Transformational Leadership and Organizational Culture

Transformational Leadership and Organizational Culture by Bernard M. Bass , Bruce J. Avolio The organization's culture develops in large part from its leadership while the culture of an organization can also affect the development of its leadership. For example, transactional leaders work within their organizational cultures following existing rules, procedures, and norms; transformational leaders change their culture by first understanding it and then realigning the organization's culture with a new vision and a revision of its shared assumptions, values, and norms (Bass, 1985). Effective organizations require both tactical and strategic thinking as well as culture building by its leaders. Strategic thinking helps to create and build the vision of an agency's future. The vision can emerge and move forward as the leader constructs a culture that is dedicated to supporting that vision. The culture is the setting within which the vision takes hold. In turn, the vision may also determine the characteristics of the organization's culture. Transformational leaders have been characterized by four separate components or characteristics denoted as the 4 Is of transformational leadership (Avolio, Waldman, and Yammarino (1991). These four factors include idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration. Transformational leaders integrate creative insight, persistence and energy, intuition and sensitivity to the needs of others to â€Å"forge the strategy-culture alloy† for their organizations. In contrast, transactional leaders are characterized by contingent reward and management-by-exception styles of leadership. Essentially, transactional leaders develop exchanges or agreements with their followers, pointing out what the followers will receive if they do something right as well as wrong. They work within the existing culture, framing their decisions and action based on the operative norms and procedures characterizing their respective organizations. In a highly innovative and satisfying organizational culture we are likely to see transformational leaders who build on assumptions such as: people are trustworthy and purposeful; everyone has a unique contribution to make; and complex problems are handled at the lowest level possible. Leaders who build such cultures and articulate them to followers typically exhibit a sense of vision and purpose. They align others around the vision and empower others to take greater responsibility for achieving the vision. Such leaders facilitate and teach followers. They foster a culture of creative change and growth rather than one which maintains the status quo. They take personal responsibility for the development of their followers. Their followers operate under the assumption that all organizational members should be developed to their full potential.

Outline Key Legislation and Regulations Which Govern Safeguarding Adults Work Essay

The Human Rights Act 1998 (also known as the Act or the HRA) came into force in the United Kingdom in October 2000. It is composed of a series of sections that have the effect of codifying the protections in the European Convention on Human Rights into UK law. All public bodies (such as courts, police, local governments, hospitals, publicly funded schools, and others) and other bodies carrying out public functions have to comply with the Convention rights. The Human Rights Act protects individuals from torture (mental, physical or both), inhumane or degrading treatment or punishment and deportation or extradition (being sent to another country to face criminal charges) if there is a real risk that they will face torture or inhuman or degrading treatment or punishment. Torture occurs when someone acting in an official capacity (for example a police officer or soldier) deliberately causes serious pain or suffering (physical or mental) to another person. This might be to punish someone, or to intimidate or obtain information from them. Public authorities are not allowed to inflict such treatment on individuals, and they must also protect them from this treatment where it comes from someone else. For example, if they know an individual is suffering inhumane or degrading treatment, they must intervene to stop it. Inhuman treatment or punishment includes serious physical assaults, psychological interrogation, inhumane detention conditions or restraints, failing to give medical treatment or taking it away from a person with a serious illness and threatening to torture someone, if the threat is real and immediate. Relating this to Winterbourne house, the staff must be aware that they must maintain the highest standards of care whilst making sure that they do not breach any of the legislation within the Human Rights Act. This means that they must be able to find out if an individual is being abused within or out of the day centre. The Sexual Offences Act 2003: The Sexual Offences Act 2003 was passed with the aim of protecting vulnerable adults and children from sexual abuse and exploitation. A number of the Act’s provisions may be relevant to older people with mental health problems, including the introduction of a number of new offences to protect ‘at risk’ groups such as people with learning disabilities and other groups ith reduced capacity such as people with advanced dementia, strengthening the Sex Offenders Register to ensure that the location of people who have committed serious sex-related crimes are known to the police, addressing the fear of sexual crime and strengthening and clarifying the meaning of ‘non-consensual’ sex and overhauling the law on consent: the Act introduces a test of ‘reasonableness’ on consent and a list of circumstances in w hich it can be presumed that consent was very unlikely to have been given, e. g. hen the victim was asleep. The sections of the Act covering offences committed against those who, because of a very profound mental disorder, lack the capacity to consent to sexual activity may be relevant to older people with a ‘mental disorder’ who are service users. The Act specifically recognises that whilst the vast majority of people working in the care professions act compassionately, it is clear that some unscrupulous individuals have taken advantage of their position to commit a ‘breach of a relationship of care’ by sexual abuse. It is now an offence for those engaged in providing care, assistance or services to someone with a learning disability or mental disorder to engage in sexual activity with that person whether or not that person has the capacity to consent. However, this does not apply if the sexual relationship pre-dates the relationship of care: for example, where a spouse (or long-term partner) is caring for their partner following the onset of a mental disorder, e. . dementia, and continues to have a consensual sexual relationship with that person. Mental Health Act: The Mental Health Act 1996 is legislation for the care and treatment of persons with mental illnesses and for safeguarding their rights. Most people with mental illness can and do seek out treatment for their condition. The Mental Health Act is concerned with the small number of persons who cannot or who do not seek out treatment. This piece of legislation applies to Winterbourne house as it outlines the importance of maintaining the rights of those suffering from a mental health disorder. Those suffering from a mental health disorder may suffer from low self esteem due to the fact that mental health disorders are still surrounded with a stigma. Those working closely with these individuals must ensure that they do not feel they are being discriminated against and must maintain their self confidence, self esteem and self respect. Mental Capacity Act: The main aspects of this act are that a person must be assumed to have capacity unless it is established that he lacks capacity, the person is not to be treated as unable to make a decision unless all practicable steps to help him to do so have been taken without success, a person is not to be treated as unable to make a decision simply because he makes an unwise decision, an act done or decision made, under this Act for or on behalf of a person who lacks capacity must be done, or made, in his best interests and before the act is done, or the decision is made, regard must be had to whether the purpose for which it is needed can be as effectively achieved in a way that is less restrictive of the person’s rights and freedom of action. In terms of Winterbourne house, the carers must ensure that any type of care they take which they have initiated themselves for the individual must be in the best interests of that individual. As well as this, they must ensure that they do not doubt an individual’s own mental capability to make decisions for themselves. Disability discrimination act: The Disability Discrimination Act (DDA) 1995 aims to end the discrimination that faces many people with disabilities. This Act has been significantly extended, including by the Disability Discrimination Order 2006 (DDO). It gives people with disabilities rights in the areas of employment, education, access to goods, facilities and services, including larger private clubs and transport services, buying or renting land or property, including making it easier for people with disabilities to rent property and for tenants to make disability-related adaptations, functions of public bodies, for example issuing of licences etc. Data protection act: The Data Protection Act controls how your personal information is used by organisations, businesses or the government. Everyone who is responsible for using data has to follow strict rules called ‘data protection principles’. They must make sure the information is used fairly and lawfully, used for limited, specifically stated purposes, used in a way that is adequate, relevant and not excessive, accurate, kept for no longer than is absolutely necessary, handled according to people’s data protection rights, kept safe and secure and not transferred outside the UK without adequate protection. There is stronger legal protection for more sensitive information, such as ethnic background, political opinions, religious beliefs, health, sexual health and criminal records. Care standards act: The Care Standards Act 2000 is a piece of primary legislation, which established an independent regulatory body for England known as the National Care Standards Commission. Its remit covered social care, private and voluntary healthcare services. In Wales, the Act provided for an arm of the National Assembly to be the regulatory body for the same services within that country. The principal purpose of the Act was to provide much needed reform of the care services sector within England and Wales. The Act itself defines the range of care services to include: residential care homes, nursing homes, children’s homes, domiciliary care agencies, fostering agencies, and voluntary adoption agencies, private and voluntary healthcare services – including private hospitals, clinics and private primary care premises. It also established equivalence between local authorities and the independent sector in meeting the same standards of care. Race relations act:Â  The Race Relations Act 1965 was the first legislation in the United Kingdom to address racial discrimination. The Act outlawed discrimination on the grounds of colour, race, or ethnic or national origins in public places. It also prompted the creation of The Race Relations Board (in 1966), to consider complaints under the Act. Safeguarding vulnerable groups act: The Safeguarding Vulnerable Groups legislation came about as a result of the recommendations of the Bichard enquiry following the Soham murders. The Safeguarding Vulnerable Groups (NI) Order 2007 aims to prevent unsuitable people from working (either paid or unpaid) with children or vulnerable adult. It does this by vetting all those who wish to do such work vulnerable groups and barring those where the information shows they pose a risk of harm. The police act: This act ensures that employers have access to certain information about the individuals which they employ, ensuring they do not have a criminal record. In the past, it did not have to be disclosed whether or not an individual has a criminal record, however, when working with vulnerable adults it is important that it is disclosed and a check is made of the individual. The rehabilitation of offenders act: This is aimed at helping people who have been convicted of a criminal offence and who have not re-offended since. Anyone who has been convicted of a criminal offence where the sentence was less than 2. 5 years in prison, benefits from the Act, so long as they are not convicted again during the ‘rehabilitation period’. Their conviction then becomes ‘spent’. It is the sentence imposed by the courts that counts, even if it is a suspended sentence, not the time actually spent in prison. Once a conviction is ‘spent’, the convicted person does not have to reveal it or admit its existence in most circumstances. However, there are two main exceptions which relate to people working with children or vulnerable adults. In these cases someone applying for a role is required to reveal all convictions, both spent and unspent.

Southwest Airlines Case Study Example | Topics and Well Written Essays - 750 words

Southwest Airlines - Case Study Example Some actions required for Southwest Airline during that period were decreasing income, market share, intensifying competition, and degrading operational effectiveness. Reason In 1978, after deregulation of Airline industry in U.S. the entire airline industry become too competitive as many of the privet companies tried to grab the market share by expanding their coverage and by reducing the service price significantly. In the mean time, Shuttle by United becomes the biggest threat for Southwest Airlines. In fact, Shuttle by United competed with Southwest Airline by matching the latter’s price and services. However, suddenly United BY Shuttle decided to incorporate two major changes that left the management of Southwest airline in state of confusion. Firstly, it discontinued its services from the most wanted markets i.e. California, Oakland-Ontario. Secondly, it also increased first class coach fare by $10. State objectives To respond against intensifying competitive forces spec ifically, rivalry among the market players likes Shuttle by United. To increase the revenue through an effective promotional and pricing strategies To expand the services coverage in the most profitable market areas. To enhance the operational performance in comparison to market leaders. Market Research After the deregulation U.S. airline industry, the entire market became highly attractive and degree of competition also increased significantly. By 1994, the U.S. airline markets turned into giant sectors as all types of carriers including major, national regional was accounted more than 2 billion annual revenue per year. The big five companies excluding Southwest Airline held more than 80% market share. One the hand, with increasing completion, the industry operating performance kept enhancing. Comparing to 1974, in 1994, there had been significant growth in revenue passengers-miles, available seat-miles, load factors etc. Since, 1990 till 1994, Southwest Airlines was the best perfo rmer as it significantly enhanced its operating performance and income. Market Segmentation Southwest along with Shuttle by United used to compete directly in same markets mainly, in California regions. The news of United’s withdrawal from a major route i.e. Oakland-Ontario might indicate that low fare strategy negatively impacted operational performance and United tried to avoid such situation. However, it kept focusing on California market. Therefore, this markets was also the best suited for Southwest airline. Southwest Airline also did not offer its services in many markets of California like in San Francisco. This would have a highly profitable. Southwest Airline did not compete with Shuttle by United on basis of fare classes like first class, business and economy class. By focusing on fare classes it was possible to specify and define customers’ marker segment. Price During that period, the competition in Airline industry was also based on pricing strategy. South west Airlines started to focus on low fare pricing strategy and it emphasized on its discounting offers. Southwest airline found difficult to compete with Shuttled by United. However, in order to compete with the key rival, Southwest reduced its fare price causing diminishing yield factor. Promotion Southwest mainly focused on creative marketing and promotional activities was meant to create brand differentiation. The prime agenda for

Ancient History Essay Example | Topics and Well Written Essays - 1000 words

Ancient History - Essay Example This study aptly discusses the male mistreatment such as verbal and physical mistreatment of Medea and Lucretia, two outstanding classical mythical female figures. There are various factors that account for the differences in responses by the two women. Below are factors that lead to Medea murdering Glauce the new bride and her children. To begin with Medea was a foreigner, and a barbarian which did not mean much to her Greek husband Jason. Medea’s husband could not refuse the opportunity to wed the king’s daughter Glauce, thus, emotionally ill-treated Medea by rejecting and verbally abusing her. Medea rings a bell to Jason for having left her people to stay with him. Lucretia was a virtuous woman, and could not tolerate the humiliation of being a rape prey. Lucretia killed herself to testify her purity of being raped by Sexton Tarquinius. She kills herself to illicit sympathy, and ensures that revenge was accorded to her. She deems that no good can transpire to a woman without any reputation. She might have killed herself to uphold her honour and stand up against men as a woman in a male dominated period. Sexton physically abused Lucretia by raping her, and treated her with hostility by threatening to kill her (Langlands, 87). The two women reacted on inferior treatment by men in their individual countries. Medea’s response of having reprisal on her husband is not for the greater interest of all the women in Greece, but for her own painful revenge on her husband. Medea is a temperamental woman who can not endure the jealousy, and anger after her husband tells her that he would make her his mistress. This shows men dominance, since he betrayed her subsequent to her forfeiting everything as well as killing her brother, and leaving her country for him. Her reaction is, therefore, mainly personal. Lucretia’s death is not retribution it is an act of sacrifice for social justice. Instead of revenging her rape she decides to bring the

Client brief Assignment Example | Topics and Well Written Essays - 2000 words

Client brief - Assignment Example It depends upon the generosity and kindness of the West Australian Community for the purpose of funding. The main objective of this organization is reducing the disabling effects of osteoporosis, arthritis and various other related diseases among the people of West Australia by means of conducting various programs in Education and Research, Care etc. The services provided by the organization include Telephony Advisory Service, Support Group Service, Education & Self Management Programs, Public Seminars, Warm Water and Hydrotherapy Exercise Classes, Disease Information etc. Stakeholders and Competitors The employees of the organization provide services for reducing the effect of musculoskeletal diseases. There are members within the organization who provide direction and advice related to how and where the services are needed to be delivered for the West Australian society with musculoskeletal condition. They facilitate the availability of the services to people at right time, with pr oper care, by the most appropriate team and at the right place. Arthritis and Osteoporosis WA is highly committed to take care of those people who are affected by arthritis, osteoporosis and various other related diseases. The organization conducts several programs for curing the disease. It has launched programs which help children in coping up with chronic diseases (â€Å"Arthritis and Osteoporosis WA launch program† 2013). It has been stated that every 1 out of 2 women and every 1 out of 3 men will suffer from the pain due to osteoporotic fracture on reaching above 60 years in Australia. There are various other health organizations, Medicare Local, pharmacies and private businesses in West Australia providing high quality services to the people in the country. Some of the competitors are Asthma Foundation of WA, Australian Red Cross Blood Service, Epilepsy Action Australia, Down Syndrome Association of WA Inc, etc. However Arthritis and Osteoporosis WA has maintained diffe rentiation in its service product by providing focused services (Bosworth and Holland 2004, 48) to the people only affected by the musculoskeletal health disease (â€Å"HBF Run for a Reason† 2013). PESTEL Analysis Political/Legal The Australian Health Industry is one of the most important contributors of the national preventative health strategy against various health factors (Sekendiz 2011). The Government has conducted frameworks which facilitate their successful operation within the country. The country is facing increased problems due to obesity, arthritis, osteoporosis and other diseases. The Government has made various rules which support conducting health programs for reducing these health issues. Economic The concerns related to the health issues are often neglected by the people of the country. This leads to various issues like lack of proper funding ultimately resulting in increased competency within the industry. Social The people in Australia do not have proper kn owledge about diseases like arthritis, osteoporosis and other related factors. They do not consider these diseases to be major reasons of concern and as a result give less importance to chronic pain and osteoporotic frac

Computer Networking - Protocol Essay Example | Topics and Well Written Essays - 500 words

Computer Networking - Protocol - Essay Example Packet switching can be regarded as advantageous since it allows for the groping of all data under transmission. As such, data is grouped without consideration of its structure, or even the contents of the data. Packet switching also allows for the sharing of data networks among various users. Packet switching can be discredited because it is slower than other methods used in data transmission. The advantage of Frame Relay is that it allows the connection between routers, as well as Local Area Networks. Frame relay can be regarded as disadvantageous since there is a lot of congestion between the networks. The use of Asynchronous Transfer Mode 2 can be regarded as beneficial based on a number of advantages that result from its use. ATM enhances the use of multimedia services within a single network since it facilitates the transmission of video and voice at the same time. ATM can also be regarded as useful since it allows ease of connection between Wide Area Networks and Local Area Ne tworks (White, 20130. The primary disadvantage of ATM is that it is costly; as such, it brings with it financial challenges to an organization. There is also a need to install new software and hardware to serve new customers. Transmission Control Protocol (TCP) can be regarded as the main language used in internet communication. The primary advantage of TCP is that it allows for ease of communication between servers in a computer network. TCP also allows for the resending of data packets that may be lost during the transmission of data. In addition, there is order in the sending and receiving of data when TCP is used. The main disadvantage that can be attributed to this mode of data transmission is that slow transmission may be experienced (White, 2013). There are significant protocols in both packet switching and circuit switching. In packet switching, there is

Whether the rise of China is a threat to Asian stability Essay

Whether the rise of China is a threat to Asian stability - Essay Example command of indicators that not only include measurable wealth (GDP) and military spending, but a host of factors that basically defines a state’s reflective position beyond its borders. That the Asia-Pacific is undergoing tectonic shifts in terms of the elements of hard power in now a forgone conclusion; China overtook Japan in 2010 to become Asia’s largest economy, only second to the United States globally in terms of gross domestic product (GDP), and in the process, taking advantage of the latters’ woes in the wake of a deadly financial crisis to extend its influence in the neighboring nations’ growth momentum. The increasing influence of China in this region, not to mention its strategic positioning as a major international actor, coupled with its gradual move towards greater power status, a puzzle widely theorized as the â€Å"China Threat† with uncertain predictions, none of which has ever materialized, forms the basis of response herein. All nations pursue their interests of security and prosperity within a context of political diplomacy that ropes in economic, and, if need be, military forces as directed by a history that underpins national ethos and the existing relationships with states in question (Lemke, Douglas, and Suzanne Warner 237). In the mix between the national ethos and political history are the personalities of leaders in power and their respective abilities to further the two elements to certain commensurate heights. As the adage goes, nations only have permanent interests. Accordingly, friendly nations may turn hostile to a neighbor with weird interests, bringing together former enemies to secure a common interest; a grim picture captured in literary analysis in the context of an increasingly influential China in the Asian power politics during the past quarter century (Kaplan 3). Indeed as expected, the collapse of the Soviet Empire, marking the end of the cold war, heralded an era of fractured glo bal power structure, hitherto

Stress in Pushing Tin Film Case Study Example | Topics and Well Written Essays - 1000 words

Stress in Pushing Tin Film - Case Study Example Further, stress can also make reference to a part of life which is ubiquitous in which researchers have intimated that there are different types of stress. Essentially, acute stress is one type of stress, which denotes the one in which an individual is excited, hence becoming an exciting stress where this type of stress keeps a person alert and also active. Chronic stress is the other type of stress whereby it affects the body by causing health problems in which this reaction may result from the body experiencing tension or when it senses danger. Based on this, the process in which the body reacts to these stimuli is known as fight or flight where the hormones react to the surge all through the body. Drawing from this, the Pushing Tin film outlines stress at the workplace clearly as portrayed by the characters in the same (Dewe et. al 1). For one, Nick Falzone together with his colleagues, where their job is to ensure that there is no traffic in the air, become proud and start to brag about the way they are capable of coping with extreme stress found in their job. These workmates go to the extent of comparing themselves with half of the new employees who have quit the job because they lacked the ability to manage the work-related stress. However, it does not take long before Nick and his fellow colleagues are joined by a confident man known as Russell Bell, who challenges them with his ability for coping with the work-related stress despite him applying difficult and dangerous techniques. Therefore, Nick becomes very stressed and even stubs Russell at the back by making false claims to their director, that include Russells being a reckless cannon, by saying that he had seen him daring an aircraft to be propelled violently making Nick even more stressful. Work stress is also experienced by  the members of the Tracon when they are threatened that there would is a bomb scheduled to destroy them together with the facility hence leading to physiological stress.

Professional engineer and micro - electronics Assignment

Professional engineer and micro - electronics - Assignment Example Some of these factors can be controlled by an automated control system designed for a greenhouse as they are some of the main physical factors affecting plant growth and development. Introduction The project aims at controlling the amount of sunlight falling on the leaves thereby controlling the rate of photosynthesis and respiration. The greenhouse system controls the temperature so as not to exceed 500 C a value beyond which enzymes responsible for photosynthesis are denatured. The rate of photosynthesis depends on light intensity and increases with an increase in light intensity during the day. Light intensity can be controlled during the day the purpose of which is the development of the project. During the night it would be impossible to control light intensity if plants are grown outside the greenhouse while inside this is achieved by controlling the lamps. Keeping photosynthesis rates high at night will cause the plants to grow weak and it is advised to only control this rate during the day. Sometimes atmospheric temperatures drop below the optimum values thereby reducing the rates of plant respiration and photosynthesis. This means that the yield would be lower than if the plants are kept at optimum environmental conditions. During photosynthesis plants absorb carbon dioxide(CO2) and water(H2O) from the atmosphere and use light energy to produce glucose stored as glycogen and oxygen is produced as a by product. This occurs mainly at night. The processes above depend on enzymes for catalysis and the enzymes require certain temperature conditions in order to operate. At high temperatures(around 450 C and above) these enzymes will be destroyed. Such is the need to control the temperatures within the greenhouse. From the foregoing discussion the importance of water and light are observed to be very critical to the process and therefore must be regulated. Most greenhouses employ expensive automation designs beyond the reach of most farmers especially those e ngaging in small scale farming. Also most of these greenhouses are built using complex features that might not suit people with limited technical know how on operating such systems beside increasing their cost. This design is comparatively cheap and is aimed at eliminating the aforementioned problems. Individuals wishing to engage in small scale farming such as gardening in their back yards can use this system with great efficiency and maximum yield rate. Furthermore, problems such as forgetting to water the plants need not to worry a person employing this system as this is automatically controlled. This system can be utilized in small areas as well as in larger areas where mass agricultural activities are required. The system is power efficient as a microchip consumes very little power and therefore the cost of electricity is not very high (Nof 2009). The discussion below entails the description of the system (literature review), connection of the system blocks(interfacing), specif ications of the hardware used, an assembly language program flow chart, the practical aspects and potential implementation issues in the design and a brief discussion and summary. Literature review The prototype uses a PIC16F88 micro-controller as the the main processing unit. Its inputs are generated from LM35 temperature sensor, Light Dependent Resistor and soil moisture sensor using a

Working Parents Have Problem Children Essay Example for Free

Working Parents Have Problem Children Essay A young human being below the age of puberty or below the legal age of majority† [1] is the definition of child in Oxford dictionary. The world’s population is estimated to 7 billion with 2 billion children. [2] Turkey has a population of 73,722,998 and including approximately 22.6 million (30.7 %) children.[3] They have an important slide of the population and they are the adults of future. However, as recent conditions are required working more, there exist psychological problems of children with working parents. In this proposal it is intended to investigate the psychology of children with working parents and the possible solutions to influence the psychology of the children with working parents positively by evaluating alternatives. 2. Problem Definition The researches alert that the children with working parents have some psychological and health problems. The study of Agency for Healthcare Research and Quality examines that child’s risk of having overnight hospitalizations, asthma episodes, and injuries or poisonings, a 200 percent increase if child has a working mother.[4]The NICHD Study of Early Child Care reports that a small minority of children ( 16%) who spent 30 [continues] Here are a few ways that children suffer. 1. Lack of Income. One out of five experience various degrees of poverty even in wealthy areas. An ever increasing number of families are poor because both parents are working at low-paying, dead end jobs with no benefits. The results: Kids cannot have things they want and need such as pets, clothes, and school events. They hear mom and dad argue about finances. Low quality daycares that do not meet the needs or provide a safe environment for children. 2. Lack of Interest. We all want what is best for our kids. To some parents, that means providing a better and more comfortable life. They think the only way to have the lifestyle desired is for both parents to work. They forget that what matters more to kids is when their parents show interest in THEM. When both parents work, they usually have less time for their children. The results: Parents miss their childrens events, such as games, recitals, and everyday life. Children do not feel loved. (Love is spelled T-I-M-E). Kids misbehave, just striving to get some kind of attention. In time, it turns to complete rebellion. 3. Lack of Influence. Someone is grooming our kids. If we as parents are not grooming them for success, we are dooming them for failure. If both parents work, kids cannot come to their parents for help with lifes problems. They look to outside sources for guidance. The results: Children look to the media which is filled with violence and vanity. Children look to their peers, which may have their own social problems. Children look to escape through drugs, improper relationships, and other harmful things. Children will probably suffer a lot when they are young (below 12 years old) and both parents are at work. This is because they are not old enough to take care of themselves. They need their parents’ support, both mentally and physically. If parents neglect the growth of their children, it is quite possible that their children will

Consumer Perception and Evaluation of Hewlett-Packard

Consumer Perception and Evaluation of Hewlett-Packard The Notebook PC Industry in Taiwan: An Examination Of Consumer Perception and Evaluation of Hewlett-Packard Abstract This management project is exploratory research to examine the Hewlett-Packard (HP) brand and the Taiwan notebook PC market. HP is one of major players in this market with a brand identity of personalisation, innovation and technology leadership. This objective of this research is to measure the perception of Taiwan consumers about their brand preferences as well as evaluate the effectiveness of HPs brand communication. By setting up focus group interviewing with wholesaler sales representatives and potential consumers, this research developed a structured questionnaire to test and analyse consumers attitudes. The self-administrated questionnaire was conducted online, getting 152 valid samples. It surveyed 20 different attributes of notebook products and brand images to discover consumers attitudes toward the 4 leading brands in the market- HP, Asus, Acer and Lenovo. The results of this research indicate that HP was not able to deliver the brand identity with much success and was ranked in a weaker position then Asus and Acer in terms of all attributes expect reliability in the Taiwan notebook market. It also shows that price is not the most important factor for consumers when they choose a notebook. Instead, much more emphasis is given to quality and function. In chapter 5 of this dissertation, there are some recommendations about HPs future development based on the survey findings. As low price is no longer the most important factor influencing consumers purchasing behaviour, HP should put much more effort on its brand image to create its competitive advantage and expand market share. Keywords Brand Association; Brand Image; Brand Positioning; Brand Preference; Consumer Behaviour; Consumer Perception; Decision Making Process; Hewlett Packard; Loyalty; Marketing Communication Preface I worked for Hewlett Packard Taiwan from 2002 to 2006 as a partner business manager. In that period, I acquired a lot of knowledge in channel management, both from HP itself as well as its partners. However, as a sales representative from the original vendor, I felt that sometimes I made decisions just following past experiences and the suggestions and advices of others without sufficient insight into consumers. Therefore, to prepare for my next career plan, I view this research on consumer perceptions and the position of HP in the Taiwanese notebook market as important preparation for my ambition to become a product manager. In helping me accomplish this management project, I would like to extend my thanks to many people for their confidence in me and for their professionalism. Firstly, I want to thank my supervisor, Dr. Steve Henderson for his patient guidance throughout the course of the research. Without him, it would have been difficult to finish this project. Secondly, I want to say thank you to all the friends who were willing to spare their time in helping me conduct the focus group and questionnaire survey. Their generous help made my research proceed without too many difficulties. Last but not least, I would like to thank my family, for their love, patience and understanding of my prolonged absence from home while pursuing my academic career. With their full support, I have been able to fully focus on finishing this dissertation. Introduction Background Overview Branding has been discussed for several decades as a way to distinguish the products of one producer from others. In increasingly competitive markets, powerful brands become essential to achieve the sustainable development of business. There are a number of views related to brands that are dominant in the literature and in the way that brands have been approached. Traditionally, brands were seen as symbols, and that was reflected even in the definition of brands expressed by the American Marketing Association (2008). In other words, brands were mainly regarded as transaction facilitators, far away from the relationship marketing perspective. Brands were also considered as the producers property. It was implied that the producer is mostly responsible for the communication of the brand, brand related activities, and brand reputation over the long run (Veloutsou 2008). Today, brands are compound entities and their expression includes the perception of the product characteristics, personality and values. It is acknowledged that they could be perceived differently by various corporate stakeholders. Accordingly, terms brand identity (the intended perception brand developers would like the brand to have) and brand image/ brand reputation (how it is perceived by the target audiences) have been developed. Therefore, brands can be the relationship builders (Veloutsou 2008). Actually relationship marketing for fast moving consumer goods relies to a great extent on brands to help in the development of the consumer-firm relationship (Kapferer 2004a; Selame 1993). According to Selame (1993), the function and predominance of brands in the fast-moving consumer goods market is uncontested. Most marketing executives in such industries would not even think to question the importance of brands. As well as the fast-moving consumer goods market, the high-tech industry sees a use of branding (Kapferer 2004). As Zajas Crowley (1995) point out, until the end of the 20th century, the use of brands in marketing high-technology products was minimal. All too often, marketing executives who oversee computers and other high-technology products manage their product lines or marketing mix activities with little consideration for the development of long-term brand recognition. This brings a problem when greater emphasis is given to a products features than to the positioning of its brand-name (Zajas Crowley 1995; Kapferer 2004). Taiwans Notebook Personal Computer Industry As a result of the increasing transition of consumers from desktop PCs to notebook PCs, Taiwans Notebook PC market showed considerable growth in terms of shipment volume. In 2007, 90,165 thousand units were shipped with annual market growth rate reaching 42.1%. MIC (2008) projects that Taiwans notebook PC market will maintain double digit growth until 2011. There is manufacturing competitiveness of Taiwanese notebook personal computer industry during its developing stages of the original equipment manufacturers (OEMs), original design manufacturers (ODMs), and original brand manufacturers (OBMs). A number of trends are affecting the cost of components and materials used to manufacture PCs. The rising cost of oil, Chinas newly enacted labour law (which has increased the cost of assembly labour), reduced tax incentives and the appreciation of the Renminbi (RMB) against the U.S. dollar are challenging the PC manufacturing ecosystems ability to maintain profit margins. Currently, profits run at about 5%. The top ODMs of notebook PCs have stated that they are unable to absorb the increased costs and plan to pass them on to clients (Tsai 2008). On 21 May 2008, Simon Lin, chairman of Wistron, told Taiwans Digitimes that Wistron would raise contract manufacturing prices. This follows similar statements in recent weeks from Compal and Quanta. Gartner (2008) has confirmed the disclosures with all three companies which controlled more than 69% of worldwide notebook PC production in 2007 (refer to Table 1-1). It is the first time these three have attempted, almost simultaneously, to raise prices, even at the risk of losing orders. However, the group carries some weight, which will likely strengthen their position in negotiations with vendors such as HP and Dell. Due to challenges to their competitive advantages, Taiwanese hi-tech enterprises have to consider whether to stay in the OEM field or develop their own brand marketing strategies. Some corporations choose to specialise in the OEM such as Hong Hai Precision Industry Co. Ltd. (Foxconn) and Taiwan Semiconductor Manufacturing Company Limited (TSMC). On the other hand, several firms, including Acer, Asus, and BenQ, recognised the importance of their own brands and have switched their investments and endeavours towards high value-added activities such as research and development, product innovation, and brand building (Chen et al 2007). The goal of all these development strategies is to strengthen competitiveness under the increasing pressure of the changing world environment (Tsai Hung 2007). At most Taiwanese companies, profit margins on sales of branded computers are roughly five times higher than on sales of computers and parts to resellers like HP and Dell, said Jerry Shen, Asusteks chief executive officer (2008). Taiwanese contract manufacturers such as Micro-Star Internal, Clevo, and Asustek (Asus) have started to market their own notebook PC brands through leveraging their manufacturing strengths, a trend that has increased competition across the industry (Simons 2008). Based on the information mentioned above, worldwide brands such as HP and Dell are facing keen competition in the notebook PC market, especially in Taiwan. The IDC report, as summarised by Chinatimes (2007), showed that the notebook market share of local brands Asus and Acer accounted for 33 percent and 32 percent respectively, followed by HP with 12 percent and Lenovo with 7 percent in the 2007 third quarter. In 2008Q1 Asus and Acer, gained over 69% of Taiwans notebook PC market share, including new product line Ultra Low-Cost PC such as Asuss Eee PC products whereas HP and Lenovo remained in the 3rdand 4thplace (Apple news 2008) Overview of HP HP is a leading PC manufacturer, with an approximately 5.6% share in the global hardware market in 2006. It is a provider of personal computing and other access devices, imaging and printing related products and services, and enterprise information technology infrastructure, including enterprise storage. It operates its hardware business through three business units: Enterprise Storage and Servers (ESS), Personal Systems Group (PSG) and Imaging and Printing Group (IPG) and services individual consumers, small- and medium-sized businesses and large enterprises, including the public and education sectors (Hewlett-Packard 2008a). During the three-year period, 2005-2007, its revenues grewat a Compound Annual Growth Rate (CAGR) of 10%, mainly due to increases in sales volume of personal systems in consumer and commercial markets. The PSG segment showed significant top line growth of 24.8% to $36,409m, and accounted for 43.5% of total hardware revenues in the fiscal year 2007. Increased sales volume of notebook PCs, particularly in emerging markets, contributed to higher revenue growth during the year (Business Insights 2008). HP remained the leader in the notebook PC market for the seventh consecutive quarter, maintaining an almost 2 million-unit lead over second placed Dell. In the seasonally slow first quarter of 2008, HP also managed to increase their market share Q/Q in five of six regions. Dell was less successful in Q108, increasing share Q/Q in only two regions. Like HP, third placed Acer posted Q/Q shared gains in five of six regions. HP was market leader in three of six regions, and in the fast-growing APAC market, closed to within a few thousand units of Acer. From a brand value perspective, The Interbrands (2007a) annual ranking of the Best Global Brands, in co-operation with BusinessWeek magazine ranked HP is number twelve of the worlds 100 top brands and number five of the technology brands (Table 1-3). HP has gained 9% in brand value since 2006, following a 10% slide from 2004 to 2005 (Kiley 2007). Kiley (2007) pointed out credit should go to CEO Mark Hurd, who told his subordinates that Hewlett-Packard Co. had to stop building and marketing the PC as if they were a commodity. Designing PCs that consumers actually want was the starting point. The marketing team then went about pitching HP PCs as a personal reflection of consumers desires and needs. Hence the slogan: The computer is personal again. was created (Appendix C). Last summer the company rolled out ads showing hip-hop mogul Shawn Jay-Z Carter mixing music and planning tours using an HP notebook PC (Interbrand 2007c) and using self-made ads by celebrities such as Serena Williams, Petra Nemcova and Jean-Michel Gondry even though HP did not pay these people for these ads (BusinessToday 2008). The objective of the campaign was to grow a more profitable worldwide business through the introduction, support, and marketing of innovative products, services, and solutions that will deliver the absolute best customer experience in personal technology. The campaign was targeted at users aged between 18 and 34 and small to medium-sized companies. Besides, HP delivered images related to innovation and technology leadership via both press and the Internet. The company first employed the innovative imprint technique for notebook PCs, which is a casing design created by advanced moulding techniques that integrate a hard-coat surface using a film transfer process. According to Hewlett-Packards (2008b) publicity, not only does the HP Imprint look fabulous, it is also more durable than traditional paint. HP intended to convey the message about personalisation, innovation and technology leadership to communicate with the public. Rising sales and market share show that customers seem to have had a favourable for reaction for HP notebook PCs. However it is difficult to know how consumers choose between the top four notebook PCs brands, namely Asus, Acer, HP and Lenovo. Consequently, this research aims to take a fresh look at consumer preferences, with a particular focus on HP because it is one of the most successful brands facing particular competition in Taiwan. Of particular interest is to understand how the HP brand image can help to promote it position in the market place, and what influence this has on consumers preferences. Research Purpose This research examines consumers perception and evaluation of the HP brand and makes a comparison with other three major brands in order to get a better understanding of brand strength and preference. There are three objectives in this research to help achieve the overall aim. Firstly, to understand key research issues by a literature review. The literature search will establish the main issues in this field to set the right direction for the study Secondly, to find out consumers brand preference among the four main players in Taiwans notebook PC market by carrying out questionnaire. Finally, to identify and evaluate consumer perceptions of HPs existing brand identity and communication methods. Research Question This study aims to provide significant data to support the selected topic. As DisplaySearch (2008) analysis indicates the increasing transition of consumers from desktop PCs to notebook PCs is having a direct impact on brands growth and market share, and as such the competition in the Taiwan notebook PC market is becoming increasingly intense. HP, one of the most successful and global notebook PC brands, currently operating in over 170 countries (Hewlett-Packard 2008a), needs to expand its market and succeed in Taiwans notebook PC market. Brands with established enterprise and retail presences have had the most success in growing market share in the past several quarters. HP promotes its brand with the slogan the computer is personal again, trying to emphasise personalised, advanced technology, together with an image of innovation image in order to gain worldwide market share. However, it seems these efforts are not working in Taiwan as effectively as in other regions. Therefore, HP struggling in the Taiwan market and facing increasingly strong international and local competitors in this market, does the brand identity which demonstrates personalisation, technology leadership and innovation really helps HP win the fierce competition in Taiwan market? And how HP can influence consumers attitude to improve HPs competitiveness in Taiwan? To this end some of the following questions will be part of the survey: What are most important factors when consumers choose notebook brands? How do consumers respond to HP brand identity? What do consumers think about HP brand communication methods? How do consumers position HP compare with three other brands? Dissertation Outline The dissertation is structured as follows. The introduction chapter is the overview of topic, industry status and research case objectives and goes in detail about the research work towards revealing consumer perceptions of brands. Chapter two is a literature review focusing on theories from concepts in branding discipline, consumer behaviour and marketing communication related to the notebook PC industry. Chapter three describes research methodology including research philosophy, research approach and strategy, the questionnaire design, and data collection. The fourth chapter consists of the research findings, where the empirical date is interpreted and discussed. The final part gives general conclusion as well as recommendations to HP, limitations of this study and directions for future research will also be presented. Literature Review Consumer Behaviour Consumer Behaviour Definition Arnould et al (2005) define consumer behaviour as the psychological and social processes that individuals or groups undergo in the acquisition, use and disposal of products (for example, notebook PCs), services (for example, professional software installation), ideas (for example, spiritual beliefs) or experiences (for example, travelling) and suggest that concept of the circle of consumption results in the marketing opportunities (see Figure 2-1). Understanding acquisition is very important to marketers and requires an understanding of the other phases where these links influence consumer beliefs, value and attitudes (Arnould et al 2005). Consumer behaviour is examined from market perspective that focuses on a particular brand and how to induce people to buy that brand whereas other academic researchers study consumer behaviour from behavioural and social sciences perspectives that emphasise an understanding and explanation of why, what and how people buy (Bagozzi et al 2002). Moreover, consumer behaviour is a division of human behaviour (Bagozzi 2002). Human behaviour refers to the process in which the individual interacts with his/her environment. This perspective tends to emphasise consumer behaviours and practices that help to organise our understanding of phenomena such as consumption rituals, myths and symbols as well as contribute a concern with the meaning and significance of consumption. Walters (1974) suggests that consumer behaviour concerns specific types of human actions that have a direct relation to the purchase of goods and services from organisations. The Use of High Technology It is necessary to know how people use high technology and what they intend to use it for by reflecting on the development of the high technology industry (Hamann et al 2007). Inventions such as the motor car provided products and were created to satisfy the real needs of people during the industrial age (Tomkins 2005). However, as life becomes busier and more stressful, people are forced to adapt the newest features offered by high technology continuously in all areas of their lives, even though they might not fully understood what it can do to help them (Kallaman Grillo 1996). This adaptation process is based on the evaluation of meaningful attributes that support a consumers beliefs, resulting shifts in a consumers frame of reference and evaluation criteria derived from the constantly changing environment, which makes it impossible to define a general pattern of purchasing behaviour (Hill 2003; Jiang 2004). Nowadays consumers expect convenience, quality and service in a product which is made available at anytime and at any place (Yelkur 2000; Winkler 1999; Silverhart 2004). Furthermore, people may adopt high-technology in order to remain in a particular social group or to join one they want to belong to (Kim et al 2001; Haughey 2004). Hamann et al (2007) define consumer electronics as electronic equipment intended for everyday use, which usually finds its application in entertainment, communications and office productivity technology such as mobile phones, digital cameras and notebook PCs. As the high-technology industry increased the speed of its development and started to increasingly focus on particular consumer segments and individual needs, people become more ready to accept technological innovations (McDaniel Gates 2002). For example, radio attracted 50 million listeners within 38 years of its invention and television required thirteen years to reach 50 million viewers, yet it only took the Internet four years to gain 50 million users (Temporal Lee 2001). The connection with brands and the problem of providing a unique selling point (USP) in current markets becomes a critical issue in this context, resulting in a shorter product life cycle (PLC), which has been reduced to a matter of weeks from what used to be years (Zajas Crowley 1995; Winkler 1999; Temporal Lee 2001). However, the most important change can be seen in the increasing adaptation of a mass-customisation strategy (Jiang 2004). The new toys produced by high-technology companies, such as the iPod and the Sony Playstation Portable (PSP), deliver apparently unique benefits to consumers, based on their image and preference match (Tomkins 2005; Klein 2000; Temporal Lee 2001). In order to build an effective branding strategy for current markets, it is therefore necessary to investigate consumers reasons behind buying high technology. The Consumer Decision Making Process Decision making is defined as a balanced combination of emotional and rational elements used to keep on looking for alternatives, to make a purchasing decision, or to get off the idea to buy entirely (Schiffman Kanuk 1994; Witt Meyer 2004; Hill 2003). Furthermore, the decision making process (refer to Figure 2-2) is a series of steps a consumer or an organisation may go through before choosing a brand or a product (Blackwell Engel 2005; Jobber Fahy 2003; Solomon M. et al 2002; Jobber 2007). This decision making process will be definitely influenced by consumer characteristics (Phillips Sternthal 1977; Wang et al 2008). Solomon et al (2002) suggest that consumer characteristics can be divided into two factors: demographic and life-style. In this research, some of the important elements of each factor appear in the questionnaire. Table 2-1 maps out the contents of each factor. A key determinant of the extent to which consumers evaluate a brand is their level of involvement which means the degree of perceived relevance and personal importance accompanying the brand choice (Blackwell Engel 2005). Jobber (2007) demonstrates that computer purchases are an example of high involvement decision making in Ajzen Fishbeins (1980) model (refer to Figure 2-3), which suggests that an attitude towards a brand is based on set of beliefs about the brand. High-involvement purchase models have proven more robust in predicting purchase behaviour than low-involvement purchases (Budd Spencer 1984; Farley et al 1981; Shimp Kavas 1984). Thus, investigating consumer attitude can be helpful in understanding consumers purchasing intensions. Effect of Consumer Attitude/Preference As we have stepped into the 21st century, the role of attitude has become increasingly important in influencing all aspects of consumer behaviour (Malhotra 2005). During the consumer decision process repeated, consumers have a kind of attitude to purchasing, such as beliefs, opinions, inclinations or biases, called consumer attitude that affects their decision making. More important these attitudes can be influenced and changed if the organisation adopts an effective communication strategy (Goldsmith et al 2000; Haugtvedt et al 1994; Brown Stayman 1992). Many studies identify the construct of attitude towards a brand as one of the most important determinants of consumers behavioural intentions (Fishbein Ajzen, 1975; Laroche et al 1996). Belk (1988) and Sirgy (1982) conclude the self-congruence theory explaining how consumers evaluate products to match their self-image. Ekinci Riley (2003), Graeff (1996) and Hong Zinkhan (1995) further suggest that a higher congruence between self-image and product image would positively prompt consumers attitudes or behaviour regarding brand attitude, brand preference, repurchasing intentions, product purchase decisions, and consumer satisfaction. Ahluwalia et als (2000) research shows that customers who have a positive attitude towards a brand (high commitment) would counter-argue negative information related to the brand and support the positive information. High commitment customers relate brand loyalty and advocacy with positive information about their favoured brand. Accordingly, low commitment customers give more weight to negative information than positive information because they perceive it to be more diagnostic. There are a number of factors which result in a consumers attitude to change including the nature of product change, strength of attitude towards the product, stored information about the product, product importance and communication. Based on these factors and research findings, discussion and recommendation will be introduced in the chapter five, mainly directed at possible changes in communication and perceptions in order to make the HP notebook brand more competitive in the Taiwanese market. Otherwise, the current research will provide some initial and exploratory insights into how notebook consumers perceive the different notebook brands in the Taiwanese notebook market. The survey questionnaire that examines consumer perceptions can be found in appendix B, and discussion on the main research findings are introduced in chapter four. Brand A brand is a distinguishing name or symbol (such as logo, trademark or package design) aimed to identify the goods or services of either one seller or a group of sellers, and to differentiate goods or services from those of competitors (Ghodeswar Luang 2008). Thus a brand signals to the consumer the source of the product and protects both the customer and the producer from competitors who would attempt to provide products or services that seem to be identical (Aaker 1991). Weilbacher (1995) argues that brands provide the main upon which consumers can identify and associate with a product or service or a group of products or services. From the consumers point of view, a brand can be defined as the total accumulation of all his/her experience. In other words, the brand is built up from all points of contact with the consumer (Kapferer 2004). A successful brand is an identifiable product, service, person or place, extended in such a way that the buyer or user perceives relevant, unique added values which match their needs most closely (Chernatony McDonald 1998). Branding in high-tech markets is also gaining increasing attention, since there is general consensus that branding becomes more important when high-tech products become accessible to mass consumers (Schoenfelder Harris 2004; Pettis 1995; Reddy 1997; Ward et al 1999). Successful brand building can not only strengthen a producers competitive position to withstand the increasing power of retailers (Park Srinivasan, 1994) but also bring advantages such as defending against competitors and building market share (Adams 1995). When the term brand equity is used in marketing functions it means brand description or brand strength, which is sometimes referred to as consumer brand equity to distinguish it from the accounting asset valuation meaning (Wood 2000). A better understanding of brand equity measurement is essential for an enriched operation of brand management (Pappu et al 2005). Pappu et al (2005) established a multi-dimensionality of consumer-based brand equity, consistent which is the conceptualisation of Aaker (1991). The overall results of the confirmatory factor analysis confirmed that consumer-based brand equity was a four-dimensional construct including brand awareness, brand associations, perceived quality and brand loyalty (Pappu et al 2005; Cobb-Walgren et al 1995; Zajas Crowley 1995). Washburn Planks (2002), Yoo Donthu (2001, 2002) and Yoo et al. (2000) developed a consumer based brand equity measure based on Aakers (1991) and Kellers (1993) conceptualisation but combined the dimensions of brand awareness and brand associations into one. Nevertheless, Wright et al (2007) discussed research issues concerning data collection, timing and measures of brand performance for the PC market and emphasised that it is important that the term brand equity is clearly defined and enjoys organisational consensus and perceived validity given the objectives and strategy for PC brands and the dynamics of the marketplace. There is no agreed measure of brand equity just as there are different measures of the various aspects of a brand. An important issue is how management finds it useful to define and use the term brand equity. Brand Awareness Brand awareness is regarded as an important notion in consumer behaviour, especially in terms of its implication to brand equity, which can be referred to as the value a brand name adds to a product. Keller (1993) declares that brand awareness is reflected upon consumers ability to recognise the brand under different circumstances. He suggests two basic approaches to measuring brand awareness. One is brand recall that relates to consumers ability to retrieve the brand when given the product category, the needs fulfilled by the category, or some other type of hint. Another is brand recognition that relates to consumers ability to confirm previous exposure to the brand when given the brand. Laurent et al (1995) also propose three classical measures of brand awareness in a given product category: (1) Spontaneous awareness: consumers are asked to name the brands they know without any cue, even if only by name, in the product category. The spontaneous awareness of brand X is the percentage of interviewees indicating they know the brand; (2) Top-of-mind awareness: using the same question, the top-of-mind awareness of brand X is the percentage of interviewees who name brand X first; (3) Aided awareness: brand names are showed to interviewees; the aided awareness of brand X is the percentage of interviewees who mention they know the brand. Laurent et al (1995) point out that for a leading brand, its aided awareness score may be extremely high, not allowing for detections of temporary changes; such changes may be more visible in a spontaneous awareness question. Conversely, if one is interested in a minor or start-up brand, one can be sure that its spontaneous score will be very low, maybe a few percent, not allowing for a very sensitive measure of evolution; its aided awareness will be more sensitive, and therefore more able to detect progresses in brand awareness. In this research, we are going to brand awareness for the four top laptop manufactures with both spontaneous and top-of-mind techniques to explore HP notebooks brand awareness in comparison with three other brands. Brand awareness plays an important role in understanding the consumer decision-making process. Many researchers assert that brand awareness has a significant effect on brand attitude and encourages consumers to consider products and services of that brand when purchasing (Brown Stayman 1992; K Consumer Perception and Evaluation of Hewlett-Packard Consumer Perception and Evaluation of Hewlett-Packard The Notebook PC Industry in Taiwan: An Examination Of Consumer Perception and Evaluation of Hewlett-Packard Abstract This management project is exploratory research to examine the Hewlett-Packard (HP) brand and the Taiwan notebook PC market. HP is one of major players in this market with a brand identity of personalisation, innovation and technology leadership. This objective of this research is to measure the perception of Taiwan consumers about their brand preferences as well as evaluate the effectiveness of HPs brand communication. By setting up focus group interviewing with wholesaler sales representatives and potential consumers, this research developed a structured questionnaire to test and analyse consumers attitudes. The self-administrated questionnaire was conducted online, getting 152 valid samples. It surveyed 20 different attributes of notebook products and brand images to discover consumers attitudes toward the 4 leading brands in the market- HP, Asus, Acer and Lenovo. The results of this research indicate that HP was not able to deliver the brand identity with much success and was ranked in a weaker position then Asus and Acer in terms of all attributes expect reliability in the Taiwan notebook market. It also shows that price is not the most important factor for consumers when they choose a notebook. Instead, much more emphasis is given to quality and function. In chapter 5 of this dissertation, there are some recommendations about HPs future development based on the survey findings. As low price is no longer the most important factor influencing consumers purchasing behaviour, HP should put much more effort on its brand image to create its competitive advantage and expand market share. Keywords Brand Association; Brand Image; Brand Positioning; Brand Preference; Consumer Behaviour; Consumer Perception; Decision Making Process; Hewlett Packard; Loyalty; Marketing Communication Preface I worked for Hewlett Packard Taiwan from 2002 to 2006 as a partner business manager. In that period, I acquired a lot of knowledge in channel management, both from HP itself as well as its partners. However, as a sales representative from the original vendor, I felt that sometimes I made decisions just following past experiences and the suggestions and advices of others without sufficient insight into consumers. Therefore, to prepare for my next career plan, I view this research on consumer perceptions and the position of HP in the Taiwanese notebook market as important preparation for my ambition to become a product manager. In helping me accomplish this management project, I would like to extend my thanks to many people for their confidence in me and for their professionalism. Firstly, I want to thank my supervisor, Dr. Steve Henderson for his patient guidance throughout the course of the research. Without him, it would have been difficult to finish this project. Secondly, I want to say thank you to all the friends who were willing to spare their time in helping me conduct the focus group and questionnaire survey. Their generous help made my research proceed without too many difficulties. Last but not least, I would like to thank my family, for their love, patience and understanding of my prolonged absence from home while pursuing my academic career. With their full support, I have been able to fully focus on finishing this dissertation. Introduction Background Overview Branding has been discussed for several decades as a way to distinguish the products of one producer from others. In increasingly competitive markets, powerful brands become essential to achieve the sustainable development of business. There are a number of views related to brands that are dominant in the literature and in the way that brands have been approached. Traditionally, brands were seen as symbols, and that was reflected even in the definition of brands expressed by the American Marketing Association (2008). In other words, brands were mainly regarded as transaction facilitators, far away from the relationship marketing perspective. Brands were also considered as the producers property. It was implied that the producer is mostly responsible for the communication of the brand, brand related activities, and brand reputation over the long run (Veloutsou 2008). Today, brands are compound entities and their expression includes the perception of the product characteristics, personality and values. It is acknowledged that they could be perceived differently by various corporate stakeholders. Accordingly, terms brand identity (the intended perception brand developers would like the brand to have) and brand image/ brand reputation (how it is perceived by the target audiences) have been developed. Therefore, brands can be the relationship builders (Veloutsou 2008). Actually relationship marketing for fast moving consumer goods relies to a great extent on brands to help in the development of the consumer-firm relationship (Kapferer 2004a; Selame 1993). According to Selame (1993), the function and predominance of brands in the fast-moving consumer goods market is uncontested. Most marketing executives in such industries would not even think to question the importance of brands. As well as the fast-moving consumer goods market, the high-tech industry sees a use of branding (Kapferer 2004). As Zajas Crowley (1995) point out, until the end of the 20th century, the use of brands in marketing high-technology products was minimal. All too often, marketing executives who oversee computers and other high-technology products manage their product lines or marketing mix activities with little consideration for the development of long-term brand recognition. This brings a problem when greater emphasis is given to a products features than to the positioning of its brand-name (Zajas Crowley 1995; Kapferer 2004). Taiwans Notebook Personal Computer Industry As a result of the increasing transition of consumers from desktop PCs to notebook PCs, Taiwans Notebook PC market showed considerable growth in terms of shipment volume. In 2007, 90,165 thousand units were shipped with annual market growth rate reaching 42.1%. MIC (2008) projects that Taiwans notebook PC market will maintain double digit growth until 2011. There is manufacturing competitiveness of Taiwanese notebook personal computer industry during its developing stages of the original equipment manufacturers (OEMs), original design manufacturers (ODMs), and original brand manufacturers (OBMs). A number of trends are affecting the cost of components and materials used to manufacture PCs. The rising cost of oil, Chinas newly enacted labour law (which has increased the cost of assembly labour), reduced tax incentives and the appreciation of the Renminbi (RMB) against the U.S. dollar are challenging the PC manufacturing ecosystems ability to maintain profit margins. Currently, profits run at about 5%. The top ODMs of notebook PCs have stated that they are unable to absorb the increased costs and plan to pass them on to clients (Tsai 2008). On 21 May 2008, Simon Lin, chairman of Wistron, told Taiwans Digitimes that Wistron would raise contract manufacturing prices. This follows similar statements in recent weeks from Compal and Quanta. Gartner (2008) has confirmed the disclosures with all three companies which controlled more than 69% of worldwide notebook PC production in 2007 (refer to Table 1-1). It is the first time these three have attempted, almost simultaneously, to raise prices, even at the risk of losing orders. However, the group carries some weight, which will likely strengthen their position in negotiations with vendors such as HP and Dell. Due to challenges to their competitive advantages, Taiwanese hi-tech enterprises have to consider whether to stay in the OEM field or develop their own brand marketing strategies. Some corporations choose to specialise in the OEM such as Hong Hai Precision Industry Co. Ltd. (Foxconn) and Taiwan Semiconductor Manufacturing Company Limited (TSMC). On the other hand, several firms, including Acer, Asus, and BenQ, recognised the importance of their own brands and have switched their investments and endeavours towards high value-added activities such as research and development, product innovation, and brand building (Chen et al 2007). The goal of all these development strategies is to strengthen competitiveness under the increasing pressure of the changing world environment (Tsai Hung 2007). At most Taiwanese companies, profit margins on sales of branded computers are roughly five times higher than on sales of computers and parts to resellers like HP and Dell, said Jerry Shen, Asusteks chief executive officer (2008). Taiwanese contract manufacturers such as Micro-Star Internal, Clevo, and Asustek (Asus) have started to market their own notebook PC brands through leveraging their manufacturing strengths, a trend that has increased competition across the industry (Simons 2008). Based on the information mentioned above, worldwide brands such as HP and Dell are facing keen competition in the notebook PC market, especially in Taiwan. The IDC report, as summarised by Chinatimes (2007), showed that the notebook market share of local brands Asus and Acer accounted for 33 percent and 32 percent respectively, followed by HP with 12 percent and Lenovo with 7 percent in the 2007 third quarter. In 2008Q1 Asus and Acer, gained over 69% of Taiwans notebook PC market share, including new product line Ultra Low-Cost PC such as Asuss Eee PC products whereas HP and Lenovo remained in the 3rdand 4thplace (Apple news 2008) Overview of HP HP is a leading PC manufacturer, with an approximately 5.6% share in the global hardware market in 2006. It is a provider of personal computing and other access devices, imaging and printing related products and services, and enterprise information technology infrastructure, including enterprise storage. It operates its hardware business through three business units: Enterprise Storage and Servers (ESS), Personal Systems Group (PSG) and Imaging and Printing Group (IPG) and services individual consumers, small- and medium-sized businesses and large enterprises, including the public and education sectors (Hewlett-Packard 2008a). During the three-year period, 2005-2007, its revenues grewat a Compound Annual Growth Rate (CAGR) of 10%, mainly due to increases in sales volume of personal systems in consumer and commercial markets. The PSG segment showed significant top line growth of 24.8% to $36,409m, and accounted for 43.5% of total hardware revenues in the fiscal year 2007. Increased sales volume of notebook PCs, particularly in emerging markets, contributed to higher revenue growth during the year (Business Insights 2008). HP remained the leader in the notebook PC market for the seventh consecutive quarter, maintaining an almost 2 million-unit lead over second placed Dell. In the seasonally slow first quarter of 2008, HP also managed to increase their market share Q/Q in five of six regions. Dell was less successful in Q108, increasing share Q/Q in only two regions. Like HP, third placed Acer posted Q/Q shared gains in five of six regions. HP was market leader in three of six regions, and in the fast-growing APAC market, closed to within a few thousand units of Acer. From a brand value perspective, The Interbrands (2007a) annual ranking of the Best Global Brands, in co-operation with BusinessWeek magazine ranked HP is number twelve of the worlds 100 top brands and number five of the technology brands (Table 1-3). HP has gained 9% in brand value since 2006, following a 10% slide from 2004 to 2005 (Kiley 2007). Kiley (2007) pointed out credit should go to CEO Mark Hurd, who told his subordinates that Hewlett-Packard Co. had to stop building and marketing the PC as if they were a commodity. Designing PCs that consumers actually want was the starting point. The marketing team then went about pitching HP PCs as a personal reflection of consumers desires and needs. Hence the slogan: The computer is personal again. was created (Appendix C). Last summer the company rolled out ads showing hip-hop mogul Shawn Jay-Z Carter mixing music and planning tours using an HP notebook PC (Interbrand 2007c) and using self-made ads by celebrities such as Serena Williams, Petra Nemcova and Jean-Michel Gondry even though HP did not pay these people for these ads (BusinessToday 2008). The objective of the campaign was to grow a more profitable worldwide business through the introduction, support, and marketing of innovative products, services, and solutions that will deliver the absolute best customer experience in personal technology. The campaign was targeted at users aged between 18 and 34 and small to medium-sized companies. Besides, HP delivered images related to innovation and technology leadership via both press and the Internet. The company first employed the innovative imprint technique for notebook PCs, which is a casing design created by advanced moulding techniques that integrate a hard-coat surface using a film transfer process. According to Hewlett-Packards (2008b) publicity, not only does the HP Imprint look fabulous, it is also more durable than traditional paint. HP intended to convey the message about personalisation, innovation and technology leadership to communicate with the public. Rising sales and market share show that customers seem to have had a favourable for reaction for HP notebook PCs. However it is difficult to know how consumers choose between the top four notebook PCs brands, namely Asus, Acer, HP and Lenovo. Consequently, this research aims to take a fresh look at consumer preferences, with a particular focus on HP because it is one of the most successful brands facing particular competition in Taiwan. Of particular interest is to understand how the HP brand image can help to promote it position in the market place, and what influence this has on consumers preferences. Research Purpose This research examines consumers perception and evaluation of the HP brand and makes a comparison with other three major brands in order to get a better understanding of brand strength and preference. There are three objectives in this research to help achieve the overall aim. Firstly, to understand key research issues by a literature review. The literature search will establish the main issues in this field to set the right direction for the study Secondly, to find out consumers brand preference among the four main players in Taiwans notebook PC market by carrying out questionnaire. Finally, to identify and evaluate consumer perceptions of HPs existing brand identity and communication methods. Research Question This study aims to provide significant data to support the selected topic. As DisplaySearch (2008) analysis indicates the increasing transition of consumers from desktop PCs to notebook PCs is having a direct impact on brands growth and market share, and as such the competition in the Taiwan notebook PC market is becoming increasingly intense. HP, one of the most successful and global notebook PC brands, currently operating in over 170 countries (Hewlett-Packard 2008a), needs to expand its market and succeed in Taiwans notebook PC market. Brands with established enterprise and retail presences have had the most success in growing market share in the past several quarters. HP promotes its brand with the slogan the computer is personal again, trying to emphasise personalised, advanced technology, together with an image of innovation image in order to gain worldwide market share. However, it seems these efforts are not working in Taiwan as effectively as in other regions. Therefore, HP struggling in the Taiwan market and facing increasingly strong international and local competitors in this market, does the brand identity which demonstrates personalisation, technology leadership and innovation really helps HP win the fierce competition in Taiwan market? And how HP can influence consumers attitude to improve HPs competitiveness in Taiwan? To this end some of the following questions will be part of the survey: What are most important factors when consumers choose notebook brands? How do consumers respond to HP brand identity? What do consumers think about HP brand communication methods? How do consumers position HP compare with three other brands? Dissertation Outline The dissertation is structured as follows. The introduction chapter is the overview of topic, industry status and research case objectives and goes in detail about the research work towards revealing consumer perceptions of brands. Chapter two is a literature review focusing on theories from concepts in branding discipline, consumer behaviour and marketing communication related to the notebook PC industry. Chapter three describes research methodology including research philosophy, research approach and strategy, the questionnaire design, and data collection. The fourth chapter consists of the research findings, where the empirical date is interpreted and discussed. The final part gives general conclusion as well as recommendations to HP, limitations of this study and directions for future research will also be presented. Literature Review Consumer Behaviour Consumer Behaviour Definition Arnould et al (2005) define consumer behaviour as the psychological and social processes that individuals or groups undergo in the acquisition, use and disposal of products (for example, notebook PCs), services (for example, professional software installation), ideas (for example, spiritual beliefs) or experiences (for example, travelling) and suggest that concept of the circle of consumption results in the marketing opportunities (see Figure 2-1). Understanding acquisition is very important to marketers and requires an understanding of the other phases where these links influence consumer beliefs, value and attitudes (Arnould et al 2005). Consumer behaviour is examined from market perspective that focuses on a particular brand and how to induce people to buy that brand whereas other academic researchers study consumer behaviour from behavioural and social sciences perspectives that emphasise an understanding and explanation of why, what and how people buy (Bagozzi et al 2002). Moreover, consumer behaviour is a division of human behaviour (Bagozzi 2002). Human behaviour refers to the process in which the individual interacts with his/her environment. This perspective tends to emphasise consumer behaviours and practices that help to organise our understanding of phenomena such as consumption rituals, myths and symbols as well as contribute a concern with the meaning and significance of consumption. Walters (1974) suggests that consumer behaviour concerns specific types of human actions that have a direct relation to the purchase of goods and services from organisations. The Use of High Technology It is necessary to know how people use high technology and what they intend to use it for by reflecting on the development of the high technology industry (Hamann et al 2007). Inventions such as the motor car provided products and were created to satisfy the real needs of people during the industrial age (Tomkins 2005). However, as life becomes busier and more stressful, people are forced to adapt the newest features offered by high technology continuously in all areas of their lives, even though they might not fully understood what it can do to help them (Kallaman Grillo 1996). This adaptation process is based on the evaluation of meaningful attributes that support a consumers beliefs, resulting shifts in a consumers frame of reference and evaluation criteria derived from the constantly changing environment, which makes it impossible to define a general pattern of purchasing behaviour (Hill 2003; Jiang 2004). Nowadays consumers expect convenience, quality and service in a product which is made available at anytime and at any place (Yelkur 2000; Winkler 1999; Silverhart 2004). Furthermore, people may adopt high-technology in order to remain in a particular social group or to join one they want to belong to (Kim et al 2001; Haughey 2004). Hamann et al (2007) define consumer electronics as electronic equipment intended for everyday use, which usually finds its application in entertainment, communications and office productivity technology such as mobile phones, digital cameras and notebook PCs. As the high-technology industry increased the speed of its development and started to increasingly focus on particular consumer segments and individual needs, people become more ready to accept technological innovations (McDaniel Gates 2002). For example, radio attracted 50 million listeners within 38 years of its invention and television required thirteen years to reach 50 million viewers, yet it only took the Internet four years to gain 50 million users (Temporal Lee 2001). The connection with brands and the problem of providing a unique selling point (USP) in current markets becomes a critical issue in this context, resulting in a shorter product life cycle (PLC), which has been reduced to a matter of weeks from what used to be years (Zajas Crowley 1995; Winkler 1999; Temporal Lee 2001). However, the most important change can be seen in the increasing adaptation of a mass-customisation strategy (Jiang 2004). The new toys produced by high-technology companies, such as the iPod and the Sony Playstation Portable (PSP), deliver apparently unique benefits to consumers, based on their image and preference match (Tomkins 2005; Klein 2000; Temporal Lee 2001). In order to build an effective branding strategy for current markets, it is therefore necessary to investigate consumers reasons behind buying high technology. The Consumer Decision Making Process Decision making is defined as a balanced combination of emotional and rational elements used to keep on looking for alternatives, to make a purchasing decision, or to get off the idea to buy entirely (Schiffman Kanuk 1994; Witt Meyer 2004; Hill 2003). Furthermore, the decision making process (refer to Figure 2-2) is a series of steps a consumer or an organisation may go through before choosing a brand or a product (Blackwell Engel 2005; Jobber Fahy 2003; Solomon M. et al 2002; Jobber 2007). This decision making process will be definitely influenced by consumer characteristics (Phillips Sternthal 1977; Wang et al 2008). Solomon et al (2002) suggest that consumer characteristics can be divided into two factors: demographic and life-style. In this research, some of the important elements of each factor appear in the questionnaire. Table 2-1 maps out the contents of each factor. A key determinant of the extent to which consumers evaluate a brand is their level of involvement which means the degree of perceived relevance and personal importance accompanying the brand choice (Blackwell Engel 2005). Jobber (2007) demonstrates that computer purchases are an example of high involvement decision making in Ajzen Fishbeins (1980) model (refer to Figure 2-3), which suggests that an attitude towards a brand is based on set of beliefs about the brand. High-involvement purchase models have proven more robust in predicting purchase behaviour than low-involvement purchases (Budd Spencer 1984; Farley et al 1981; Shimp Kavas 1984). Thus, investigating consumer attitude can be helpful in understanding consumers purchasing intensions. Effect of Consumer Attitude/Preference As we have stepped into the 21st century, the role of attitude has become increasingly important in influencing all aspects of consumer behaviour (Malhotra 2005). During the consumer decision process repeated, consumers have a kind of attitude to purchasing, such as beliefs, opinions, inclinations or biases, called consumer attitude that affects their decision making. More important these attitudes can be influenced and changed if the organisation adopts an effective communication strategy (Goldsmith et al 2000; Haugtvedt et al 1994; Brown Stayman 1992). Many studies identify the construct of attitude towards a brand as one of the most important determinants of consumers behavioural intentions (Fishbein Ajzen, 1975; Laroche et al 1996). Belk (1988) and Sirgy (1982) conclude the self-congruence theory explaining how consumers evaluate products to match their self-image. Ekinci Riley (2003), Graeff (1996) and Hong Zinkhan (1995) further suggest that a higher congruence between self-image and product image would positively prompt consumers attitudes or behaviour regarding brand attitude, brand preference, repurchasing intentions, product purchase decisions, and consumer satisfaction. Ahluwalia et als (2000) research shows that customers who have a positive attitude towards a brand (high commitment) would counter-argue negative information related to the brand and support the positive information. High commitment customers relate brand loyalty and advocacy with positive information about their favoured brand. Accordingly, low commitment customers give more weight to negative information than positive information because they perceive it to be more diagnostic. There are a number of factors which result in a consumers attitude to change including the nature of product change, strength of attitude towards the product, stored information about the product, product importance and communication. Based on these factors and research findings, discussion and recommendation will be introduced in the chapter five, mainly directed at possible changes in communication and perceptions in order to make the HP notebook brand more competitive in the Taiwanese market. Otherwise, the current research will provide some initial and exploratory insights into how notebook consumers perceive the different notebook brands in the Taiwanese notebook market. The survey questionnaire that examines consumer perceptions can be found in appendix B, and discussion on the main research findings are introduced in chapter four. Brand A brand is a distinguishing name or symbol (such as logo, trademark or package design) aimed to identify the goods or services of either one seller or a group of sellers, and to differentiate goods or services from those of competitors (Ghodeswar Luang 2008). Thus a brand signals to the consumer the source of the product and protects both the customer and the producer from competitors who would attempt to provide products or services that seem to be identical (Aaker 1991). Weilbacher (1995) argues that brands provide the main upon which consumers can identify and associate with a product or service or a group of products or services. From the consumers point of view, a brand can be defined as the total accumulation of all his/her experience. In other words, the brand is built up from all points of contact with the consumer (Kapferer 2004). A successful brand is an identifiable product, service, person or place, extended in such a way that the buyer or user perceives relevant, unique added values which match their needs most closely (Chernatony McDonald 1998). Branding in high-tech markets is also gaining increasing attention, since there is general consensus that branding becomes more important when high-tech products become accessible to mass consumers (Schoenfelder Harris 2004; Pettis 1995; Reddy 1997; Ward et al 1999). Successful brand building can not only strengthen a producers competitive position to withstand the increasing power of retailers (Park Srinivasan, 1994) but also bring advantages such as defending against competitors and building market share (Adams 1995). When the term brand equity is used in marketing functions it means brand description or brand strength, which is sometimes referred to as consumer brand equity to distinguish it from the accounting asset valuation meaning (Wood 2000). A better understanding of brand equity measurement is essential for an enriched operation of brand management (Pappu et al 2005). Pappu et al (2005) established a multi-dimensionality of consumer-based brand equity, consistent which is the conceptualisation of Aaker (1991). The overall results of the confirmatory factor analysis confirmed that consumer-based brand equity was a four-dimensional construct including brand awareness, brand associations, perceived quality and brand loyalty (Pappu et al 2005; Cobb-Walgren et al 1995; Zajas Crowley 1995). Washburn Planks (2002), Yoo Donthu (2001, 2002) and Yoo et al. (2000) developed a consumer based brand equity measure based on Aakers (1991) and Kellers (1993) conceptualisation but combined the dimensions of brand awareness and brand associations into one. Nevertheless, Wright et al (2007) discussed research issues concerning data collection, timing and measures of brand performance for the PC market and emphasised that it is important that the term brand equity is clearly defined and enjoys organisational consensus and perceived validity given the objectives and strategy for PC brands and the dynamics of the marketplace. There is no agreed measure of brand equity just as there are different measures of the various aspects of a brand. An important issue is how management finds it useful to define and use the term brand equity. Brand Awareness Brand awareness is regarded as an important notion in consumer behaviour, especially in terms of its implication to brand equity, which can be referred to as the value a brand name adds to a product. Keller (1993) declares that brand awareness is reflected upon consumers ability to recognise the brand under different circumstances. He suggests two basic approaches to measuring brand awareness. One is brand recall that relates to consumers ability to retrieve the brand when given the product category, the needs fulfilled by the category, or some other type of hint. Another is brand recognition that relates to consumers ability to confirm previous exposure to the brand when given the brand. Laurent et al (1995) also propose three classical measures of brand awareness in a given product category: (1) Spontaneous awareness: consumers are asked to name the brands they know without any cue, even if only by name, in the product category. The spontaneous awareness of brand X is the percentage of interviewees indicating they know the brand; (2) Top-of-mind awareness: using the same question, the top-of-mind awareness of brand X is the percentage of interviewees who name brand X first; (3) Aided awareness: brand names are showed to interviewees; the aided awareness of brand X is the percentage of interviewees who mention they know the brand. Laurent et al (1995) point out that for a leading brand, its aided awareness score may be extremely high, not allowing for detections of temporary changes; such changes may be more visible in a spontaneous awareness question. Conversely, if one is interested in a minor or start-up brand, one can be sure that its spontaneous score will be very low, maybe a few percent, not allowing for a very sensitive measure of evolution; its aided awareness will be more sensitive, and therefore more able to detect progresses in brand awareness. In this research, we are going to brand awareness for the four top laptop manufactures with both spontaneous and top-of-mind techniques to explore HP notebooks brand awareness in comparison with three other brands. Brand awareness plays an important role in understanding the consumer decision-making process. Many researchers assert that brand awareness has a significant effect on brand attitude and encourages consumers to consider products and services of that brand when purchasing (Brown Stayman 1992; K

The Solution Essay -- Philosophy Philosophical Papers

The Solution The business man behind a desk, the scientist in the lab, the artist approaching his canvas, the mathematician examining the symbols he placed on the blackboard--the thoughts going through each of their heads are very different in many ways, yet amazingly similar. For example, the business man must come up with an idea to cut costs and increase revenue for his company. He must find a creative twist to an old idea, a new combination of numbers that allows the company to increase profit and drop costs. Yet this man strays from the numbers and thinks in images, and during the brief moment before the creative act his consciousness seems to play absolutely no role. Often times we must get away from the problem to get closer to the solution. Similarly, we need to get away from words to think more clearly. I once heard a story of a semi-truck that got stuck while trying to drive through a tunnel that was too small. A traffic jam occurred and a team of engineers were called to solve the problem. The engineers measured the semi-truck, the tunnel, the length, the width and the height. But they still could not fmd a solution. A little girl in one of the cars behind the truck asked her father why they did not just let some of the air out of the tires. The father rushed the girl to the engineers and had her tell them the solution that had been at their feet the whole time. The air was taken out, the semi was taken through, and the little girl was taken home. In Physics, we are taught that there are many planes and many points of reference. To Person A, who is standing on a train, he is standing still; to the Person B on the ground, Person A is moving. Within Physics the difference in your point of... ...t everyone can complete on their own and thus make it more personal, in the same way that everyone has their own idea about love that is not ever fully crystallized for lack of words to describe it. The idea in Koestler's essay can be applied to everyday life. When writing this essay I was supposed to form a thought. This essay is the series of thoughts that went through my head while I tried to understand the ideas of Koestler, organized and appended with other ideas and images to strengthen my idea. By the end, I believe that I have finally formed my thought enough to crystallize it into words. By trying hard to search for a solution we sometimes forget our age old instincts. By trying too hard to grasp a hazy image we sometimes find ourselves with nothing more than a dying puff of smoke. One must allow the image to form and come to us. That is creativity.