Reduction In Employee Productivity And How Employers Can Deal With It

Question: Write a problem- solution essay using structure and elements describingstaff are not providing the best service in the business world. Answer: Introduction Employee productivity can create an impact on the business. Employee productivity is a measurement that is used to calculate the efficiency of the employees who are working on the floor (Tylczak 1990). It is the responsibility of the management to understand the various factors that create an impact on the productivity of the employees. If the productivity is not measured at the right time then there are possibilities that the output of the complete organization can be reduced. Addressing these issues at the right time will help the organization to increase its productivity and also the employee satisfaction in the organization will be automatically increased. Problem - Poor Management Poor management and managers are one of the most important problems that one may face. Many of the bosses in the organization may not allow the team members to try something new. These things can really irritate the employee to the core and hence, their productivity in the organization will be reduced. Sub-problem Work overload These managers will expect their employees to work only to follow the orders that they are giving and this may not be acceptable, especially with employee who have been in the organization for quite some time or with employees who are senior and have worked previously in an open culture (Sibson 1994). Solution It is the responsibility of the top management to identify those managers so that the productivity of the team members can be improved. It is the responsibility of the management to identify the teams wherein the attrition is very high. There is a simple saying that employees dont leave organizations, they leave managers (Fred 1995). The management should identify those managers and train them so that their relationship with the team members can be improved. The organization can also talk to few team members and understand the actual problem that they are facing so that solution can be driven accordingly (Khan 2012). Poor management may seem to be an internal issue but this can create a direct impact on the employees who are working in the organization. It is always better to check with the employees regarding the impact that can be done in the management front so that the employees are comfortable at work and this is ultimately increase their productivity. Problem - Lack of balance between personal and professional management Lack of balance between personal and professional life is one of the big things that can create an impact on the productivity atwork. If there is no balance between the personal and professional life then the employees may be physically present at the work place but mentally they may think about their problems in the personal life and this will hamper their productivity Sub-problem Reduction in productivity This will create an impact on their productivity at work. The employees may also give fake reasons like health concerns and take a day off so that they can spend some quality time with their family members (Quintal 2012). Solution The organization should look for ways by which a balance between the employeess personal and professional life can be maintained. The employees should be given flexible working hours so that they can walk in, work for eight productive hours and then close for the day. This will help the employees to be with their family and friends. Apart from that, the employer can also give weekly offs so that the employees in the company get a lot of time for their personal activities. The manager should also understand the problems that one may face with their personal life. This will help the employees to be open enough with the managers regarding the problems that they may face (Tokarcikova 2013). Problem - Outdated systems Outdated systems are one of the things that can curb the productivity of the employees. Even if the employees are putting in efforts to produce results, the employees will not be able to do so. Due to this reason, the management may question the productivity of the employees and ultimately, they may be forced to leave the organization (Samnani 2014). Sub-problem Frustration among employees This can lead to frustration because the management may not be able to understand that the problem is not with the productivity of the employees but the problem is with the system. Solution The management should continuously study the competitors. This will help the management to be aware of the new systems that the company is purchasing. Accordingly, the management can try to get in new systems so that the employees are excited to learn new things and upgrade themselves. Plain implementation will not allow the employees to perform and hence, the management will have to train the employees. Upgrading the system will help the organization with proper record keeping and at the same time, the organizations dependency on the employees will be reduced. Frequent change in the systems will also demotivate the employees and hence, it is important for the management to implement a stable system that can be beneficial to the employees and also the management. The management should look for a stable system so that the employees can be happy and productive. Initially there will be resistance to the change but effective change management will help the employees to understand the exp ectations that management has from them. Problem - Downsizing Downsizing can directly create an impact on the productivity of the employees who are staying back with the organization. If a department in the organization is having 100 employees and if 20 employees are asked to leave the organization due to business downsizing then this will create insecurity among the remaining 80 employees. If the remaining 80 employees feel secure about their job then their productivity in the job may reduce and hence, this will create a direct impact on the productivity. Sub-problem Attrition Few of the employees may take leave and go for interviews as well and hence, the attrition rate in the organization will increase (Heydari 2011). Solution If the management has decided to downsize the employees then they will have to communicate the same clearly to the employees. Communicating the plan and reason to the employee will help the organization to be a better place as this will avoid rumors from spreading on the floor. The management should also make the existing employees feel secure so that they can concentrate on their job rather than that of looking for a new job. The employees who are asked to leave the organization due to downsizing should be given VRS money so that they are financially secure to take care of the requirements. Problem Excess workload Excess workload is one of the reasons due to which the employee may think of leaving the organization as there will be certain impact on their productivity. If an employee is overloaded with plenty of things to do then the productivity will be reduced as the employee will be occupied with unwanted things. Sub-problem Health of employees This will force the employee to stretch after the office working hours as well and hence, the employee will look for reasons to leave the job wherein their roles and responsibilities are properly defined. 3 out of 12 employees suffer from backache, headache and other such health concerns due to the excess workload. This excess workload will also create an impact on the health of the employees (Emese 2013). Solution It is the responsibility of the management to hire resources as per the requirement. If the management thinks that the employees are overloaded then they should understand the working hours of the employees and then accordingly hire resources. This will keep the work environment healthy and happy. If the management thinks that the overtime is becoming frequent among employees then the employees should be motivated with paying them an overtime bonus. If the morale of the employees is not boosted then the employees will leave the organization and the cost of training the new employees will be more than that retaining the old employees. Conclusion It is the responsibility of the management to understand and address the issues that the employees are facing so that the issues can be sorted out. If the employees are not motivated then the employees will be productive. The management can meet up with the employees, understand their concern and make changes in the policy accordingly so that the employees are happy and the output is high. If management thinks that they can hire new employees then the management needs to understand that the new employees will take time to settle in the organization and at the same time, the management will also have to make investment in their training. References Emese, T, 2013, Measurement of Highly QualifiedEmployeesProductivity, Annals of Dunarea Da Jos University, Vol. 12, pp. 6-10 Heydari, A, 2011, DPI and it's impacts onemployee'sproductivity, Interdisciplinary Journal of Contemporary Research in Business, Vol. 3, no. 2, pp. 577-579 Khan, S, 2012, DRIVERS OF MOTIVATION AND ITS IMPACT ONEMPLOYEES PRODUCTIVITY, International journal of information, Vol. 4, pp. 38-45 Quintal, J, 2012, Management: Green buildings driveemployeeproductivity, Keeping good companies, Vol. 64, no. 1, pp. 52-54 Samnani, A, 2014, Performance-enhancing compensation practices andemployeeproductivity: the role of workplace bullying, Human Resource management review, Vol. 24, no. 1, pp. 5-16 Tylczak, L, 1990, Increasing employee productivity: an introduction to value management, Fifty-minute series, pp. 71 Sibson, R, 1994, Maximizing employee productivity, Small business reports, vol. 19, no. 9, pp. 58 Fred, F, 1995, Unlocking employee productivity, Vol. 25, no. 5, pp. 30 Tokarcikova, E, 2013, Measurement of Highly QualifiedEmployeesProductivity, Annals of Dunărea de Jos University. Fascicle I : Economics and Applied Informatics, pp. 10-17

Operation management

Do You Think Marco Van Hopen Understands the Importance of Operations to His Business? Marco Van Hopen understands the importance of operations as he notes that the company is experiencing a considerable growth but there are a number of issues which can be handled when the company will become â€Å"organized† (as cited in Chambers Johnston, 2009, p. 29).Advertising We will write a custom essay sample on Operation management specifically for you for only $16.05 $11/page Learn More The company was founded in 1999 and it was a small organization. However, the company has grown into an organization with sixteen full-time employees and more than twenty part-time employees. Van Hopen notes that it is difficult to predict the costs and profit, which is inappropriate for such a big company. Van Hopen also claims that they have developed trustful relationships with their clients and it is crucial to meet their clients’ expectations. Remarkably, Mar co Van Hopen is enthusiastic about the change, though he still does not know how to plan and implement the change. For instance, he understands that production services are more profitable, but he is still indecisive as for the development of this part of the business. On the one hand, he claims that this area has a great potential as more and more clients need these services. On the other hand, equipment hire and sales is more predictable and, hence, it is a safer area. Therefore, he does not want to change the major focus of the company. He also states that the company needs certain restructuring which will enable employees cooperate more efficiently (Chambers Johnston, 2009). This collaboration will help the company reduce costs and potentially increase profits. What Contribution Does He Seem to Expect from His Operations? Firstly, Van Hopen wants to take control over the costs. Thus, he states that reorganization of certain processes can help reduce the costs, â€Å"by working together more we could increase our ability to take on more work without increasing our cost base† (as cited in Chambers Johnston, 2009, p. 29). Notably, costs reduction is one of the key elements of operation management (Slack, Chambers Johnston, 2010). Marco Van Hopen expects to get larger revenues as a result of the operations management. He notes that improvement of their operations will lead to new contracts and, as a result, to larger revenues. Admittedly, this is one of the core goals within operations management (Greasley, 2007). Finally, Van Hopen expects that they will be able to achieve the goals mentioned above without large investment, though he understands that certain amount of funds will be spent to carry out the change. Nonetheless, Van Hopen seeks for ways to reduce costs and increase revenues with minimum investment. One of possible ways (according to Van Hopen) is restructuring the organization. This is quite a cost-effective way to make the organization more efficient and competitive.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The Supply Network for AAF and AAF’s Position within It To consider the supply network for the company, it is possible to exploit the principle of three levels of operations management analysis, i.e. the level of supply network, operation and individual process (Leseure, 2010). It is possible to note that there are two major operations, i.e. production services (installing equipment, design, etc.) and equipment hire and sales (see Fig. 1). The operations are somewhat intermingled as customers often order equipment as well as production services from the company. There are different suppliers to the company. These are often other companies providing equipment hire services and selling equipment. Remarkably, AAF keeps close relations with these companies and often supplies them with certain equipment or pr ovides some services. This collaboration is very important as it helps the company remain competitive. Fig.1. Supply Network As far as customers are concerned, the company provides services to other production companies as well as to end clients. Thus, Van Hopen notes that production companies often address AAF and order certain equipment which is further sold to end clients (Chambers Johnston, 2009). The company has recently started cooperating with end clients that find it easier to work with AAF directly as the latter provides equipment as well as production services now. What Are the Major Processes within AAF, and How Do They Relate to Each Other? It is possible to point out major processes within AAF, i.e. production services and design, equipment hire and sales, and administration (see Fig.2.). Notably, the process of production and design services are closely connected with the process of equipment hire and sales. This link can be explained by the fact that customers who o rder equipment tend to order design, installation and maintenance of the equipment (Chambers Johnston, 2009). Advertising We will write a custom essay sample on Operation management specifically for you for only $16.05 $11/page Learn More Fig.2. Operational Level It is possible to analyze these processes with the help of the 4 Vs of the company’s processes (see Fig. 3). The process of equipment hire and sales is characterized by high volume as the company provides a wide range of products and services in this area. It is necessary to note that AAF tries to use only advanced and up-dated equipment (Chambers Johnston, 2009). Therefore, the variety of this process is quite high. Notably, variation is not very high as the process of placing orders is similar even though different products may be provided. Finally, visibility of the process is rather low as it is quite difficult to predict the number of contracts in this area (compared to the number of contracts for installation which can be foreseen as many company’s clients request installation services along with equipment). As for design, this process is characterized by low volume as these services are only becoming popular (Chambers Johnston, 2009). Since every project is unique, variety of design is very high. However, variation is lower as these services are ordered by clients who get equipment from the company. This is why visibility of this process is high. Thus, it is easy to predict how many contracts there can be as in the vast majority of cases the number of design orders depends on the contracts on equipment supplies. Fig.3. 4 Vs of the Company Production services are very similar to design process as these two processes are often interrelated. At this point, it is necessary to note that theatrical groups are often the company’s clients. Equipment and especially design and production play a very important role in the creation of a performance (St uart Tax, 2004).Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Therefore, these clients are often involved in the four processes of the organization. The process of production services is characterized by low volume as the services are quite new to the company. The variety and variation are high as each project is unique (though variation is a bit lower since customers often order equipment, design and production). Visibility is also very high due to the points mentioned above. Administration is the last process to be discussed with the help of the 4 Vs dimensions. It is necessary to note that administration process is rather difficult to analyze within this framework. The process is of high volume as each client may get a variety of services and lots of invoices can be sent. Administration is also characterized by high variety and variation as each invoice and each operation as well as service can be different. Finally, visibility of this process is quite low as the growth of the company has led to certain obscurity. For instance, Van Hopen cl aims that it is essential to improve the processes within the company (Chambers Johnston, 2009). It is possible to take a closer look at the administration process within AAF (see Fig.4). The administration includes storage, workshop, design employees and the crew. Van Hopen stresses that the employees do not cooperate close enough. In other words, there is little understanding of the processes and the goals set. More so, there is almost no cooperation among the parts of the organization. There should be more cooperation between the employees as this will help them complete more complex tasks within reduced time spans. This is vital as the company is growing and more employees will be hired. There is a need in a specific structure with certain communication channels. Fig.4. Process Level Analysis of Administration In conclusion, it is possible to note that administration processes require restructuring. AAF has grown into a big company that has loyal clients. These clients expect high-quality services within the allotted period. This will become possible if the company will have a well-structured administration processes. Reference List Chambers, S., Johnston, R. (2009). Operations and process management: Principles and practice for strategic impact. Essex, UK: Pearson Education. Greasley, A. (2007). Operations management. Thousand Oaks, CA: SAGE. Leseure, M. (2010). Key concepts in operations management. Thousand Oaks, CA: SAGE. Slack, N., Chambers, S., Johnston, R. (2010). Operations management. Essex, UK: Pearson Education. Stuart, F.I., Tax, S. (2004). Toward an integrative approach to designing service experiences: Lessons learned from the theatre. The Journal of Operations Management, 22(1), 609-627. This essay on Operation management was written and submitted by user Larry Riddle to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here. Operation management

Sample Essay on Fastfood Advantages and Disadvantages

Sample Essay on Fastfood Advantages and DisadvantagesA sample essay on fastfood advantages and disadvantages can be helpful in teaching and learning about this type of food. The purpose of the essay is to present information, data and facts that are important to students. The goals of this essay is to help students understand, discuss and decide on the matter, in a way that is clear and understandable. Some of the things you can include in your essay are the benefits of fast food, what is the problem with it and how is it good or bad?You should always be careful when writing a sample essay on fast food disadvantages and advantages because it will show what you are really capable of. If you are not very good at writing it is better for you to ask the help of a research assistant or a tutor. Even if you think that you are competent enough to write it yourself, you should still take the opinion of someone else because you want to avoid mistakes as much as possible. As mentioned before t he goal of the essay is to make people understand, discuss and decide on the matter. The conclusion that you end up with should be objective and based on facts and data.A sample essay on fastfood advantages and disadvantages is a guide to motivate students in a well-structured manner. Students who are interested in this subject can benefit from learning about it, after they have been instructed about it. It will also provide them with the chance to interact with others and to apply the knowledge that they have acquired in a classroom setting. Most importantly, a good essay will also help improve their writing skills, confidence and understanding of the topic.Food is important to every human being and it has been around since the beginning of time. Its importance can also be seen in the fact that it has been a part of many cultures, religions and societies. With this history, it can be said that fast food is not necessarily unhealthy. However, with so many different flavors, textures and flavors, many people today would still prefer fast food over other foods.Another major reason why students like eating out is because it is easy to get it and people are usually able to find it. Another important thing about fast food is that it is known to be tasty and can satisfy the appetite of people. When you are out and about, it is best to grab a quick bite, instead of going to a sit down restaurant. A sample essay on fastfood advantages and disadvantages will help students to discuss the pros and cons of fast food.A sample essay on fast food advantages and disadvantages should include the main points and to give a brief explanation of each topic. For example, on the topic of advantages fast food can give to people, there are advantages and disadvantages. On the topic of disadvantages, fast food can give to people, there are disadvantages. On the topic of food and health, there are risks involved with fast food that one must be aware of.One of the main problems with fast food is the potential problems. To avoid these problems, the only thing you can do is eat healthy and get the best quality food that is possible. Another thing that has been researched and is a major concern is the cost of it. While there are many foods available nowadays that are more expensive than others, fast food is one of them.As an introduction to the topic, there are advantages and disadvantages of fast food. A sample essay on fastfoodadvantagesanddisadvantages can help you present your knowledge on this topic and explain it to the students. It is important to remember that the purpose of a sample essay is to act as a guide and not to convince or persuade the students to share their opinions and decision on the matter.

How to Write an Education Essay 5 Hacks to Rock at College

How to Write an Education Essay 5 Hacks to Rock at College For anyone interested in getting top marks in English grammar or the Use of English courses, having an extensive knowledge on how to write an excellent essay on diverse subject matters is an important prerequisite for success. Now is the time to drop your lackadaisical approach to writing, by recognizing the fact that college essays really matter and the writing expertise you gain during college will definitely serve you well throughout the rest of your life. Therefore, in order to provide you with a nudge in the right part when drafting an essay, here are 5 timely tips on how to write an education essay guaranteed to get you the top scores you desire. Get Started by Brainstorming.  A thorough understanding of the topic or subject matter you intend to write an essay about is definitely the first thing you must do before putting pen to paper. Therefore, it is your first responsibility as a writer to do an extensive research covering your topic in its entirety. This helps you get your facts right as well as plan a good argument or discussion when finally drafting your paper. Develop Three Structured Parts.  An essay is a structured piece written to make points that either educate your audience or pass a message across to the reader. Therefore, a well-written essay must follow a defined structure which helps the reader follow your train of thought effortlessly.   A college essay should begin with an introduction discussing the reason for the essay and what it intends to achieve. This should be followed by a ‘body’ that takes into consideration the facts and figures used in developing the reasoning pattern introduced in the introductory section. Lastly, a conclusion which summarizes your intent as well as the argument made must be included to round-off an essay that rocks. Your First Draft Should Flow From the Heart.  Once you have garnered enough knowledge and have created an outline on how you intend your essay to be developed, the next step is starting on the first draft using the knowledge gained and your instincts to speak directly from the heart. This procedure lets the reader truly experience your feelings as they spill over into the contents of your essay. Speaking directly from the heart also eliminates the possibility of plagiarizing the contents you used in educating yourself. Ensure You Receive Feedback.  As a college student, it is expected that you have some access to excellent essay writers either among your family/friends or authority figures in your school. This tip focuses on leveraging your relationship with experienced essay writers by getting them to read your thoughts and provide you with constructive feedback on how it can be made better. Do not be ashamed to consider asking for help as it is one of the best ways to grow as a writer. Proofread and Make Corrections.  By now, you must have heard of editors and the role they play in fine-tuning written works. Even your favorite writer who you believe is above reproach works with editors who proofreads and make corrections to the structure and language patterns of their best novels. Therefore, it is also important that you take to heart the advice given to you in ‘tip 4’ and use them to correct any perceived errors in your essay. This is how you should write an excellent essay on the topic of education that we’ve covered in our 20 topic piece and don’t you forget our 10 facts on the importance of education for a college essay. We hope it will help you achieve the mastery that gets your writing skills recognized by both your peers and colleagues throughout your stay in school.

Operations Management - Location Essay Example | Topics and Well Written Essays - 750 words

Operations Management - Location - Essay Example It has, on the other hand, proven that a number of entrepreneurs have continued to rise as Wal-Mart continues to open new stores. Fishman (2006) claims that, States that have a vast number of Wal mart stores has nearly the same concentration of small businesses just like in states with a few of the stores. In fact, it is the states that have a number of Wal mart stores that have a high number of small businesses per capita. Nevertheless, Wal mart existences in areas have negative effects top the small business owners. After observing the effects of a number of Wal-Mart openings keenly, researchers realized a 40 percent drop in sales at nearby mass merchandise chains and also, 17 percent sales drop at the region’s supermarkets. The small businesses located in the same regions with Wal-Mart often faces huge loses or become phased out of business due to the immense Wal-Mart’s everyday low prices and also, convenient shopping. There are a number of people who think that thi nk Wal-Mart is extremely unhealthy for a region’s small business owners. Andrea Dean of the University of West Virginia claims that, Wal-Mart has not had a serious negative effect on the local small businesses as critics think. Instead, Wall-Mart has unleashed forces that have overtime changed the nature of small businesses in America in unexpected ways (Fishman, 2006). With the introduction of Wal-Mart in a number of states, the small businesses fell over. These large stores are large chain stores that create large branches everywhere. With the loss of the small local stores, the towns losses the community feeling and interaction with neighbors. In big stores like the Wal-Mart, individuals behave differently than they do in the more friendlier and family like small local businesses (Fishman, 2006). These small businesses have that warm environment that slows down the pace of living, and encourages shoppers to wander around and converse. Studies have led to the conclusion tha t a surrounding with the small businesses tend to lead to a livelier and active community than the one with significant businesses. Pros and Cons – Town Residents The existence of Wal Mart has led to high job creations to the area residents. The company being a large one, there will be numerous job opportunities for the area residents. Wal-Mart has also led to an increase in the region tax revenues. According to Fishman (2006), the chains will also provide a wide selection of products and services under a single roof than what is available on the small businesses. Wal-Mart also provides residents with lower prices for all of its products and services than the existing area small businesses. Wal-Mart also provides convenience to its customers through immediate, no cost, nearby, and convenience parking space. There are, however, cons to residents where the chains become set. There are numerous allegations that Wal-Mart is in violation of the federal and also, the state wage and labor laws that require it to pay overtime wags to its workers, which enables the company to lower its costs and also sell at lower prices (Fishman, 2006). Response of a Wal-Mart Representative A Wal-Mart representative can be influential in responding to the negative criticisms along a number of sectors. Foremost, Wal-Mart will bring increased employment to the area. The chains will provide shopping access to

Argument essay for or against the DREAM Act (Development, Relief and

Argument for or against the DREAM Act (Development, Relief and Education for Alien Minors) - Essay Example Therefore, they share a lot in common with second generation Americans since for most of their life has been spent in the USA. Having grown up here, they would have little or no attachment to their country of origin. Usually, they are bicultural and sometimes bilingual; however, they speak fluent English (65). A good number do not have an idea they are actually undocumented immigrants. The situation is so until they apply for college or a driver’s license. Once they apply for these legal documents, they realize they do not have Social Security numbers and other documents that are needed. This paper offers an in-depth analysis of the DREAM Act and supports it. The experiences these youths go through can be discouraging. They represent broken dreams, shattered hope and lost ambitions. Since most of them have lived in the U.S almost all their lives, they complete their education here. In school, they take roles of athletes, valedictorians, class presidents and honor roll students (Perez 115). They are aspired to be teachers, doctors, scientists and engineers like all other children in America. However, the fact that they are documented immigrants, their lives change dramatically. Their day-to-day lives took a completely different course and their futures are no longer certain. They can neither work nor vote. As a matter of fact, something as ordinary as driving is a pleasure they cannot enjoy. At times, some are deported to a country they do not know at all. They are a direct result of economic and political significance. Sadly, only about 5-10% of these undocumented young high school graduates make it to college (110). This is usually because they cannot afford to pay their tuition or because they are not allowed to enroll. Typically, they do not even finish high school and thus end up in gangs and other illegal activities. The Development, Relief and Education for Alien Minors (DREAM Act) has however to the rescue of these helpless high school graduates. The DREAM Act offers a pathway for them to attain legal status for undocumented high school graduates every year. The DREAM Act was introduced by Representative Howard Berman and Senator Richard Durbin on May 11th, 2011. Today, the DREAM Act has 2 co-sponsors in the House and an overwhelming 32 in the Senate. Organizations from States in the United including California, Kentucky, Oklahoma and New York have come together in order to support the DRAM act (American Immigration Council). Many undocumented students and their classmates as well as teachers have met up with their members of congress, held rallies, sent letters and even staged hunger strikes in the hopes of making this act a reality. In June 2010, an undocumented student who studies in Harvard was held in detention. After this incident, Harvard president Drew Faust stated that these children need to be given a chance to pursue their post secondary education in their country. The DREAM act has more advantages than disadvanta ges. The DREAM act will boost the economy of the United States as well as the labor in the US. Additionally, the Act will jumpstart the process to citizenship (American Immigration Council). This will be a huge investment on human capital and service to the US. Since DREAM act beneficiaries are all high school graduates, it means that they will get decent jobs. This way, there will be more taxable income in the country and thus in return more revenue for the government. On average a college graduate earns $750,000 throughout their lifetime more than the high school graduate (American Immigration Council). In addition, the Dream Act allows talented individuals to remain in the United States (Arnold 95).

Toothpaste Industry in India Essay Example for Free

Toothpaste Industry in India Essay The toothpaste market in India is estimated at 7000 crores with a CAGR of approximately 12% between the 2008-2013 timeframe. The toothpaste (or in general, the oral care) industry is marked by: Low Bargaining Power of Suppliers owing to commoditized raw materials High Bargaining Powers of Customers owing to low switching costs and high number of options. High Rivalry amongst players owing to multi-player nature of the industry with frequent product launches. Medium Threat of New Entrants owing to high barriers of distribution network setup costs countered by large number of FMCG players. Low Threat of Substitutes since toothpastes are marked from completion from tree barks usage and toothpowder usage which have steadily declined in the new millennium. Given the above industry structure, the toothpaste industry is marked by steady and comfortable margins. Analyzing the demand drivers, the customers purchase toothpastes that are easily available and those they can trust for oral care solutions. Therefore, the key success drivers for the industry are marked by competencies in Branding, Distribution, and Dental research. In this industry, 4 companies occupy more than 80% of the market share. These are: Colgate-Palmolive India (48% market by value: distribution reach to 4.64 million retail outlets) Hindustan Unilever (20% market by value: Dabur India (11% market by value: FMCG distribution reach to 5.8 million retail outlets) GlaxoSmithKline (4.3% market by value: distribution reach to approx. 1 million retail outlets) The toothpaste industry is further sub-categorized into 6 segments comprising Regular, Whitening, Gel, Salt, Herbal, and Sensitive. The market share occupied by the 6 sub-categories is provided in Figure 1 as below. Due to low switching costs involved in purchase of toothpaste, the success factors in positioning follow the Hoteling Model/Median Voter Theoremwherein the regular toothpastes that offer benefits for the largest set of customers attain the highest market share and usage.