Tequila is an alcoholic beverage often served at weddings and special
celebrations to toss about happiness, health and also to overcome sorrows.
Tequila, the agave-based spirit is made primarily in the area of Tequila, Jalisco. The
volcanic soil around the area is well-suited for the growing of the blue-agave. Tequila as stated
by Mexican Law can only be produced in the state of Jalisco, and very limited areas around
Michoacán, Nayarit, Guanajuato, and Tamaulipas (TEQUILA POPULAR CULTURE). The tequila’s
history and culture is deeply rooted in Mexico’s heritage. Tequila is a topic of popular culture.
“Dia de los Muertos” (Day of the Dead), is a historic holiday; a popular celebration in the
Mexican culture. It is an event acknowledge around the world in other cultures. Day of the
Dead originated centuries ago, and it is widely celebrated to this day. The holiday is a mix of
pre-Hispanic native beliefs and Spanish Catholic beliefs. It is a special celebration to honor the
dead. This holiday has transcendent barriers and it is celebrated in various countries in Central
and South America, Europe, and Asia according to their own customs and traditions. It has
even cross the border to the United States. It is now celebrated in areas with high Mexican
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population such as California, Texas, Arizona, and other parts of the country. Dia de los
Muertos is a festive joyous time of celebration honoring those family members and friends who
have passed away. It is the most important holiday in all of Mexico. The holiday falls on
November 1st and 2nd of each year; however, the official date is November 2nd.
Dia de los Muertos is a celebration in both public (cemeteries) and private (homes)
spaces. In homes, people create “altares” (altars), with photographs from the disease person,
along with special food, candies, flowers, candles, and fruit. In graveyards, families clean the
graves of the love ones and then decorate with flowers, photos, candles, food, drinks, and a
very special flower called “cempasuchil.” Family members stay up all night socializing and
telling funny stories to remember their dead ancestors. Musicians are also hired to walk
around the graves playing the favorite songs of the dead. One very representative element of
the celebration is also sugar skulls either made by the family or bought during the celebration.
Difference is culture can always affect communication in between individuals if we don’t
try to understand our differences in traditions and customs. Language and the meaning of
words and symbols have different meanings in different cultures. In today’s business, the world
is a global market where communication occurs among different cultural groups. Individuals
most have knowledge and understanding of cultural communication in order for them/us to be
able to make a business deal effectively happened.
Context are cultural differences among different societies. These are different tools and
elements individuals can use in the service of understanding cultural differences among groups
from the same country or other countries. Culture expresses feelings, different business
practices among social groups, symbols, premises, rules, forms, dimensions of mutual
5
meanings, and identity among a cultural group to communicate ideas. It is important to
understand different business cultural practices to communicate effectively with different
people and even with our own social group.
6
Works Cited
History of Mariachi. Monday, 27th July 2015. Online Source. Monday, 27th July 2015.
<www.laits.utexas.edu>.
History of the Mariachi. Monday, 27th July 2015. Online Source. Monday, 27th July 2015.
<www.mariachi.org/history>.
TEQUILA POPULAR CULTURE. Monday, 27th July 2015. Online Source. Monday, 27th July 2015.
<www.tequilaconnection.com>.
Tequila-A Bit of History of Tequila. Monday, 27th July 2015. Online Source. Monday, 27th July
2015. <www..loscabosguide.com>.
7
Contemporary Problems in EthicsAbortion as a Social Responsibility
Introduction to Ethics
Tony Galvez Sandoval
Professor Ralph Peters
February 6, 2015
8
Abortion has been a very controversial subject since the beginning of recorded history.
There has always been different views as to whether abortion is ethically or morally right. Are
women actually responsible for the killing of an unborn child? Let’s start by defining “abortion”
as a deliberate termination of a human pregnancy most often performed during the first 28
weeks of gestation within a mother’s womb. Abortion is a continue issue for discussion in
American society and around the world. Some people (Anti-Choice Activists) think of it as an
immoral abomination. Others (Pro-Choice Activists) see it as fundamental right to productive
liberty and privacy of women.
Abortions have been performed since the beginning of recorded history. Women have
terminated pregnancies for different ethical, social, economic, and political reasons. Both Plato
(c. 428-347 B.C.E.) and Aristotle (384-322 B.C.E.) approved of abortion as a means of population
control. Plato wrote in his Republic that any women over 40 years old (age when the rate of
birth defects rises sharply according to scientific studies in modern times) should be compelled
to abort a pregnancy. On the other hand, according to scholars whom studied Hippocrates (c.
460-370) and gave him credit for the Hippocratic Oath have claimed that he opposed abortion;
referring specifically to his phrase “…I will give no deadly drug to any, though it be asked of me,
nor will I counsel such, and specially I will not aim a woman to procure abortion” (Rein).
In the ancient Greece and Rome abortion was commonly used to limit family size. There
was abandonment of babies outdoors with the total intention they would die. Moreover,
parents would categorized female infants as “weak” and resorted to exposure. Such parents
decided not to abort their children; are such parents morally right for bringing unwanted
9
children to the world and let them die on their own? Would abortion had been a better and
more ethical choice by not bringing those infants only to die?
In modern times, parts of society condemn abortion as unethical and morally wrong
action against an unborn child. Pregnancy almost invariably occurs as a consequence of sexual
activity, then questions about the ethics of abortion should also include questioning sexual
activity as a sexual and moral action as well. Women whom cannot take care of babies and
decide to have an abortion are making the most ethical and moral decision open to them. It
would not be ethical correct o force women to have unwanted children whom cannot be cared
for. Those infants are at risk to be abused, mistreated, and be rejected by their parents,
mother, or society as a whole.
Would it be ethically right to force a woman to carry a pregnancy to term if abortion is
made illegal? Debates about abortion focus on the political and law aspects of society; not
giving specific attention to ethical questions such as should morality be legislated upon as well?
In 1973, in the case Roe vs. Wade the Supreme Court’s decision first supported a woman’s right
to abortion. This gave women certain control over their body and own personal decision about
pregnancy and abortion.
Religion has also played an important and influential role in deciding whether abortion
is ethically right or wrong. Since the Christian era, the Christian Church declared abortion a
“sin,” in their earliest document known as Didache which stated, “…You shall not kill the
embryo by abortion and shall not cause the unborn to perish…” (Rein 3) Most recently, in 1995,
Pope John Paul II (1920-2005) repeated his firm stand against abortion, contraception, and
10
euthanasia in his encyclical letter, Evangelium Vitae (Gospel of Life), charging modern society
with promoting a “culture of death” (Rein 4).
According to John M. Swomley the bible actually contains no statements against
abortion (Williams 27). Scientific studies have proved that during the first trimester the fetus is
not a baby, but a mass of relatively undifferentiated cells that exist as a part of a woman’s body.
A fetus is also defined scientifically as a human being when brain activity begins, about 28
weeks after implantation not at conception. Then is it not ethically wrong for a woman to
decide to terminate her pregnancy in the earliest stage since the embryo or fetus is not a
separate human entity? Thus only when a baby can live independently from its mother’s body
can it be granted human rights. This raises to question, would it be morally and socially correct
to grant human rights to a fetus as many Pro-Life Activists suggest if the embryo interferers
with the rights of Life, Liberty, and the Pursuit of Happiness of an already exiting conscious
human being?
Women should have control over their body and life. They should be granted the right
to end an unwanted pregnancy without any moral remorse. There could be several reasons as
to why a woman decides to end her pregnancy such as emotional, economic, not being a ready
parent, being too young, or the trauma of being sexually abused and the result was an
undesirable pregnancy. There are also birth defects and hereditary diseases which can be
identify through amniocentesis or sonogram such as anencephaly (absence of part or all of the
brain), spinal bifida (leads to infection or paralysis), and Down’s syndrome (mental retardation).
Then should a woman be penalized or criticized by society for ending an unwanted or that of an
even ill unborn child?
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As a result, abortion is a legal medical practice that expands women’s reproductive
options which also can save the lives of thousands of women’s lives when practice in proper
medical surroundings. Abortion should remain a woman’s personal choice since the fetus
develops inside a woman’s body. A new born affects directly a woman’s life then abortion must
stay a woman’s right and decision. Society in general has the necessity to separate the idea of
abortion from the idea of killing. Since a woman’s life is more important abortion is not an
immoral or selfish act. Society needs to be more reasonable when it comes to the issue of
abortion since it does not provide for mothers and their children. Society should be legally and
morally responsible if abortion becomes an illegal act since it will result in the dead women all
over the world. We need to make decisions not based on fears, preconceptions, anxieties, sex,
society, life, and death; however, considering realities of human sufferings, moral dilemmas,
how people live, and complexities of the actual world.
12
Works Cited
Rein, Mei Ling. Abrtion: An Eternal Moral and Social Issue. Framington Hills: Gale Group, 2000.
Print.
Williams, Mary E. Abortion: Opposing Viewpoints. Ed. Mary E. Williams. San Diego: Greenhaven
Press, Inc., 2002. Print.
Bibliography
Gilbert, Maureen Harrison & Steve. Abortion Decisions of the United States Supreme Court.
Beverly Hills: Excellent Books, 1993. Print.
Rein, Mei Ling. Abrtion: An Eternal Moral and Social Issue. Framington Hills: Gale Group, 2000.
Print.
Williams, Mary E. Abortion: Opposing Viewpoints. Ed. Mary E. Williams. San Diego: Greenhaven
Press, Inc., 2002. Print.
13
Operations Management Final Paper
Tony Galvez Sandoval
Professor Stephanie Cato
March 5, 2016
1. Challenges Faced in Projecting Demand
Creating a profile and a product for each market segment helped out company’s selection
of the geographic market for our first sales offices, design new brands, prices, and the
development of an advertising campaign focus on every market segment we were targeting.
MAC Tech analyzed the market data and reviewed it to decide on initial business strategy, the
decision of our first two product designs for the target customers, and initiate the construction
of our first factory during Q1 in Chicago-NORAM.
Making our products competitive and well design was challenging because our company
was not sure of the consumer’s first reaction to our product design and prices. To design our
first computers, we considered the most important factors and elements for our target
segment (Mercedes and Traveler). Such elements included fast and powerful (135),
engineering/design (130), can efficiently do complex tasks (130), can link to other computers
(127), after sales service and support (125), and manufacturing process control (123) for the
Mercedes client. Traveler’s most important requirements were elements such as portable
(129), presentations (127), can link with other computers (121), word processing (121), low
price (115), fast and powerful (115), and able to store a lot of data (113). During Q3, we
14
decided to enter our third market segment Workhorse. We considered for this market segment
important needs and wants for the design of their product such as easy to use (132), low price
(128), Word Processing (126), Bookkeeping/budgeting (124), presentations (122), and Data
management (118).
All these elements for each market segment were considered to project demand based on
product specifications for each market segment based on customer needs and wants (Chart
Customer Needs and Wants):
Customer Needs
Customer Needs And Wants
Workhorse Mercedes Traveler
Low price 128 81 115
Easy to use 132 102 109
Can link with other computers 114 127 121
After-sale service and support 115 125 102
Fast and powerful 110 135 115
Portable 53 79 129
Fun to use 105 70 109
Easy on eyes, larger display area 97 120 113
Able to store a lot of data 117 114 113
Can efficiently do complex tasks 68 130 84
Has a distinct look 121 115 116
15
Segments by Application
Workhorse Mercedes Traveler
Word processing 126 114 121
Presentations 122 102 127
Engineering/design 81 130 85
Data management 118 121 101
Manufacturing process control 90 123 71
Bookkeeping, budgeting 124 83 102
Pricing
TAC Micro priced its products considering the following factors:
1. Costs of manufacturing and operations
2. Price elasticity
3. Competitive prices
Before we decided to set prices for each product, we considered what each market segment
will bear to pay and the cost of production (Price Willing to Pay Chart):
Price Willing to Pay
Price Willing To Pay
Workhorse Mercedes Traveler
2,500 4,000 3,200
16
Cost of production is a factor in setting prices which can affect price elasticity,
production and demand. As we entered more markets throughout the six quarters (Sao Paulo-
LATAM, Paris-EMEA, and Shanghai-APAC) our production costs decreased because our
demanded projection was higher. However, in some products our prices were higher due to
the implementation of new technology and research to obtain such innovations (Cost of Goods
Chart Q2 compare to Production Costs Q6):
Cost of Production
Cost of Goods
Brand100
units250 units 500 units 1,000 units 5,000 units
HighTech 3,736 2,747 2,252 2,001 1,771
TAC Envelope 3,393 2,405 1,910 1,661 1,440
Production Cost Q6
Cost of Production
Cost of Goods
Brand100
units250 units 500 units 1,000 units 5,000 units
HighTech1 3,831 2,843 2,347 2,097 1,862
TAC Envelope1 3,500 2,512 2,017 1,767 1,542
EzTech3New 3,566 2,578 2,083 1,833 1,606
17
Cost of Goods
Brand100
units250 units 500 units 1,000 units 5,000 units
HighTech 3,736 2,747 2,252 2,001 1,769
TAC EnvelopeNew 3,521 2,532 2,037 1,787 1,561
EzTechnew 3,555 2,567 2,072 1,822 1,595
HighTech2 4,086 3,097 2,602 2,350 2,108
We increased our prices in the new models for every market segment. We have
upgrades to benefit every client (Mercedes, Traveler, and Workhorse). During Q2, our first
products were High Tech (Mercedes Segment) and TAC Envelope (Traveler Segment). During
Q3, we designed our thirds product EZ Tech (Workhorse) to cover every market segment. We
priced our products to the highest prices every market segment was willing to pay, but offered
a rebate to attract potential clients to buy our products (Price and Priority Chart Q2).
Brand
Available
for
Sale
Retail
Price
Price
Rebate
TAC
Envelope
HighTech
3200 100
4000 200
18
Compare to Q6, our prices increased based on the new components integrated into the
new designs. However, we still offer rebates to be more competitive on the prices and the
market (Price and Priority Chart Q6).
Brand
Available
for
Sale
Retail
Price
Price
Rebate
HighTech2
HighTech1
HighTech
TAC
EnvelopeNew
TAC Envelope1
EzTech3New
EzTechnew
Competitive Actions & Competitive Response
Based on price judgment, competitor’s prices, advertising, and market research we
made decisions to help our company grow and be profitable. For Workforce our product was
5000 300
4700 300
4000 200
3700 200
3500 150
3300 250
2700 100
19
not very well accepted by rating us a very low score of 82 which was below the accepted
standard market 90. On the other hand, Mercedes and Traveler products were very
competitive and consumers rated our products with 100 each (Price Judgment Chart).
Price Judgment
World Market
Company BrandWorkhorse Mercedes Traveler
MY PC PC Engineered 63 100 80
MY PC PC Mobile 78 100 100
Vincom Vincom Traveler 82 100 100
Vincom Vincom XL 64 100 81
DNA ML350 80 100 94
DNA The Knight 100 100 100
TAC Micro HighTech 66 100 81
TAC Micro TAC Envelope 82 100 100
LSG PC Xtreme 100 100 100
LSG PC Duralife X 84 100 100
Tech-Savy Inc Super-Tech 62 100 80
Tech-Savy Inc Ideal-Tech 100 100 100
SMR Techonology Group LLC MDT1000 69 100 85
SMR Techonology Group LLC TLP100 91 100 100
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We created advertising ads for each market segment based on the products best
components. Focusing on the consumer’s top wants and needs we design an ad for each
market segment. We placed our ads in every major media important to each market segment
for Mercedes, Traveler and Workhorse. For instance, General News Magazine (141) and
Science and Technology (122) for Mercedes clients; New Venture Magazines (129) and Leading
Trade Journals (120) for the Traveler consumer; and finally, Sports Magazine (136) and Leading
Trade Journals (133) for the Workhorse segment. During Q2, we did not place many ads
because we were new in the market. However, as we entered new markets and their
respective segments we increased the amount spent on advertising from $121,000 to $642,857
the end of Q6 (Media Placement Q2; Media Placement Q6).
Revise Ad Placement
World Market
Media CostHigh
Tech 2
TAC
Envelope
New
High
Tech1
TAC
Envelope1EzTech3
HighTec
hEzTechNew
Business
Newspapers 23,000
General
Business
Magazine
16,000
Computer
Magazines 5,000
2 0 3 0 0 0 0
0 1 0 0 2 0 0
4 0 5 0 0 0 0
21
General News
Magazines 8,000
Leading Trade
Journals 7,500
New Venture
Magazines 9,000
Sports
Magazines 24,500
Executive
Business Mags29,000
Science &
Technology15,000
Daily
Newspaper 9,000
Leisure &
Entertainment18,000
Advertising
Expenses128,507 142,218 144,925 97,218 129,989 0 0
Total Advertising Expenses: 642,857
MAC Tech based the projected demand for Q1 at a low production because we were
first entering the market. Our fixed capacity was 25 units per day and 1625 units per quarter.
During Q2, we projected our first the demand to be at 300 units total. Our company hired 6
people and we projected 50 units demanded per sales person. We decided to have a maximum
inventory of 5 units per brand (TAC Envelope; HighTec). However, as we entered Q3, our
demanded projection increased to 2,176 units; with a units demand per sales person of 136 in
4 0 3 0 0 0 0
0 3 0 3 6 0 0
0 4 0 4 2 0 0
0 2 0 2 2 0 0
0 1 0 0 0 0 0
3 0 3 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
22
between a workforce of 16 employees. During Q4, we projected a demand of 4,350 units with
29 sales associates and 150 units demanded per sales person. Q5 we ended up projecting a
demand of 10,010 units; 182 units per sales person and a workforce of 55 people. On our last
Q6, we decided to be adventurous and projected a demand of 13,260 units; a workforce of 78
sales associate; and a demand of 170 units per person. However, we over projected our
demand. At the end of Q7, our total demand was 8,355 units total among 7 different products.
We hired more people than actually needed and as a result, the demand per sales associate
was 107 units. We also increased our sales people salaries and offer them bonuses which as a
result the company ended up losing some revenue. We ended up with a market share at
13.02%. A little below My PC with 14.76% and way fay from SMR Technology Group LLC with a
market share of 31.35%.
Market Demand
CompanyWorkhorse Mercede
s TravelerTotal Demand
MY PC 4,369 3,078 2,022 9,469Vincom 3,083 2,106 1,610 6,799DNA 2,920 1,147 2,280 6,347TAC Micro 3,218 3,286 1,851 8,355LSG PC 4,586 78 1,765 6,429Tech-Savy Inc 3,041 1,861 1,746 6,648SMR Techonology Group LLC 9,506 3,580 7,029 20,115
Total 30,723 15,136 18,303 64,162Market Share
CompanyWorkhorse Mercede
s TravelerTotal
Market Share
MY PC 14.22% 20.34% 11.05% 14.76%Vincom 10.03% 13.91% 8.80% 10.60%DNA 9.50% 7.58% 12.46% 9.89%TAC Micro 10.47% 21.71% 10.11% 13.02%LSG PC 14.93% 0.52% 9.64% 10.02%
23
Market Demand
CompanyWorkhorse Mercede
s TravelerTotal Demand
Tech-Savy Inc 9.90% 12.30% 9.54% 10.36%SMR Techonology Group LLC 30.94% 23.65% 38.40% 31.35%
Our income statement for the six quarters shows our progress results based on our
decisions. We have losses during Q1 of $329,988 due to the opening of the new business, and
Q2 also of $220,896 since it was our first production. However, Q3-Q6 we have net income
from $888,674 to $5,878,350 at the end of Q7 and earnings per share of $68. We ended up
with revenues of over $30 million in Q6. Also, during Q5 we had excesses capacity cost of
$492,913 and in Q6 also of $961,492. This resulted in less revenues for the company.
Income Statement
Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 5 Quarter 6
Gross Profit
Revenues 0 1,193,600 5,548,800 14,635,700 24,521,100 30,197,400
- Rebates 0 25,800 121,800 299,800 633,600 794,700
- Cost of Goods Sold 0 784,301 3,042,910 7,075,932 11,756,379 14,022,076
= Gross Profit 0 383,499 2,384,090 7,259,968 12,131,121 15,380,624
Expenses
Research and Development 120,000 0 60,000 3,471,083 4,055,340 240,000
+ Advertising 0 181,000 348,335 388,298 837,889 792,857
+ Sales Force Expense 0 94,554 335,134 653,591 1,429,118 2,581,540
+ Sales Office Expense 220,000 290,000 460,000 540,000 440,000 440,000
+ Marketing Research 0 15,000 15,000 15,000 15,000 15,000
+ Shipping 0 16,354 59,266 131,965 186,373 219,623
+ Inventory Holding Cost 0 0 0 0 0 0
+ Excess Capacity Cost 0 0 0 0 492,913 961,492
+ Depreciation 0 25,000 25,000 70,833 116,667 300,000
= Total Expenses 340,000 621,908 1,302,735 5,270,770 7,573,299 5,550,512
Operating Profit -340,000 -238,409 1,081,356 1,989,198 4,557,821 9,830,112
Miscellaneous Income and Expenses
+ Other Income 0 0 0 0 0 0
24
- Other Expenses 0 0 0 0 0 0
= Earnings Before Interest and Taxes -340,000 -238,409 1,081,356 1,989,198 4,557,821 9,830,112
+ Interest Income 10,013 17,513 32,513 75,000 90,000 0
- Interest Charges 0 0 0 0 0 32,862
= Income Before Taxes -329,988 -220,896 1,113,868 2,064,198 4,647,821 9,797,250
- Loss Carry Forward 0 0 550,884 0 0 0
= Taxable Income 0 0 562,985 2,064,198 4,647,821 9,797,250
- Income Taxes 0 0 225,194 825,679 1,859,129 3,918,900
= Net Income -329,988 -220,896 888,674 1,238,519 2,788,693 5,878,350
Earnings per Share -16 -7 22 15 32 68
2. Opportunities
We lost opportunities in making our company more profitable because most of the quarters
we were low in demanded projection for our products. During Q3 we had stock outs 489 units
which resulted in ill-will for the company, loss of profit and loss of future clients. During Q4, we
had lost sales due to stock-out of 473 units. Q5 our projected demand was close to actual
demand but we still needed an additional 841 of the four different products we were offering
to our different market segments (Mercedes, Traveler, and Workhorse). During Q6 our
projected demand was down by 15% which resulted in 541 units needed to fulfill customer
demands and needs. Finally, at the end of Q7 we didn’t have an ill-will, however, we had an
excess operating capacity of about 3,995 units. This left us with a high inventory and a cost of
$961,492.
25
Hiring employees was another factor which affected our company. At the beginning of our
company he hired employees with a salary below the industry’s average compensation for sales
people. As a result, our productivity was lower than our competition with a 62.2% compare to
DNA 73.5% and Vincom 81.3% productivity.
Our competition had very market share due to better prices offer to each market segment.
Even though we offered rebates, most of our competitors offered their products below the
price willing to pay by the market segment. However, the best prices were offered by SMR
Technology Group LLC $3,795 for the Mercedes Client with a $150 rebate, and $2,970 for
Traveler with a $150 rebate as well. This allowed them to be ahead of the game and gain better
market share by Q5 with a total of 22% of the market even though we were doing better than
our competition during Q3 with a market share of 21%.
Another problem, was our fixed capacity. The gap between our fixed capacity and
operating capacity started to become more substantial than at the beginning. During Q3, we
were below our fixed capacity by 20 units (25/5); during Q4 we reached our maximum
operating capacity of 25/25; during Q5 we almost reached our fixed capacity of 75 (75/68);
during Q6 we had a maximum fixed capacity and operating capacity of 125/125; however, at
the end of Q7 our fixed capacity was way over by 135 units (350/190) which represented about
32% excess operating capacity and operating capacity utilization of only 68% of our labor,
materials, and factory.
Product manufacturing also play an important role in our company and profits. We should
have focused in creating a few better products as to opposed designing 7 different ones. Most
of our competition was working with a maximum of 4 products per company. This allowed
26
them to better focus on designing their products better and advertising them to the right
consumer instead of creating confusion among the market segments. Even though we had
great brand judgment at the end of Q7 for some of our products such as HighTech2 (93) and
HighTech1 (85) both for the Mercedes segment. Our company had the best net income of
$5,878,350 and a better gross profit of over $15 million. However, SMR Technology Group LLC
had ratings for WH 450 (89) Workhorse segment; MDT3000 (87) Mercedes; and TLP450 (92)
which at the end made them a more profitable company with revenues of $39.8 million.
3. Better, Equal, or Worse Than Your Competitors
Market Share
Compare to our competition we did pretty good since our company ended up with a
total market share of 13%. Our Workhorse share was 10%, Mercedes 22%, and Traveler was
10%. Our major competitors were My PC with a total market share of 15%. Each of their
market segments did as follows: Workhorse 14%; Mercedes 20%; and Traveler 11%. However,
our biggest competitor was SMR Technology Group LLC with a total market share of 31%. Their
market segments did as follows: Workhorse 31%; Mercedes 24%; and Traveler 38% of the
market share (Total Market Share Graph):
Market Share
Company Workhorse Mercedes Traveler TotalMarket Share
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MY PC 14.22 20.34 11.05 14.76Vincom 10.03 13.91 8.80 10.60DNA 9.50 7.58 12.46 9.89TAC Micro 10.47 21.71 10.11 13.02LSG PC 14.93 0.52 9.64 10.02Tech-Savy Inc 9.90 12.30 9.54 10.36SMR Techonology Group LLC 30.94 23.65 38.40 31.35
Product /Brand Judgment
Our brand judgment was very similar to our best competitors. For HighTech (Mercedes)
we got 75; for EzTech2 (Workhorse) our score was 74 a bit better than our competitors, and for
TAC Envelope (Traveler) our score was 77 (Brand Judgment Chart):
Product Quality
Our brands along with most of our competitors were rated acceptable for Workhorse
such as EzTech2 by TAC Micro, PC Standard 1 by My PC, VH200 by SMR Technology, among
others. For the Mercedes segment, HighTech by TAC Micro was rated acceptable along with
other competitor brands such as PC Engineering by My PC, MDT 1001 by SMR Technology
Group LLC, and Extreme Tech by Tech Savy Inc. Also, for the Traveler segment, TAC Envelope
by TAC Micro was rated acceptable along with High Life XL by LSG PC, PC Mobil by My PC, and
Vincom Business by Vincome.
Advertising Quality and Media Placement
Our advertising was good but it was not the best in all the market segments. For the
Workhorse segment our ad was acceptable (EzTech3 by TECH Micro). Some of the companies
which did a great advertising camping are Rise Tech by Vincome, The Knight by DNA, Now You
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Know by LGS PC, and Workhorse by SMR Technology. For the Mercedes segment, our ad was
rated very good (High Tech 1 by TAC Micro) along with New Mercedes by SMR Technology.
Finally, for the Traveler segment, our ad was rated as good for Traveler customers (TAC
Envelope by TAC Micro). Also, some other great ads were Wings by DNA, Traveler Ad by
Vincome, and Portable by Tech Savy Inc. Based on our ad judgment we did similar to our
competitors SMR Technology, and DNA (Ad Copy Q7):
Brand Judgment - World Market
Company Brand Workhorse Mercedes Traveler
MY PC PC Engineered 3 34 87 1
MY PC PC Mobile 3.0 27 17 79
MY PC PC Standard 3.0 80 38 28
Vincom Vincom Rise 72 32 22
Vincom Vincom Business 8 15 72
Vincom Vincom XL2 26 75 1
DNA ML550 35 70 1
DNA Knightt 74 44 21
DNA Red Wing 2 19 4 78
TAC Micro HighTech1 30 85 1
TAC Micro TAC Envelope1 12 25 75
TAC Micro EzTech3New 70 67 23
TAC Micro HighTech 26 75 1
TAC Micro TAC EnvelopeNew 17 27 78
TAC Micro EzTechnew 82 54 28
TAC Micro HighTech2 35 93 1
LSG PC Sleek XL 13 21 81
LSG PC XtremePro 79 45 25
LSG PC XtremeComp 75 36 21
Tech-Savy Inc 4matic-XXX 33 81 1
Tech-Savy Inc 4matic-Tech 80 38 28
Tech-Savy Inc 4matic-Starr 16 21 78
SMR Techonology Group LLC WH 300 77 47 25
SMR Techonology Group LLC MDT3000 54 87 1
SMR Techonology Group LLC TLP450 35 27 92
SMR Techonology Group LLC WH 450 89 62 30
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Our advertising placements were below our competition by doing only 59 placements in
total. Our competitors did SMR Technology 91, LSG PC 90, My PC 68 and Tech-Savy Inc. 67 ad
placements. Placing the right amount of ads can definitely increase the possibilities of success
and sales.
Sales Productivity
Our sales productivity was the best. With an 83.9% productivity TEC Micro is the best
place to work for. Close to our staff was Vincome with 83.6% productivity, and LGS PC also with
83.6% productivity. We have the most productive sales people in the entire industry (Industry
Sales Force Compensation Chart):
Competitors' Compensation for Sales People
World MarketCompany Salary Health Benefits Vacation Pension Total Yearly Cost Productivity
MY PC 62,000 20,460 7,380 6,200 96,040 82.7Vincom 72,500 23,925 6,289 6,525 109,239 83.6DNA 65,000 21,450 5,639 4,550 96,639 81.5TAC Micro 70,000 23,100 8,333 5,600 107,033 83.9LSG PC 72,500 23,925 6,289 6,525 109,239 83.6Tech-Savy Inc 65,000 14,300 5,639 5,200 90,139 80.8SMR Techonology Group LLC 68,000 22,440 5,899 5,440 101,779 82.4
Average for all electronics firms 59,804 15,748 4,413 4,210 84,175
Importance of further improvements for all electronic firms95 92 81 78
4. Strengths and Weakness (Q6 Balance Scorecard)
Based on the balance scorecard our only strength was wealth. However, we did better than
most companies in many aspects such as total performance 97.228, Financial Performance
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100.182, Market Performance 0.210, Market Effectiveness 0.830, among other aspects. The
only company which did better than TAC Micro was SMR Technology Group LLC with a Total
Performance of 202.574. Our only weakness was financial risk. We did not risk enough money
to support our company and as a result we ended the Q6 with a $597,499 loan and allowing the
Financial Institution to keep 5,975 shares at a $100 per share value.
Our cumulative balance scorecards were the second best in the industry during Q6. Our
total performance was 27.924, and our cumulative financial performance was 50.797. Our
major competitor SMR Technology did just a little above us with a total cumulative
performance of 34.055, and a cumulative financial performance of 56.975.
5. 3 Most Important Lessons Learned
During this whole process of creating a company and running it I have learned that it is very
crucial to analyze data to satisfy customer wants and needs. Also Advertising plays a major role
in placing your product (s) and/or services on the market to make a company successful.
Analyzing financial information is crucial for the health of the company. Profits is what every
business is looking for and making sure that you are financially stable to sustain your company
is important to stay out of financial risk. Using your competitors’ best features to improve your
business is another way to get head in the competition.
A revision of your products and/or services to improve them is necessary to keep up with
consumer demands and needs. Innovation and new technology is always essential to keep your
business up to date. Specially in technology since we have new products and new ideas every
day. Also learned that team work is important when running a business. Everyone’s ideas and
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project proposals can have a great impact in a company. Always analyze your competition to
get the best of their performance. Never over-project demand if you aren’t sure how the
market will react. Especially if you are new in any financial market. Most importantly, always
pay attention to customer’s trends and needs. They are the ones that keep a business running.
