The Role of Apps in Business Strategy

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As a consultant for a rapidly growing software start-up, this area interests me. By analyzing research on start-up business strategy over the last 20 years and reviewing relevant literature, the aim will be to show how economic uncertainty can be a primary driver for the innovative approach that leads to many start-ups success. Any business that is focused on keeping its relevancy in the market and one that is in dire need to avoiding uncertainties in business operations have switched on to use of Apps. In light with the national agenda that is in support of technology, the apps come in handy in the dire refinement of the initial specific business objectives that call for enormous resources, ineffective as well as time-consuming.

The application will have users page with unique login information. The login information will be tied to Gmail so that Google map and apple map could be integrated into the application. The application should also have the ability to utilize satellite for GPS coordinating when offline. The main reason for using services from a third-party application such as Google map is to reduce the cost of designing the application. For example, without using the Google map in developing the app, it practically implies that the business must start by having their mapping system which is not cheap (Ellis-Chadwick, Doherty & Anastasakis, 2007). Besides that, Google has maps that are well developed and frequently updated hence can provide a useful route analysis which is considerate of most frequent changes. For the application to work effectively, it is essential to have maintenance services implemented. The cost estimate of maintenance service for this app will be based on industry average costs. Usually, the price is assumed to be 20% of the total amount spent in developing the application. Therefore, if the app cost $100,000, to maintain it will need $20000.

Technology

The design of the apps will utilize cross-platform technology to code most of the applications that share the same elements and finally utilize device specific technology to complete development of the individual application. The use of cross-platform development will assist in saving time and ensuring the applications are delivered on time. The backend to utilize other company application and website, as well as a third-party application such as Google map and apple map, will be coded using HTML, CSS, java scripts and PHP (Ellis-Chadwick, Doherty & Anastasakis, 2007). The use of this language will assist the device to meet the needed functionalities such as customizing background, navigating, enjoying offline maps, creating accounts and high responsiveness. The approach that will be used to develop this application is an agile scrum methodology since it is known to produc3e high-quality applications

Penetration Testing

In recent years the cases of security concern for applications has been paramount. Therefore, privacy needs to give top priority in developing the application. Thus, continues testing while developing the app will be carried out to ensure there are no errors in coding that can be utilized to jeopardize the user's privacy. The fact that this app will use google and android map for navigation through backend means that security needs to be considered (Fernie, Sparks & McKinnon, 2010). The interaction of this app with WMATA app will only allow WMATA to access map services but will not let the map services to fetch client data from the app. The app will also be tested for brute force attack to ensure they are secured and privacy of users maintained.

Heuristic Evaluations and Usability Testing

The usability test seeks to identify where features are being developed in the required manners. Heuristic evaluation, on the other hand, is used to determine whether there are problems in users interphase. The use of this procedure is necessary to ensure the intended purpose if the app is maintained throughout the development process. Also, they can assist in eliminating errors that might jeopardize all development process if they are not identified and corrected on time (Bounds, 2017). Therefore, these process need not be a onetime activity instead of a careful process throughout the development of all prototype.

Branding

The application will be branded based on the colors and logo of WMATA. The purpose of stamping the form based on what is known initially is based on the fact that it will assist in marketing the app since those who are already using the services will readily adapt the usage of the map system. It will also act as a trust; customer generation means as well as employee satisfaction. Heuristic procedure and testing will also assist in ensuring the brand are of the sound design and inconsistent with organizational culture.

Marketing Plan

The purpose of this application is to assist the customers in navigating and mapping their journey planning easier. Without marketing the app, the customer might be aware of its availability. The best way to sell an application includes online marketing and social media platform marketing. Online marketing means search-related marketing such as displaying ads in a google search. On the other hand social media marketing including Facebook and YouTube advertisements.

App Content

The device content must be inconsistent with privacy, safety, and legal right requirements. The material must be designed in such a way that it cannot violate any human rights. The content organization should also be made in a clear and organized manner to make it easier for users to interact with the applications (Moagar-Poladian, Dumitrescu, & Tanase, 2017). The planned content to be displayed in these applications includes

● Sign-in using Gmail

● Users account information

● Route planner and location identifier

● Offline map option

● Location sharing

● Online wallet and balance displayed

● Payment options

● List of available transport services in your area and their current availability

● Service availability hours

● Delay and traffic notifications on a particular route

● Optional saved payment preferences

● User profile with dietary choices

● Legal guideline

● Initial Tutorial on application usage

Supply Ethics in Business Start-ups

Another common risk in the procurement and supply contracts is the risk of unethical conduct by the supplier which could have negative impacts on the image of the organization. If the supplier engages in unethical practices such as corruption, forced labor or illegal acts in the production process could result in an organization being viewed as being wrong as well for purchasing products. For this reason, it is critical to ensure that the supplier does not expose the organization to ethical issues by supplying goods that are produced using unethical practices. For this reason, the terms and conditions state that the supplier will need to ensure that all the products that are supplied are produced using ethical process. It also says that the supplier will require to disclose all the method of production of the provided goods where needed (Carlsson & Lamti, 2015). This will offer an opportunity to establish any cases of unethical practices which could pose a threat to the image of the organization. Social media design in digital marketing is an important study because it advances the comprehension of digital marketing where various brands invest in the platform for maximized profits by reaching out to a broad consumer base. Social media design in digital marketing is an area of current interest and has not been widely researched, therefore; there are numerous areas in this research area that need to be studied further. The present research also facilitated the exploration of other new social media platforms such as Pinterest and Instagram to come up with a comprehensive overview of how social media impact the hegemony of traditional methods of marketing.

Establishing systems that try to forecast the conduct of the customer using his experience has proved to be unsatisfactory. Information is converted into making the consumer experiences more seamlessly, and it is essential that businesses tie together the copious data that is contemporarily available to comprehend their clients. As the consumers search for brands in a social media platform, ad-based information may be essential in the course of their resolutions.

The whole idea is based on engagement in that social media facilitates direct involvement with the customers, and they can receive direct responses to their input. The customers can have immediate acknowledgment as the customer can participate in live content or comment. With an elevating concentration on purchaser relationship management on how to convey the unique client experience, ahead of the common objective of accumulative product responsiveness, most of the critical touch points of the customers are connected to the service of the customers, communications with in-store staff and online service consumer platform networks.

To safeguard the interests of the organization, the terms and conditions state that any case of unethical practices that have been reported or established will result in termination of the procurement contract. This will ensure that the supplier does not compromise on ethics when supplying goods and will ensure that all the processes in the production of the products are ethical. To further cover the risks that the organization is exposed to, the terms and condition also point out the fact that the supplier will pay for any damages incurred as a result of ethical issues arising from supplied goods (Scott & Scott, J.2005). Such losses will include lost sales due to the damaged reputation of the organization in the public domain.

In this case, both parties come to an agreement that they are entering a contract that will be binding. They are however not able to settle on the terms and conditions that will apply as each of the parties insists on the words that are favorable to them. It starts with one of the parties or businesses making an offer which is usually in the form of a pre-printed contract that has his terms (Fernie, Sparks & McKinnon, 2010). The party that is being offered the contract also responds with its deal that also has a set of terms and condition which are favorable to both parties.

The battle of forms, therefore, arises when each of the parties fails to agree to the terms provided by the other party given the fact that the conditions are only favorable to the respective party that is drafting and in most cases, they contradict each other. The battle is eventually won by the party that presents the terms that are not explicitly declined by the other party and as such the contracts become valid (Bounds, 2017). An excellent example of ‘battle of forms' is in a case where a company purchasing delivers a purchase order to the supplier. Various factors have shaped the demand patterns within the office cleaning services in the UK. One key factor is the improvement of the economic outlook within the country.

How Asymmetric Information under Moral Hazard Affects Achievement of Equilibrium within a Perfect Competition Insurance Market

Perfect competition insurance market experiences perfectly elastic demand curve, with identical products and no product differentiation. In this type of market structure, the price of the product is determined by the amount. The demand of a product in the market ultimately affects the cost of such an item. The rates are thus controlled by the application of the goods on the market. It is a form of imperfect competition whereby the firm has some power to the costs of the products sold.

There are no market barriers in the perfect market structures in the case of the insurance sector. Insurance as a whole is left to the discretion of the market demand and supply forces. High barriers to entry into the market are only exhibited in fewer areas of insurance for instance cases of specialized medical care assurances and related avenues. The insurance market and industry as a whole engage their firms in selling of homogenous products for instance general motor and property insurances where the entry and exit from the market are free (Gatzert & Kosub,2016). There no restrictions on the market. Cost efficiency as such occurs among the firms in the industry under the perfect competition when the marginal cost is equal to the price.

The quantity of output produced enables profit maximization. This type of market structure that works in favor of already established insurance firms thus experiences an efficient allocation of resources. Cost efficiency in the perfectly competing market is thus achieved since factors mentioned above such as the quantity of the insurance products produced and the price of attached to the covers produced balances as discussed above.

The Asymmetric of Consumers and Market Niches Created by Perfect Competition

Just like other sectors of the economy, the insurance market structures like monopoly experiences cost efficiency in production both in the short and long run. Under the perfect market competition, the goods sold are homogeneous, trading of the differentiated products is a feature only exhibited in other types of market structures like oligopoly and monopolistic competition a case that rarely happens with insurance firms hence creating an equilibrium in the sale of the products against the revenues generated (Hopkin, 2018). Markets are experiencing high barriers to entry, for instance, rare markets like re-insurance market have reduced or there totally no competitive pressures created on them.

In that regard, the sector that is part of the entire insurance strategy attains equilibrium through the sale of their services that are highly coveted by the insurance firms. Regarding the hazard findings, it is clear how the chain of reinvestment does not end at one point as the consumers back their risks in insurance firms which eventually entrusts their policy in a lump sum with the national reinsurance platform. Thus the firm or has the power to control the quantity in supply and the prices at which the insurance products are sold with minimal controls from the national Insurance Regulatory Board.

The firms enjoy supernormal profits in all seasons of the business operation as long as they keep creating an equilibrium in the balance of trade for instance with other regulatory bodies. The individual firm has the authority to control the type of products to offer in the entire US market with no control over the number of insurance products that clients need to take cover.

Sources of such powers include the government intervention in businesses and also when the firm has the control over a source of essential or rare raw materials an incident that only occurs singly with insurance firms and insurance products. Competitive pressures are thus prevented or slightly highly reduced in such markets for the sake of creation of the ultimate hazard equilibrium for business as all firms need to focus on doing business as they are entitled to government tax (Hopkin, 2018). Very high initial capital to start an insurance business can also act as a hindrance to the entry of a market, and in some way, the insurance industry is made up of a variety of elements that goes beyond the perfect competition classification of the business. The law of diminishing returns holds when employment of an additional component of production results to a relatively smaller gain of the output. It occurs in the short run upon fixing one factor of production.

In the event, the marginal cost curve slopes downwards and the average total cost of production of the commodity in question increases. The Japanese energy market for electricity and gas is an oligopoly one following the characteristics that it exudes as put forward by research by The State of the Market Assessment (SMA) which clearly shows that there is no competition in the industry.

The market segmentation and the segregation for customers into categories explain it all. Some customers remain with their suppliers and do not switch to others at entrant. Customers who stick to old clients in the event pay higher prices for failure to look out for new suppliers with a relatively lower cost. Switching does not, however, guarantee competition assessment. The US dollar has been used and is still in use courtesy of its higher value. The section provides preliminary evidence on the effects of alternative regimes taken by the Japanese government have on the country foreign exchange as well as the impact the same have on the trade partners in the global arena

It is clear that those markets involved in offering high and low rates of switching, at last, are compatible in a way. Companies have had a massive influence on creating an oligopoly. Companies in the industries raise the prices of the commodities at almost similar times. The energy sector to be specific has been revealed by the SMA to experience parallel pricing which is a result of competition. The companies that compete deliberately raise the price of the commodities in their response to an increase in cost.

International Reserves for the United States of America about that of Entire European Market

USA external assets which include foreign currency deposits and government bonds as held in the country’s central bank, the Bank of America in line with legal monetary policies are evident in as far gold and SDRs are concerned.

USA holds one of the most valuable international reserves and has been given a privilege by the IMF for the use of the yen as a reserve currency. The country reserves make up to a third of the world’s total foreign currency that are in reserve in the International Monetary Fund. The country has $1.3 trillion. It is one of the few countries holding the international reserve that go up to a $1 trillion China; Japan is on the list.

The United States America’s international reserves increase annually by an approximate of 0.1%. This a positive approach in the shaping of the country economic pillars. The nation, however, is experiencing a break down in some other parts of its economy due to a weakening business environment thus affecting competitiveness in business. They comprise options and futures for the contract as well as pricing models that take a different duration. In most cases, the prospects for the USA take their conditions’ for they do not take more than one year. The forwards, options, and futures for Japan take up to $ 200,000 million in total. There are however plans by the Bank of America to put in place means to raise on the securities in the regional bloc. The European market, in this case, stands the opportunity to reap from the benefits that come along with Japanese options held at the international reserve.

How Instruments need to be Effectively Adopted to Help Improve the Market Efficiency for Customers.

The insurance hazard insurance situation and market efficiencies in insurance can be best explained using the law and theory of diminishing marginal returns. The act of diminishing returns holds when employment of an additional element of production results to a relatively smaller gain of the output. It occurs in the short run upon fixing one factor of production. In the event, the marginal cost curve slopes downwards and the average total cost of production of the commodity in question increases. The subscribers need to change their focus on the best choice in which one which high returns and varying levels of risks.

Marginal Cost Curve for Insurance Diminishing Utility for Market Efficiency

The market segmentation and the segregation for subscribers into categories explain it all. Some customers remain with their suppliers and do not switch to others at entrant. Customers who stick to old clients in the event pay higher prices for failure to look out for new suppliers with a relatively lower cost. Switching does not, however, guarantee competition assessment. The first option has been used and is still in use courtesy of its higher value (Rabin, 2000). The section provides preliminary evidence on the effects of alternative regimes taken by the market have on the choice of trade as well as the impact the same have on the trade partners in the industry.

The company faces risks related to property portfolio and other restrictions that are made by the competition authority. On the audit risk, the company at instance fails to fulfill or predict the consumer demand and may fail to protect intellectual property rights. The group has not prior hedged the risk of movement of the interest rates and borrowing. Moreover, the currency risk of the company is not hedged thus makes their products vary in price due to the currency change, putting the company in danger of experiencing loses. While planning for an audit, more attention is given to critical areas of the examination.

Graph Showing Weighted Averages for Demand and Supply forces at Equilibrium for the Insurance Market Industry.

Consumption behavior can be well explained as shown below. Employing both American Call Option and the European Put Call would favor the business. Assuming that the industry has an expected real rate of interest of 10% on the cash inflows, then the probability of the company raising a huge profit away from the face value of $56 price would be higher. Forwards would only attract risks of loss since they are not risk-averse. There is a lot of success coming out of the firm, and this gives them the motivation to keep their company’s success. But one thing the firm has to improve in is their return on equity. Their percentages are pretty low compared to their competitors.

The company is at 25.13% with their return on equity while the industry average is at 42.30% (McAuliffe, R.E., 2015). Calculating the return on investment based on the DuPont decomposition, it equated to 26.89% which is a little better than their regular ROE, but there is always room for improvement, and the company can do so.

The hazard situation comes in handy when dealing with secured bonds. The US insurance and markets as compared to the equities and other securities markets that trade on the US Stock Exchange Market are way more massive courtesy of the fewer risks involved in the bond markets. The bond markets are more secure in that bonds are protected from varying hazards and as such is associated with low levels of changing risks. The US bond market is way a preference by the investors who by all ways possible are risk averse and as such many of the potential investors seek platforms that are associated with fewer risks.

The bonds as compared to the preferred stocks fetch fewer yields to the investors, but the most outstanding thing about both forms of investment portfolios are issued at par value. Bonds carry a more par value as compared to the preferred stocks. Nevertheless bonds in all cases require lower investment. The US bond markets are the best on the global arena owing to the many opportunities that exist for investors and their ability to outweigh the equities market

It is worth noting that in perfect competition market structure is applicable in cases where there are producers as well as the consumers of the product in the market in large numbers. These make it a difficult task for a single firm in the industry to have a direct influence or say the impact on the pricing of the commodities. The features of the perfect market competition for exhaustive reasons in the case of three market pricing options are as follows:

a. The existence of many buyers and sellers on the market

b. Similar production of commodities/ homogenous product

c. Accessibility to perfect know-how and information on price and commodities

d. Unavailability of barriers for entry into the market as well as exit from the market

Behavioral economics can be explained in the sense that there are substitutes and market conditions. The features aforementioned qualify the firms for price takers and consequently make the demand curve perfectly elastic. The goods are homogenous together with their substitutes, and as a result, the demand curve is elastic. Therefore firms in the market cannot make a supernormal profit since there is sufficiently long time to make changes in the form of adjustment in areas of production since all the leading factors would be variable without any fixed cost in existence. During this time, the firm can influence the output through a change of capital.

In this case, the consumer can attain optimal profit. The firms in the industry through the effects above shift their attention to areas that make supernormal profit leading to flooding. For cases of lack of barriers and perfect knowledge, the supply curve moves the price down till exhaustion of the available supernormal profit (Easterling, 2015). In the long run, the firms make losses and exit the market for the reason that there is no barrier to exit making the supply curve to shift to the left thus a rise in the prices leading the remaining firms in the business to only derive profits usually.

References

Bounds, A. (2017). Some UK start-ups rise to new record | Financial Times. [Online] Ft.com. Available at: https://www.ft.com/content/cb56d86c-88d6-11e7-afd2-74b8ecd34d3b [Accessed 13 Nov. 2018].

Carlsson, S., & Lamti, R. (2015). Tone Management and Earnings Management. A USA evidence of abnormal tone in CEO letters and abnormal accruals. Retrieved from https://gupea.ub.gu.se/handle/2077/39782

Ellis-Chadwick, F., Doherty, N. F., & Anastasakis, L. (2007). E-strategy in the UK retail grocery sector: a resource-based analysis. Managing Service Quality: An International Journal, 17(6), 702-727. Retrieved from https://www.emeraldinsight.com/doi/abs/10.1108/09604520710835019

Fernie, J., Sparks, L., & McKinnon, A. C. (2010). Retail logistics in the USA: past, present, and future. International Journal of Retail & Distribution Management, 38(11/12), 894-914. Retrieved from https://www.emeraldinsight.com/doi/abs/10.1108/09590551011085975

Mongar-Poladian, S., Dumitrescu, G. C., & Tanase, I. A. (2017). Retail e-Commerce (E-tail)-evolution, characteristics and perspectives in China, the USA, and Europe. Global Economic Observer, 5(1), 167. Retrieved from http://www.globeco.ro/wp-content/uploads/vol/split/vol_5_no_1/geo_2017_vol5_no1_art_020.pdf

Scott, C. H., & Scott, J. E. (2005). Efficient allocation of online grocery orders. International Journal of Productivity and Quality Management, 1(1-2), 88-102. Retrieved from https://www.inderscienceonline.com/doi/abs/10.1504/IJPQM.2006.008375

January 19, 2024
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