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Risk management as the greatest benefit ap art history homework help: ap art history homework help
Risk management is the greatest benefit offered by a strategic, forward-thinking approach to management. In an uncertain economic environment, companies must constantly ‘hedge their bets’ as to what is the superior choice between mutually exclusive alternatives. Strategic management promotes the efficient use of resources by forcing companies to constantly anticipate the future, plan ahead, and make the best economic choices possible, given the company’s current framework of knowledge. No company can predict everything that may happen but the consistent data-gathering that is required in a strategic management approach and trend-monitoring allows the company to be more flexible and responsive.
As well as avoiding bad decisions, effective strategic management also means knowing when to take advantage of possible opportunities and invest in good decisions. Risk management entails knowing when to take calculated risks, even if this means a major allocation of organizational resources, such as for a new form of technology or being a first-mover in a new international market. Knowing how to make trade-offs, when to commit and not to commit to an alternative requires a forward-thinking approach. Without strategic management, companies simply react — often wastefully — to the present moment, which results in missed opportunities and a failure to capitalize upon existing strengths. Resources must be used effectively to invest in growth. Operating in ‘panic mode’ in the absence of strategic management is financially and emotionally stressful for a company.
Q2. As job growth continues to be sluggish, interest rates will continue to remain at historically low levels. Fed Chairman Ben Bernanke may make a token concession to worries about inflation and raise them slightly, but both the Obama Administration and most major economists believe that job growth must be a priority, and businesses and individuals must have the ability to borrow, spend money, and fuel the generation of more job-generating growth. However, the stock market has continued to do well, despite economic frustrations. The stock market and job growth do not necessarily improve concurrently. The stock market can be highly responsive to other economic signs, such as rumors and worries about particular industries and companies (such as the recent downturn of Apple stock in response to Steve Job’s health worries), while unemployment and employment tends to be more ‘sticky’ and dependent upon real, economic factors like consumer demand. The stock market is highly sensitive assumptions about the future, as reflected economic data about consumer confidence, housing purchases, and other factors that can drive up — or down — the prices of stock.
The stock market is responsive to world events, while the Fed focuses on immediate domestic conditions more closely. The growth of multinationals may mean that stock prices may be trending upward, based upon global economic health, but some of the domestic factors that the Fed takes into consideration (such as American unemployment) can result in interest rates trending downward or remaining the same.
A resource-based view of the firm stresses that when firms have resources that are rare, non-imitable and cannot be substituted, such firms have a clear, lasting competitive advantage (Wade 2005). More so than external market conditions, having these valuable types of resources mean that a firm has ‘locked in’ demand, in contrast to its competitors. Even when there are negative external factors that impact the firm, such as a recession, it does not matter if the need for the firm’s resources is sufficiently strong. For example, even in the wake of the recent recession, not all firms were impacted in as negative a fashion as the financial industry: Apple, Google, and firms that have branded themselves as ‘unique’ and offer necessary technology and services have proved to be more durable.
But ultimately, the RBV of the firm cannot explain that, while not all firms may be equally harmed by negative economic events, no firm is immune to the external market environment. When the economy contracts, fewer resources are used overall, including gas and oil, despite the fact that there are few substitute goods for these items. The diversity of the global economy means that more substitutes are readily available than ever before, and consumers have greater access to choice and the ability to research different products and prices. And while some goods and services may be rare, consumers can easily cut back upon their use, if it is deemed too expensive for the household’s budget.
New technology has had an undeniable, positive influence upon the globalization of industry. Consumers can buy products with a simple click of the mouse, regardless of where they live. Companies must thus know how to market and distribute their products in an effective manner. In B2B transactions, businesses can also find the most price-efficient input costs by going online and engage in more effective bargaining for resources, enabling them to pass these savings onto the consumer or increase profits — or both.
Globalization promotes the more efficient use of resources: companies can make greater use of economies of scale, when supplying to a global market, and nations and corporations can specialize in what they ‘do best.’ It also permits a firm to engage in more effective risk-management. If a market becomes super-saturated with the firm’s product, and demand begins to dry up, the firm can divert its resources and explore untapped demand abroad. Also, if a particular region of the world experiences economic distress, the firm has other nations in which it can explore a growth strategy.
Wade, Mike. (2005). Resource-based view of the firm. York University: Theories used in research. Retrieved January 20, 2011 at http://www.istheory.yorku.ca/rbv.htm
Bright Horizons Family Solutions Essay history assignment help book
Bright Horizons Family Solutions
You writing Bright Horizons Family Solutions… guidelines, 4 pages cover issues. 1. Describe nature organization, size, specific human resource challenges faces. 2. Describe major legal concerns organization recommend concerns addressed.
Bright Horizons Family Solutions is a company specialized in child-care provision, education and employer-sponsored child care.it is the largest company offering such services in the entire United States. This company came about as a result of a merger between the bright horizons previously based in Massachusetts and the corporate family solutions, and it has been growing ever since, with 18,000 employees working for the company at per the December 31, 2006 statistics. Bright Horizons Family Solutions not only offers its services in United States but also in United Kingdom, Canada, District of Columbia, Ireland and Puerto Rico (Hoover’s, 2007).
Some of the work place services offered by Bright Horizons Family Solutions include; center-based child care, before and after school care, summer camps, elementary school education, vacation care, back-up care, college admissions counseling services, education and enrichment programs, and other family support services. Their workplace service is designed for the working families with their services structured to meet the business objective of the employers and the family needs of their employees.
With the large number of clients, this company is faced by some challenges. One of the major challenges is the ever increasing number of employee files and documents. This makes it difficult to for the human resource department to analyze, store and even retrieve such documents incase needed (Stebbins, 2001). Other challenges include poor strategic alignments and motivation of employees because this helps to keep their productivity high.
The company is also faced by some major legal concerns which revolve around their employees’ code of conduct and the company’s business ethics. All employees are expected to carry themselves as professionals, they are to promote honesty, carry out appropriate public disclosure, and they are to be ethical and legally compliant while working. Some of the legal issues arise due to a situation where a company employee is faced with conflict of interest, disclosure of records, inappropriate use of company’s resources, dishonesty at their work and even fraud.
Each and every legal concerned the company faces should be tackled in the following ways; conflicts of interest can be prevented or stopped through having different independent employees to make the necessary judgments, on top of that a client should be handled by more than one employee so as to reduce the cases of conflict of interest and also to facilitate consultation for quality work. Fraud and inappropriate use of company’s resources, on the other hand, can be prevented by having a vigilant and active supervisory/human resource team to detect any cases of fraud and inappropriate use of company’s resources (Hoover, 2007).
Due to the increasing number of files and documents received daily, and also the likelihood of the company venturing more into international markets. The company should consider reducing the piling of documents through scanning of all documents hence storing the document in forms which occupy very minimal space and can be retrieved easier and faster.
Bright Horizons Family Solutions can address the current or anticipated human resource concerns in the following ways. As the company strategizes to expand, it may be faced by stiff competition from other businesses offering the same services in those other countries they are venturing in. This competition can be reduces first by expanding to countries which have companies/firms which they already have contract with. This makes it easier to penetrate the market. Also they can tackle competition by their key strategies involving quality of care, site convenience and their cost of service. These three key factors normally stand out from the rest to make them the most favorable company globally.
During their expansion to other countries, the HR department should ensure that they have involved some of their most experienced employees to take part in setting up of the new branch in the new country. They should also have realistic expectations, with some basic knowledge of the place and some of the challenges their workers are likely to encounter which may hinder their performance (Peteraf, 1993).
As much as it is for the best interest of the employee to be relocated together with his/her family. Wherever the human resource department does not cater fully to their needs, it poses a risk to the employee’s performance. This is because he/she will be challenged by the new experiences and cultures in a foreign land and this may bring out unproductivity. The employee affected also loses faith and confidence in their Human resource department’s ability to manage their duties effectively and this will reduce other employees’ willingness to be relocated to other countries.
The human resource department should also be concerned by whether the company will employ other employees in the local market they are planning to venture in. This implies that they will have to agree on the mode of hiring, whether through direct hiring or contracting another specialized firm to hire, there will be need to train them to suit the company’s need. The HR department should also consider who their competitors are and whether they can acquire local talent to compete with those already in the market. In preparation for the new venture, the HR team should have knowledge of the salary scales after conducting a thorough salary survey. They must also be conversant with the statutory benefits provided to the newly recruited local employees and their local labor laws. Also the employer sponsored benefits should be provided but first, the HR team should seek the best insurer and if they are part of any pooling networks this company may have in place. Other employees concerns to look into include the present unions and their requirements and options for the payroll services whether outsourcing or running it within the company (Kaplan, 1992).
The organization can leverage its human resources so as to come out the best in the competitive industry by having the best leadership team on board. With this great leadership on board, the customers and also investors are likely to have faith in the business hence facilitating their growth. The company should also hire the right people to offer their services; the people hired should have values which are aligned with the company’s objectives and goals. Lastly, the company should have excellent employee engagement. This implies that effective ways should be provided to handle people in crisis, solutions to issues should be found on time and adherence to the organization’s objectives and goals should be a key priority.
Kaplan, R.S. & Norton, D.P. (1992). The balanced scorecard — Measures that drive performance. Harvard Business Review, January — February,71 — 79.
Hoover’s. (2007). Hoover’s Handbook of Emerging Companies: Hoover’s.
Peteraf, M.A. (1993). The Cornerstones of Competitive Advantage: A Resource-Based View. Strategic Management Journal, 14(3), 179-191
Stebbins, L.F. (2001). Work and family in America: a reference handbook: ABC-CLIO
Analysis of the Center for Desease and Control gcse history essay help: gcse history essay help
Management Analysis of the Center for Desease and Control
Management ANALYSIS of the CENTERS for DISEASE CONTROL and PREVENTION
Analysis of the CDC
Management of CDC
Human Resource Management
Strategies of CDC
Discussion of CDC
The Centers for Disease Control and Prevention is a governmental institution of the United States of America, belonging to the United States Department of Health and Human Services. The organization is headquartered in Atlanta, Georgia and has another ten locations in the United States and Puerto Rico (CDC 2005 Annual Report). The organization was opened on the first of July 1946 and it has, ever since, been the leader in Public Health. In its first years, the organization had less than 400 employees and a budget of less than $20 million (Official Website of the Centers for Disease Control and Prevention, 2008).
Commencing their activity with identifying and treating malaria within the United States, the CDC registered international expansion during the Vietnam War, when the America troops were faced with the possibility of contracting malaria and other infectious diseases. “The Vietnam War moved CDC into the international scene. When the deadly falciparum and other forms of malaria threatened American troops in Southeast Asia and Peace Corps workers in Africa, CDC staff members offered their assistance and were soon fighting diseases in many areas of the world. The agency’s most successful effort was its major role in the eradication of smallpox on a worldwide scale” (Etheridge, 1994).
Today, CDC is the nation’s premiere health promotion, prevention, and preparedness agency and a global leader in public health. It remains at the forefront of public health efforts to prevent and control infectious and chronic diseases, injuries, workplace hazards, disabilities, and environmental health threats. CDC is globally recognized for conducting research and investigations and for its action-oriented approach. CDC applies research and findings to improve people’s daily lives and responds to health emergencies — something that distinguishes CDC from its peer agencies. CDC works with states and other partners to provide a system of health surveillance to monitor and prevent disease outbreaks (including bioterrorism), implement disease prevention strategies, and maintain national health statistics. CDC also guards against international disease transmission, with personnel stationed in more than 25 foreign countries. CDC is now focusing on achieving the four overarching Health Protection Goals to become a more performance-based agency focusing on healthy people, healthy places, preparedness and global health” (Official Website of the Centers for Disease Control and Prevention, 2008).
The mission forwarded by the Centers for Disease Control and Prevention is to promote health and quality of life by preventing and controlling disease, injury and disability. CDC’s vision for the twenty first century is Healthy People in a Healthy World – Through Prevention (Official Website of the Centers for Disease Control and Prevention, 2008).
The governmental organization has set four major health protection goals as follows:
Healthy People in Every Stage of Life
Healthy People in Healthy Places
People Prepared for Emerging Health Threats
Healthy People in a Healthy World” (CDC 2006 Annual Report)
In order to reach these goals, the Centers for Disease Control and Prevention is developing and implementing six sets of strategies:
Health Impact Focus
Public Health Research
Global Health Impact and Accountability (CDC 2006 Annual Report)
But in order to ensure they correctly develop and implement these strategies to the benefit of the population, the organization belonging to the United States Department of Health and Human Services must ensure they have the best leaders, who know how to motivate and coordinate their employees.
2. Analysis of the CDC
2.1 Management of CDC
The primary leaders of the Centers for Disease Control and Prevention, coordinated by the CDC Director, are the chief operating officer, the chief science officer, chief of public health practice and the chief of staff.
Source: CDC Organizational Chart, 2007
The leaders at the Centers for Disease Control and Prevention are committed to managing a successful organization which aids the general population in leading a healthier life.
The governmental organization is lead by director Julie Louise Gerberding, M.D., M.P.H. She states: “Each day at CDC, we try to imagine a safer, healthier world. A world where infants are born healthy and cared for – so, as children, they can arrive at school safe, well-nourished, and ready to learn. A world in which teenagers have the information, motivation, and hope they need to make healthy choices about their lifestyles and behaviours. A world in which adults enjoy active and productive lives in safe communities where they can remain independent and engaged with family and friends throughout their senior years. […] CDC is an exciting place to work, multi-faceted, constantly in motion. And it makes a real difference in the world, again and again” (Official Website of the Centers for Disease Control and Prevention).
The CDC’s Executive Leadership Board is formed from the following:
William Gimson, MBA – Chief Operating Officer
Lynn Austin, PhD – Chief of Staff
Stephanie B. Coursey Bailey, M.D., M.S. – Chief Officer of Public Health Practice
Richard Besser, M.D. – Director, Coordinating Office of Terrorism Preparedness and Emergency Response
Stephen Blount, M.D., M.P.H. – Director, Coordinating Office of Global Health
Mitchell Cohen, M.D. – Director, Coordinating Center for Infectious Diseases
Henry Falk, MD, MPH – Director, Coordinating Center for Environmental Health and Injury Prevention
Donna Garland, BS – Director, Office of Enterprise Communication
Bradley Perkins, MD, MBA – Acting Director, Office of Strategy and Innovation
Tanja Popovic, MD, PhD, F (AAM), AM (AAFS) – Chief Science Officer
Donald Shriber, JD, MPH – Director, CDC Washington Office
Steve Solomon, MD -Director, Coordinating Center for Health Information and Services
Stephen Thacker, MD, MSc – Director, Office of Workforce and Career Development
Kathleen E. Toomey, MD, MPH – Director, Coordinating Center for Health Promotion (Official Website of the Centers for Disease Control and Prevention, 2008)
In order to increase the positive impact of their strategies upon the health of the American population, the management board at CDC has “reallocated more than 600 positions from administrative functions to direct research and program activity positions – such as epidemiologists, medical officers, and laboratorians. CDC reduced administrative costs by more than $83 million and made these resources available for frontline projects that directly benefit health. CDC will save $35 million over 7 years and improve its customer service by consolidating 40 separate information hotlines into a single contact center.” (Official Website of the Centers for Disease Control and Prevention, 2008)
2.1.2 Human Resource Management major part of the managerial activity is represented by the capability to properly coordinate, stimulate and remunerate the personnel. The Human Resource Department at the Centers for Disease Control and Prevention has presented the following human resource highlights, adherent to fiscal year 2005:
CDC is among Georgia’s top 15 employers, with nearly 15,000 employees (including 6,000 contractors) in 170 occupations
In FY 2005, CDC hired 592 new employees
Nearly 200 employees are assigned overseas to address HIV / AIDS, emerging infections, malaria, vaccine-preventable diseases and other global threats
Nearly 40% of employees have a Master’s degree, 25% have a PhD and 10% have a medical degree
Women account for nearly 60% of CDC’s workforce
More than one third of CDC’s employees are members of a racial or ethnic minority group” (CDC 2005 Annual Report).
The Centers for Disease Control and Prevention recruit and employ the best qualified candidates on the labour force through both traditional and modern strategies.
The employment advertisement of CDC’s states: “You may not know our faces, but you hear from us and about us in the news when an outbreak occurs and when a quick response is needed. Whether we are protecting the American people from public health threats, researching emerging diseases, partnering with national and international organizations to develop health systems, or helping to immunize children in a small town village, we rely on CDC employees to make a real difference in the health and well-being of people here and around the world” (Official Website of the Centers for Disease Control and Prevention, 2008).
The governmental organization motivates their employees through a series of financial and non-financial incentives, including:
Incentives and awards
Vacation, paid holidays, personal and sick time
Flexible work schedules
Comprehensive medical benefits
Employee assistance and referral programs
Flexible spending accounts
Retirement benefits and pension plans
Long-term care insurance
Telework / Telecommute
Family Friendly Leave Policies
Continuing education and professional development
Wellness, fitness and other benefits” (Official Website of the Centers for Disease Control and Prevention, 2008).
Any complaints from the employees are resolved within the Office of Dispute Resolution and Equal Employment Opportunity, lead by Gilberto Camacho. “Our focus is to help this organization increase its effectiveness in utilizing our human capital.” (Gilberto Camacho, CDC Official Website, 2007)
2.2 System Design
The Centers for Disease Control and Prevention are organized into four types of national centers:
Environmental Health and Injury Prevention: The National Center for Environmental Health / Agency for Toxic Substances and Disease Registry; the National Center for Injury Prevention and Control
Health Information Services: The National Center for Health Marketing; the National Center for Health Statistics; the National Center for Public Health Informative
Health Promotion: The National Center for Birth Defects and Developmental Disabilities; the National Center for Chronic Disease Prevention and Health Promotion; the National Office of Public Health Genomics
Infectious Diseases: The National Center for Immunization and Respiratory Diseases; the National Center for Zoonotic, Vector-Borne and Enteric Diseases; the National Center for HIV / AIDS, Viral Hepatitis, STD and TB Prevention and the National Center for Preparedness, Detection and Control of Infectious Diseases (Official Website of the Centers for Disease Control and Prevention, 2008)
2.3 Strategies of CDC
As mentioned in the introduction, the Centers for Disease Control and prevention has developed and implemented six sets of strategies as follows:
Health Impact Focus – the alignment of CDC’s employees, objectives, strategies, investments and performances in order to maximize the CDC’s beneficial effects upon public health
Customer Centricity – Like any other corporation, the Centers for Disease Control and Prevention is focused on offering those products and services required and needed by the population in order to improve and preserve their health
Public Health Research – the CDC funds and conducts numerous researches aimed at identifying new treatments and any other issues which would positively affect the public health
Leadership – the Centers for Disease Control and Prevention possesses the best skilled and qualified employees, guided by the most committed managers and supported by strategic partners, all to improve the health system within the United States and across its borders
Global Health Impact – the CDC is opened to international knowledge transfer as they wish to not only improve the America health system, but also the international health systems
Accountability – the Centers for Disease Control and Prevention increase the population’s trust in the health organization by making efficient and effective investments (CDC 2006 Annual Report)
The competitive advantage of the CDC is given by their long time valuable expertise in the field of health solutions, combined with their skilled and dedicated staff.
Another sustainable advantage is given by the old and new partnerships signed with national organizations. “Throughout its history, CDC has placed a premium value on developing and nurturing partnerships with various public and private entities. These partnerships improve and expand the scope and depth of public health services for the American people. One key focus of CDC’s Futures Initiative was to bolster the agency’s ability to engage and support its partners. The new Coordinating Center for Health Information and Service (CoCHIS) was created to improve public health through increased efficiencies, foster stronger collaboration, and integrate similar programs and messages” (Official Website of the Centers for Disease Control and Prevention, 2008).
To name but a few of CDC’s formal partners, one could mention the Advisory Committee on Immunization Practices, the Birth Defects and Developmental Disabilities External Group, the Clean Hands Coalition, Integrated Disease Surveillance and Response, the National Coalition for Food Safe Schools, Sexually Transmitted Diseases Prevention Partnership, the Technology Transfer Office or the Tuberculosis Epidemiologic Studies Consortium (Official Website of the Centers for Disease Control and Prevention, 2008).
3. Discussion of CDC
Given that it is a not for profit organization, the employees at the Centers for Disease Control and Prevention receive a slightly different treatment than other company employees. As such, common to other organizations is the fact that the CDC recognizes the true importance of its staff in achieving organizational goals and sees them as the compulsory tool in achieving the stated objectives. As such, the organization strives to unify employees’ individual goals with the overall objectives of the CDC. Opposite to for profit corporations, where employees are requested to increase their performances to satisfy customers needs and through this increase company revenues, the staff at CDC is requested to increase their performances in order to achieve a grater non-financial goal. This goal is to help people be and live healthy.
The Centers for Disease Control and Prevention have established clear values and they integrate all employees within the organizational culture. The CDC respects their employees’ backgrounds and diversities and treats them all the same, without any discrimination. The employees are offered both financial and non-financial incentives to motivate them in increasing their performances.
In regard to the leadership and system design at the Centers for Disease Control and Prevention, one can easily observe the multitude of departments and the complexity of the operations handled. This implies the compulsory need for highly developed communications systems and networks. The numerous strategies to be developed and implemented, alongside with the large numbers of partners also highlight the need for good communications.
4. Conclusions and Recommendations
The Centers for Disease Control and Prevention is an American governmental institution devoted to improving and maintaining the population’s health. Their success is mostly due to the high quality of the management and the culture and values promoted by current Director Julie Louise Gerberding and the other members of the Leadership Executive Board. Their positive results have also been possible with the support of their committed employees and organizational partners.
In order to register even better results, the governmental institution should constantly keep in mind all the changes affecting the environment. They must be aware of any new diseases and viruses which might occur. They should be able to foresee future mutations and limit their negative impact upon the population’s health. In addition, they must incorporate the latest technologies available on the market to study and cure diseases, but also to ensure good communications with their staff and partners.
Etheridge, E.W., 1994, Sentinel for Health: A History of the Centers for Disease Control, Journal of Interdisciplinary History, Volume 24, Number 4
Friede, a. And O’Carroll, P.O., 1996, CDC and ATSDR Electronic Information Resources for Health Officers, Journal of Environmental Health, Volume 59
1994, the Centers for Disease Control and Prevention on Emerging Infectious Disease Threats, Population and Development Review, Number 13
1999, CDC on Infectious Diseases in the United States: 1990-1999, Population and Development Review, Volume 25, Number 3
2003, an Assessment of the CDC Anthrax Vaccine Safety and Efficacy Research Program, National Academy Press
2004, Measuring What Matters: Allocation, Planning and Quality Assessment for the Ryan White CARE Act, Institute of Medicine, National Academies Press
2007, CDC Organizational Chart, Retrieved at http://www.cdc.gov/about/organization/orgChart.htm. On February 4, 2008
2008, Official Website of the Centers for Disease Control and Prevention, http://www.cdc.gov, last accessed on February 4, 2008
CDC 2005 Annual Report, retrieved at http://www.cdc.gov/hiv/topics/surveillance/resources/reports/2005report/pdf/2005SurveillanceReport.pdfon February 4, 2008
Dryships Inc In all industries Essay history assignment help company
In all industries there are a number of different factors that will play a major role in determining how competitive they are. The industry of dry bulk carriers has a number of unique challenges, as globalization has opened the flood gates on demand for dry bulk transportation services. As a result, companies such as Dryships have quickly emerged to fill this obvious void. However, to determine how strong or weak the industry is requires: that you compare the company with competitors, conditions that could help or hinder its competitive advantage and the competiveness of starting a company in the industry today. Together, these different elements will tell you the strength or weaknesses of the company in relations to its competitors, within the dry bulk transportation industry.
Which companies does Dryships compete with, and what place does it hold among its competitors?
Dryships has several different companies that it competes with to include: Eagle Bulk Shipping, Excel Maritime and Geneco Shipping & Trading. Dryships is: the largest and the strongest company among the different competitors. This can be seen with the total market cap of the common stock and the amount of revenues. Where, the company currently has a market cap of $1.44 billion and revenues of $819 million. This is in comparison to Eagle Bulk Shipping (which has a market cap of $314 million along with revenues of $192 million), Excel Maritime (which has a market cap of $452 million along with revenues of $392 million) and Geneco Shipping & Trading (which has a market cap of $630 million along with revenues of $379 million). (“Dryships,” 2010)
Are there specific conditions that give Dryships an advantage, or hinder it?
What gives Dryships an advantage over the competitors are the number of different businesses that the company is involved in. Since the company was founded, they have rapidly expanded the overall number of items that they ship around the globe to include the transportation of: oil, coal, iron ore, fertilizer, grains, bauxite, steel and phosphate. They also have invested heavily in a number of deep sea exploration rigs / submarines. These two different businesses that Dryships are involved in, have allowed them to be more diversified than their competitors. This means that when the economy is expanding, the company will benefit from being involved in a number of different businesses. Then during times of economic contraction, these businesses help to protect the company, against the volatility that the industry is known for. (“Dryships,” 2010)
How competitive would it be to start a company in this industry today?
The industry is very competitive, this because the spot rate is always subject to change. The spot rate is: the amount that the company and competitors are charging for transporting goods around the world. It is subject to increases or decreases in demand from businesses as: energy prices, weather conditions and the economic cycle can affect the rate. This means, that a new company starting out in the industry would face fierce competition, because of the volatility that can occur. (“Daily Market, 2010)
Clearly, Dryships is one of the strongest companies in the shipping industry. This is because the company is diversified between several different areas and the items that they are transporting. Together, these two elements allow the company to withstand the volatility that can occur in the daily spot rate. This is the biggest factor affecting all competitors within the industry. It is through examining Dryships in this light; that will provide the greatest understanding as to what factors are affecting the dry bulk carriers.
Daily Market. (2010, March 24). Retrieved March 25, 2101 from Dryships website:
Dryships. (2010). Retrieved March 25, 2010 from Dryships website: http://finance.yahoo.com/q/co?s=DRYS
Dryships. (2010). Retrieved March 25, 2010 from Dryships website: http://finance.yahoo.com/q/pr?s=DRYS