Case Study-Apple in 2010 Study Example | Topics and Well Written Essays - 1250 words

-Apple in 2010 - Case Study Example By 2004 the firm held a 70% market share in the digital music industry. The success of the iPod helped build the brand value of the company. The popularity of the brand helped the company revive its computer business. In 2005 the firm held a market share of 4% in the computer business which was a tremendous feat considering the firm had less than a one percent share a few years earlier. The transformation of Apple helped the firm visualize opportunities in other markets such as the cellular industry. In 2007 Apple released a product that changed the cellular industry. The iPhone was the first smartphone. Steve Job’s leadership was critical to the success of the company. He pushed his engineers and staff to provide innovative ideas. He also had the foresight of getting rid of unprofitable business segments and divisions. The firm had great leadership which motivated the employees to achieve their potential. The COO of the company, Tim Cook, was also instrumental in the success of the company. Apple Computers adapted well to market changes. The firm realized that the success of the company relied on the ability of the firm to look beyond the computer sector for sales. During the 21st century the generic strategy of the company evolved and the firm started utilizing a diversification strategy. â€Å"Diversification growth makes sense when good opportunities can be found outside the present businesses† (Kotler, 2003, pg. 101). The three main business segments Apple penetrated are the computer industry, cellular products, and music media players. The computer industry in 2009 was consolidated with five vendors accounting for 78.5% of the U.S. shipments and 60.3% of the sales worldwide (Marino & Gamble, 2010). The recession of 2008-2009 slowed down the growth in sales and negatively impacted the prices of computers. By the second quarter of 2010 industry sales rose once again experiencing a growth of over 20%. A tendency among computer users was replaci ng desktop computers with laptops and notebooks. As of 2010 Apple despite the fact that a growing number of its sales came from non-computer products considered the computer division its core business. The Mac product line differentiated itself from the competition due its superb quality, superior operating system and graphic interface. The market share of the company jumped from 4% in 2005 to 8% by 2009. The firm benefited from a halo effect of users of iPod and iPhone wanting a computer product from the same brand. The computer product offering of the company included the Mac Pro, iMac, and Mac Mini. The notebook offering of Apple was composed of the MacBook Pro, MacBook, and the MacBook Air. The most recent innovation to the Apple line of computer products was the MacBook Air. This notebook targeted customers that seek durability and portability. The computer was designed to have a height of 0.76 inches when closed and it weighted only three pounds. All Apple desktop and notebook products were priced at a premium. This strategy helped boost the profitability of the company. Due to the fact that Apple no longer depended solely on computer sales the strategy worked better than in the past. In order to boost the demand for its computer products the company implemented a 10% or more discount on all its computer products in June of 2009. The law of supply and demand states that a decrease in price will

The Truth In Hard Determinism Philosophy Essay

The Truth In Hard Determinism Philosophy Essay Over the years the problem of free will versus determinism has been a phenomena to philosophers for many years. It has been a huge issue, because without the presence of free will there cannot be morality, no wrong or right, no good or evil. Everyones behavior would be determined before hand and people would have no creativity or choice. Everything one does on a daily basis in ones life somehow involves the process of decision making or choice selection, whether it be mental or physical. From the moment one wakes up to the second one sleeps, decisions and choices are being made. There are some decisions that one makes that are extremely obvious to oneself because of the need of reflecting on the choices before choosing. But most of the decisions one makes throughout the day are made with little thought. Furthermore, many people are mostly unaware that they are making decisions because of preference and habituation. Before continuing further, the terms free will, and determinism must be defined. Free will is the idea that an individual is free to make decisions that are unhindered by external forces. Whereas determinism states that the conditions of a specific moment are the result of from the previous conditions of previous moments. The position that this paper encourages is that of hard determinism. The general hard determinist believes that no human action is free. Paul Holbach was a hard determinist philosopher who wrote an article called The illusion of Free Will. In it he explained how everything one does is caused by things that is beyond ones control. Generally speaking , people are motivated to pursue pleasure and avoid pain, but people cannot help what gives them pain or pleasure. No matter what one does, the endless chain of causes and effects leads ones doing is inevitable. An important example that Holbach used was the poisoned water. It demonstrated that whatever one does they do it for a reason, and that these reasons are simple changes that the brain makes which determines what one chooses to do. Since one cannot control the changes in the brain that causes one to choose what one chooses, then that would mean that no one cannot control their own actions. Hard determinism also gives a more rational perspective of humans and their choices. It focuses on the causes instead of the instant causes for ones actions. Also the implications of being determined are taken more seriously, and it does not make one responsible for the decisions one makes because they are beyond the individuals control. Furthermore, hard determinism tries to take into fact of how people feel that they are free when they really are not. Halbach believed that the main cause of why people think that they make their own decisions is because they are ignorant to the cause and effect chain that determines their behaviors. The motives and causes are just too complex for people to understand them. People do not also naturally question where the causes behind their choices come from, which gives humans the idea of having free will. Moreover, hard determinism has many advantages to it. It could be helpful in courts of law and in the legal system, that is when it would be most convincing . A person who maybe standing on trial may use hard determinism as a defense by stating that the individuals actions were caused by events that occurred in the past which were ultimately beyond the persons control. If hard determinism is successfully persuasive in court, then it should be accepted that both free will and determinism are incompatible. However hard determinism does have its flaws. While soft determinism views that humans are unique, because they possess free will; hard determinism refutes humans that important component that makes humans distinctly different form animals. Humans are also no more free than robots. In addition, it would be wrong to punish a criminal, because they just could not help it; and that would ultimately lead to an unstable society filled with mayhem and troubles. Ultimately hard determinism argues that humans may feel free but it is nothing but a mere illusion, and some people would argue against this and believe that it is free of choice. Continuing on the pros of the hard determinist view, libertarianism brought up many new points to the argument. Libertarianism was about the idea that humans are all free and that free will is not compatible with determinism. Libertarians argue that because one can easily create ones choices it gives one libertarian free will, and that ones choices in the future are undetermined. Furthermore libertarianism has far too many problems and disadvantages. The first disadvantage is that there is scientific data and empirical evidence that proves that humans are psychologically and scientifically determined,(this discovery was made by Skinner, who was also a hard determinist). It is through classical conditioning that human behavior is a response to the stimuli an individual is in or exposed to. Thus, ones decisions are caused the external environment around that certain individual which accounts for ones choice. Eventually, once the psychological evidence is shown, such as operant conditioning and scientific determinism, it becomes a challenge to see how humans are not determined, and that leaves little room for the libertarian perspective to prosper. One other argument against the libertarian perspective of free will and determinism is the explanation that everything has a cause. Where in the natural free word everything that exists is ca used by something; and equivalently ones choices has to have causes and determinism. However a hard determinist philosopher by the name of T. Honderich who wrote an article called A defense of Hard Determinism, disagreed with the libertarian view. He believed that the human mind must be determined, and that the mind should not be separate from the rest of the body, as it has been demonstrated that the mind highly dependent on physical brain activity. Finally, the criticism above has shown that libertarianism is unconvincing and has many poke able holes, as libertarians believe that the mind is in charge of making ones decisions. Ultimately, there are many perspectives that are related to the question of free will being either compatible with determinism or it being incompatible with determinism. From the evidence presented within this paper, hard determinism is the most consistent theory to follow when it comes to the question of free will and determinism. This is because a choice t hat is not under ones control must be determined by something else; and that certain something according to Holbach is either an external or internal force that drives every human being to make certain decisions. Even though it is hard to accept, Holbach explains that humans must accept it because it is the truth. Humans are not free to choose their actions.

The Contenders :: history

The Contenders For the presidential election of 1856, the Democrats nominated James Buchanan and John Breckenridge, the newly formed Republican party nominated John Fremont and William Drayton, the American [or Know-Nothing] party nominated former president Millard Fillmore and Andrew Donelson, and the Abolition Party nominated Gerrit Smith and Samuel McFarland. Buchanan started his political career as a state representative in Pennsylvania, was elected to the U.S. House of Representatives in 1821, appointed minister to Russia in 1832, and elected US Senator in 1834. He was appointed Secretary of State in 1845 by President Polk and in that capacity helped forge the Treaty of Guadalupe Hidalgo, which ended the Mexican War. He was appointed by President Polk as minister to Great Britain in 1853. As such, he, along with the American ministers to Spain and France, issued the Ostend Manifesto, which recommended the annexation of Cuba to the United States. This endeared him to southerners, who assumed Cuba would be a slave state. He was one of several northerners supported over the years by southern Democrats for being amenable to slaveholders' interests, a situation originating with Martin van Buren. Buchanan's two major rivals for the nomination, Franklin Pierce and Stephen Douglas, were both politically tainted by the bloodshed in Kansas. Buchanan was untainted, since he had been abroad during most of the controversy. Even so, he did not secure the nomination until the seventeenth ballot. Fremont was best known as an explorer and a war hero. He surveyed the land between the Mississippi and Missouri Rivers, explored the Oregon Trail territories and crossed the Sierra Madres into the Sacramento Valley. As a captain in the Army, he returned to California and helped the settlers overthrow Mexican rule in what became known as the Bear Flag Revolution, a sidebar to the Mexican War. He was elected as one of California's first two Senators. The infant Republican party was born from the ashes of the Whig party, which had suffered spontaneous combustion as a result of the slavery issue. The party's convention was a farce; only northern states and a few border slave states sent delegates. Sticking to their Whig roots, they nominated a war hero, albeit a minor one. William Drayton's runner-up for the VP slot was Abraham Lincoln. Fillmore, having been the thirteenth president following the death of Zachary Taylor, found himself representing the American party after many northern delegates left the convention over a rift caused by the slavery issue.

Ethical Consumerism: The Local Food Company

Executive Summary The report aims to understand the concept of ethical consumerism, with the help of an organisation that operates ethically. The selected organisation is The Local Food Company in the UK. The Local food company is engaged in sourcing and delivery of fresh, local and organic food including fruits and vegetables (organic and non-organic), dairy, grocery baked products and household items. Firstly, the report will provide an introduction to ethical consumerism and ethical products. Secondly, the report will conduct a detailed analysis of The Local Food company ethical activities and its socially responsible business. Thirdly, findings from a short opinion survey based on consumer behaviour are presented, Lastly, the report will conclude with the key findings. 1. Introduction: Ethical consumerism Consumers are getting more informed with the help of Internet and this is influencing their buying decisions. According to many scholars, the idea of ethical consumerism rose from the end of the 20th century due to increased media and ability to access information, and better availability of products (Newholm and Shaw, 2007). Ethical consumers have political, spiritual, religious, environmental and social motives for purchasing one product over other options (Harrison et al., 2005). There are two types of purchase behaviour as stated by economists: traditional purchase behaviour and ethical purchase behaviour. People will normally buy the cheapest product but only if they are confident that the product is as good as slightly more costly options available (Beardshaw, 1992 cited in Harrison et al., 2005). This is known as traditional purchase behaviour. Sometimes, customers boycott a certain product or brand and opt for a fair labelled or environmental friendly product as they consider ethical means more important (Harrison et al., 2005). This type of behaviour is termed ethical purchase behaviour. An ethical consumer is not someone who is ignoring price and quality but is applying additional criteria when buying a certain product. Ethical consumerism can be defined as the degree to which the customers prioritise their own ethical concerns when making product choices (Shaw and Clarke, 1998). Ethical consumerism is linked with morality. According to Crane and Matte n (2005), morality is related to the norms, beliefs and values embedded in the social processes that aims to define right or wrong for an individual or society. Ethical consumers can boycott a product if they read something unethical about a brand or they can simply purchase products, which are ethically sourced or have ‘fair trade’ tag. Ethical consumers consider the impact of their act of personal consumption on the society and environment. They don’t purchase product that are harmful to environment and respect animal and human rights. For example: purchasing free-range eggs; boycotting products manufactured by child, forced labour or labours who are offered low wages. There are various products that fall into the ethical category are banking, cleaning, cosmetics & toiletries, dairy, energy finance, fashion, food, insurance, soft drinks, tea industry and travel. According to ethicalconsumer.org (2014), there are over 200 ethical products in different categories. for example, a washing machine to save water and energy, a cooker with the least environmental impact, baby bottle sterilizer and impact of plastic on environment; living wage of worker who manufacture clothes; materials use in shoes-pvc, leather, wool; purchasing a greener desktop computer; milk and animal welfare; low wages in banana industry; lead in lipstick; fair trade flowers; bio detergent for cleaner environment; green or eco insurance companies; mobile phone helping activists; human rights issues in constructing hotels, etc. 2. Review of an ethical organisation: The Local Food Company The Local food company is engaged in sourcing and delivery of fresh, local and organic food including fruits and vegetables (organic and non-organic), dairy, grocery baked products and household items (The Local Food Company, 2014a). The company aims to source majority of products from Devonshire and West Country. It is a family business operating for over 200 years in Devon. The company is based at farm shop, Countrymen’s Choice at Ivybridge. The company has provided an alternative to supermarket online services. Being a small producer, it is successful as an online retailer. The company has been awarded for its green practices and ethical means of working. It includes Internet retailer of the year in 2006 for the South West, Green business of the year in 2007 and greening Devon finalist in 2007 EDBI awards. The company has proved how to run a sustainable food business. The company states, â€Å"At The Local Food Company we believe in a fair deal for our customers, our suppl iers, the environment, animals and indeed for ourselves†. The Local Food Company claims to operate ethically. â€Å"The Local Food Company are a very green and ethical business; we believe right now we are the greenest place you will be able to purchase food from in the UK† (The Local Food Company, 2014a). In addition to ethical sourcing of product, a business is also regarded as socially responsible when it fulfil the needs and wants of different stakeholders such as customers, employees, suppliers and investors. Any businesses that incur ethical artefacts attract as well as retain investors, customers and employees. To formulate this aspect, we take into account the Local food company ethical trading policies (The Local Food Company, 2014b). In exercising business ethics aspect, the Local Food Company have registered all employees to trade unions and provided them with fair wages and equal treatment. The company is against child labour, deductions from wages as a disciplinary measure, forcing employees to work excessive hours and discrimination. In addition to this, the company has no tolerance to bribery, blackmailing and bullying aspects among the staff and the consumers (The Local Food Company, 2014b). The Local Food Company has improved working conditions for employees making it safe and hygienic, hence boosting the morale of employees as well as strengthening the bond between the company and consumers preferences based on the products they produce. In some areas, it also operates above the minimum standards required by law in terms of safety of employees, rewards and values. This shows that the company’s main motive is not just to earn profit but also consider their employees’ needs and wants. At Local Food Company, any member of the staff is free to view his or her sentiment and the company usually accepts the sentiment equally without racial prejudice as well as discrimination based on gender. It can be seen that the company works as a socially responsible business in terms of employmen t practices; different ethical policies of The Local Food company are clearly stated on the website. The Local food company also promotes and encourages suppliers to follow ethical guidelines. All suppliers signed up have an e logo next to their goods. Also, there is no restriction placed on suppliers. Suppliers are free to sell from anywhere, via any number of outlets to buyers. However, the company monitors supply chain standards for unethical practices. Direct suppliers are asked to sign the acknowledgement of key trading ethical practices (The Local food Company, 2014b). Then after 1 year of work together with supplier, The Local Food Company introduces self-assessment questionnaire to promote ethical practices. Then, the company visits supplier farms on a regular basis to gain understanding of suppliers’ operation. Payment is made on time and done on the basis of market price (The Local food Company, 2014b). In order to attract customers, the company presents their ethical achievements so that customers can make informed purchasing decisions. The company engages in publishing policies, detailed supplier and product information on their website. In the first two years of trading, the company publishes comprehensive ethical and social charter giving consumers the freedom to access information about ethically sourced products (The Local Food Company, 2014b). It is good to know that any company within business platform needs to set out ethical guidelines that in turns lead to less risk hence increasing sales output. Based on this point, The Local Food Company in array of business produces various products including Bakery, Dairy, Meat and fish, Fruit and Vegetables, Prepared Ready Meals, Groceries and Drinks and Household items. These products however, are produced based on the standards bureau and local organic food regulations. The company has to ensure that buyers as well as suppliers are free with no restrictions to buy and sell the products anywhere and across the country on any outlets. In this way, the company ethically gives the buyer and suppliers all rights to their preferences without an essence of restrictions. The company has been able to drive business risks through these corporate forms of business to maintain maximal sales profit as far as financial outcomes of the business is concerned (Beauchamp, 2004). The Local Food Company has played a bigger role in encouraging small producers to implement ethical practices. To ascertain the aspect of ethics, the company exercises the aspect of ‘go green’. The company ensures that all products unveiled to the consumers are in better conditions; with highest order of hygiene and that all materials used are environmental friendly. The company sells food with a low footprint in collection and delivery. They claim to have lowest carbon footprints of all the businesses in the UK (The Local Food Company, 2014c). The company encourages customers to but locally and regionally, and cut food miles. Foods are based on high animal standards and sustainable farming practices. The company provides written guidelines on the waste disposal and insists on recycling programme for the benefit of the consumers. They reduce, reuse, and recycle everything possible. 3. Short opinion survey: what influences consumer buying behaviour A short opinion survey was carried out from a sample of students at GSM London. Students were asked about the main factors that influences buying behaviour. Most of the students considered the location of the store as an important aspect when purchasing a product. One of the student stated, â€Å"I don’t like to travel much for a product and always looking for options available near my location such as Starbucks coffee shop that can be found anywhere†. Some students also considered that they avoid stores that are crowded. Students also considered reading online reviews before making a buying decision. A student said, â€Å"If I am planning to buy something, I always search online reviews, if majority of reviews are positive, I make a purchase without thinking of the brand†. Few students mentioned about ethical behaviour in purchasing. They stated that after reading about a brand in news about forced labour or child labour, they boycotted the brand. A group of st udents mentioned about Rana plaza disaster, which changed the way they purchased products. The disasters resulted in number of deaths and injuries. Consumers regarded this as a serious issue and didn’t purchase from clothing brands that were involved. Students are also influenced by news videos circulating in social media. One of them stated, â€Å"I was very much depressed when I saw Peta video of how Chinese worker were handling rabbits for getting angora wool; this video encouraged me to say no to angora wool†. 4. Conclusion An ethical consumer is the one who applies additional criteria when buying a product. They want to buy a fair-trade labelled or ethically sourced product. They consider the impact of their private consumption on society and environment. An ethical consumer simply boycotts product that are associated with child labour or other unethical activities. There are various products that come into ethical category such as food, clothing, insurance, energy, soft drink tea and finance. One of the companies that claim to be ethical is The Local Food Company, based in Devon in the UK. The company is engaged in selling of bakery products, dairy, meat & fish, fruits & vegetables and household items. The company has been awarded with many green awards. The company acts as a socially responsible organisation and aims to fulfil needs and wants of different stakeholders such as customers, suppliers and employees. Suppliers are encouraged by The Local Food Company to follow ethical procedures in product ion. They are given the liberty to sell their food via any number of outlets. They are paid on time and treated respectfully. Ethical policies clearly show that company is against child labour and excessive working. The employees are offered safe and hygienic working environment. For customers to choose wisely, the company has listed information on supplier standards and ethical practices on their website. With the development of Internet technology, customers are getting more informed about the products they use or consume. According to the opinion survey conducted, customers make their purchasing decision on the basis of online reviews, location of store and store environment. They also consider ethical factors when buying a certain product. They boycott a brand when they read something bad about a product or say no to product that are against human rights. 5. References Beauchamp, T. (2004) Case studies in business, society and ethics, 5th edition, Upper saddle River, NJ: Pearson Prentice Hall. Crane, A. and Matten, D. (2005) Corporate citizenship: toward an extended theoretical conceptualization, The Academy of Management Review, Vol. 30, Issue 1, p166- 179. Ethicalconsumer.org (2014) Product guides, Last accessed 23rd November 2014 at: http://www.ethicalconsumer.org/buyersguides.aspx Harrison, R., Newholm, T. and Shaw, D. (2005) The ethical consumer, 1st edition, Wiltshire: Sage. Newholm, T. and Shaw, D. (2007) Studying the ethical consumer: a review of research, Journal of Consumer Behaviour, Vol.6, Issue 5, p253-270. Shaw, Deirdre S. and Ian Clarke, (1998) Culture, Consumption and Choice: Towards a Conceptual Relationship, Journal of Consumer Studies and Home Economics, Vol. 22, Issue 3, p163-168. The Local Food Company (2014a) Welcome to the Local Food company, Last accessed 23rd November 2014 at: http://www.thelocalfoodcompany.co.uk/ The Local Food Company (2014b) Ethical Policy, Last accessed 24th November 2014 at: http://www.thelocalfoodcompany.co.uk/p/ethical-policy The Local Food Company (2014) Environmental issues, Last accessed 24th November 2014 at: http://www.thelocalfoodcompany.co.uk/p/about-us/about-environmental-issues

The Fashion Channel †Case Study

The Fashion Channel – Case Study Exercise 1: What is expected outcome of each of the targeting scenarios? (complete both the Ad Revenue and Financial calculators to fully understand the financial impact of the scenarios) Exhibit 4: Ad Revenue Calculator TV HH Average Rating Average Viewers (thousands) Average CPM1 Average Revenue/Ad Minute2 Ad Minutes/Week Weeks/Year Ad Revenue/Year Incremental Programming Expense 1 Revenue/Thousand Viewer 2 Calculated by multiplying Average Viewers by Average CPM Current 2007 Base Scenario 1 110,000,000 110,000,000 110,000,000 1. % 1% 1. 2% 1,100 1,100 1,320 $2. 00 $1,80 $1,80 $2,200 $0 $0 2,016 2,016 2,016 52 52 52 $230,630,400 $0 $0 $0 $0 Scenario 2 110,000,000 0. 8% 880 $3,50 $0 2,016 52 $0 $15. 000. 000 Scenario 3 110,000,000 1. 2% 1,320 $2,50 $0 2,016 52 $0 $20. 000. 000 Exhibit 5: TFC Estimated Financials for 2006 and 2007 Revenue Ad Sales Affiliate Fees Total Revenue Expenses Cost of Operations Cost of Programming Ad Sales Commissions Marketing and Advertising SGA Total Expense Net Income Margin 2006 Actual 2007 Base Scenario 1 Scenario 2Scenario 3 Assumptions Insert scenario results from revenue calculator Grows 2% per year with population $230,630,400 $207,567,360 $249,080,832 $323,882,560 $345,945,600 $80,000,000 $310,630,400 $81,600,000 $81,600,000 $81,600,000 $81,600,000 $81,600,000 $81,600,000 $81,600,000 $81,600,000 $70. 000. 000 $72,100,000 $55. 000. 000 $55,000,000 $72,100,000 $55,000,000 $7,472,425 $60,000,000 $41,200,000 $72,100,000 $70,000,000 $9,686,477 $60,000,000 $41,200,000 $72,100,000 $75,000,000 $10,378,368 $60,000,000 $41,200,000Grows 3% per year with inflation Add incrementa l programming expense 3% of ad sales revenue Reflects increased spending of $15M Growing with inflation 3% Spradsheet calcuates automatically Spradsheet calcuates automatically Spradsheet calcuates automatically $6,918,912 $45,000,000 $40,000,000 $6,227,021 $60,000,000 $41,200,000 $216,918,912 $113,300,000 $113,300,000 $11 3,300,000 $113,300,000 $93,711,488 30% $54,640,339 19% $94,908,407 $151,496,083 $168,867,232 29% 37% 39% Exercise 2: Analyze the segmentation options and discuss pros and cons of each.Broad-Based Marketing Pros: When we compare the Net Income of the base 2007, the broad-based Marketing segment will deliver almost $40,000,000 more. Also by the investing in a major marketing and advertising campaign the Average Rating will increase from 1% to 1. 2%. Another advantage of this segment is that it does not need any additional costs of programming, like the other two segments. Cons: A disadvantage of this segment is that the competition would continue to penetrate the premium segments and further erode TFC? s pricing ability. In addition to that the average CPM will decrease $0,20 in comparison to the Current CPM.Fashionista Segmentation Pros: An advantage of this segment is that the Net Income in comparison to the Net Income of the Based 2007 will increase by almost $100,000,000. It is al so strong in highly valued 18-34 female demographics. Because of this the CPM will decrease to $3. 50 because of strengthen the value of the audience to the advertiser. It is also strong in highly valued 18-34 female demographics. Cons: To attract and retain the interest of this segment it is necessary to invest in new programming. This would mean they would have $15,000,000 more spending per year on programming.Another disadvantage it is smaller than the other two segments and represents only 15% of households, this can lead to a drop in the viewers of the other clusters. Another disadvantage is that the average Rating will decrease from 1. 0% to 0. 8%. Focus on the â€Å"Fashionistas† segment This segment was strong in the highly valued 18. 34 female demographic New programming are necessary to attract and retain the interest of this segment Spend 15$ million on programming Focus on â€Å"Fashionistas†, Planners and Shoppers and â€Å"Situationalists† Focus on Women aged between 18-24Fashionista plus Planners/Shoppers Segmentation Pros: An advantage of this segment is that the Net Income will increase more than $100,000,000 in comparison to the Net Income of the 2007 Base. Also the CPM will increase to $2,5 because of a dual targeting. In addition to this the average Rating will increase from 1% to 1. 2%. Cons: To ensure that there were selections aimed at both segments; Wheeler needs to spend $20,000,000 more on programming. Because of the determination only on this two segments it can be that the number of the loyal viewers of TCF will decrease.Exercise 3: If you were Dana Wheeler, what would you recommend and why? If I was Dana Wheeler I would recommend TCF that they should adopt Scenario 3. However, Scenario 3 has a few disadvantages. For example the possibility to lose some loyal viewers and furthermore TCF has to spend $20,000,000 more on programming which means investing a lot of money for them. But in my opinion, in Scenario 3, t he benefits exceed the disadvantages. On the one hand through this Scenario the Net Income will increase more than $100,000,000. In addition to that the CPM will increase to $2,5 and the verage Rating will increase from 1% to 1. 2%. On the other hand 50% of all US Television Households consist of Fashionistas and Planners/Shoppers. In these two markets the 18-34 year old female audience represents 50% and 25% of the cluster respectively. TCF should therefore increase the advertising revenue. The Scenario 3 is better than the Scenario 2 because Scenario 2 only focuses on the Fashionistas and doesn? t include Planners/Shoppers which are also important to consider. Target at â€Å"Fashionistas and the Shoppers/Planners Spend 20$ million on programming