TLC and WLC Estimation Research Paper Example | Topics and Well Written Essays - 1000 words

TLC and WLC Estimation - Research Paper Example The paper discusses the reason as to why LLC method is not included as an estimation method in the evaluation process. The paper will conclude with a summary of all the major points discussed in the paper. Total Life Cost Total Life Cycle Cost pays attention to all the costs that are incurred during the whole entire life of either a product or a service. This will include all the expenses of the product since the inception of the idea, research, and development of the product, distribution and marketing expenses f the particular product. In this case, Butler has to consider all the expenses and costs which will be incurred as a result of outsourcing the products due to the increase in demand. He needs to have done all the calculations and determine whether he option of outsourcing will be the better option and hence worth investing in (Stuart2007) . The head of the supply chain management in the company should calculate all the costs involved in the manufacturing of a single unit f t he product and present the results together with the proposal to the Senior Leadership Team (SLT). Whole Life Cost Whole life cost is one method of estimation that evaluates or compares building materials and building components by focusing at the lifespan f the firm, maintenance and running costs and the installation costs of the firm. The supply chain manager of Blue Jay has to take consideration of whole life Cost before submitting his proposal to the Senior Leadership Team (Abdelhalim 2007). Life Cycle Costing (LCC) In this type of estimation method, there is consideration of acquisition, operating and the disposal costs in all instances where there is evaluation of various alternatives. The supply chain manager of the company (Butler) should not consider LCC method since they have already established the firm and there is no need of establishing another firm. The LCC would only add to the costs of outsourcing and yet they not at all necessary ( Dhillon 1989). There no costs in the operating of the new firm since the operating costs under Life Cycle Costing are incurred during the actual establishment of the firm. Butler should understand that he is not to establish another firm but seek outsourcing services from another firm. The other reason as to why the LCC method of estimation is not included in the calculation is because the costs are included in Total Life costs and there is no need of repeating since they will only add on the costs of outsourcing. Calculations There is a major difference between total life cost and whole life cost whereby the Whole life cost includes all the contents of total life cost and the entire infrastructure which would support the firm, which would include the management of the firm, training and support. The two types of estimation methods are best completed and assessed by cross functional teams from both within and outside the company under consideration so that all aspects of the firm, industry or the business can be ta ken into consideration. Therefore it is necessary for the supply chain manager of the Blue Jay Manufacturing Company to constitute a committee or a team comprising members from both the company and the outsourcing firm so that they can form a cross functional team. The cross functional team would ensure that all the calculations are correct and all the costs are put into consideration so that the best decision can be made. Total Life Cost Cost Amount in $ Acquisition Costs Cost of Due

Marketing ExcellenceAmerican Express Essay Example | Topics and Well Written Essays - 750 words

Marketing ExcellenceAmerican Express - Essay Example Diversification and expansion of services offered- in the 1980s, American Express expanded into a variety of financial categories, which included brokerage services, banking and insurance and acquired companies such as Lehman Brothers Kuhn Loeb Inc, and E.F Hutton & Co. American Express has also been able to position itself against competition by forging and riding on partnerships by increasing the number of merchants that accepted its cards adding Walmart and developed new card offerings, including co-branded cards. American Express has also been able to partner with numerous banks such MBNA, Citigroup, UBS, and USAA. American Express has changed over time from its initial traditional business of â€Å"Travelers cheques†, in the 19th century, to charge cards in the 1960s, to a variety of financial services which include brokerage services, banking and insurance in the 1980s, to revolutionary credit cards in the 21st century and presently a variety of different personal cards as well as small business and corporate cards. 2. American Express has been able to integrate its business by expanding in other different businesses such as financial services, brokerage and insurance, in 1980s; American Express acquired a number of other companies such as Lehman Brothers Kuhn Loeb Inc and E.F Hutton & Co. The company has also increased its client base by increasing the number of merchants who accept their cards such as Walmart and developing new card offerings, including cards that are co-branded. American Express further integrated its business in mid-1990s when it re-branded its Small Business Services division as â€Å"OPEN: The Small Business Network†, thus increasing benefits such as flexible payments as well as special offers, partnerships, and resources for small businesses. American Express wanted to reach out to small business owners who primarily are different from people who work for big