National Brands And Private Labels

National Brands And Private Labels Different peer reviewed articles and articles published in newspapers, business magazines, retail industry websites and industry experts, test a hypothesis and to draw a conclusion. Findings: The findings from the study suggest that private labels are generally considered low on price and quality. Incidence of rejection generally happens prior to purchase due to extrinsic cues. Store loyalty and image plays a crucial role in selecting the private labels. Retailers derive higher margins, differentiate themselves from competitors and have better control over value chain in the case of private labels. To compete with national brands, retailers these days are developing a portfolio of private labels across price points, improving the extrinsic cues to improve the perceived image of private labels. Managers can enhance consumers perception of the PLB image by improving the service quality that relates to the PLB and provide PLB products with good quality and reliable performance safe for use to reduce perceived performance risk and physical risk, which in turn will increase consumers purchase intention for PLB products. INTRODUCTION: Private Labels: Private labels are defined as the products owned and branded by the organizations whose primary objective is distribution rather than production (Schutte, 1969). Private labels can also be seen as brands owned not by a manufacturer or producer but by a retailer or supplier who gets its goods made by a contract manufacturer under its own label. Pandya Joshi, in their book define store brands or PLs as brands owned, controlled and sold exclusively by retailer.Private label products encompass all merchandize sold under a retailers brand. That brand can be the retailers own name or a name created exclusively by that retailer. Distinction between National-Brands and Private Labels: The national brand is the product that is distributed nationally under a brand name owned by the producer or distributor, as opposed to local brands (products distributed only in some areas of the country), and private label brands (products that carry the brand of the retailer rather than the producer.) National Brands has longer history than the Private Label. So customer knowledge towards the national brand is higher than private labels. With the rise of national advertising, manufacturers brands or national brands (NBs) became widely recognized by consumers who elected their preferred brands and became loyal to them. Over time, manufacturers could exercise greater influence over the final demand for their products and secured a better bargaining position when dealing with retailers (Grant 1987). Retailers saw their margins drastically reduced, and their power to determine the prices to consumers depreciated (Borden 1967). In the food retailing industry, supermarket chains were no longer able to compete, solely, on the basis of price. A way found by retailers to beat competition was through the establishment of Private Label. TYPES OF PRIVATE LABEL Generic private labels Private labels first came onto the scene several decades ago in the US and Europe, and about a decade ago in India, as cheap, inferior products. They were presented as generics, often not bearing the name of the retailer, but simply the name of the product, such as milk or butter, in plain script on a white plain background. Mostly basic food products, canned goods and paper goods, they were offered at low prices, competitive with the lowest priced product in that category. The product range appealed to the budget-sensitive shopper. They were seen as low quality but cheap. Retailers rarely run price promotions because the product is cheap already and there is usually only one product to choose from. It emphasizes on the basic use of a product and is available in simple packaging, limited advertisement and cut in quality and therefore occupies the lowest price tier. Classic /copy cat private labels Copycat store brands carry the name of the retailer and tend to have packaging and price points very close to the products that they compete with. The retailers tend to target branded products that are already successful then produce a copycat that has similar ingredients, packaging and pricing. Copycat retailers can thereby cash in on the success of the branded product without having to incur the costs associated with developing the product and researching the market. Marketing costs are also kept down since the product is instantly recognizable as being associated with the product it is copying. With copycat brands there is no cost of failure to absorb since only successful products are targeted. The retailer tends to produce a similar product and offer it at a lower price than the branded product so the message to the consumer is that it is as good but cheaper. The advantages of having copycat brands is not only to make profit on the sale of the product itself, but it creates competition for the existing manufacturer branded products as well as increasing the retailers bargaining power with the manufacturers, since the retailer has the option to promote its own brand in competition with the original brands. The Spanish clothing chain Zara is a very successful copycat company that sells private labels only, producing fashion clothing at very low prices that imitates famous designers and well-known brands. They employ talented and unknown young designers to pick up on key trends and translate them into clothing for the Zara chain. Its strategy allows it to operate with extremely low costs of advertising, staffing, market research, and so on, that the manufacturer brands continue to incur. Premium private labels As retailer strategies have developed, the approaches have evolved to incorporate premium store brands. Retailers have seen the opportunity to differentiate their products and thereby target a whole new section of the market. The latest trend is to establish high quality products with distinctive packaging, presented as a whole new product line by the retailer, targeted at competing with the top brands in the range. Kumar and Steenkamp define two types of premium brands: the premium private label which is exclusive, higher in price, and superior in quality to competing brands; and the premium-lite store brand which is promoted as being equal or better in quality to the competing brands, while being cheaper. Value innovators in private labels Value innovators are the fourth main category of private labels. The retailers following this approach have focused on cutting down costs and processes to simplify the production and marketing of product ranges, so that a good quality product can be offered at very low prices. The value innovator approach differs greatly to the generic, copycat and premium label approaches. There are a number of key principles that must be adhered to for this approach to be successful. Limited number of products Low costs of production and marketing Good quality products at low prices PRIVATE LABEL BRANDS IN INDIAN MARKET  » Indias largest retail company Future Group has 12 apparel, 4 FMCG and 2 household product private labels in its formats Big Bazaar, Food Bazaar and Pantaloon. Besides these it also has many other private labels across categories and formats.  » Aditya Birlas private labels segment has 7 brands which Aditya Birla Retail Limited provides customers products under its own labels. Private label Food Brands include Feasters, Kitchens Promise, and Best of India. Home Personal care brands include Enriche, 110%, Pestex, Paradise and Germex. It is also planning to launch its private labels in milk and dairy products.  » Tata Croma has plans for 100+ private labels across categories like personal care equipment, laptops, small appliances, etc.  » Reliance Fresh sells staples and food items under Reliance Select and Reliance Value brands. It has recently launched Dairy Pure, in the liquid milk segment. Reliance also sells a number of private labels in other categories like apparel, through its various other formats.  » Shoppers Stop has around 10 private labels, the prominent ones being Stop, Kashish, Life, etc.  » Bharti retail recently launched 8 international private labels of Wal-Mart in its supermarket chain, Easy day.  » Myntra is looking to launch its own private label by Q3 2012, which according to him, will contribute to a better bottom-line for the company, since the margins in private labels are higher.  » Flipkart has entered the private label league through online store brand Digiflip, a brand that sells digital accessories such as laptop bags, sleeves and camera bags pouches.  » Ruchi Soya Corp has tied up recently with Future Group for manufacturing its private label brand Fresh Pure. Internationally  » Nestle works with Lidl, a discount retailer, to create products and packaging in many categories across countries. In the Indian context, Brand owners and manufactures like Indo Nissin (Brand: Top Ramen), Dynamix Dairy (Brand: Dynamix) etc. also manufacture private label brands for their retailers to occupy their excess production capacity.  » Wal Marts private label George is one of the highest selling apparel brands in the US.  » Aldi, the German deep discounter has more than 90 per cent of its sales coming from private labels. Some of its private labels sell more than any national brand in Germany ADVANTAGES AND DISADVANTAGES OF PRIVATE LABEL: The advantages and disadvantages vary depending to which market sector we are referring to. These can be defined as follows: For Retailers: Advantages: Reduction of producer domination in the marketplace Increase in consumer loyalty An opportunity to differentiate and provide variety Flexibility in pricing strategy Positive control over stock keeping inventory Better bargaining position in a depressed economy Disadvantages: Erosion of brand image and brand value if private label quality is poor Lack of standardization of private labels between categories upsets the customer Financial control concerns Excessive focus on the private label at the expense of other products The retailer could be perceived as less powerful in the marketplace as they dont promote recognized brands Low price may equate to low quality Lack of financial support from suppliers For Consumers Advantages: A guarantee of the same quality for a serious price differentiation More variety within the category A trusted retail name equals trust in the product Product provides a need based on a want, where products were missing within the category. E.g. ethnic foods, diet foods, sugar free foods and so on. Disadvantages: Low quality product. Consumers may have a prejudice to low price equaling low quality Previous customer failures could affect the whole private label range in a store. INDIA SCENARIO: Correlated with the immense growth in the retail sector, the growth in sales of private brands stands at an impressive 30% (YOY). As per an AC Nielsen study groceries account for 46% of Private Brand sales. Correlated with the immense growth in the retail sector, the growth in sales of private brands stands at an impressive 30% (YOY). As per an AC Nielsen study groceries account for 46% of Private Brand sales. Strategic Issues for Retail CEOs, a thought leadership report by PricewaterhouseCoopers, puts forth that private label products will be a major lever for growth of participants in Indias retail sector. Indian consumers, often referred to as value conscious, will find major benefit in purchasing private label products since final promotional offers to quickly move their own brands. Indias major retailers expect to embark upon the following strategies for their private label products: costs paid are lower. A demanding and aspiring middle class of 300 million people (or 75 million households) and a large young population of 500 million under the age of 25 years are just two of the demographic-oriented statistics that suggest a large market for private labels in India. In India, private labels are becoming a major component of retailers long-term strategies encompassing product development and sales. Most retailers are investing towards creating robust private label ranges which will appeal to consumers, delight consumers and also meet consumers price preferences. Those retailers who develop good quality, well-priced private labels, and focus on branding and promotion, will increase both their top and bottom lines in a retail environment where innovation, meeting customers needs and efficiency are imperative. (Indian Retail embraces private labels by N. V. Sivakumar). The greatest potential for private labels lies in developing countries, where retail chains with well-developed private-label ranges are growing rapidly. Although growth for private labels is expected in all most all sectors, the highest growth in share is anticipated in the ready-meals sector. The growth of private labels in the international market, especially in developing countries, will be guided by the demands of busier lifestyles. Delivering higher quality and convenience, and introducing innovation in product ranges will help the private-label market to expand further. Retailers can make use of these opportunities by offering good-quality private labels that will foster a sense of brand quality among the customers. Over the long term, this could offer retailers a significant advantage in the global retail sphere. (Going global with private labels: Sandeep Puri Dr Harsh Dwivedi). Private labels are still nascent in India which is to be expected given that modern trade started in the late 1990s. Given the variances in market maturity between Indias retail sector and that of other retail markets in the US and in Europe, it is natural that private labels have yet to achieve a level of sophistication in India that they enjoy overseas. RESEARCH FINDINGS: Some of the significant findings from the PLMA (Private Label Manufacturers Association) Research Report 2010 2011 are: 1). Consumers continue to turn to private-label products in these supermarket categories in which they had formerly purchased only a national-brand product. Around 43 percent of these consumers report that they have recently forsaken a familiar national brand for a private-label counterpart-a marked increase since the GfK study conducted in June 2009, when only 35 percent of consumers said they had done so. 2). Ninety-seven percent respondents compared private labels favorably to their previous national brand choices in the same categories. About 49 percent said that their new private-label selections compared very favorably to their earlier selected national brands. This is an impressive increase from 2009 when only 26 percent reported the same. A 2010 online global survey conducted by The Nielsen Company reveals that 60 percent of consumers across 55 countries from Asia Pacific, Europe, North America, Latin America and Middle East/Africa (comprising countries from Saudi Arabia, Pakistan, United Arab Emirates, Egypt and South Africa) say they are buying more private-label brands because of the economic slowdown. An uncertain economy encouraged many customers to try private labels for the first time. Once this initial barrier was breached, they found private labels to be as good as their branded counterparts, albeit at economical prices. PRIVATE LABELS VS NATIONAL BRANDS: There are a few reasons driving private label growth: an increased concentration among retailers, an improved quality perception among consumers, and a rising social acceptance of private labels consumption. In addition, the current economic downturn has further boosted the appeal of private labels because of their price utility. To combat the threat posed by private labels, consumer packaged goods companies frequently adopt new innovation strategies focused on delivering new value to consumers. Furthermore, research shows that national brand manufacturers have mainly focused on increasing their distance from private labels through innovation and advertising in order to provide a superior value to the consumers compared to private labels brands. In this sense, product innovations help to sustain a national brands competitive advantage and provide a basis for a sustainable price premium over store brands. Research also shows that introduction of new products by national brands has a positive impact on their brand equity which makes them less vulnerable to PLs. CHALLENGES AND OPPORTUNITIES FOR PRIVATE LABELS IN INDIA: 1).Lack of retailer sophistication could hamper private label growth There is lack of supply chain sophistication among Indian retailers. Most retailers still exchange information manually with suppliers. Indian retailers are yet to implement bar-coding techniques properly, let alone sophisticated technologies such as radio frequency identification (RFID). There is also a lack of integrated IT systems, coupled with low overall IT spending. As is evident, Indian retailers have a long way to go before they can be compared with international retailers such as Tesco and Wal-Mart, in terms of technology and supply chain sophistication. Therefore, unless retailers pay attention to these issues, they will be unable to make successful private label portfolios. 2).Rural areas unlikely to be tapped by private labels in the near future While it is widely acknowledged that the real potential in Indian retail lies in rural areas, the rural retail scenario continues to be unorganized and highly fragmented. While FMCG manufacturers such as Hindustan Unilever and ITC continue their efforts to solve the rural retail jigsaw through projects such as Shakti and e-Choupal, major retailers have tended to stay away from the rural scene. In light of high access costs due to infrastructure bottlenecks, along with absence of a successful rural retailing model, the above trend is likely to continue in the coming years. Therefore, the Indian private label market is expected to be largely confined to urban areas (metro cities), with some growth also coming from semi-urban areas (tier II towns). 3).Psyche of the urban Indian consumer is both a hurdle and an opportunity In an ACNielsen consumer survey in 2005, only 56 per cent Indians agreed that private labels are a good option in comparison with brands as against four in five consumers in developed countries. Further, the same survey also concluded that a majority of Indian consumers associate private labels with low cost, and are, therefore, apprehensive about compromising on quality. The target segment for organized retail in India is still predominantly urban, and in the context of private labels, it is more inclined towards upwardly mobile urban consumers. This segment gives high priority to quality, and the budget label perception does not help at all. Further, Indian retailers have not been able to develop a bond with consumers. Consumer loyalty has been seen to provide impetus to private label growth in developed countries such as the United Kingdom. The lack of this bonding and loyalty could hamper private label penetration in coming years. At the same time, though, the Indian consumers psyche also provides an opportunity for retailers. The Indian urban consumer is price-conscious, but also expects high quality. Private label products could actually fit the bill perfectly. 4).Intense competition in Indian retail could provide impetus to private labels With the entrance of several corporate majors such as Reliance, there is intense store-level competition in the current Indian retail scenario. However, if Indian retailers were to follow the UK model, this could actually turn out to be a boon for private label growth. Major UK retailers such as Sainsbury and Tesco have successfully used private labels to differentiate themselves. This scenario could be replicated in India in the near future. 5).Private labels likely to exhibit maximum penetration in food and groceries, clothing and consumer durables segments All segments where percentage of organized retail is relatively high, and which are also exhibiting the highest overall growth rates, are most likely to show maximum private label penetration in the near future. The following figure illustrates the findings of a simple analytical model based on the above two assumptions. Private label penetration by category http://www.indiaretailing.com/images/private10.jpg 6).Ability of retailers to innovate likely to drive future growth of private labels The main USP of private labels is their customization according to user demands. They are then promoted by various means including innovative packaging, promotional schemes, and placement within the retail store. Therefore, success of private label retailers globally has been dependent on their ability to innovate in all aspects of a product formulation or ingredients, supply chain, packaging, advertising, promotional schemes, and so on. The dynamism of private label retailers, in responding to changing consumer needs through suitable modifications, is also critical. In light of the intense competition in Indian retail, coupled with the choosy Indian customer, future success of private labels would depend on the ability of Indian retailers to innovate. This is again a question mark, given the reputation of Indian companies as poor innovators. RECENT TRENDS: Private labels are a growth opportunity that retailers cannot afford to ignore and many are assessing market potential by conducting pilot projects to assess the impact that own brands have on visibility, sales and revenues. Others are working on enhancing depth and breadth of private label ranges. Other selected observations include: While low-price private labels exist, retailers are changing their focus from a price game to one that involves developing a portfolio of brands with distinct positioning for each brand. Retail chains are trying to understand unfulfilled demands existing in Indian market through need-gap analysis. Retailers are incorporating demographic and psychographic indicators into their need-gap assessments. Retailers are also learning from the lessons of experimentation; the quality of their private labels is being improved, product extensions are being created, etc. Some retailers are launching dedicated formats for private labels in apparel and accessories. In the early stages of being launched, this is an indication of the level of commitment that retailers are exhibiting to private labels. Retailers are also working to increase and improve the level of trust that consumers have with regard to private label offerings. That said, sharp promotions, competitive pricing, freebies, etc. are some ways in which retailers can incentivize consumers to try private label products. Factors Influencing Private label Strategies: Private labels apparently be successful without having to rely on the price weapon?. Economic theory hold that the price consumers are willing to pay for a product depends on the utility they derive from consuming the product. A major source of utility is the perceived quality of the product. Perceived quality is defined as the degree of perceived performance excellence of the product. How well does the brand perform its function in the eyes of the consumer? Perceived Quality, Not Price, Drives Private Label Success To understand the relation between perceived quality and price, we need to understand the different types of buyers: Random Buyers are not particularly price sensitive and see little difference in quality. Brand buyers are consumers who are low on price sensitivity and perceive a large quality difference between leading national brands and the store brands .They will buy national brand Private label buyers are price sensitive consumers who perceive a small quality gap between leading manufacturer brands and the store brand. They will purchase the store brand. Toss-ups are consumers who are high on price sensitivity and perceive large quality differences between leading national brands and the store brand The battleground is among toss-ups and random buyers. However the strategy to induce them to private labels is very different. Random buyers can be attracted to the private by using in-store stimuli that guide the shopper to the private label, such as favorable shelf facings, shelf tag ons, and end-of the aisle displays. Toss-ups will usually purchase national brand since for most consumers quality is more important than price. This is especially true if the national brand regularly runs price promotions, which will appeal to the toss-ups high price sensitivity. Private labels can convert toss-ups in to private label buyers only if they convince consumers that the quality of the private labels is comparable to, if not better than, the quality of the national brands. National Brands Irrational Price Premium The question to ask is whether consumers willing to pay more for better quality? It is beneficial that they value quality, but better quality products often cost more to produce, which translates in to higher prices. Thus the question is whether products of higher perceived quality also command a higher price in the marketplace. Consumers are often willing to pay disproportionate price premium for better quality, because quality typically has more weightage than price in purchase decisions. When the relationship between perceived quality gap the price premium commanded by the NBs over PLs for CPGS (consumer package goods) was examined on 75 CPG categories in France, one of the worlds most important and competitive private label markets, the following insights were seen In categories where the perceived quality of national brands exceeds the quality of store brands, the average price premium for manufacturer brands is 56 percent. In quality- equivalent categories (i.e., categories where consumers do not perceive a quality difference between national brands and store brands), the price premium commanded by national brands is 37 percent. The French findings are consistent with the evidence from the United States. A recent study ( using objective quality as reported by Consumer Reports) finds that a 1 percent quality gap between manufacturer and store brands is associated with a 5 percent price gap The price premium that national brands command in quality- equivalent markets is the same as in France, or 37 percent. In 33 percent of the cases, consumers perceive manufacturer and store brands as quality equivalent; however they are willing to pay the same price for the store brands as for the manufacturer brand in only 5 percent of the cases. Conclusion The perceived quality gap between NBs and store brands is a major factor driving the price gap Quality is not the only factor; there is residual price gap that cannot be explained by quality perceptions. The findings we had in categories where consumers do not perceive a quality difference between national and store brands , the price premium commanded by manufacturer brands is substantial 37 percent . Consumers are unwilling to pay equivalent prices for store brands even if they perceive them as quality equivalent. This last result is rather depressing for retailers. Why are consumers willing to pay a price premium for manufacturer brands, even when they do not perceive a quality difference between national and store brands? The reason is that national brands have a clear advantage on brand imagery. BRAND IMAGERY AND THE PRICE GAP National brands offer something intangible that most private labels do not (yet) offer. They allow consumers to identify with the values imbued in the brand, and help consumers express who they are and how these brands fit in to their lifestyle and self concept. Brand imagery refers to the personalized social-emotional bond the consumer has with the brand. What does the brand stand for, and does that appeal to me? Consumers show no difficulty in assigning personality characteristics to brands, in thinking about brands as if they are animated, humanized, and personalized. For example brands like Marlboro, Harley- Davidson, Jack Daniels, and Levis glamorize American ideals of the West, strength, and masculinity, while sophisticated brands like Gucci, Chivas Regal, Revlon, and Mercedes are associated with aspiring imagers such as the upper class, glamour, and sexiness. These image components, regardless of the functional qualities of the product, can be extremely important to people. Two brands may be quality equivalent, but if one brand is stronger on image; it will generate higher utility in the target segment. Consumers are willing to pay a price premium for image utility. Using the French CPG data mentioned earlier, the findings are as below The average price premium commanded by manufacturer brands in categories that are low on imagery (e.g., floor cleaners, kitchen paper, canned green beans) is 38 percent. The average price premium commanded by manufacturer brands in categories that are high on imagery (e.g. deodorants, hair coloring products, whiskey) is 61 percent. Thus the price premium associated with brand imagery is, on average, 23 percent and contributes significantly to the price gap. Although the importance of brand imagery varies across consumers, some generalizations still emerge. Younger consumers attach more importance to brand imagery because of their greater desire for social acceptability, besides being more image conscious in general Singles and couples attach more importance to image utility than larger families. Poorer consumers give more weight to brand imagery. This seems paradoxical since they stand to gain most from purchasing a lower priced store brands. However, it allows them to show the world that they are also sophisticated consumers .Thus the fact that the poor buy private labels more often than the rich is because they have to, not because they want to. IMPLICATIONS FOR RETAILERS We have seen that there is a lot more to private label success than price. We can formalize these ideas by drawing on economic theory. Consumers will purchase a private label if the price premium for the national brands exceeds the utility the consumer derives from the surplus in perceived quality and imagery generated by the national brand. Thus private labels do not have to compete on price alone. Beyond managing the price gap, they can also compete on two non price strategies. We will discuss them first before turning to managing the price gap. Decreasing the Perceived Quality Gap One way to decrease the perceived quality gap with the national brands is to increase the objective (actual) quality of the private label by using better materials

Balanced Scorecard Study – Samsung

Kashun Davis TMAN 680 Fall 2012 Balanced Scorecard: Samsung Samsung is the technology-based organization that will be the subject for my Balanced Scorecard. Founded in 1938 in Seoul, South Korea, Samsung Electronics Co. Ltd. engages in the manufacture, distribution, and sale of finished electronic products and device solutions worldwide. They offer consumer products, including mobile phones, tablets, televisions, Blu-rays, DVD players, home theaters, multimedia players; home appliances, such as refrigerators, washing machines, air conditioners, etc; Laptops and personal computers.The company also designs and manufactures integrated circuits for digital information storage in consumer electronics. It has operations in Korea, U. S. , Europe, Asia, Africa, Africa and China. Because of the large size of the Samsung Corporation, I will focus on Samsung smartphones, one of their technology-intensive business units. The vision of Samsung: â€Å"Samsung is dedicated to developing innovative technologies and efficient processes that create new markets, enrich people's lives, and continue to make Samsung a digital leader. Their mission statement, â€Å"At Samsung, we follow a simple business philosophy: to devote our talent and technology to creating superior products and services that contribute to a better global society. Samsung’s net sales have risen from 158. 9 billion in 2007 to 220. 1 billion in 2011. Their total assets grew from 280. 8 billion in 2007 to 343. 7 billion in 2011. Unfortunately their total liabilities went from 181. 7 billion in 2007 to 202. 6 billion in 2011. Stockholder’s equity almost doubled from 80. billion in 2007 to 141. 1 billion in 2011. Samsung’s net income also increased from 12. 9 billion in 2007 to 21. 2 billion in 2011. It’s also not strange to see their employee base increase due to their explosive growth over this five-year time span. They had 254,000 employees in 2007 and now have over 344,000 employees in 2011 (â€Å"About Samsung,† 2010). Their electronics division has 190,500 employees at the end of 2011. With respect to the Smartphone business unit out of the 1. billion mobile phones sold worldwide in 2011, Samsung accounted for 330 million of those units. Their Galaxy S II sold more than 20 million units since its launch in 2011. In 2012, Samsung launched the Galaxy S III and expects to strengthen their brand and increase market share in the mobile phone arena (â€Å"About Samsung,† 2010). The balanced scorecard is defined as a management system that maps an organization’s strategic objectives into performance metrics in four perspectives: financial, internal processes, customers, and learning and growth (NetMBA, 2002).The four perspectives mentioned above construct the balanced scorecard framework. To create a balanced scorecard for Samsung’s Smartphone business division this framework has to be applied. First, I will assess the mission, vision, c hallenges, and partners of the company. The vision of Samsung: â€Å"Samsung is dedicated to developing innovative technologies and efficient processes that create new markets, enrich people's lives, and continue to make Samsung a digital leader. Their mission statement, â€Å"At Samsung, we follow a simple business philosophy: to devote our talent and technology to creating superior products and services that contribute to a better global society. Samsung not only makes smartphones, but they also create components like displays and integrated circuits that also go into competitor’s smartphones, such as Apple’s iPhone. Samsung’s competitors in the mobile phone market are Apple, Microsoft, Google, HTC, Nokia, and Blackberry. Samsung doesn’t make their own proprietary software and hardware as Apple, Google, and Blackberry.Samsung exclusively uses Google’s Android Mobile OS for their phones. Another challenge Samsung faces, is that their mobile phon es are not only in competition with other phones that have different software platforms, but they are in even stiffer competition with other phones that also use Google’s Android Mobile OS. This market in itself is very fragmented from the fact that more than 4,000 distinct smartphone models exist that uses the Android operating system (Valazco, 2012). Fortunately for Samsung they command 25. % of the smartphone manufacture market putting them on top. LG, Apple, Motorola, and HTC own 18. 4%, 16. 3%, 11. 2%, and 6. 4% of the smartphone manufacture market respectively (â€Å"comscore reports July,† 2012). With respect to the balanced scorecard framework, a strategy map will assist with connecting the four perspectives and how they relate to each other. The strategic measures chosen for the Learning & Growth Perspective were chosen based on information listed in the Samsung’s annual report. Samsung’s employees have grown over the past few years. Samsung†™s social etwork presence is currently greater than their competitors, but there is always room for improvement. Samsung invested $8B USD in R&D, which this funnels down to organizational capital and learning from their competitors. With respect to the Internal Process Perspective $8B USD were invested into R&D for innovation. Customer Satisfaction is never perfect in any organization, thus leaving room for improvement. Not to mention customer satisfaction can translate into sales. Management of operations was chosen because process improvement is always needed in an organization.The customer perspective measurements are strengthening the brand, gaining OEM market share, and exceeding customer expectations. All of these links to financial success within the organization, thus focusing on these measures is vital to the growth Samsung expects to see in the future. Stockholder equity, net sales, and net income all affect the customer, internal, and learning & growth perspective measu res and vice versa. This provides a top to bottom and bottom to top flow balanced measures. Learning & Growth Perspective| Objective| Measure| Target| Initiative|Grow Human Capital| # Of Employees in Samsung Electronics Division| 200,000 employees| Aggressive Recruitment and Retention Program| Improve Information Capital| Social Networking Effectiveness| 6 Million Twitter Followers; 40 Million Facebook Likes| Aggressive & Interactive Social Networking Campaign| Build Organizational Capital| Submittal of Employee Ideas| 5,000 Employee Ideas Submitted| Conduct Organizational Learning Study of Samsung Mobile Division (Amiri, 2010)| Learn from our Competitors| Mobile OEM Market Share| Increase Mobile OEM Market Share by 20%| Analyze competitors customer base and meet the needs of that customer base through innovative mobile technology | Internal Process Perspective| Objective| Measure| Target| Initiative| Manage Innovations| Successful Research & Development Projects| Double R&D Project s| Allocate more capital to R&D projects and their implementation| Manage Customer Relations| Customer Satisfaction| Double and Sustain Customer Satisfaction scores| Aggressive ustomer service training for employees| Manage Operations| Value Added & Non-Value Added Operations| Increase Value Added Operations and Reduce/eliminate non-value added operations| Lean Six-Sigma Process Improvement Initiative (Qun, 2012)| Customer Perspective| Objective| Measure| Target| Initiative| Strengthen Samsung Smartphone Brand| Market Share| Increase Market Share| Aggressive Marketing Campaign| Gain Smartphone OEM Market Share| OEM Market Share| Increase Mobile OEM Market Share by 20%| Analyze competitors customer base and meet the needs of that customer base through innovative mobile technology| Exceeding customer needs and expectations| Customer Satisfaction Scores | Customer Retention| Double Customer satisfaction scores & retention | Customer Loyalty & Rewards Program | Customer Perspective| Obj ective| Measure| Target| Initiative|Increase Stockholder Equity| Stock Price| Increase from $489/share to $510/share| Increase Market Share| Increase Net Sales| Net Sales| Increase from 135B to 170B| Aggressive Marketing Campaign| Increase Net Income| Net Income| Increase by 15%| Make Operations Efficient and reducing costs| Sources About Samsung. (2010). Retrieved from http://www. samsung. com/us/aboutsamsung/corporateprofile/ourperformance/samsungprofile. html Amiri, A. , Jandghi, G. , Alvani, S. , Hosnavi, R. , & Ramezan, M. (2010). Increasing the Intellectual Capital in Organization: Examining the Role of Organizational Learning. European Journal Of Social Science,  14(1/2), 98-108. comscore reports July 2012 U. S. mobile subscriber market share. (2012, Sept 04). Retrieved from http://www. comscore. com/Insights/Press_Releases/2012/9/comScore_Reports_July_2012_US_Mobile_Subscriber_Market_Share NetMBA. (2002). Netmba business knowledge center.Retrieved from http://www. netmba. com/accounting/mgmt/balanced-scorecard/ Samsung Group. (2011). Samsung profile 2011. Retrieved from http://www. samsung. com/us/aboutsamsung/corporateprofile/download/Samsung_Profile_2011-EN-final-revise. pdf Qun, Z. , Irfan, M. , Khattak, M. , Abbas, J. , Xiaoning, Z. , & Shah, M. (2012). CRITICAL SUCCESS FACTORS FOR SUCCESSFUL LEAN SIX SIGMA IMPLEMENTATION IN PAKISTAN. Interdisciplinary Journal Of Contemporary Research In Business,  4(1), 117-124. Valazco, C. (2012, May 15). Techcrunch. Retrieved from http://techcrunch. com/2012/05/15/3997-models-android-fragmentation-as-seen-by-the-developers-of-opensignalmaps/

Methods Used by Elementary Teachers in Managing Misbehavior in the Classroom Essay

Introduction In today’s society, teachers at all grade levels face a growing number of students whose behavior challenges the success of daily classroom instruction. Managing misbehavior in the classroom remains one of the persistent difficulties of teaching. Whether it is in the elementary or secondary and tertiary education, the management of the pupil’s conduct remains to be a vital part of the daily equation of effective teaching. A large part of everything students do in school is geared toward forming good habits and discipline falls right in line with this. Discipline is concerned with the development of internal behavior that enables the students to manage themselves. Every school is required by our government to maintain discipline and to issue disciplinary rules for strict compliance. They are designed to develop among students the highest standard of decency, morality and good behavior. If there’s no discipline early, there’ll likely be no discipline as an a dult, which affects job performance, family relations, among other aspects of a student’s life. The aim of discipline is to set limits restricting certain behaviors or attitudes that are seen as harmful or going against school policies, educational norms, school traditions, among others. Concrete, reasonable and fair discipline is the foundation of an effective and efficient institution. Fortunately, teachers usually are able to rely on these disciplinary rules and standard strategies for addressing classroom misbehavior, either independently or with the support of colleagues, and they are able to find a successful solution to the problem however these tactics may still fail to produce the desired outcome because of the varying degrees of differences in the attitude of teachers and students and other societal factors. While there have been gains in terms of school’s responses and significant programs and policies have already been made to lessen the occurrence of misbehaving, and improve the behavior of the students, such efforts have not been enough to cater to this rap idly growing number of cases. On the other hand, while these set of strategies are in place, enforcement remains weak. Challenges still remain in terms of translating these rules into concrete and doable actions that will address the underlying cause that bring about misbehavior in schools. It is therefore imperative to develop a stronger and comprehensive platform on treating this phenomenon that includes a wide  array of possible intervening factors, existing opportunities and limitations. Teachers must be able to work within school guidelines, connect with the students and communicate these difficulties with parents for effective teaching best takes place in a classroom with few disruptions for misbehavior. Moreover, the government, the school, the parents, and the children themselves should share responsibilities. This paper is therefore addressed to concerned professionals, agencies, and the public school administrators and teachers who are presently working hard in alignment towards eliminating the negative effects of misbehavior from public schools such as Catbalogan I Central Elementary Sch ool to other public and private institutions in the whole country. Statement of the Problem Nowadays, Filipino teachers face the spread of behavioral problems that threaten the educational system in most schools. These problems have direct influence on the learning process and the overall teaching/learning experience. Thus, more and more models of strategies are utilized by schools to combat the increasing problems. To deliberately rank the most effective means to overcome misbehavior on a more basic and intrinsic spectrum as vital and basic as public elementary schools, the study will explain and analyze the different strategies that have facilitated Catbalogan 1 Elementary School teachers in dealing with the misbehavior of Grade 5 and 6 students and how effective have they been in managing misbehavior in the classroom during the school year 2013-2014. Research Questions: 1. What are the general theories explaining the occurrence of misbehavior among children in general? * Why do students misbehave? * What are the indicators of misbehavior? * When and how could we assess if the student is already misbehaving? * Compare respondent’s approach to classroom management with Dreikurs’s approach and determine which of Dreikurs’s approaches were incorporated into the respondents’ approach. How do they incorporate them? * 2. What basic proper standards of behavior does the teacher implement in addition to the existing school behavior policies and programs in dealing with students misbehavior? 3. Which of these disciplinary methods, techniques and strategies is the most effective in the reduction and prevention of misbehavior of students in class? Thesis Statement The research intends to study the administration of discipline towards misbehavior cases in Grade 5 and 6 classes of Catbalogan 1 Central Elementary School. The study affirms that the management of existing policies and strategies used by the teachers in dealing with the problem of misbehavior still face greater challenge that it remains inadequate in the implementation because these rules and their consequences are not equally and consistently enforced. A comprehensive school behavior policy program is indispensable in meeting the needs of each school in curbing down misbehavior towards effective teaching and also in providing a positive learning experience for children. Hypotheses 1. The strategies that will be utilized greatly depend on the ability of the teachers to provide a comprehensive set of the proper standards of behavior or a behavior policy in the class. 2. Societal factors have a significant effect in properly addressing the issues of misbehavior in the classroom. 3. Teachers’ lack of awareness of the rules which requires their functions to discipline, safeguard and promote the welfare of the children has a negative effect on the behavior of the students. Student’s behavior on the other hand is directly affected by the teachers’ attitude towards them. Theoretical framework Effective teachers know that in order to truly help a student to change an inappropriate behavior, they have to get to the root causes and consider the core of the problem. When there is misbehavior, we have to stress out several external consequences of several interdependent conditions. Therefore, in order for us to identify, plan, and implement and compare the most effective strategies of intervention, it is necessary to define it in  the context of its different causes and structural features. The researcher through the examination of theories available in the literature will use the Social Discipline Model by the social psychologist, Rudolf Dreikurs. Dr. Rudolf Dreikurs, renowned educator, developed these four behavioral goals in the 1930s. He was a student and colleague of Alfred Adler, who believed that â€Å"all behavior has a purpose.† Dreikurs has written many articles and books on student behavior and much of his work can be purchased on the internet. His theories on behavior have had an enormous impact on the raising of children and classroom management models. His model is based on the four basic premises of Adler’s social theory which are: 1. Humans are social beings and their basic motivation is to belong 2. All behavior has a purpose 3. Humans are decision-making organisms 4. Humans only perceive reality and this perception may be mistaken or biased Dreikurs’ educational philosophy is â€Å"based on the philosophy of democracy, with its implied principle of human equality, and on the socio-teleological approach of the psychology of Alfred Adler. In this frame of reference, man is recognized as a social being, his actions as purposive and directed toward a goal, his personality as a unique and indivisible entity†. (Dreikurs,1968). A socio-teleological approach implies the existence of God, a higher purpose, and a natural order of things. Dreikurs believed it was possible to understand children’s misbehaviors by recognizing the four main purposes or goals of the child. The four goals of misbehavior are attention getting, the contest for power, seeking revenge, and displaying inadequacy. Dreikurs promoted the use of encouragement and logical (and natural) consequences rather than reward and punishment. Essentially, every action of the child is grounded in the idea that he is seeking his place in the group. A well-adjusted child will conform to the requirements of the group by making valuable contributions. A child who misbehaves, on the other hand, will defy the needs of the group situation in order to maintain social status. Whichever of the aforementioned goals he chooses to employ, the child believes that this is the only way he can function within the group dynamic successfully. Dreikurs states that â€Å"his goal may occasionally vary with the circumstances: he may act to attract attention at one moment, and assert his power or seek revenge at another† (Dreikurs, 1968, p.27). Regardless if the child is well-adjusted or is misbehaving, his main purpose will be social acceptance. The following are techniques that can be used to address the four goals of misbehavior Attention Getting Some students strive to be the center of attention. They do almost anything to be noticed from being argumentative to being funny. There is a lack of concern about following accepted procedure to gain recognition. Teachers and classmates find behavior by this student annoying and at times rude and unacceptable. The attention seekers may be disciplined for: disrespect, teasing, disturbing the class, being uncooperative, swearing, talking, being out of his seat, and making fun of others. Dreikurs said most students start misbehaving by seeking attention, and when this fails, they move on to more problematic goal-seeking behaviors, such as power. This is why it is important to find a thoughtful intervention in the first phase of misbehavior: attention seeking. (http://www.metu.edu.tr) Dreikurs believed that over 90% of all misbehavior is for attention. Technique towards attention Getting Behavior: 1. Minimize the Attention – Ignore the behavior, stand close by, write a note 2. Legitimize the Behavior – Create a lesson out of the behavior, have the class join in the behaviors 3. Do the Unexpected – Turn out the lights, play a musical instrument, talk to the wall 4. Distract the Student – Ask a question or a favor, change the activity 5. Recognize Appropriate Behavior – Thanks students, give a written note of congratulations 6. Move the Student – Ask the student to sit at another seat, send the student to a â€Å"thinking chair† Seeking Power and Control Wanting to be in charge or in control provides the motivation for some student misbehavior. Students with this agenda simply want their way. They don’t hesitate to take a stand on matters important to them and are often disruptive and confrontational in reaching their goal. The teacher may feel provoked, threatened or challenged by this student. The following reasons may be the basis for a referral to the office for a student who struggles for power: disobeying, disrespect, not cooperating, talking back and  disturbing the class. Often power-seeking students don’t act out until they’re assured of an audience. And from the teacher’s perspective, this is probably the worst possible time. 1. Make a Graceful Exit – Acknowledge student’s power, remove audience, table matter for later discussion, 2. Use a Time-Out 3. Apply the Consequence Seeking Revenge Lashing out or getting even is how some students compensate for real or imagined hurt feelings. The target of the revenge may be the teacher, other students, or both. Revenge may come in the form of a physical and/or psychological attack. Bullies often use revenge as their excuse for shoving or pushing, teasing, causing embarrassment and excluding others. Displaying Inadequacy Wanting to avoid repeated failure, some students appear to be discouraged and helpless. They falsely believe that they can’t live up to expectations, either their own or those of others. To compensate for this belief, they don’t attempt anything that might result in failure. They hope that others will forget about them and not hold them responsible for anything. These students may be disciplined for: not paying attention, not being prepared, being dishonest and wasting time. This phenomenon, decribed as â€Å"learned helplessness† by psychologists, is characteristic of students who fail needlessly because they do not invest their best efforts. 1. Modify Instructional Methods 2. Use Concrete Learning Materials and Computer-Enhanced Instruction 3. Teach One Step at a Time (or break instruction into smaller parts) 4. Provide Tutoring 5. Teach Positive Self-Talk and Speech 6. Teach that Mistakes are Okay 7. Build Student’s Confidence 8. Focus on Past Successes 9. Make Learning Tangible 10. Recognize Achievement No matter what the reason is for a student’s misbehavior, we are forced to respond. Some responses produce better results than others. Below is a list of both positive and negative responses by educators. Responses that usually get negative results include: 1. Reacting emotionally by being angry or making hollow threats 2. Handing out a punishment that is out of proportion to the offense 3. Reacting to misbehavior publicly 4. Reacting to a small incidence that often resolves itself 5. Making an accusation without the facts to back it up Responses that tend to get positive results include: 1. Describing the unacceptable behavior to the student 2. Pointing out how his behavior negatively impacts him and others 3. Talking with the students about what could have been a better behavior choice and why 4. Asking the student to write a goal that will help him improve his actions 5. Showing confidence in the student that his behavior goals are achievable 6. Positively reinforcing behavior that relates to student goals Dreikurs believes the best way to correct misbehavior is with logical consequences. For example, if a student doesn’t finish his homework, he stays after school to complete it. This helps the student make an association between the misbehavior and the consequences. The environmental-sociological-cultural are those theories that see the primary contributing factors to misbehavior from the immediate environment, society, or culture. Balanon also classified this model as the â€Å"environment factor† which includes physical, social, cultural and economic factors. This includes 1) environmental stress model, 2) social learning model 3) social-psychological and 4) psychosocial systems. (Rodriguez, 2006) The family systems approach by Peter Reder, Duncan Sylvia, and Gray Moira, which put significance in the relationship between family and others as relevant to the problem and analysis. It provided a framework that focuses in interpersonal, group, and institutional functioning. It is said that the concept of circularity in the systemic model emphasizes mutual influence between two or more people and the role and meaning that each person has for others must be modified and their relationship renegotiated. Family systems focus on patterns of interaction within families with particular emphasis on  communication and a psychological role adopted by family members and the view of casualty is circular involving family members. According to Rozsbaszky in Understanding the â€Å"Misbehavior† of Children Through the Theory and Research on Ego Development,(1980) , the theory of â€Å"ego development† by Jane Loevinger is a major theory of personality. According to the theory, it is a major determinant of personality characteristics in each individual whether child or adult is his or her level of ego development. Some personality characteristics are believed to be manifestations of an individual’s ego level. Personality characteristics may actually be markers or milestone traits for a particular ego level. As the child matures, he or she passes through the invariant sequence of stages of ego development, each greater cognitive and interpersonal complexity than the precedi ng stages. FIGURE 1 : Conceptual Framework of the Study Conceptual Framework Explained The figure shows a base frame which contains the respondents and the research environment which this study will be conducted. The respondents of this study are the Grade V and VI teachers of CAtbalogan I Elementary School. At the top of the base frame is a bigger frame which contains the variates as well as the process by which this study will be conducted. The study will determine the relationship shown by the double headed arrow connecting the two frames, between the Teacher’s Profile, Student’s Profile, Class Profile as to size and performance, Government Intervention, Support Groups, Family Values, Behavior of teachers towards students, behavior of students towards teachers other societal, psychological, economic, environment factors shown by the box at the right of the bigger frame, and the strategies and techniques of Grade V and VI teachers in dealing with misbehavior among students with existing school behavioral policy and legislation and programs on misbehavio r shown by the box at the left inside the bigger frame. The result of this study and the corresponding recommendations made, seen as the third frame, will serve as basis for the desired result shown in the uppermost broken lined sphere which is Positive Classromm Environment and successful and effective teaching and improved well-being of students. The desired effect depends on the independent variables which are strategies and  techniques used by Teacher-respondents, existing school behavioral policies and implementing laws regarding misbehavior. Effective implementation of these strategies and policies in schools with the cooperation and intervention of societal factors such as the family as the primary unit of society, next is the educational system, the variety of social networks, serves as important factors to attain an improved system on managing misbehavior in schools. However, this would also be measured among other intervening factors such as the profile of teachers, students and the class as to size and performance, government interventions, support groups, the values of the family of students, the behavior of teachers towards the class, the behavior of student towards teachers and other societal, psychological, economic, and environment setbacks. They include the complexity of social relationships with kin, neighbo rs, and friends, who may be sources of stress as well as support, and who may fail to reduce misbehavior even when they are trying to be emotionally supportive. Consequently above relationships of the boxes inside the bigger frame, a desired outcome is total awareness of Effective Methods towards Successful Management of Students’ Misbehavior in Catbalogan 1 thus will result to positive classroom environment and improved well being of the students. SIGNIFICANCE OF THE STUDY The study is intended to study the occurrence of misbehavior among students, its causes and the many ways to lessen its occurrence through professional responses and strategies implemented. It also represents the active struggles of teachers in dealing with the problems of behavior towards their students. The researcher hopes that this study will serve school principals to identify the behavioral problems that faced teachers in the classroom, in order to find solutions to decrease the effect of these problems on the level of teacher participation and student achievement. It also serves the educational administrations specifically the Department of Education (DepEd) to make decision to face the classroom problems through teacher training programs and useful laws. They will also know whether a certain program has already attained certain objectives. To the teachers, it will serve as a useful guide in understanding the student’s attitude and the many causes of misbehavior. Consequently, they will gain insights on which of the several  strategies is the most effective in eradicating problems of behavior among students. They could also benefit from the study through expanding their ways of improving their methods by the recommendations brought about by this study. For the students, they will increase awareness of the need to follow the standards imposed by the teachers and adapt their behaviors accordingly to the standards of proper discipline. The school administrators will also benefit from the study through acquiring ideas thus being able to lobby for policy adjustments in order to improve the current behavior policy of the school. For future researchers, this will provide a thorough and comprehensive literature for them to be able to conduct similar studies and furthermore inspire the readers to do more studies of an all encompassing discipline such as teaching and the effects of a new framework in solving misbehavior and other academic problems wh ich are much challenging and worth experimenting. Scope and Limitations This study will determine the effective strategies used by Grade 5 and 6 Teachers of Catbalogan I Central Elementary Schools in dealing with the problem of misbehavior using the descriptive – cross sectional design approach. The respondents are the Grade 5 and 6 teachers in Catbalogan I Central Elementary School, Catbalogan City. Descriptive as well as inferential statistical tools will be used in this study. This research paper is consisted of 7 parts. The first part covered the overview, objectives of the study, the methodology, frameworks applicable and review of related literature. The next part assessed the complexity of misbehavior in the classroom and the root causes root causes and effects of misbehavior. The third part examined the existing conventional strategies, theories and practices management such as â€Å"Dreikurs’s approach, which are commonly used by a majority of schools in dealing with misbehavior in comparison torespondent’s approach in the classroom. The next chapter tackled on the set of policies and programs of the Catbalogan I central Elementary School and is subsequently followed by the chapter on the best strategies the respondents perceive to be the most effective. The next part  was delved on the analysis of findings by presentation of the date gathered from the questionnaires and relevant information from Catbalogan I Central Elementary School and finally followed by the summary of findings, conclusion and recommendation. DEFINITION OF TERMS For better understanding, the following terms are hereby defined conceptually and operationally. BEHAVIOR It is the way a person behaves or acts; conducts; manners. In this study behavior mostly refer to the perception, attitude and general feeling and well being of an individual DISCIPLINE It is imparting knowledge and skill, in other words to teach. Discipline is used by teachers or parents to teach their children about expectations, guidelines and principles. Children need to be given regular discipline to be taught right from wrong and to be maintained safe SCHOOL DISCIPLINE It is the system of rules, punishments, and behavioral strategies appropriate to the regulation of children or adolescents and the maintenance of order in schools. Its aim is to control the students’ actions and behavior MISBEHAVIOR Misbehavior is a deliberate action, contrary to adult rules when a child fully understands those rules, and has the capacity to obey them mentally, emotionally, and physically. (http://www.4cforkids.org/wp-content/uploads/2009/07/misbehavior_poster.pdf) SCHOOL BEHAVIORAL POLICY It is the general principles and standards of behavior expected of pupils at the school and how that standard will be achieved, the school rules, any disciplinary penalties for breaking the rules and rewards for good behavior. BEHAVIORAL STRATEGIES Strategies can help a teacher to manage behavior in a classroom

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