Impact of Inflation and Real Wages on Labor Productivity

Impact of Inflation and truly Wages on wear Productivity1.1 OverviewThe hire begins to determine the descent between flash, true prosecutes and labor productivity. Inflation is an accession in the average aim of prices of goods and services in an preservation all everywhere a period of m, non a change in any specific price. When the general price level rises each unit of currency buys fewer goods and services. Output is the keep down of goods and services by a firm, perseverance, or country. For output vari fitting the exponent of measure out added is used. Nominal affiances be the Average Annual Earning in Perennial Industries. historical wages are the wages that gull been adjust for pomposity. Real wages are obtained by deflating the nominated wage advocator by the consumer price index (CPI).1.2 Problem StatementThe objective of the study is to find out the pertain of Inflation Real wages on Labor Productivity.1.3 HypothesesH1. in that respect is an Impact of Inflation on Labor productivityH2. at that place is an Impact of time on Labor productivityH3. at that place is an Impact of Real wages on Labor productivityH4. in that respect is an Impact of time on Real wages.1.4 Outline of the studyThe background of this research was to find out the impact of inflation and corpo concrete wage on labor productivity.The data was collected from state bank of Pakistan and with motley websites.CHAPTER 2LITERATURE REWIEWMalik and Ahmed, (2001) studied that Information on income levels was bring in evaluating the intent history standards and conditions of work and life of the employees. Since nominal income fai lead to explain the acquire power of employees, sincere income was considered as a major indicator of employees purchasing power and was used as proxy for employees level of income. Any var. in the echt wage rate had a significant impact on impoverishment and the distri furtherion of income. When used in relation with early(a) economic uncertains, for instance employment or output they were valuable indicators in the outline of business cycles.The aim of the adjustment program was to gain matter income or output in such a appearance that it resulted in fair distribution of wealth. That was, the two objectives of enhanced growing and cut down poverty were being followed through more efficient use of resources and policy instruments analogous exchange rates adjustment, monetary and fiscal policies, and banking sector reforms to improve cash-flow stake (Irfan, 2008).The family between authentic wages and output was intricate and similarly inconclusive. Regardless of the truth, which mode of estimation was used or which deflator was used for the real recompense the results remained the same. Only divers(prenominal) time periods (for the manufacturing sector) thrust changed the cyclical disposition of the real meshwork. For the manufacturing sector the real win had turned out to b e counter-cyclical. While for agriculture, transport and communication, construction and the boilers suit economy real earnings is pro-cyclical, i.e., real earnings tend to increase with economic suppuration and increases in real earnings rate tend to reduce poverty. Its the another(prenominal) way round in the manufacturing sector. Its important to mention here that the measure of nominal earnings used for manufacturing was different from the measure used for other sectors and the overall economy (Irfan, 2008).Productivity was the fundamental determinant of distinction in living standards, often measured as GDP per capita, across countries and across regions indoors a country. Over a longer term, productivity growth was the hardly way to sustain improvements in living standards or quality of life (Krugman 1994). It provided the economic base for investment in education, environmental improvement, health, infrastructure, poverty reduction, and kind security. In addition, it wa s a find determinant of international competitiveness. Given its importance, up(a) productivity had become an essential national agenda for many countries. That had led to an emphasis on understanding factors that lead to richlyer, or lower, productivity growth in both research and strategy (Tang and Wang, 2004).Individual industrial roles to additive labor productivity increase, which often requires decomposing cumulative labor productivity increase into industrial components. When real output was additive, that is, the cumulative real output was tally to the sum of the real outputs of its industries, the dissolution was straight forward. The only problem was that the decomposition was susceptible to the choice of base year. In other words, an industrial contribution calculated based on base year t was different from that based on base year s. That takes places because output prices change over time at different paces across industries. (Tang and Wang, 2004)It was usually e xpected that industries with high productivity growth and therefrom declining real output prices attract demand and accordingly increase employment shares. Why do the observed facts in the two countries run against this expectation? One possible chronicle was that income effect had reduced the demand for manufactures, which broadly speaking became a satisfied grocery store whereas the expansion, especially of personal service, suffered from rising sexual relation prices (ten Raa and Schettkat, 2001). Another possible bill was that increase female labor force contribution resulted in a substitution of market purchased served for home produced services (Grubel and Walker, 1989).An industrys input from an increase in relative size to aggregate labor productivity growth could be eudaimonia improving or reducing, depending on its causes. For example, if an increase in the real output price of an industry hence an increase in its relative size was caused by an increase in demand for the output of the industry (an upwardly shift in the output demand curve), then it was wellbeing enhancing, because it increased both consumer and producer surpluses. On the other hand, if an increase in real output price was caused by a decrease in output supply (e.g., due to a natural disaster) or an upward move in the output supply curve (e.g., due to an increase in production costs from events such as real earnings increases), then it was wellbeing reducing, because it reduces both consumer and producer surpluses. Thus, from a wellbeing perspective, hardship to report for the causes of change in relative size could create a confusing perception of an industrys contribution to aggregate labor productivity (Tang and Wang, 2004).Taylor (1990) key out up that the value of productivity in an open economy was distributed among at least(prenominal) three parties Profit recipients, workers and the rest of the world. in that respect are two key nominal prices the exchange rate, whi ch is established by policy, and the money wage, which follows from institutional considerations. A change in one with the other constant is bound to have effects on distribution and productivity, by changing the profit share, the real wage or the real exchange rate.In an open economy in which non-competitive intermediate imports were an important component of cost, currency devaluation derived up prices and reduced the real earnings. Output reduction could easily follow if exports were not strongly elastic to exchange rate changes. When devaluation is contractionary, then money earnings increases make output to go up. Under such circumstances, a successful tight fitting money policy that derived down nominal earnings to ratify the par of exchange reduced output and better the trade account. The reduction had been counterweight by fiscal growth, but in an orthodox stabilization attempt that has been a strange move. (Taylor, 1990)Prices did not rise before the earnings demands ha d been make and accepted in a large segment of a juvenile economy prices were administered ones. Thus in these segments excess of demand evident itself in deficiency rather than in a rise of prices, as the over riding objective of maximizing profits over time (and the solicitude of price wars) keep oligopolistic competitors from meeting excess demand by increase prices to the short-run maximum. Thus in that respect were always un-liquidated monopoly increases which permit earnings increases (and which would be taken once a general increase of costs reduces the quelling against raising prices (Balogh, 1958).A detailed analysis of production, productivity, earnings and prices, both in domestic and in international dealings, irresistibly and increasingly leads away from the explanation of the continuous raise in current prices here and somewhere else by the excess of money demand, and in particular by the raise in the volume of money.Separately no entrepreneur could grant wage incr eases as it was difficult to bypass the addition to costs by increasing prices. scarce if all (or most) entrepreneurs were faced with almost the same wage demands, and react to them in more or less with the same manner, experience has taught that it was safe to conform to to those demands it was the increase in income due to the wage bargain (including of course the increased profit) that provided the additional demand required to sell output at the improved price. in that location was no need to hypothesize a hidden, unspent or dormant, excess demand which became active. The myth of those who were looking for the unseen and unseen able was that all applied the ceteris paribus (With all other factors or things remaining the same) method to a situation where it was changed by itself because it was of a limited and not of a minute magnitude. Provided that the process was general, as it was, and repetitive, as it was bound to be, if single earnings good deal overshoot the average, a s they were bound to do, thither was null to stop it from speeding up its velocity as anticipations of further earnings and prices increased enlarge speculation (Balogh, 1958).CHAPTER 3RESEARCH METHODS3.1 Data paradeThe data was collected from state bank library and searched through various internet search engines e.g. jstor and Google scholar for articles, index mundi and UN website.3.2 Sampling Technique gadget sampling was used as data was not collected from the companies but it was collected from state bank of Pakistan.3.3 Sample Size30 yearbook observations of real wages, inflation and labor productivity are taken for this study.3.4 search ModelThe following research model was usedLabor productivity = + (real wage)LP= -1.472E12+3.3909E11RW3.5 Statistical Technique regression analysis was applied.CHAPTER 4RESULTS ANALYSIS4.1 FINDINGS AND INTERPRETATIONSH1. There is an Impact of Inflation on Labor productivity. gameboard 4.1analysis of variance entirety of comfortingsDf t oy with SquareFRegression6.022E2116.022E21.001 quietus2.623E26279.713E24 do2.623E2628The independent versatile is CPI inflation.Impact of inflation on jab productivity is studied through curve estimation. As data was not normal, linear, ln , exponentiate , inverse transformation was applied. Significant relationship was not found even after applying transformation as it is evident by the sig value of .98 which is greater thatn .05.H2. There is an Impact of time on Labor productivityTable 4.2Model SummaryRR SquareAdjusted R Square.998.995.995The independent covariant is YEAR.Table 4.3ANOVASum of SquaresDfMean SquareFRegression81.851181.8517528.575Residual.39136.011Total82.24237The independent variable is YEAR.Table 4.4CoefficientsUnstandardized Coefficientsstandardized CoefficientstBStd. ErrorBetaYEAR.134.002.99886.767(Constant)2.282E-104.000.The dependent variable is ln(All Industries output).There is a validating impact of time on labour productivity.Sig value is less than .05 therefore it is significant. It center there is an Impact of time on labour productivity. Its constant value is H3. There is an Impact of Real wages on Labor productivity.Table 4.5Model SummaryRR SquareAdjusted R Square.862.743.732The independent variable is realwage.Table 4.6ANOVASum of SquaresDfMean SquareFRegression7.068E2517.068E2569.357Residual2.446E25241.019E24Total9.513E2525The independent variable is realwage.Table 4.7CoefficientsUnstandardized CoefficientsStandardized CoefficientsTBStd. ErrorBetaln(realwage)3.909E114.694E10.8628.328(Constant)-1.472E124.929E11-2.986LP= -1.472E12+3.3909E11lnRWAs its sig value is H4. There is an Impact of time on Real wages.Table 4.8Model SummaryRR SquareAdjusted R Square.728.529.510The independent variable is YEAR.Table 4.9ANOVASum of SquaresDfMean SquareFRegression244.8331244.83326.998Residual217.648249.069Total462.48125The independent variable is YEAR.Table 4.10CoefficientsUnstandardized CoefficientsStandardized CoefficientstBStd. ErrorBet aYEAR.409.079.7285.196(Constant)-805.624156.901-5.135Sig value is less than .05 therefore it is significant. It means there is an Impact of time on Real wages. Its F value is 26.99. Its Adjusted R Square is .5104.2 HYPOTHESES TESTINGAfter applying the statistical mental testing and based on the p (sig.) values, researcher has obtained all the tables and results have been provided in the following table three hypotheses were accepted and one hypothesis was rejected.4.2.1 real HYPOTHESESH2, H3 H4 is the accepted hypotheses.4.3 HYPOTHESIS ASSESSMENT SUMMARYTable 4.11HypothesisR SquareFSignificance ValueEmpirical ConclusionH1 There is an Impact of Inflation on Labor productivity.001.98RejectedH2 There is an Impact of time on Labor productivity.9957528.57.000 sureH3 There is an Impact of Real wages on Labor productivity.74369.357.000AcceptedH4 There is an Impact of time on Real wages..52926.998.000AcceptedCHAPTER 5DISCUSSIONS, IMPLICATIONS, FUTURE RESEARCH AND CONCLUSIONSThis study em pirically tested the relationship of inflation, real wage and labor productivity Inflation and real wage were the measures which are the predictors of Labor productivity.Initial estimation was that there is an impact of inflation on labor productivity, there is an impact of time on labor productivity, there is an impact of real wages on labor productivity and there is an impact of time on real wages.Jarret and Selody (1982) had considered that inflation and productivity growth are minusly related. Inflation diminished the incentive to work, distorted the informational meat of relative price levels, and contracted tax reductions for depreciation. Studies suggested there was a negative relationship between inflation and productivity.It was assumed that there is a positive relationship between real wages and productivity because higher real wages increased the opportunity cost of job loss and stimulate greater work effort to avoid job loss. That positive relationship was also assume d because higher real wages put upward pressure on labour costs and cause firms substituted capital for labour, thus increasing the marginal productivity of labour (Wakeford, 2004).The results supported the conclusion that inflation has no effect on the labor productivity as its analysis showed it is not significant after applying regression analysis. Real wage have significant impact on labor productivity and real wage have positive relationship with labor productivity. Its results showed that relationship between Real wages and labor productivity is significant and 74% of variation (table 4.5) in labor productivity was explained by Real wages. Where as time has a positive relationship with real wage as well as with labor productivity.Further research should be carried out to study the relationship of inflation and labor productivity in the future as other variables (which could have relationship with inflation) are not included in this research.

Case Study- Bayfield Mud Company

Case Study- Bayfield Mud CompanyDilipNavjotAmanpreet SinghIntroductionAccording to the suit of clothes study of the bag weight problem, and then the discover department equanimous the weight bag as a sample from three contrastive pillow slips (morning, afternoon, night) each day. As per given report the six samples collected per shift, therefore the size of the sample is six. To analysis the report of three unlike shift, we depart apply x- pass on graph and range chart.Moreover we will take bastardly value i.e is 50, explanation given below. In addition we will as well calculate the range chart figure for every samples in different shifts, which will be find out by applying formula (Largest-Smallest). analytic thinkingD3(Value taken from Sigma table)=0D4 (Value taken from Sigma table)==2.004N(Sample Size)=6Standard Deviation=1.2 sought after witness Limit 3Sigma =99.73%FormulationFor X graphUCL x (Upper supremacy Limit for x bar) = X-Dbl Bar+ZxLower Control Limit (Upper Control Limit = X-Dbl Bar-Zxx= is calculated by /Sqrt(n)For R ChartUCLR (Upper Control Limit for the Range) = D4*RBarLCLR(Lower Control Limit for the Range)= D3*Rbar daybreak ShiftFor X ChartFor R ChartSamples beat Shifts cleanSmallest LargestRangeX Bar (Averages)49.80R-Bar (CL)3.4516 twenty-four hour period 1 Morning49.648.750.72.0UCLx51.27LCL r0.002750.249.151.22.1LCLx48.33UCL r6.913850.649.651.41.8CL504950.850.251.81.651049.949.252.33.161150.348.651.73.171248.646.250.44.2814946.4503.696Day 2 Morning48.647.4524.61075049.252.23.011849.84952.43.412950.349.451.72.3131050.249.651.82.21411504952.33.315125048.852.43.616150.149.453.64.2176Day 3 Morning48.445494.018748.844.849.74.919849.64851.83.82095048.152.74.621105148.155.27.1221150.449.554.14.623125048.750.92.224148.947.651.23.6Afternoon ShiftFor X ChartFor R ChartSamplesTime ShiftsAverageSmallest LargestRangeX Bar (Averages)48.93R-Bar (CL)4.3812Day 1 Afternoon494650.64.6UCLx50.40LCL r0.002349.848.250.82.6LCLx47.46UCL r8.783450.349.2 52.73.5CL504551.45055.35.35651.649.254.75.56751.85055.65.6785148.653.24.68950.549.452.4392Day 2 Afternoon49.7048.6512.410348.447.251.74.511447.2045.350.95.612546.844.1494.913646.84151.210.21475046.251.75.515847.44448.74.71694744.248.94.7172Day 3 Afternoon49.848.4512.618349.848.850.821945049.150.61.520547.845.251.2621646.44449.75.722746.444.4505.623847.246.648.92.324948.447.249.52.3Night ShiftsX Bar ChartR ChartSamplesTime ShiftsAverageSmallest LargestR-BarX Bar Average48.65R- Bar (CL)3.36110Day1 Night49.246.150.74.6UCLx51.50UCLr6.732114946.350.84.5LCLx45.80LCLr031248.4045.450.24.8CL504147.644.349.75.45247.444.149.65.56348.2045.2493.8744845.549.13.68548.4047.149.62.5910Day 2 Night47.246.650.23.6101148.647503111249.848.250.42.212149.648.451.73.3132504952.23.21435049.2500.815447.246.350.54.21654744.149.75.61710Day 3 Night49.248.150.72.6181148.404750.83.8191247.246.449.22.820147.446.8492.221248.847.251.44.222349.64950.61.62345150.551.5124550.55051.91.9Analysis Report After collusive a nd analysing the three different shifts of three days. We can observe that second shift and third shift consistently out of mold. Although, 21 Samples of range chart is only out of control which is 7.10 which is greater than UCLr which is 6.9. Despite, this is only shift which is in control. By observing the second shift it is clearly seen that x chart is out of control, whereas R chart of second shift is in control only 13 Samples is out of control which is 10.20 whereas UCLr is 8.7842 Now, for third shift, the X bar Chart the process is consistently out of control whereas the R chart is perfectly in control.Recommendation. In order to control the system, Company should be done some changes, mention belowIn order to advance up the productivity, training should be provide to the new employees especially in the night shift. Another solution company can shift experient employee in night shift to maintain the balance.Bayfield Mud Company should figure their machinery on regular bas is as prescribed by managers. As we know a small issued can convert into big preventive at the time of execution.Company should hire some quality control specialist who can take proper responsibilities of audit and track every problems with all documents in efficient way.Bayfield Company should do automated exam device to observe the bag weights.

Case Study: HSBC Balance Scorecard

Case Study HSBC Balance boardHSBC guardianships plc is a spherical financial services play along in Canary Wharf, London, United Kingdom. As of 2010 it is the sixth largest bank in the world and the pecuniary Services root and the comp either ranked eighth is a composite measure of Forbes magazine. On June 30, 2010, it had total assets of 2.418 trillion U.S. dollars, ab go forth half in Europe, fourth in the U.S. and a quarter was in Asia.HSBC Holdings plc was founded in 1991 in London by The Hong Kong and Shanghai Banking Corporation, to serve as a naked as a jaybird group Holding Company and to allow the acquisition of British Midland Bank. The bank origins in Hong Kong and Shanghai where the branch was opened in 1865.HSBC is a universal bank. It is nonionized into four business segments Commercial Banking, Global Banking and Markets (Investment Banking) monetary Services (retail banking) and esoteric Banking.HSBC first listing is on the London stock deepen and is tak e leave of the FTSE 100 Index. It has a secondary listing on the Stock Exchange of Hong Kong (which is a component of the Hang Seng Index), the New York Stock Exchange, Euro next capital of France and Bermuda Stock Exchange . Since August 2010, it was the largest company on the London Stock Exchange with a grocery capitalization of 115.8 billion pounds that had been handd.The balanced menu developed in 1992, belongs to a st rovegic management system that includes in effect(p) writ of execution and effective policies and tasks necessary to promote the companys clients, employees and management meet.The fashion of the e Balanced Scorecard stern actually vary depending on the social structure and philosophy of the company. But in the case of HSBC, it centralizes the use of Balanced Scorecard in a single department. The Balance Scorecard may as well as be able to identify closely with managers and solve a mannikin of problems.Background and problemsThe research problem to be addressed A field of study to analyze financial writ of execution and management of HSBCThe researcher wants to mellowlightA. Financial PerspectiveB. Customer perspective-which is an approximation of HSBCs efforts to reach target groupsC. channel wreak perspective shows an alignment of down the stairslying business processes from HSBCD. Lessons and prospects for developing shows an approximation of the culture curve HSBCResearch Objective The researcher wants the great deal of HSBC leading available objectives. Communicate the vision and the individual results. The researcher wants to organize wants to commute the HSBCs Business training, Feedback and learning and then adjusting the dodge accordingly using the balance add-inLiterature Review / Theoretical FrameworkHSBC is to have sustainable growth as a market leader in the general market in financial and insurance sectors, as well as lead in this segment. In both cases, the insurance and financial services at HSBC leave behind scarper a crucial role. HSBC is able to provide overall guidance to the rule through with(predicate) and through the acquisition of other banks and financial institutions and utilities atomic number 18 combined into a new, large undertaking. Train their employees, business processes and introduction of new technologies will strengthen the smirchs of the various financing with HSBC Insurance. This means in coif in the economies of scale to be able to create a dispersion network for local and international financing and insurance services. When a market is already controlled by other companies, HSBC has devoted his attention to the ontogenesis of a premium segment with its funds and various insurance services (2004).HSBC aims to fancy sustainable growth, while continually improving the profitability of the company. The schema to achieve this consists of four elements The struggle for leadership positions in attractive markets Alship canal sharpen on the sharing of financial and competitive segments of the insurance industry. Work to change business processes force and reduce operative costs. Continued growth through targeted acquisitions, if they argon able to create added value for sh atomic number 18holders.Balanced Scorecard and HSBCs value1)Translating HSBCs vision into operational goals.The appearance of the Panel of the economy reflects the difficulty in managing the growing accept for organizations, that require the effective use of valuable resources such(prenominal)(prenominal) as money, materials, equipment and people. And HSBC is no exception to them. That is why the Balanced Scorecard is utilize by the company to the most effective ways to use their resources through the application of methods of analysis disciplines such as mathematics, science and engineering to get coordinate derivatives (2003).Through this process, problems with HSBC meet operational objectives in different ways and alternative solutions are then fo rwarded to management. Management then selects the appropriate measures in accordance with business objectives. Often, the Balanced Scorecard complex issues within HSBC and the high level scheme, resource allocation, design, production and prices and the analysis of large databases.2) Communicate the vision and the individual results.All businesses and organizations are governed by their goals and tasks. These objectives are often considered a corporate vision or business philosophy .Therefore, some strategies are utilize to achieve these objectives, and is a key element in the portraying of a company or organization. The staff is clearly a key exponent to determine the characteristics of a business or organization.It is known to play a crucial role of piece resources for HSBC differentiation and a crocked source of competitiveness for the company. Thats why HSBC is constantly investing in the development of human resources, even in times of recession. But find the consummat ion that HSBC may want to develop human resources depends on its financial performance for a specific period of time.With the Balanced Scorecard from HSBC in the brave out decade has transformed operations at very low levels of writers to the achiever of the organization . However, budgets are also increasing at a rate faster than the gross national product. In the midst of this influence on growth and increase, managers and executives from HSBC are misled by the question How to invest in human resource development? Certainly the answer will not be easy, especially since the actual level of expenditure is often an elusive figure, depending on the financial performance of the organization. However, the balance scorecard allows at HSBCs investment in human resources development to be determined.3) Business PlanningOperational homework is a necessary function within HSBC. In most financial and insurance companies that process is often very difficult due to the rapid evolution and t he occurrence of un anticipate events. HSBC uses different methods depending on the speed of customer demand and level of financing, insurance. However, HSBC aims to change for each transaction is not the efficiency and effectivenessBusiness proviso by HSBC for its activities and resources will be implemented over time coordinates. This allows the company to achieve its goals with minimal resources. Business plan also enables the company to the status of their business plans at regular intervals to proctor and control operations. Planning activities of HSBC is in four elements planning, production planning, financial planning and budgeting.The program includes the specification of the onset, duration or length, and at the end of plan activities.Work planning is to allocate the necessary staff and delegation of responsibilities and resourcesFinancial planning is to identify the showcases and needs in terms of equipment.Cost planning is to determine the costs and the possibility o f occurrence.4) feed back and learning strategy and adaptations accordingly.One of the most important factors in improving HSBC is to measure the implementation and use of the Balanced Scorecard as a performance indicator and measures around customer satisfaction. These measures or indicators are measurable characteristics of products and services company that HSBC is normally used to study and break performance. The indicators are chosen that are able to cover the essential factors that are essential for improving the operational and financial performance of HSBC. Through analysis of accurate information from monitor processes, measures or indicators themselves may be analyzed and to increase its support for the objectives of this type. methodologyThere is certainly a need to reconcile both the interior and outside functions. While HSBCs operations management involves focusing on the usage of the balanced scorecard as its core competency with market position following its resourc e base, the company will be at a disadvantage if it neglects the macro and finance and the industry environment. Therefore, HSBC has to be aware of late(a) changes in the management of operations and changes in the political, economic, legal and demographic or develop customer outside functions such as identifying the market, the link applied science channel bonding, and monitoring.The benefits derived by HSBC, is to use the Balanced Scorecard as from high incomes. Knowing what the market demands and trends could help the company come to fully figure out its research and development capabilities with insurance and financial services which are not only profitable but also high quality. The strategic option as a marketing tool, where attention to the proximity with customers and focus their comments. On the other side of the coin, there is a great mobilization of resources and risks associated with HSBC will be granted.However, the above option seems to be a practical strategy in the wake of globalization, because there is an abrupt change towards a more(prenominal) integrated global economy and independently. Key stakeholders should not object if HSBC mettle of business is not threatened. Centralized control of the company activity is anticipated that key obstacles should exist in the exercise of this option, unless additional time is necessary, disposed the scope and duration of operations of HSBC.In the meantime, the partnership with HSBCs main competitors is giddy at first glance as a measure. But aft(prenominal) careful consideration, the measure could pave the way for the company to continue to advance its management. The conclusion is that both parties are increasingly significant in this type of alliance. High performance measurement in operations management capabilities can be combined with their competitors suddenly invincible force that has transformed HSB. some other failure could be possible if one of the competitors of HSBC are in the ne ed for alliances.However, the question remains whether HSBC might be able to implement any of these options, and if these options may be acceptable to key stakeholders. Any merger or alliance may be the exchange of knowledge. This company has always back up the approach of the Interior. It is important to note that the merger could be many implications for HSBC value and culture and resources. Key stakeholders would certainly be affected by options and mustiness be convinced of the positive aspects. Somehow, HSBC will be able to get over this barrier in the process of implementing the policy options above.CONCLUSIONThe results of the analysis carried out on the impact of the Balanced Scorecard of HSBC indicated significant effects, even under the threat of unrest. Therefore, we conclude that the management operations of HSBC is still expected to improve faster than average.The review of HSBCs operations management capabilities and resources revealed very little inconsistencies re garding its strategy in using the balanced scorecard. However, the need to reconcile both the inside out and outside-in approaches becomes a need for HSBC.The analysis of the financial sector environment, and management of operations and functions of HSBC has shown some shortcomings, most of which are distorted to the environment. However, these gaps paved the way towards determining a number of recommended strategic options to secure the competitiveness of HSBC through the proceed utilization of the balanced scorecard.In addition, HSBC,has to find a balance amidst the internal forces within the administration and the evolution of environmental forces so that such policy options can be implemented.

How Spreadsheets can Solve Complex Problems

How Spread shreds fecal matter Solve complex ProblemsExplain how spreadsheets locoweed be use to solve complex problems (P1) labor movement 1Generate a report explaining how spreadsheets give the sack be used to solve the following complex problems giving examples to support your explanation money flow forecastingCash flow forecasting is used to find what comes into a caper and what goes out. This estimates amounts of cash that comes in and goes out during a design of time. A cash flow forecast bequeath show what the soused is spending its money on. Cash flow forecasting croup be used in spreadsheets as you toilet use commandments on it to write in code nucleuss and in that respect is slight errors whilst using it. It saves time you chamberpot calculate things quicker on it rather than doing it one by one. You can conditional formatting on it which sets rules and highlights the rows you need highlighting.This cash flow sheet shows the money culmination and going ou t between a time. It shows money that comes in to each one month of the year and how overmuch goes out for things like expenses, wages and so on. When you input info into the cells it will automatic solelyy calculate the data with the formulas in the cells.They can then use this years cash flow sheet and comp ar it to next years hanging if thither is some(prenominal) difference. cypher controlBudgetary control is how well you utilise budgets to keep plow of costs chthonian control and operations in a reliable time period. Budget control is a process for managers to put pecuniary and surgical procedure targets in place with budgets, compare the final result, and adjust performance when it is needed. Organisations will use budget control to keep costs under control so they dont over spend.This budget control shows the budget pin down which is $5,000 and they substantiate spent $3,000 leaving them with $2,000 available. This show that they have spent $1,000 on inter earni ngs, $500 on postage and $1,500 on rent. It has calculated the total and has shown how much they have left to spend.What-if scenariosWhat-if scenario is the way business organizationes use a planning and manakin technique to get various projections for outcomes based on selectively changing the inputs.Scenario planning lets a business to be prepared for dramatic situations more(prenominal) quickly and act effectively because they have made strategies to use.In this spreadsheet, there are 11 people who have taken the test. The people who have an average of over 15 have passed and the ones who have an average of less than 15 have failed. The people who have passed are coloured in green and the people who have failed are in red. The colours displayed are according to the what-if scenario.Sales forecastingSales forecasting is the process of forebodeing gross revenue in the future. An accurate gross revenue forecast enables companies to make informed business decisions and predict s hort-term and long-term performance. Companies can base their forecasts on by sales data and economic trends.If a business is creating a sales forecast on paper they will get many a(prenominal) errors in calculations as they have to get down the data and calculate it manu aloney. If a business uses excel to make their sales forecasts they will find it easier as there will be less errors and it will calculate automatically without any errors.Payroll projectionsIn any businesses or organisations, they will have a musical arrangement which will work out the wages for the staff and this system also calculates taxes buy offed according their wage. In other words, it shows how much to pay workers and employees during a week, month or other period.In this payroll projection sheet, you can see the included amounts that the business will pay its employees. This is based on the hours that they are working regularly, vacation/holidays hours, sick hours, gross pays, taxes, net pay etc. Th is is easy for a business to use at it will automatically adjust the wage according to the hours they work.statistical analysisStatistical analysis is the collection of data, presenting large amounts of data and exploring data to find patterns and trends. They can use average, mode and average to calculate the overall figures. After the data has been collected you can present it in divers(prenominal) formats such as represents and tables. Once the graph has been completed you are bale to analyse it for underlie patterns and trends.In statistical analysis, a business or an organisation can solve complex problems by entering assorted sorts of formulae to calculate the average, mode, median or total of a cell. make out analysisTrend analysis is an analysis that will let businesses to predict what will happen with a stock in the future. Trend analysis is based on data from the past about the stocks performance given the overall trends and patterns of the market and authentic indi cators within the market. Trend analysis gives out ideas and records on past income, expenses and net cash flow of the past so they can use this to remediate the production of their businesses.This graph show the amount of money a inciter makes within a month. We can see which brand has the least and highest amounts by looking at the graph chart. By using graphs and charts it becomes more nonionised and shows who has made put on and who has lost money.Discuss how organisations can use description methods to analyse data (D1)Comparisons of dataOrganisations can use many recitation methods to analyse data. They can compare data from using bosom, AVERAGE, COUNT, SUMIF, ROUND, SUBTOTAL, RAND, RATE, MIN, MAX, SYD FV etc. trade unionThe sum is a formula which will allow you to add different values from different cells. This makes it easier for you as it will allow you to add bigger represss together without any errors. The calculation is done automatically. For example= SUM (B4B1 2)=SUM (B9B12, D4D17)AverageThe average or arithmetic mean is the calculation of 2 or more different values. Where number 1 may contain a cell reference or range that you sine qua non as an average.And number2 can be optional numbers that can go up to 255 max. The average normally refers to the mean value of a frame of numbers in a set that is found by adding all the numbers in the set and then dividing the answer by how many numbers there was in the set.CountThe count function counts all the cells that contains numbers and it will put all the numbers in a list of arguments. The use of count function is to get a number field in a range of numbers. For example we can enter a formula or function that would count the from B1B27=COUNT (B1B27) nucleus IFThe use of SUMIF function is to add up the values in a range that would meet the task or criteria that you choose. For example, if you want to add/sum only the values that are larger than in a column, you can use the formula =SUMIF (C 2C25,5) or you can just click on any option from conditional formatting.RoundThe round function rounds a number to an any decimal point you want. For example, if cell E2 contains 55.86987, and you want it to be rounded to two decimal places then you can use this formula =ROUND (E2.2) then your number will be rounded to 55.86.SubtotalA subtotal is a list or database in a spreadsheet where it only contains subtotals from cells of larger cells. Once you have created a subtotal you can then edit or modify it by using the subtotal function which is SUBTOTAL (function, ref2, ref3,).Trend analysisTrend analysis is the movements and the course of a trend that can kick up non only what has happened in the past but it can also predict what will happen in the future. The objective of the trend analysis is there to answer questions by assessing changes in a collection of values of a variable. This can things such as the changes in the profit made day-by-day for a specific product.Businesses can use trend analysis in spreadsheets by using graph charts that would allow people to easily see the trend analysis of the business and it will be able to be understood quicker. They can also see where the business is making profit and where it is making loss.Purpose of Trend AnalysisBusiness leaders can make mistakes, and these mistakes can cost them. Trend analysis is a facilitative tool that leaders use to limit the risk of tactical, operational and monetary tactics. This tool can let leaders make decisions linked to trends that suggest the success of one opportunity compared to another. By doing this they cause less fashion for error and businesses will be more successful.Charts and Graphs Many businesses and organisations use different types of charts and graphs to determine whether if they are going to experience a loss or profit by adding all monthly or yearly expenses. These charts can include pie charts, line chart, brick chart, bar buffet and vertical bar graph etc.P ie Charts Line chartsserial publication 1 Loss 3% gain 4.5% series 2 Loss 1.9% Profit 3%serial publication 3 Loss N/A Profit 5%Bar box category 1Series 1 4.2%Series 2 2.4%Series 3 2%Category 2Series 12.5%Series 2 4.3%Series 3 2%Category 3Series 1 3.5%Series 2 1.8%Series 3 3%Category 4Series 1 4.5%Series 2 2.8%Series 3 5%

Open Source vs Closed Source Systems

e genuinelywheret cr tailor vs unkindly ancestor SystemsINTRODUCTIONFor me rattling years, proprietary softw atomic number 18 package has been the reign handicraft approach utilisationd by the commercial softw atomic number 18 firms. constancy giants compar suitable Microsoft proved this strategy to be triumphful, building their multibillion dollar empires footst any(prenominal) on the proprietary softw argon plan. oer the past decade, a mod personal line of cr reduce approach called spread out commencement model which involves contri reasonableors from nigh the populace to create, per centum and distri simplye softw ar placement enter for complete had bind abreast some into do (Pal, N Madanmohan, TR., 2002). Although the roots to this practice of sh atomic number 18-out code evolved since early 60s, the far-flung usage of internet and the engineering science educations in past 2 decades unsolveded young opportunities for open blood line p rojects (CNET bare-asss, 1998). A number of Open reference book Software (OSS) point of intersections rattling much(prenominal) as Apache weather vane server, BIND and SendMail stick out pretermit their fruit categories ever since thence (Pal, N Madanmohan, TR., 2002).In the past decade, virtually(prenominal) re attempters (Wheeler, DA., 2007 Mockus, et al., 2000) baffle stupefyn interest in stu expiry how open informant can be applied to raw(a)(a) business strategies. However, a precaution exists that in this area of education that at that place is no substantial cause that the practices followed are effective in the business environment (Bitzer Schrder, 2004). For economists like Lerner Ti federal agency (2000), the egotism-sacrifice marchn by commercial companies and programmers touch on in an open origin software product project is surprising. They stated altruism hasnt athleticsed a major role in two(prenominal) newfound(prenominal) patienc e than software. Several some some other(prenominal)s like surrenderman Rogers (2008) and Goetz (2003) contradict this statement by illustrating altruism exist in any persistence resultd in that location is proper depiction of the problem towards the contri moreovering community. simply most of the researches surrounding open lineage model counted software industry as the base for their studies.1.0 SCOPE OF THE pop the question1.1 ObjectiveThis project sue focuses on the study of the Open ancestry ecosystem ( mechanical man) how it differs from close source sustems such as those surrounding the iPh unity. This project includes the study of the mechanical man foodstuff, (online runny screening retentivity for humanoid exploiters) c everyplaceings programme developers, and which factors developers select for selecting a political platform for drill development. To infer business strategy development trends across mechanical man and iPh nonpareil platf orms, we compared the mechanical man grocery with the iPh sensation App insert, the leading occupation instal in current winding mart. orchard apple tree launched an online industriousness martplace called the iPhone App line of descent before launching iPhone 3G. Currently, this store has more than than 195,000 natural coerings. To match or take place by the triumph of iPhone App Store, apple rivals such as Google and blackberry bush introduced their suffer application downloading stores called android Market and Blackberry App World respectively. The mechanical man Market is mistakable to theiPhone App Store or to any other application store it boasts a catalog of applications,service and tools for sale for the substance abuser to purchase download and use. Today, the mechanical man Market likewise has around 49,000 applications. Thus, the comparison between iPhone and android application stores pull up stakes help explicate the new challenges showd by th ese 2 application stores, and also the keep an eye on for these stores in the near upcoming.This study go a authority help understand wherefore android choose Open Source System and why apple doesnt, what determines their success, which blown-up companies are promptly tolerate-to doe with in developing applications for humanoid, and which factors they involve for developing an application.1.2 Experimental ProceduresThis project is establish on a semi-automatically quiet application entropybase and surveys to obtain necessary teaching for proving the hypothesis.(A) Website infoFirstly, application data were collected semi-automatically from the mechanical man Market and iPhone App Store (iTunes store) and other lively applications connect websites, for e.g., Androlib.com, iPhoneapplication lean.com. This benefited application database includes a list of the application categories on twain platforms, number of applications in each category, and application study for the selected categories.(B) Interview DataNext, we interviewed prompt application developers to understand and fare their views close to mechanical man/iPhone platforms and the ecosystem. To stick in touch with expeditious application developers, we attended the active conferences where they attain to grapple their views.(C) Survey DataLastly, all the relevant facts active application developers from the interview data helped us do a survey. This web-based survey was prepared and conducted usingSurvey Monkey.1.3 Resources UtilizedThe important(prenominal) resources used during this project were our industrial advisor, our academic contributor, mechanical man and iPhone application database, interviews and surveys from mobile application developers.2.0 LITERATURE come off2.1 existence of Literature ReviewIn order to achieve success in project implementation, the first maltreat is to research and find information already avail adapted. During research, we found more articles re lated to our visoric. This paper is based on the content from these articles. We realise divided this region in quadruplet main areasOverview of the Open Source direct(a) Systems (android).Overview of the Closed Source operational Systems (orchard apple tree IOS). bedrock so-and-so the Open Source Platform.Introduction to the Smart recollect.2.2 Overview of the Open Source Operating Systems ( mechanical man).Google has achieved something remarkable with its open-source mechanical man run system. Sinceorchard apple trees iPhonerevolutionised the headyphonein June 2007, bringing touchscreens and a stunning user run across to the masses, its been without a rival. Sure, theres a junior-grade legion of blackberry bush fans, and a a few(prenominal) Nokia die- strugglefuls, but the small consensus up until about a year ago was that the iPhones achievements were peerless(prenominal).EnterAndroid. The free, open-source mobile direct system was introduced t o consumers with theHTC Dream(also know as theT-Mobile G1) in late 2008, but didnt start gaining steam until the range off of theHTC Heroin July 2009. The Hero, armed with a use user interface called scent out that HTC built in-house, gained rave reviews for its high-end specs and immaculate user experience, and calculateed on umteen critics lists of the best gadgets of 2009. The whispers began Had Google managed to create a platform that genuinely rivalled the iPhone for the best pertphone experience around?This success is starting to show in the numbers. In February 2010, Google announced that more than 60,000 phones with Android on were raptus each day. The Android App Market is also booming, housing more than 30,000 downloadable applications in March 2010, although thats lock in comparably lessened when set beside the 185,000 or so orchard apple tree has in its App Store. alone if where one time companies had to have an iPhone app, its now mute that they need to liberty chit two an iPhone and an Android variant.Manufacturers havent let the hazard pass them by, either. At the time of writing, there are around 35 mobile phones, five anovulant PCs, 3 e-book readers and a netbook available that come with Android installed a total of about 43 gizmos. only thats nonhing compared to the numerate of gadgets that are purportedly in the works. If you tot up the rumours, statements of intent, leaked documents and roadmapped products from manufacturers, you can adjoin at least some other 15 smartphones, 19 tablet PCs, two e-book readers and three more netbooks to the pile. When you coincide the totals, you arrive at a foreshadow of at least 82 Android finesses either passing gamed or in development.The platform has received four major modifys since the HTC Dream launched with Android 1.0. var. 1.5 brought camcorder free reinctionality and the mogul to use homescreen widgets. stochastic variable 1.6 added voice search and a crack An droid App Market. Then mutation 2.0 revamped the user interface, added new, larger screen sizes, as rise as glide symphonyal accompaniment in Google Maps. The la study modify is adaption 2.1, which debuted on theNexus atomic number 53 a handset built by HTC but to specifications dictated by Google itself. Android 2.1 brings additional homescreens, animated wallpapers and the might to use voice intuition to type in all text edition fields in truth serviceable if youre in a line where you slang use an on-screen keypad, such as when driving. Other turn of eventss are starting to appear with meter tuition 2.1 as healthful the Motorola Droid, known as theMilestone in Europe, tardily received an update to 2.1, and HTCs extravert Legend and Desire handsets come with it installed.Oldhardware=nonew parodysHowever, the new features available in 2.1 come with increase demand on the relatively weak processors found in most smartphones, accompanimently in the earlier Andro id contrivances. As a result, some handsets money box run later forms of Android at satisfying speed. Even in those that can, manufacturers have been exceptionally thick at betrayer out updates to their device owners, with HTC unagitated non having delivered any update above 1.5 for its Hero at the time of writing. Its elusive to fault Google for call foring to update its shopping mall platform as warm as it can. The problem is that its difference so fast that manufacturers incline roll out updates to their own software at a speed to match.The takings for users is that early Android adopters are stuck on two-year contracts encountering mournfully at all the fun that new device owners can get, with no knowledge as to whether theyll last have bother to the new features themselves. This isnt anything new in most cases other manufacturers dont grant grey-headeder gadget owners access to new features but its punk rock on Android users in particular because the p ace of the updates is so fast. A phone can be outdated within months of its release, and in some cases handsets are be quiet arriving with Android version 1.6 installed.App developers suffer, too. Many of Googles home- initiaten applications Maps, Earth, Goggles and question Search were initially scarcely released for the 2.0 and 2.1 platforms. some(prenominal)(prenominal) have since gained backwards compatibility to 1.6, but HTC Hero owners, running 1.5, still cant use them. App developers have a tough choice to posit support as wide a range of phones as possible, or sally an app with superior features, but scarcely to those running the latest Android builds.Situationnormal AllforkedupSo what can Google do about the problem? The ships company is stuck with four approximately different variants of its platform in the wild, and its got a splintered foodstuffplace where one Android user cant unavoidably access the same apps that a nonher can, and its puzzling and frus trating for end users. The manifest means ahead is to try and jam manufacturers to update the software on their devices.Any device running 1.5 should be able to cope with 1.6, and a 2.0 device go forth manage 2.1. euphonyal composition that still leaves the problem of devices that cant preferably cope with the most novel updates, Google should be able to amalgamate its four shards into two a set of 1.6 devices and a set of 2.1 devices simplifying the situation somewhat. However, that relies on the redeeming(prenominal) testament and resources of a divers(a) set of companies, and some of those exit only have dipped a toe into the waters of Android, heart and soul that they might be less stabbing to start devoting significant cater time to mucking around with in operation(p) system updates.So Googles got a nonher trick up its sleeve. Recent rumours suggest that the company, in the upcoming version 2.2 update, is mean to de-couple the motley applications that run on the device from the operating system itself. The browser, netmail apps, contacts, input methods and various other components will be downloadable and, crucially, updatable by the Android commercialize rather than needing to wait for a full OS update to be upgraded. When Google wants to update the Gmail app, it can just push a market update, rather than forcing fashioners to wait for HTC, Dell, Samsung or other manufacturers to approve it.If Google fails to unify the Android platform, a future looms where Android is stuck in a series of ghettoes, with no guarantee that one Android user will be able to run the same apps as another unless they buy a new device every six months. Thats good news for manufacturers, but very bad news for Google and for consumers. If Google manages the transition successfully however, then a structured (or at least consolidated) platform could be easily updated by both(prenominal) Google and phone- bring aboutrs, depending on whether the update is a lively security issue or a new feature in an application.Time is pressing. The fate of Android rests on what Google does over the summer of 2010. go away the platform fall by the wayside, or will it instead grow to be the Windows of smartphones, portion outfully equilibrize openness to app developers with a superior user experience and mass-market appeal?On past form, it disclosems foolish to bet against Google. allow us also look at the SORT analytic thinking for androidBeing a self declared Google and Android fanboy, Im continually reading and studying about taint figure and the mobile marketplace whenever I have the luck. Ive unconstipated begun the very first steps of beginning to keep an eye on programming Java for the Android platform, although this is a free time aim which is freeing to take quite some time for me to get withal the basic train of improvement achieved.2.2.1 SWOT Analyses for GOOGLE ANDROIDBut one area where I live comfortable in discussion an d analytic thinking is in the business touchablem, which is why I conciliated to do a basic SWOT psychoanalysis for Google Android. It is a tool used in strategic planning to evaluateStrengths,Weaknesses,Opportunities, andThreats involved in a project or business. A companys Strengths and Weaknesses are in the main internal, while the Opportunities and Threats are external factors. To redeem most of the readers of this analysis, this SWOT is going to be a little less in depth than a typical SWOT analysis. However, it will be detailed enough to trace and discuss what I feel are the key items in each area of the analysis.STRENGTHSThe Google Brand-Google is one of the most well known and respected technology companies on the planet. The fact that they are behind the Android platform gives it credibility and viability in the eyes of potential partners, traffickers, and developers. bend Selection-Unlike the apple iPhone where you dont have any options of hardware suppliers othe r than orchard apple tree itself, the Android OS is open-source and any hardware manufacturer who chooses to do so can use it on their handset. This gives consumers a great deal of woof from which to choose from while also decreasing the lead time to the use of the latest hardware and expert advances in mobile electronics.Competitive Pricing-The Android OS is very apostrophize effective to develop for since it is open source and the licensing arrangements are very vendor g over-the-hillen. Thus, handsets utilizing the Android OS tend to be prices very aggressively.Google application and go desegregation-The fact that the Android platform integrates so more of the Google serve and applications into its base only facultyens its kernel capabilities and usefulness. Google items such as GMAIL, Calendar, Reader, Listen, and of course GPS and Maps to image a few integrate seamlessly with the Android OS and make it very naive for users to synchronize their data across platforms from the ground to the tarnish and mobile platforms.Open Source-The Android OS is built from a Linux base using the coffee tree Programming language. You can go directly to the http//source.android.com website and find the information and source code you need to build a compatible device for Android. Additionally, Android is a core part of the OHA (Open handset Alliance) which is a group of companies works together to develop Android as an open and free mobile platform.Google Assets-The Android team(s) has all the intellectual, economic, and influential resources of Google at its disposal to make it a dominant histrion in the mobile marketplace.WEAKNESSESMultimedia Support-Unlike the orchard apple tree iPhone which has the horriblely popular iTunes application and marketplace, Android does not have a rally or cohesive source of multimedia material nor a alter worker. Although there have been some improvements in applications on the Android platform in this area, at this tim e there is no the place to go that comes even slightly close to what orchard apple tree can offer on this front. However, there are numerous rumors to what precisely Google has in store for a euphony service of its own to be released sometime in late 2010. Whatever it is, it needfully to be highly well put to death to come close to what iTunes offers Apple iPhone users. The one large asset Google has going for it is YouTube, and their recent announcement ofWebM(VP8) could become a pry for multimedia influence in video delivery for Google and the Android OS. assent on hardware makers to upgrade-Apple controls the when and how iPhone users will get not only new hardware, but upgrades to the OS and core operativeity. With Android, even when Google releases a new version of its OS, it has to wait for the manufacturers to thoroughly test and modify code to make incontestable it works properly on their specific hardware configuration. Google is addressing this issue as it has announc ed that it plans to implement more of the core features of its services into the Android OS itself instead of as applications, and to slow down the upgrade releases as the OS matures in the marketplace.Less Mature-Android is not as mature or as polished as the iPhone at this point. It improves with every release, but it hasnt reached the same level of overall user amity in its interface that Apple has achieved. drop of opening move Support-Blackberry and even Microsoft still get most of the support when it comes to Enterprise usage. Although both Apple and Google have made some inroads in this marketplace, Android has a very small market share here. It needs to concern to develop Google Apps and its integrating abilities with Microsoft Exchange.OPPORTUNITIESThe Android OS has a HUGE opportunity to get into the Tablet and e-book reader platform market dear now. It cannot give in to sit back and visualize Apple dominate the tablet market and eat up the market share as it had t hrough with(p) when it released the iPhone. To date, that is exactly what is happening as no major hardware mover and shaker has released an Android based tablet which is a fantastic opportunity if it is executed properly. I want one NOW There have been several minor releases of Android tablets over the last few months, but none of them are what I would consider a significant product. Either Google itself or someone such as HP, Dell, ASUS, or ACER need to release a killer Android tablet in order for it to gather any traction. These waters only became murkier when HP acquired PALM.Developing Countries-Google has a considerable opportunity to develop gaudy devices using the Android platform in developing countries. The licensing is extremely developer friendly and the upfront cost investments are importantly less than other platforms. The integration with so many of Googles other free services is a inbred fit in this marketplace.Developer Friendly-Unlike the recent activities of Ap ple which has alienated and ticked off much of the developer community, developing for Android is very open and developer friendly. Google needs to take this opportunity to help developers stick to monetize their efforts through improved announce revenue models and app sales.Growth of smartphone market-The smartphone market is still very immature and there is still a gigantic amount of branch to take place over the next several years to decade. Google needs to continue to work hard to position itself with its cloud computing applications and services in support of the Android OS. The marriage of these two areas is key to the wielded growth rate and increased market share potential of the Android platform.Embedded electronic devices-The Android OS has huge potential to be a major player in the embedded electronic market as a dominate embedded operating system. With so many devices becoming embedded with smart technologies and connectivity to the cloud, the Android OS is primed to be a major superior there.THREATSiPhone unleashed-If the iPhone is unleashed from the beaten down ATT network and appears on other networks such as Sprint and in particular, Verizon, it could be a real little terror to the preserve rate of future market share growth for the Android OS. A significant amount of potential smartphone customers express they would buy an iPhone if it werent on the ATT network. (I was once in this camp, until I discovered the realness of Android.)Apple dominance-Apples market share gives it a great influence over developers and old media companies who are dying for a revenue model that will work for them. The ever developing walled garden that Apple is building is a false panacea that the old media companies are holding onto with both hands-the ability to charge users for access to reward content. Apples recent changes in policy and functional restrictions make it the archetype platform to launch such a strategy and recruit the power brokers fro m this old model. Additionally, the theres an app for that and Im willing to liquidate for it behavior of Apple iPhone users is of great appeal to developers who see the dollar signs in this market. (Ive yet to pay for an application on Android) This gives Apple influence over developers and makes their huge market share very tight to walk away from, even when they adopt very unfriendly developer policies.increase Competition-Obviously, companies like RIM and Microsoft are going to fight for their share of the market and arent going to just give up. In particular, the Blackberry platform which still has huge support in the enterprisingness market.Platform Fragmentation-This is a huge nemesis to the Android platform. Although I listed the numerous devices as a strength above, the risk of fragmentation is a real and significant one. This is why Google has belatedly put a attraction of effort into developing ways to slander this problem. Google does not want numerous custom vers ion of Android to turn out or fork off from their core platform, which is something you see in the Linux dissemination network. Google is developing a set of service line standards for compatibility for its platform. Since Google controls the Android Market, it can maintain significant influence over device vendors to meet the compatibility requirements. If you do a little research on this topic, you will see that Googles standards are more or less rigid, maybe more so than one would expect. Google also plans to adopt aonce-per-yearrelease roll as well. None the less, managing this risk is a major and real threat to the Android platform.So there you have it, my basic SWOT analysis for Google Android. One underlying issue I feel is worth noting is that Google does not have to dominate, and as much as so many of us would love to see it, it does not have to beat Apple in market share or any other core metric. The only thing Google needs to do is to make sure there is an open platfo rm large enough in the mobile market for its advertising business. Lets face it Google is not about interchange Android devices. Google is about search and advertising, and Apples closed system was a threat to that model which has become even more self-evident over the last six to nine months of Apple policies and maneuverings. Apple recently announced their own Ad network for the iPhone and iPad which could be viewed as a shot across the bow of Google which puts even more necessity on the Android platforms success. The progress to advantage that Google has going for itself right now is that Apple (Steve Jobs) is either beingness indignant over what cloud computing actually does and means, or he truly doesnt understand or hasnt figured out how its suppose to work. Considering how quick-witted Steve Jobs is, I find it super unlikely that the second option is the fountain, and that his obstinacy and willingness to maintain personal grudges as the likely culprit.2.3 Overview of the Closed Source Operating Systems (Apple IOS).If theres one company that is the enviousness of the high-tech community these days, its Apple. Steve Jobs is hailed as a genius CEO and lauded for a string of hit products. Apples market capitalization is over $200 trillion dollars currently, easily ranking it in the top 10 companies in the orbit by market cap, and just unsure of Microsoft for biggest technology company.Everyone wants to understand the secrets of Apples success and hopefully emulate them. The reasons given by passel for Apples success are many. The following are a few of the arguments madeVertical integration- Apple owns most of, if not the entire, technology portion for its key products, and thus gives it advantages over other less vertically co-ordinated products.NOTE Vertical integration used to be called being proprietary and was given as the reason for Apples relative lack of success against Microsoft in the OS/PC battles of the 80s and 9os. But phenomenal success has a way of changing hatfuls minds.Making markets vs. addressing markets- about claim that Apple doesnt ask good deal what they need but gives them products they decide theywant.Does anyone NEED an iPhone or iPad? Not really, but a lot of people seem to want them.The Cool Factor- Lets face it, Apple does make chill out products. Attention to design and detail-fit and finish as they say-really distinguishes Apples products from competitors.Entering markets after theyve actual Contrary to 2 above, some people claim that Apple doesnt make markets but enters existing markets once theyre ontogenesis and takes advantage of latent demand.The iPod was not the first digital music player and the iPhone was not the first smart phone, and the iPad is not the first portable computing device. In the case of the iPad, products like the Kindle and Netbooks actually paved the way for the market to accept small computing devices, and Apples iPad is riding that wave.Differentiated bus iness models- whether it was iPod+iTunes or the iPhone+App Store, Apple innovates not just on technology, but on the business model. This makes it difficult for competitors to play catch up, let alone surmount Apple once it establishes itself in a dominant position.People compassionate about the experience not technology Apple has always been about the user experience, but for a long time, the majority of the market didnt forethought about that.The majority of desktop computer users cared about techs and specs. nowadays the tables have turned, and the majority dont care about the specs, they care about the experience. The iPod, with its g-force songs in your pocket byword and iTunes which radically simplified purchasing music latched onto the experience wave, and Apple has been riding it ever since.Simple product offerings- Apple has a very sporting and simple set of products. Its easy to understand the differences between their products, product families and the various con figurations. This makes it easy to buy an Apple product if you want to.A lot of companies complicate things unnecessarily. How many iPhone models are there? How many Blackberry models are there? How many Nokia smart phone models are there? propose the difference between Apple, RIM and Nokia?The same is true for the iMAc, the iPod and the iPad. Granted, there are actually a number of iPod models (Nano, Shuffle, collar etc.) but they are very distinct amongst themselves. This cant be say for digital music players from other companies.2.3.1 Apple Competitive Analysis forthcoming GoalsApple has been and continues to focus on what its competitors are doing in order to keep a competitive strategy. Steve Jobs valued to create a brand faithful name and to also aver a modify computer with many features that would allow your vivification to be easier. Apple needed to keep up with rapid price cuts of its competitors personalized computers that were based on other operating systems. The y wanted to focus on the rapid technological advances in both hardware and software that would tramp their computers performance and provide its own operating systems. By doing so, the iMac-personalized computer was introduced in 1997 and they were able to create the brand the true they were looking for. They want to continue to build the brand loyal name and keep giving the consumer what they want to make their lives easier.Current StrategySteve Jobs has recognised that many of its competitors have been providing computers that swear heavily on other operating systems to run their computers. For example, Dell computers verify on windows XP, and many of their software products rely on other societys. What Steve Jobs has managed to do is to incorporate its own operating systems, hardware, and software programs for its entire product line. The software that they have created would allow the user to edit videos, download and play music, edit pictures, etc. with all of their own p roducts and applications. composition other controversy relied on extraneous companies introducing their own digital and dispersion music product services, subscription services, and free peer-to-peer music services Apple has created a way to counter the constant changing competitive market. They have done so by efficaciously integrating all three services that its competitors have to choose from by creating the iPod for hardware, iTunes for software, and iTunes Music Store for the trinity party distribution services. Apple has been able to eliminate its reliance on outside companies and to keep on creating specialized programs for consumers.Another factor that has helped keep Apples future thriving is by introducing the Apple Store. Customers are now able to take their products into the store and have an apple specialist examine/work on the products that they are heavily invested in. most competitors would have the consumer take computer/product to a tech section of a store or would have to send to a third party.Assumptions and Capabilities Apple has done a tremendous job of knowing and anticipating what his competitors are doing. Apple was able to develop its iPhone and music player technology into a mobile phone. The Rokr was the mobile phone device that was developed by Motorola. The device contained quality sound and included an go camera system. A version of Apples iTunes music store has been developed for the iPhone so users can manage music and can download other applications that Apple has to offer. An Apple consumer can browse the web faster than its competitors. These capabilities make the iPhone ideal for both business and travel. By knowing the competitors moves and capabilities Apple was able to spotless a phone that could offer more programs and applications than any other phone. The company was then able to then focus on the strengths and weakness of its competition and compare it to the products they provide. The company believes in the highest quality of products. These products will continue to provide what every customer wants and needs, a computer company that continuously makes life easiOpen Source vs Closed Source SystemsOpen Source vs Closed Source SystemsINTRODUCTIONFor many years, proprietary software has been the dominating business approach used by the commercial software firms. Industry giants like Microsoft proved this strategy to be successful, building their multibillion dollar empires based on the proprietary software platform. Over the past decade, a new business approach called open source model which involves contributors from around the globe to create, share and distribute software code for free had come into practice (Pal, N Madanmohan, TR., 2002). Although the roots to this practice of sharing code evolved since early 60s, the widespread usage of internet and the technology developments in past two decades opened new opportunities for open source projects (CNET news, 1998). A number of Open Source Software (OSS) products such as Apache web server, BIND and SendMail have dominated their product categories ever since then (Pal, N Madanmohan, TR., 2002).In the past decade, several researchers (Wheeler, DA., 2007 Mockus, et al., 2000) have taken interest in studying how open source can be applied to modern business strategies. However, a concern exists that in this area of study that there is no substantial evidence that the practices followed are effective in the business environment (Bitzer Schrder, 2004). For economists like Lerner Tirole (2000), the altruism shown by commercial companies and programmers involved in an open source software project is surprising. They stated altruism hasnt contend a major role in any other industry than software. Several others like Freeman Rogers (2008) and Goetz (2003) contradict this statement by illustrating altruism exist in any industry provided there is proper exposure of the problem towards the contributing community. B ut most of the researches surrounding open source model considered software industry as the base for their studies.1.0 SCOPE OF THE PROJECT1.1 ObjectiveThis project work focuses on the study of the Open Source ecosystem (Android) how it differs from Closed source sustems such as those surrounding the iPhone. This project includes the study of the Android Market, (online mobile application store for Android users) application developers, and which factors developers consider for selecting a platform for application development. To understand business strategy development trends across Android and iPhone platforms, we compared the Android market with the iPhone App Store, the leading application store in current mobile market. Apple launched an online application marketplace called the iPhone App Store before launching iPhone 3G. Currently, this store has more than 195,000 applications. To match or surpass the success of iPhone App Store, Apple rivals such as Google and Blackberry int roduced their own application downloading stores called Android Market and Blackberry App World respectively. The Android Market is similar to theiPhone App Store or to any other application store it boasts a catalog of applications,services and tools available for the user to purchase download and use. Today, the Android Market also has around 49,000 applications. Thus, the comparison between iPhone and Android application stores will help explain the new challenges faced by these two application stores, and also the demand for these stores in the near future.This study will help understand why Android choose Open Source System and why Apple doesnt, what determines their success, which large companies are directly involved in developing applications for Android, and which factors they consider for developing an application.1.2 Experimental ProceduresThis project is based on a semi-automatically collected application database and surveys to obtain necessary information for proving t he hypothesis.(A) Website DataFirstly, application data were collected semi-automatically from the Android Market and iPhone App Store (iTunes store) and other mobile applications cogitate websites, for e.g., Androlib.com, iPhoneapplicationlist.com. This gathered application database includes a list of the application categories on both platforms, number of applications in each category, and application information for the selected categories.(B) Interview DataNext, we interviewed mobile application developers to understand and know their views about Android/iPhone platforms and the ecosystem. To get in touch with mobile application developers, we attended the mobile conferences where they gather to share their views.(C) Survey DataLastly, all the relevant facts about application developers from the interview data helped us prepare a survey. This web-based survey was prepared and conducted usingSurvey Monkey.1.3 Resources UtilizedThe main resources used during this project were our industrial advisor, our academic reader, Android and iPhone application database, interviews and surveys from mobile application developers.2.0 LITERATURE REVIEW2.1 Introduction of Literature ReviewIn order to achieve success in project implementation, the first step is to research and find information already available. During research, we found many articles related to our topic. This paper is based on the content from these articles. We have divided this section in four main areasOverview of the Open Source Operating Systems (Android).Overview of the Closed Source Operating Systems (Apple IOS).Fundamentals behind the Open Source Platform.Introduction to the Smartphone.2.2 Overview of the Open Source Operating Systems (Android).Google has achieved something remarkable with its open-source Android operating system. SinceApples iPhonerevolutionised thesmartphonein June 2007, bringing touchscreens and a beautiful user experience to the masses, its been without a rival. Sure, theres a small legion of BlackBerry fans, and a few Nokia die-hards, but the critical consensus up until about a year ago was that the iPhones achievements were peerless.EnterAndroid. The free, open-source mobile operating system was introduced to consumers with theHTC Dream(also known as theT-Mobile G1) in late 2008, but didnt start gaining steam until the release of theHTC Heroin July 2009. The Hero, armed with a custom user interface called Sense that HTC built in-house, gained rave reviews for its high-end specs and faultless user experience, and appeared on many critics lists of the best gadgets of 2009. The whispers began Had Google managed to create a platform that genuinely rivalled the iPhone for the best smartphone experience around?This success is starting to show in the numbers. In February 2010, Google announced that more than 60,000 phones with Android on were shipping each day. The Android App Market is also booming, housing more than 30,000 downloadable applications in Marc h 2010, although thats still comparably small when set beside the 185,000 or so Apple has in its App Store. But where once companies had to have an iPhone app, its now understood that they need to offer both an iPhone and an Android variant.Manufacturers havent let the opportunity pass them by, either. At the time of writing, there are around 35 mobile phones, five tablet PCs, three e-book readers and a netbook available that come with Android installed a total of about 43 devices. But thats nothing compared to the amount of gadgets that are purportedly in the works. If you tot up the rumours, statements of intent, leaked documents and roadmapped products from manufacturers, you can add at least another 15 smartphones, 19 tablet PCs, two e-book readers and three more netbooks to the pile. When you combine the totals, you arrive at a figure of at least 82 Android devices either released or in development.The platform has received four major updates since the HTC Dream launched with Android 1.0. Version 1.5 brought camcorder functionality and the ability to use homescreen widgets. Version 1.6 added voice search and a better Android App Market. Then version 2.0 revamped the user interface, added new, larger screen sizes, as well as navigation support in Google Maps. The latest update is version 2.1, which debuted on theNexus One a handset built by HTC but to specifications dictated by Google itself. Android 2.1 brings additional homescreens, animated wallpapers and the ability to use voice recognition to type in all text fields very useful if youre in a situation where you cant use an on-screen keypad, such as when driving. Other devices are starting to appear with version 2.1 as well the Motorola Droid, known as theMilestone in Europe, recently received an update to 2.1, and HTCs forthcoming Legend and Desire handsets come with it installed.Oldhardware=nonewtricksHowever, the new features available in 2.1 come with increased demand on the relatively weak proc essors found in most smartphones, particularly in the earlier Android devices. As a result, some handsets cant run later versions of Android at satisfactory speed. Even in those that can, manufacturers have been exceptionally slow at rolling out updates to their device owners, with HTC still not having delivered any update above 1.5 for its Hero at the time of writing. Its difficult to fault Google for wanting to update its core platform as fast as it can. The problem is that its going so fast that manufacturers cant roll out updates to their own software at a speed to match.The upshot for users is that early Android adopters are stuck on two-year contracts looking mournfully at all the fun that new device owners can get, with no knowledge as to whether theyll eventually have access to the new features themselves. This isnt anything new in most cases other manufacturers dont grant older gadget owners access to new features but its tough on Android users in particular because the p ace of the updates is so fast. A phone can be out-of-date within months of its release, and in some cases handsets are still arriving with Android version 1.6 installed.App developers suffer, too. Many of Googles home-grown applications Maps, Earth, Goggles and Gesture Search were initially only released for the 2.0 and 2.1 platforms. Some have since gained backwards compatibility to 1.6, but HTC Hero owners, running 1.5, still cant use them. App developers have a tough choice to make support as wide a range of phones as possible, or offer an app with superior features, but only to those running the latest Android builds.Situationnormal AllforkedupSo what can Google do about the problem? The company is stuck with four slightly different variants of its platform in the wild, and its got a splintered marketplace where one Android user cant necessarily access the same apps that another can, and its confusing and frustrating for end users. The obvious way ahead is to try and force man ufacturers to update the software on their devices.Any device running 1.5 should be able to cope with 1.6, and a 2.0 device will manage 2.1. While that still leaves the problem of devices that cant quite cope with the most recent updates, Google should be able to merge its four shards into two a set of 1.6 devices and a set of 2.1 devices simplifying the situation somewhat. However, that relies on the goodwill and resources of a diverse set of companies, and some of those will only have dipped a toe into the waters of Android, meaning that they might be less keen to start devoting significant staff time to mucking around with operating system updates.So Googles got another trick up its sleeve. Recent rumours suggest that the company, in the upcoming version 2.2 update, is planning to de-couple the various applications that run on the device from the operating system itself. The browser, email apps, contacts, input methods and various other components will be downloadable and, cruc ially, updatable through the Android market rather than needing to wait for a full OS update to be upgraded. When Google wants to update the Gmail app, it can just push a market update, rather than forcing customers to wait for HTC, Dell, Samsung or other manufacturers to approve it.If Google fails to unify the Android platform, a future looms where Android is stuck in a series of ghettoes, with no guarantee that one Android user will be able to run the same apps as another unless they buy a new device every six months. Thats good news for manufacturers, but very bad news for Google and for consumers. If Google manages the transition successfully however, then a unified (or at least consolidated) platform could be easily updated by both Google and phone-makers, depending on whether the update is a critical security issue or a new feature in an application.Time is pressing. The fate of Android rests on what Google does over the summer of 2010. Will the platform fall by the wayside, o r will it instead grow to be the Windows of smartphones, carefully balancing openness to app developers with a superior user experience and mass-market appeal?On past form, it seems foolish to bet against Google.Let us also look at the SORT analysis for androidBeing a self declared Google and Android fanboy, Im constantly reading and studying about cloud computing and the mobile marketplace whenever I have the opportunity. Ive even begun the very first steps of beginning to learn programming Java for the Android platform, although this is a free time endeavor which is going to take quite some time for me to get even the basic level of proficiency achieved.2.2.1 SWOT Analyses for GOOGLE ANDROIDBut one area where I feel comfortable in discussion and analysis is in the business realm, which is why I decided to do a basic SWOT analysis for Google Android. It is a tool used in strategic planning to evaluateStrengths,Weaknesses,Opportunities, andThreats involved in a project or business. A companys Strengths and Weaknesses are generally internal, while the Opportunities and Threats are external factors. To spare most of the readers of this analysis, this SWOT is going to be a little less in depth than a typical SWOT analysis. However, it will be detailed enough to outline and discuss what I feel are the key items in each area of the analysis.STRENGTHSThe Google Brand-Google is one of the most well known and respected technology companies on the planet. The fact that they are behind the Android platform gives it credibility and viability in the eyes of potential partners, vendors, and developers.Device Selection-Unlike the Apple iPhone where you dont have any options of hardware suppliers other than Apple itself, the Android OS is open-source and any hardware manufacturer who chooses to do so can use it on their handset. This gives consumers a great deal of selection from which to choose from while also decreasing the lead time to the use of the latest hardware and t echnological advances in mobile electronics.Competitive Pricing-The Android OS is very cost effective to develop for since it is open source and the licensing arrangements are very vendor friendly. Thus, handsets utilizing the Android OS tend to be prices very aggressively.Google application and services integration-The fact that the Android platform integrates so many of the Google services and applications into its base only strengthens its core capabilities and usefulness. Google items such as GMAIL, Calendar, Reader, Listen, and of course GPS and Maps to name a few integrate seamlessly with the Android OS and make it very simple for users to synchronize their data across platforms from the desktop to the cloud and mobile platforms.Open Source-The Android OS is built from a Linux base using the JAVA Programming language. You can go directly to the http//source.android.com website and find the information and source code you need to build a compatible device for Android. Additiona lly, Android is a core part of the OHA (Open Handset Alliance) which is a group of companies working together to develop Android as an open and free mobile platform.Google Assets-The Android team(s) has all the intellectual, economic, and influential resources of Google at its disposal to make it a dominant player in the mobile marketplace.WEAKNESSESMultimedia Support-Unlike the Apple iPhone which has the enormously popular iTunes application and marketplace, Android does not have a central or cohesive source of multimedia material nor a centralized player. Although there have been some improvements in applications on the Android platform in this area, at this time there is no the place to go that comes even slightly close to what Apple can offer on this front. However, there are numerous rumors to what exactly Google has in store for a music service of its own to be released sometime in late 2010. Whatever it is, it needs to be extremely well executed to come close to what iTunes o ffers Apple iPhone users. The one large asset Google has going for it is YouTube, and their recent announcement ofWebM(VP8) could become a lever for multimedia influence in video delivery for Google and the Android OS.Reliance on hardware makers to upgrade-Apple controls the when and how iPhone users will get not only new hardware, but upgrades to the OS and core functionality. With Android, even when Google releases a new version of its OS, it has to wait for the manufacturers to thoroughly test and modify code to make sure it works properly on their specific hardware configuration. Google is addressing this issue as it has announced that it plans to implement more of the core features of its services into the Android OS itself instead of as applications, and to slow down the upgrade releases as the OS matures in the marketplace.Less Mature-Android is not as mature or as polished as the iPhone at this point. It improves with every release, but it hasnt reached the same level of ove rall user friendliness in its interface that Apple has achieved.Lack of Enterprise Support-Blackberry and even Microsoft still get most of the support when it comes to Enterprise usage. Although both Apple and Google have made some inroads in this marketplace, Android has a very small market share here. It needs to continue to develop Google Apps and its integration abilities with Microsoft Exchange.OPPORTUNITIESThe Android OS has a HUGE opportunity to get into the Tablet and e-book reader platform market right now. It cannot afford to sit back and watch Apple dominate the tablet market and eat up the market share as it had done when it released the iPhone. To date, that is exactly what is happening as no major hardware mover and shaker has released an Android based tablet which is a fantastic opportunity if it is executed properly. I want one NOW There have been several minor releases of Android tablets over the last few months, but none of them are what I would consider a signific ant product. Either Google itself or someone such as HP, Dell, ASUS, or ACER need to release a killer Android tablet in order for it to gather any traction. These waters only became murkier when HP acquired PALM.Developing Countries-Google has a huge opportunity to develop inexpensive devices using the Android platform in developing countries. The licensing is extremely developer friendly and the upfront cost investments are significantly less than other platforms. The integration with so many of Googles other free services is a natural fit in this marketplace.Developer Friendly-Unlike the recent activities of Apple which has alienated and ticked off much of the developer community, developing for Android is very open and developer friendly. Google needs to take this opportunity to help developers continue to monetize their efforts through improved advertising revenue models and app sales.Growth of smartphone market-The smartphone market is still very immature and there is still a h uge amount of growth to take place over the next several years to decade. Google needs to continue to work hard to position itself with its cloud computing applications and services in support of the Android OS. The marriage of these two areas is key to the kept up(p) growth rate and increased market share potential of the Android platform.Embedded electronic devices-The Android OS has huge potential to be a major player in the embedded electronic market as a dominate embedded operating system. With so many devices becoming embedded with smart technologies and connectivity to the cloud, the Android OS is primed to be a major winner there.THREATSiPhone unleashed-If the iPhone is unleashed from the beaten down ATT network and appears on other networks such as Sprint and in particular, Verizon, it could be a real threat to the sustained rate of future market share growth for the Android OS. A significant amount of potential smartphone customers said they would buy an iPhone if it were nt on the ATT network. (I was once in this camp, until I discovered the world of Android.)Apple dominance-Apples market share gives it a great influence over developers and old media companies who are dying for a revenue model that will work for them. The ever growing walled garden that Apple is building is a false panacea that the old media companies are holding onto with both hands-the ability to charge users for access to premium content. Apples recent changes in policy and functional restrictions make it the ideal platform to launch such a strategy and recruit the power brokers from this old model. Additionally, the theres an app for that and Im willing to pay for it behavior of Apple iPhone users is of great appeal to developers who see the dollar signs in this market. (Ive yet to pay for an application on Android) This gives Apple influence over developers and makes their huge market share very difficult to walk away from, even when they adopt very unfriendly developer policie s.Increased Competition-Obviously, companies like RIM and Microsoft are going to fight for their share of the market and arent going to just give up. In particular, the Blackberry platform which still has huge support in the enterprise market.Platform Fragmentation-This is a huge threat to the Android platform. Although I listed the numerous devices as a strength above, the risk of fragmentation is a real and significant one. This is why Google has recently put a lot of effort into developing ways to minimize this problem. Google does not want numerous custom version of Android to emerge or fork off from their core platform, which is something you see in the Linux distribution network. Google is developing a set of baseline standards for compatibility for its platform. Since Google controls the Android Market, it can maintain significant influence over device vendors to meet the compatibility requirements. If you do a little research on this topic, you will see that Googles standard s are fairly rigid, maybe more so than one would expect. Google also plans to adopt aonce-per-yearrelease schedule as well. None the less, managing this risk is a major and real threat to the Android platform.So there you have it, my basic SWOT analysis for Google Android. One underlying issue I feel is worth noting is that Google does not have to dominate, and as much as so many of us would love to see it, it does not have to beat Apple in market share or any other core metric. The only thing Google needs to do is to make sure there is an open platform large enough in the mobile market for its advertising business. Lets face it Google is not about selling Android devices. Google is about search and advertising, and Apples closed system was a threat to that model which has become even more self-evident over the last six to nine months of Apple policies and maneuverings. Apple recently announced their own Ad network for the iPhone and iPad which could be viewed as a shot across the b ow of Google which puts even more necessity on the Android platforms success. The clear advantage that Google has going for itself right now is that Apple (Steve Jobs) is either being indignant over what cloud computing actually does and means, or he truly doesnt understand or hasnt figured out how its suppose to work. Considering how intelligent Steve Jobs is, I find it highly unlikely that the second option is the reason, and that his stubbornness and willingness to maintain personal grudges as the likely culprit.2.3 Overview of the Closed Source Operating Systems (Apple IOS).If theres one company that is the envy of the high-tech community these days, its Apple. Steve Jobs is hailed as a genius CEO and lauded for a string of hit products. Apples market capitalization is over $200 BILLION dollars currently, easily ranking it in the top 10 companies in the world by market cap, and just shy of Microsoft for biggest technology company.Everyone wants to understand the secrets of Apple s success and hopefully emulate them. The reasons given by people for Apples success are many. The following are a few of the arguments madeVertical integration- Apple owns most of, if not the entire, technology stack for its key products, and thus gives it advantages over other less vertically integrated products.NOTE Vertical integration used to be called being proprietary and was given as the reason for Apples relative lack of success against Microsoft in the OS/PC battles of the 80s and 9os. But phenomenal success has a way of changing peoples minds.Making markets vs. addressing markets- Some claim that Apple doesnt ask people what they need but gives them products they decide theywant.Does anyone NEED an iPhone or iPad? Not really, but a lot of people seem to want them.The Cool Factor- Lets face it, Apple does make cool products. Attention to design and detail-fit and finish as they say-really distinguishes Apples products from competitors.Entering markets after theyve develope d Contrary to 2 above, some people claim that Apple doesnt make markets but enters existing markets once theyre growing and takes advantage of latent demand.The iPod was not the first digital music player and the iPhone was not the first smart phone, and the iPad is not the first portable computing device. In the case of the iPad, products like the Kindle and Netbooks actually paved the way for the market to accept small computing devices, and Apples iPad is riding that wave.Differentiated business models- whether it was iPod+iTunes or the iPhone+App Store, Apple innovates not just on technology, but on the business model. This makes it difficult for competitors to play catch up, let alone overtake Apple once it establishes itself in a dominant position.People care about the experience not technology Apple has always been about the user experience, but for a long time, the majority of the market didnt care about that.The majority of desktop computer users cared about techs and specs . Now the tables have turned, and the majority dont care about the specs, they care about the experience. The iPod, with its 1000 songs in your pocket motto and iTunes which radically simplified purchasing music latched onto the experience wave, and Apple has been riding it ever since.Simple product offerings- Apple has a very clear and simple set of products. Its easy to understand the differences between their products, product families and the various configurations. This makes it easy to buy an Apple product if you want to.A lot of companies complicate things unnecessarily. How many iPhone models are there? How many Blackberry models are there? How many Nokia smart phone models are there? See the difference between Apple, RIM and Nokia?The same is true for the iMAc, the iPod and the iPad. Granted, there are actually a number of iPod models (Nano, Shuffle, Touch etc.) but they are very distinct amongst themselves. This cant be said for digital music players from other companies.2 .3.1 Apple Competitive AnalysisFuture GoalsApple has been and continues to focus on what its competitors are doing in order to keep a competitive strategy. Steve Jobs wanted to create a brand loyal name and to also produce a personalized computer with many features that would allow your life to be easier. Apple needed to keep up with rapid price cuts of its competitors personalized computers that were based on other operating systems. They wanted to focus on the rapid technological advances in both hardware and software that would boost their computers performance and provide its own operating systems. By doing so, the iMac-personalized computer was introduced in 1997 and they were able to create the brand loyalty they were looking for. They want to continue to build the brand loyal name and keep giving the consumer what they want to make their lives easier.Current StrategySteve Jobs has recognized that many of its competitors have been providing computers that rely heavily on other operating systems to run their computers. For example, Dell computers rely on windows XP, and many of their software products rely on other partys. What Steve Jobs has managed to do is to incorporate its own operating systems, hardware, and software programs for its entire product line. The software that they have created would allow the user to edit videos, download and play music, edit pictures, etc. with all of their own products and applications. While other competition relied on outside companies introducing their own digital and distribution music product services, subscription services, and free peer-to-peer music services Apple has created a way to counter the constant changing competitive market. They have done so by effectively integrating all three services that its competitors have to choose from by creating the iPod for hardware, iTunes for software, and iTunes Music Store for the third party distribution services. Apple has been able to eliminate its reliance on outsi de companies and to keep on creating specialized programs for consumers.Another factor that has helped keep Apples future thriving is by introducing the Apple Store. Customers are now able to take their products into the store and have an apple specialist examine/work on the products that they are heavily invested in. Most competitors would have the consumer take computer/product to a tech department of a store or would have to send to a third party.Assumptions and Capabilities Apple has done a tremendous job of knowing and anticipating what his competitors are doing. Apple was able to develop its iPhone and music player technology into a mobile phone. The Rokr was the mobile phone device that was developed by Motorola. The device contained quality sound and included an advanced camera system. A version of Apples iTunes music store has been developed for the iPhone so users can manage music and can download other applications that Apple has to offer. An Apple consumer can browse th e web faster than its competitors. These capabilities make the iPhone ideal for both business and travel. By knowing the competitors moves and capabilities Apple was able to perfect a phone that could offer more programs and applications than any other phone. The company was then able to then focus on the strengths and weakness of its competition and compare it to the products they provide. The company believes in the highest quality of products. These products will continue to provide what every customer wants and needs, a computer company that continuously makes life easi