Mitigating Market Entry Barriers The WritePass Journal

Mitigating Market Entry Barriers Introduction Mitigating Market Entry Barriers ). McLaren Electronic Systems (MES) creates electronic control systems for the McLaren Racing team. The company’s electronic systems are used in formula one vehicle for various telemetry and sensory systems. The company also creates electronic control units for other teams in the motorsport industry to use across Europe and North America. (McLaren, 2013) McLaren Applied Technologies (MAT) focuses on supplying the best technology to boost the technical support in world of sports and to enhance the performance of McLaren’s formula one vehicles. McLaren Applied Technologies has continued to boost McLaren’s reputation as the ‘forefront of British engineering and technology’ (McLaren, 2013). MAT has helped worldwide sports by providing technology to help improve the efficiency of the participant’s performance in the best way possible. This could be something as simple as providing mountain bikes that weigh less without hindering the efficiency of the bike. Absolute Taste is engaged in hospitality and event management business. It serves food to McLaren’s customers and fans at formula one race. Absolute Taste also provides a catering service and hospitality to upper class customers around the world. They also organise events and the serve various cuisines to cater its global customers (McLaren, 2013). McLaren’s Horizontal Diversification The aforementioned diversification strategies of McLaren can be categorized as either related or un-related diversification strategies. Related diversification strategies can be further divided into three categories as horizontal, vertical and cross-sector diversification (Charles et. al, 2010). These related diversification strategies differ due to their different combination of industry similarity and value chain similarity (see fig 2).   Horizontal diversification pertains to a business’s venturing into a new field which uses the same value chain as its core business and falls within the same industry. Considering this definition, McLaren has not diversified horizontally as it has not acquired any other formula one racing teams. Fig.2   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   (Source: Charles et, al. 2010, p. 296) McLaren’s Vertical Diversification Vertical diversification refers to a diversification initiative within the same industry, but one which uses a different value chain than that of the company’s core business.   (Charles et, al. 2010). McLaren diversified vertically through its automotive business as it operates within the same industry but has different customers and marketing channels. Likewise, McLaren’s electronic systems and applied technology business can be termed as vertical diversification as it operates within the same (formula one racing) industry, but it requires a distinct value chain i.e. production, distribution and customer network (McLaren, 2013). McLaren’s Cross Sector Diversification Cross sector diversification occurs refers to diversification within a different industry, but one which has a same value chain (Charles et, al. 2010). McLaren’s venturing into the catering, hospitality and event management business (Absolute Taste) can be classified as cross-sector diversification. Absolute Taste share’s the same value chain as McLaren’s core business as it is an extension of the company’s own marketing activities and thus uses the same managerial and other resources. However, Absolute Taste also operates in a complete different hospitality industry; a field completely different from car racing business. Similalry, McLaren’s applied technologies can be termed as cross-sector diversification in that it also operates in other industries such as medical science apart and sports (other than car racing). McLaren’s Unrelated Diversification Unrelated diversification is referred to a firm’s engagement in a completely un-related business (Charles et, al. 2010). McLaren, diversification strategies so far do not include any un-related diversification as the company achieves economies of scale and synergies through all of its diversification strategies. McLaren has developed this portfolio of companies to boost the Group’s reputation and to expand. The development of the production centre improved McLaren’s chances of increasing economies of scale. By having so many of the McLaren companies being managed under the same roof, it allows each company to make the most of tangible and intangible resources and materials that wouldn’t have been used otherwise (McLaren, 2013). The joint use of inputs means that different McLaren subsidiaries share the transaction cost of machinery and other possible production costs for the vehicles that are produced. Once the McLaren production centre was built, it meant that the internal process of vehicle production would change. Within the production centre research is continuously gathered on how to improve the general performance of McLaren’s Racing and Automotive vehicles. As the car is built they can then send it off to be spray painted by hand within the same facility which not only saves time but reduces errors that may have been made on the paint work by machines. Managerial ambition is the drive of many businesses. McLaren has a reputation to withhold as the ‘forefront of British engineering’ (McLaren, 2013). McLaren are always attempting to produce the best. By diversifying into so many subsidiaries it creates new targets for the groups as a whole. The diversification strategy allows the company to increase its business profile and spread risks accordingly. McLaren’s Diversification strategy as a Reflection of Historical Trends in Corporate Strategy Throughout the midst of 20th century till the early 1990s, there were several dominant logics of strategic management. During 1950s, there was an emphasis on general management skills, along with widespread un-related diversification moves by corporates. It was followed by the prevalence of requiring specific management skills for different industries in the 1970s and 1980s. This was coincided with the requirement of portfolio planning. It was not until 1990s, that the focus of management practitioners and academics was led to prevailing themes of core competencies and dominant management logic view to achieve synergies through growth and diversification strategies (Goold and Luchs, 1993). During this time (i.e. 1990s) McLaren embarked upon its diversification initiative as part of its growth strategy. McLaren’s growth strategy precisely coincided with the prevailing business view of achieving synergies through diversification. Once the new McLaren production centre was built it allowed McLaren Automotive to increase their daily production and enabled them to introduce new road cars such as the MP4-12C sports car. The production centre has not only boosted the production rates but has also got a production line which allows McLaren to test its vehicles (Fosters plus partners, 2013). The production centre is also connected to the McLaren technology centre which is ‘connected by a subterranean walkway, lined with interactive exhibition spaces’ (Fosters plus partners, 2013). This connection allows the technology centre to provide for the McLaren Automotive department by coming up with new McLaren electronic systems for their vehicles. With the producti on centre in place it allows the diversification of the McLaren industries to take advantage of the ability to share machinery. With the connection of the Production centre and the Technology centre it allows McLaren to develop new technology to be used by MES for McLaren Automotive and McLaren Racing to use in their formula one vehicle. To either improve the vehicle performance in some way or to generally improve the safety of the racing car. Absolute taste provides food for the McLaren racing team and other clients such as Mercedes-Benz at all grand Prix races worldwide (McLaren, 2013). Igor Ansoff defined synergy as ‘Exploitation of similarities between different lines. Two plus two equals five’ (Ansoff, 1957). This analogy is saying that when similar industries combine such as McLaren Racing and McLaren Automotive it increases the production levels beyond the predicted rate. This synergy was improved greatly once McLaren has built the new Production centre. It allow ed the McLaren group to all operate in the same vicinity roof which inevitably improves synergy amongst the different industries. All of each other’s resources are at the disposal of whoever wishes to use it. References Ansoff, I. (1957) Strategies for Diversification. Harvard Business Review. Vol. 35 Issue 5. Charles E.,   Bamford, G. and West, P (2010). Strategic Management. Cengage Learning. Fostering plus Partners, (2013) Projects:McLaren Technology Center   Available from fosterandpartners.com/projects/mclaren-technology-centre/ (cited on 5th, March, 2013) Goold, M. and Luchs, K. (1993) Why Diversify: Four Decades of Management Thinking. Academic of Management Executive. Vol. 7 No. 3 McLaren (2013) Vodafone McLaren Mercedes. Available from mclaren.com/formula1/page/mclaren-group (cited on 5th, March, 2013) Nye, D. (1988) McLaren: The Grand Prix, Can-Am and Indy Cars. Guild Publishing. Porter, M.E. (1979)  How Competitive Forces Shape Strategy,  Harvard Business Review, March/April 1979. Terpstra, V. (1994). International Marketing, USA: The Dryden Press William, T. (2009).   McLaren  Ã¢â‚¬â€œ The Cars 1964–2008. Coterie Press.

10 Argon Facts - Ar or Atomic Number 18

10 Argon Facts - Ar or Atomic Number 18 Argon is atomic number 18 on the periodic table, with the element symbol Ar. Here is a collection of useful and interesting argon element facts. 10 Argon Facts Argon is a colorless, flavorless, odorless noble gas. Unlike some other gases, it remains colorless even in liquid and solid form. It is nonflammable and nontoxic. However, since argon is 38% more dense than air, it present an asphyxiation risk because it can displace oxygenated air in enclosed spaces.The element symbol for argon used to be A. In 1957, the International Union of Pure and Applied Chemistry (IUPAC) changed argons symbol to Ar and mendeleviums symbol from Mv to Md.Argon was the first discovered noble gas. Henry Cavendish had suspected the elements existence in 1785 from his examination of samples of air.  Independent research by H.F. Newall and W.N. Hartley in 1882 revealed a spectral line that could not be assigned to any known element.  The element was isolated and officially discovered in air by Lord Rayleigh and William Ramsay in 1894. Rayleigh and Ramsay removed the nitrogen, oxygen, water, and carbon dioxide and examined the remaining gas. Although other eleme nts were present in the residue of air, they accounted for very little of the total mass of the sample. The element name argon comes from the Greek word argos, which means inactive. This refers to the elements resistance to forming chemical bonds.Argon is considered to be chemically inert at room temperature and pressure.Most of the argon on Earth comes from the radioactive decay of potassium-40 into argon-40. Over 99% of the argon on earth consists of the isotope Ar-40.The most abundant isotope of argon in the universe is argon-36, which is made when stars with a mass about 11 times greater than the Sun are in their silicon-burning phase. In this phase, an alpha particle (helium nucleus) is added to a silicon-32 nucleus to make sulfur-34, which adds an alpha particle to become argon-36. Some of the argon-36 adds an alpha particle to become calcium-40. In the universe, argon is quite rare.Argon is the most abundant noble gas. It accounts for about 0.94% of the Earths atmosphere and about 1.6% of the Martian atmosphere. The thin atmosphere of the planet Mercury is about 70% argon.  No t counting water vapor, argon is the third most abundant gas in the Earths atmosphere, after nitrogen and oxygen. It is produced from fractional distillation of liquid air. In all cases, the most abundant isotope of argon on the planets is Ar-40. Argon has many uses. Its found in laser, plasma balls, light bulbs, rocket propellant, and glow tubes. Its used as a protective gas for welding, storing sensitive chemicals, and protecting materials. Sometimes pressurized argon is used as a propellant in aerosol cans. Argon-39 radioisotope dating is used to date the age of ground water and ice core samples. Liquid argon is used in cryosurgery, to destroy cancerous tissue. Argon plasma beams and laser beams are also used in medicine. Argon may be used to make a breathing mix called Argox to help remove dissolved nitrogen from the blood during decompression, as from deep-sea diving. Liquid argon is used in scientific experiments, including neutrino experiments and dark matter searches. Although argon is an abundant element, it has no known biological functions.Argon emits a blue-violet glow when it is excited. Argon lasers exhibit a characteristic blue-green glow.Because noble gas atoms have a complete valence electron shell, they are not very reactive. Argon does not readily form compounds. No stable compounds are known at room temperature and pressure, although argon fluorohydride (HArF) has been observed at temperatures below 17K. Argon forms clathrates with water. Ions, such as ArH, and complexes in the excited state, such as ArF, have been seen. Scientists predict stable argon compounds should exist, although they have not yet been synthesized. Argon Atomic Data Name Argon Symbol Ar Atomic Number 18 Atomic Mass 39.948 Melting Point 83.81 K (189.34 C, 308.81 F) Boiling Point 87.302 K (185.848 C, 302.526 F) Density 1.784 grams per cubic centimeter Phase gas Element Group noble gas, group 18 Element Period 3 Oxidation Number 0 Approximate Cost 50 cents for 100 grams Electron Configuration 1s22s22p63s23p6 Crystal Structure face-entered cubic (fcc) Phase at STP gas Oxidation State 0 Electronegativity no value on the Pauling scale Bonus Argon Joke Why dont I tell chemistry jokes? All the good ones argon!