Term 6 Week 6 Discussion Forum MKT6250 Heal

Term 6 Week 6 Discussionsweek 6 Discussion Forummkt6250 Healthcare Ma

Discuss the differences between the two basic forms of advertising: product and institutional. Discuss the range of alternative sales positions. Omega Travel competes in the highly competitive market for travel. Consumers know that Omega has the best agents in the industry and offers superior service. Nonetheless, Omega earns zero economic profits because numerous competitors have entered the market over the last few years. Based on this information, does Omega operate in a perfectly competitive market? Why or why not?

What Kind of Business is This? After graduating from college, Shelley Williams held several different jobs but found that she did not enjoy working for other people. Finally, she and Yvonne Hargrove, her college roommate, decided to start a business of their own. They rented a small building and opened a florist shop selling cut flowers such as roses and chrysanthemums that they bought from a local greenhouse. Williams and Hargrove agreed orally to share profits and losses equally, although they also decided to take no money from the operation for at least four months. No other arrangements were made, but the business did reasonably well, and after the first four months had passed, each began to draw out $500 in cash every week. At year-end, they took their financial records to a local accountant so that they could get their income tax returns completed. He informed them that they had been operating as a partnership and that they should draw up formal articles of partnership agreement or consider incorporation or some other legal form of organization. They confessed that they had never really considered the issue and asked for his advice on the matter. What advice should the accountant give to these clients?

How Will the Profits be Split? James J. Dewars has been the sole owner of a small CPA firm for the past 20 years. Now 52 years old, Dewars is concerned about the continuation of his practice after he retires. He would like to begin taking more time off now although he wants to remain active in the firm for at least another 8 to 10 years. He has worked hard over the decades to build up the practice so that he presently makes a profit of $180,000 annually. Lewis Huffman has been working for Dewars for the past four years. He now earns a salary of $68,000 per year. He is a very dedicated employee who generally works 44 to 60 hours per week. In the past, Dewars has been in charge of the larger, more profitable audit clients whereas Huffman, with less experience, worked with the smaller clients. Both Dewars and Huffman do some tax work although that segment of the business has never been emphasized. Sally Scriba has been employed for the past seven years with another CPA firm as a tax specialist. She has no auditing experience but has a great reputation in tax planning and preparation. She currently earns an annual salary of $80,000. Dewars, Huffman, and Scriba are negotiating the creation of a new CPA firm as a partnership. Dewars plans to reduce his time in this firm although he will continue to work with many of the clients that he has served for the past two decades. Huffman will begin to take over some of the major audit jobs. Scriba will start to develop an extensive tax practice for the firm. Because of the changes in the firm, the three potential partners anticipate earning a total net income in the first year of operations of between $130,000 and $260,000. Thereafter, they hope that profits will increase at the rate of 10 to 20 percent annually for the next five years or so. How should this new partnership allocate its future net income among these partners?

First, name a company that practices horizontal integration and describe the structure. Now do the same for a company vertically integrated. In your opinion, which company would be a better place to work? Which offers workers a better opportunity to improve themselves? Now, if you owned the business, which would you implement? Think again about the workers' opportunities. Does their betterment also mean what is best for your business?

Paper For Above instruction

The discussion surrounding the fundamental differences between product and institutional advertising sheds light on the strategic approaches used by businesses to influence consumer behavior and perceptions. Product advertising focuses directly on promoting specific goods or services to stimulate sales, highlighting features, benefits, and competitive advantages. Conversely, institutional advertising aims to enhance the overall image or reputation of an organization, often emphasizing corporate values, social responsibility, or community involvement without directly promoting a particular product (Belch & Belch, 2018). Both forms serve distinct purposes but are integral to comprehensive marketing strategies, targeting different audiences and objectives.

Distinguishing between these advertising types involves understanding their primary goals and messaging techniques. Product advertising is typically directed at immediate sales and market penetration, utilizing tactics such as discounts, product demonstrations, and vivid descriptions to attract consumers. For example, a new smartphone campaign showcasing its features exemplifies product advertising. Institutional advertising, however, aims to build goodwill, brand loyalty, and a positive corporate image. An example includes a company running a campaign promoting its commitment to sustainability, which aims to bolster its reputation among consumers and stakeholders (Aaker & Joachimsthaler, 2000).

Regarding the range of alternative sales positions, businesses often offer diverse roles that cater to various skill levels and career goals, including inside sales, outside sales, account management, sales support, and digital marketing roles. Inside sales positions typically involve selling products or services over the phone or online, often focusing on maintaining customer relationships and processing orders. Outside sales roles require in-person interactions, client visits, and demonstrations, demanding strong interpersonal skills. Account managers handle ongoing client relationships, ensuring customer satisfaction and retention, while sales support staff assist with administrative tasks related to sales activities (Kotler & Keller, 2016). The expanding scope of digital channels has also created new roles such as digital sales analyst and social media salesperson, reflecting the evolving nature of sales careers.

Turning to Omega Travel, a company operating in a highly competitive travel market, the scenario indicates that despite superior service and best agents, Omega earns zero economic profits due to market entry by numerous competitors. This scenario suggests Omega operates in a perfectly competitive market, characterized by many firms offering similar services, free entry and exit, and price taking behavior. The fact that Omega's differentiated service does not allow for above-normal profits points toward perfect competition's attributes, though the high quality of service might suggest monopolistic tendencies. However, the zero economic profits amid perfect competition imply that the firm's pricing is driven by market forces, aligning with the characteristics of perfect competition (Mankiw, 2021).

Considering the business of Shelley Williams and Yvonne Hargrove, the initial informal arrangement resembles a partnership, with shared profits and losses and no formal legal structure. The accountant's advice would be to formalize the agreement through written partnership articles to clarify roles, profit sharing, liability, and decision-making processes. Additionally, considering options like incorporation or LLC formation would provide liability protection and potentially favorable tax treatment. Since the business has begun to generate cash withdrawals and faces growth considerations, it is prudent to establish a formal operating agreement, possibly with legal consultation, to safeguard both partners and optimize tax strategies (Ross, Westerfield, & Jaffe, 2019).

In the context of Dewars' CPA firm transition, the allocation of future income among the partners should account for their roles, experience, and contributions. Dewars, as the founder, might receive an equity share reflecting his initial investment and expectations of transition. Huffman, with his dedicated work and growing responsibilities, could receive a share proportional to his contribution and employment agreement. Scriba’s specialty in tax and her reputation might also entitle her to an equitable share. A common approach could include fixed salaries complemented by profit-sharing ratios based on performance and contributions, encouraging collaborative growth (Krantz, 2020). Establishing a clear partnership agreement outlining profit splits, roles, and future growth incentives would be vital for smooth operation and motivation.

Finally, evaluating companies practicing horizontal and vertical integration offers insights into strategic growth avenues. A horizontal integration example could be Starbucks, which expanded by acquiring or merging with other coffee chains to increase market share and eliminate competition. This strategy allows the company to leverage economies of scale and diversify product offerings. An example of vertical integration would be Tesla, which controls significant portions of its supply chain, from battery manufacturing to retail sales. Vertical integration aims to reduce costs, increase control over production processes, and enhance product quality (Porter, 1985).

From a worker’s perspective, companies with horizontal integration, like Starbucks, may offer extensive growth opportunities through multiple locations and roles but might also face bureaucratic hurdles as the organization expands. Vertical integration companies such as Tesla might provide opportunities in specialized manufacturing and technical roles, fostering skill development in high-tech environments. If I owned a business, I might prefer implementing vertical integration to have greater control over quality and costs, which could translate into more stable employment and opportunities for innovation. The occupational and growth opportunities directly affect worker development, and aligning these with strategic business choices ensures that employee advancement supports overall corporate health and adaptability (Hitt, Ireland, & Hoskisson, 2017).

References

• Aaker, D. A., & Joachimsthaler, E. (2000). Brand Leadership. Free Press.
• Belch, G. E., & Belch, M. A. (2018). Advertising and Promotion: An Integrated Marketing Communications Perspective. McGraw-Hill Education.
• Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2017). Strategic Management: Competitiveness and Globalization. Cengage Learning.
• Kotler, P., & Keller, K. L. (2016). Marketing Management (15th ed.). Pearson.
• Krantz, S. (2020). Business Partnerships & Profit-Sharing Agreements. Harvard Business Review.
• Mankiw, N. G. (2021). Principles of Economics (9th ed.). Cengage Learning.
• Porter, M. E. (1985). Competitive Advantage. Free Press.
• Ross, S., Westerfield, R., & Jaffe, J. (2019). Corporate Finance (12th ed.). McGraw-Hill Education.