Europe in the Internation Economic Order Essay Example | Topics and Well Written Essays - 4000 words - 1

Europe in the Internation Economic Order - Essay Example The FDIs are constant and cheap sources of funds for the companies of a country and the Government is encouraged to allow the increase of the FDI for the development of the economy. It produces huge capital, which helps in the production of goods with the use of the modern technologies. The FDI influx is generally seen in most of the countries. However, the intensity is more in the less developed countries, as they are the ones in need of capital. With the entry of FDI, comes the vision of the management from the developed countries, which helps in the production procedure in the countries. This helps in the development of the economy of the countries. On the other hand, the companies of the developed nations are attracted to the FDIs because they get ample amount of benefits in the country where the investment is made. The companies want to extend the territory of the business and the best way to do it is by investing in the foreign companies. In this age of competition, it is of gr eat importance to capture the market and FDIs provide the companies the tool to do so. In the case of some of the FDIs, there is transfer of technologies, which helps the domestic companies. As stated earlier, the influx of the FDIs is the strongest in the less economically developed countries (LEDC). The LEDC provide the organizations of the developed countries a huge market and the Governments of these countries provide the necessary tools like the tax concessions to attract the FDIs. The Governments understand the need of capital formation in the country and they attract the investments. The FDIs are also seen in the more economically developed countries (MEDC). The paper will deal in the issues of the strategies of the LEDC and MEDC in attracting the FDIs. In the case of the MEDC, a European country will be taken. The benefits and the advantages of the policies of the Government will be evaluated in the case of the attraction of

Critically evaluate Hope and Fraser's (1997) arguments and the reasons Essay

Critically evaluate Hope and Fraser's (1997) arguments and the reasons for their arguments - Essay Example After ascertaining this, the limits of the budget follows. A budget, to be useful to a manager at any level, must reflect the organization pattern. When plans are complete and coordinated very well to fit into the departmental operations, the department budget becomes useful as an instrument of control. Budgeting, Hope and Fraser (1997:22) argue, should be dispensed with because it: "strengthens the vertical chain of command and control rather than empowering managers. It constrains rather than increases flexibility and responsiveness. It reinforces departmental barriers rather than encouraging knowledge-sharing across the organization. It makes people feel undervalued as 'costs to be minimized' rather than assets to be developed. And it is bureaucratic, internally focused and time-consuming." That is quite a diatribe. Yet, it seems from anecdotal and other evidence that budgeting remains 'alive and well' in most organizations. First, there is a risk of overdoing the budget by way of spelling out minor expenses in detail that deprive managers of the needed freedom in managing their units. For instance, a department head in a poorly budgeted company was hampered in a very important sales promotion because expenditures for office equipment exceeded budgetary estimates. Such being the same, the new expenditures had to ... Such being the same, the new expenditures had to be limited, even though his total expenses in his unit where within the budget and he had funds to pay personnel for writing sales promotional letters. In another case, a department's expenses were budgeted in such less important details that the actual budgeting cost of many items exceeded far the controlled expenses. Another risk may lie in allowing budgetary goals to become more important than the organizational goals. As mentioned by Fraser, budgeting strengthens the vertical chain of command and control rather than empowering managers. Managers, in their desire to keep within limits, might forget that they owe loyalty to the organization's ideals and objectives. In one organization with a budgetary control program, the sales department could not get needed information from the medical department on the ground that the latter's budget would not stand such expenses. This conflict exists perhaps because there is no proper coordination; and normally, these are symptoms of inadequate management. Plans constitute a supporting and interlocking network and every plan should be clearly in a budget. It is interesting to note that it is often common for managers to say that an idea is good but it is rejected because it is not within the budget. Sometimes, budgets often control the wrong things. They measure inputs but ignore outputs such as the quality of the product or customer satisfaction. These items may be difficult to measure; yet they may be the key to success or failure of the enterprise. Some managers may no invest in research and development or invest in activities that will result eventually in greater market share because these investments normally do not show immediate results. It is wiser

International Marketing Objectives of honey manufacturer

International Marketing Objectives of honey manufacturer Australian by Nature plans to enter the US market with its 100% pure honey by targeting the business to business market. This will be done by supplying honey to an existing and reputed honey packer through whom the product will enter the US market. This will lead to a reduction in the marketing costs at the initial stages and also minimise the risk of entering the new market. All this will help Australian By Nature to increase its demand in the market and thereby increase its production capacity. In short term the company plans to attain high brand awareness and brand knowledge. After working with existing honey packers for about 24 months, the companys brand will be well established and based upon that it can start packing the product itself and also start spending money on marketing the product. International Marketing Strategy Drivers for Australian by Natures Decision to enter United States According to Stonehouse et al. There are four main forces of internationalisation which are categorised as market, government, cost or competitive drivers. But these drivers may vary from industry to industry as well as market to market. The main drivers for Australian by Natures decision to internationalise relate to the market, government and cost drivers. As seen from the analysis in Part A above the drivers from markets basically include customer needs, marketing channels and other main countries exporting to US. But based on the above geographic analysis particularly the topography aspects which show that the bees have contracted diseases in USA will lead to a good and in future increased demand of Australian by Nature honey which is 100% pure and will be a huge success in the USA market. The United States and Australia have extended investment relations by forming the Australia-United States Free Trade Agreement (AUSFTA). This agreement will lead to little hassles for Australian by Nature to start exporting honey to US. Going further the company will also face competition from other countries exporting honey in US, but due to its good reputation and being an Australian brand it is always at an advantage compared to its competitors. Large Companies which have high fixed costs are more likely to go global, so that these high costs can be offset by increased sales volume as result of going global; this is because higher sales volume leads to reduction in high fixed costs in turn resulting in economies of scale. This is also a driving factor for Australian by Nature because it will benefit from higher sales by internationalising. From all the drivers we can conclude that United States will be a good country for Australia by Nature to enter and become successful in long term. Foreign Market Entry Strategy As per the environmental and internal analysis done in part A we have selected United States of America as our target country. Not only it is an attractive market for all the aspects of our decision making process, but also bring in different varieties of the product in a market flooded with brands from so many countries with China being one of the main competitor. There are many methods of entry such as exporting, direct sales, franchising, internet, licensing, joint ventures and foreign direct investments. We will launch Australian by Nature honey in US through an Export Distributor. An export distributor is on who will buy the goods from the Australian producer that is Australian by Nature and will resell the product in the US at a profit. In other words the export distributor will be the sole distributor of the product in the country and will supply the goods purchased from Australian by Nature to all the retailers, supermarkets, convenience stores etc. The distributor will be handling all the customer complaints about the product in the foreign country which US in our report. The export distributor will trade under its own name and at the same time maintain an on- going relation with the exporter. Also the distributor will have sale rights in United States. The main reason for selecting direct distribution channel for entering the US market is that it will save a lot of marketing costs for the company in initial stages of the product because the export distributor will be committed to provide all the product support in the foreign country. Another advantage of this type of distribution is that the already well established distributor has existing relationships with all the supermarkets, retailers and convenience stores and based on this the company can rely on the know-how and familiarity of the market conditions to attain the best retail position. In addition to that creating a distribution network in new foreign country is a time consuming process, as well as a costly process especially where it is concerned with launching new products in the foreign markets. Possible Foreign country exit strategy As this is our first move to start operations in international market, we are prepared for a less than enthusiastic market. In case this happens we are going to do more deep market research as to the possible causes of the product failure that may be due to our marketing approach, may be the pricing, the distribution channels etc. If after further approach there is no improvement in the sales of the product in US, we are simply going to downmarket our product. Down marketing the product involves repositioning the product from high end category to a middle one, may be reducing the price of the honey. As a result of repositioning the product will cater to the middle income group also and because of which marketing costs also will be reduced because this type of consumer group doesnt demands expensive advertisements to make them believe that our product is unique from others. But there may be a further possibility that even after the repositioning the product may not be selling well; in that case we shall put off our operations completely from US by simply ending our contract with the export distributor who was the sole distributor of the product in the United States. International Marketing Program 1. Marketing Mix We will now analyse Australian by Natures marketing mix based on the following seven Ps: Product and Service, Place, Promotion, Price, People, Process and Physical Environment. 1. (A) People Providing a good quality product is important when the company is entering the foreign market. The consumers will judge the companys reputation based on the quality of the product. The exceptional expertise, knowledge and skills of the people working in the production of the Australian by Natures will be of significant importance for the success of the product in the foreign market. At the same people involved with the export of honey products will be also very important for the success of the product. The personnel working for the production of the Australian by Nature products are a source of competitive advantage. Australian by Nature must ensure that sufficient personnel have been allocated for the increased production as a result of its exports to United States. Furthermore they should be provided with up to date training so as to handle the increased production or if possible might be new machinery for production. As the more personnel will be required to cater the demands for exports, the company should invest in training them how to effectively handle the exports demands. 1. (B) Promotion As this is the first time that the company will be selling its honey products outside Australia and its initiation of entry in a broader United States market, the promotional activities are very important. This can be done by first building the awareness about the product in the market which can be done through trials and then purchases. Moreover it is also important to establish the brand personality of our product in the new market.

racism and prejudice Essay -- essays research papers

Racism and prejudice has been present in almost every civilization and society throughout history. Even though the world has progressed greatly in the last couple of decades, both socially and technologically, racism, hatred and prejudice still exists today, deeply embedded in old-fashioned, narrow-minded traditions and values. Racism is a case of ‘misplaced hate’ and ignorance, being not only discriminatory, but also seemingly foolish with disregard of all human commonsense. Why does racism still exist in today’s world? If it still occurs, has the world really progressed at all? Through extensive research methods and wide reading, it can be proven that racism is still present in the modern world. Racism is based on the belief that one’s culture is superior to that of others, and this racial superiority provides justification for discrimination. Racism begins with categorising by race, and therefore stereotyping particular cultures. A simple definition of prejudice given by St Thomas Aquinas states prejudice as â€Å"thinking ill of others without sufficient cause† (1. pg 21). Racism is a major issue in today’s society, affecting a large number of the world’s population and causing political and social turmoil. To evaluate the true meaning, effects and views concerning racism in today’s world, a number of literature sources were researched including novel, films, short stories, poetry, song lyrics, textbooks and magazine articles. â€Å"Black Like Me† written by John Howard Griffin is an excellently written novel, based on factual events experienced by the author himself. It is based in the 1950s, a time when racism was widespread throughout America. The basic outline of the story is the following of one man (Griffin) as he embarks on a journey that takes him to the ‘other side’. Griffin is a middle-aged white man, and decides to personally experience the life of a Negro. He achieves this by literally changing the pigmentation in his skin so that he is no longer white. Griffin moves to the deep southern states of America where he is subject to harsh racist treatment by the whites. By doing so, he experiences first hand the reality of racism and prejudice, almost to the point of disbelief. The story focuses on the lives of Negroes: restricted, brutal and harsh. â€Å"My skin was dark. That was sufficient reason for them to deny me those rights and freedoms without whi... ...wn comes under siege as racism rages within the community. The Klu Klux Klan is also featured in the film, a group that symbolizes hate. The eerie looking hoods in the film are a reminder of America’s dark past, and of current racist groups still present in society. Many of the characters in the film are stuck in old values and teachings, misplacing their hate towards the coloured. The film â€Å"Mississippi Burning† supports the hypothesis as it deals with society still living in the past and acting narrow-mindedly towards its fellow human beings. Within all of the texts mentioned, the theme of racism is present, just like in most of today’s societies. All of the researched sources deal with the effects of racism, the foolishness of it and the fact that it still exists in today’s modern and so-called advanced world. No matter how much social attitudes evolve, prejudice, hatred and racism will still exist within aspects of society, whether it be in the heart, in the mind or in the souls of those too ignorant to realize the damaging consequences. While technologically today’s world has advanced, if society cannot overcome issues such as racism and prejudice, it has not evolved at all.

Consumer Behavior Final Project Essay

Target Corporation is a retail store based out of America, its headquarters are in Minneapolis, Minnesota. Target’s goal began with creating an upscale alternative to Wal Mart, while remaining a discount store. They have since become the fourth largest retailer and second largest discount retailer in the United States, Wal Mart being the first. Target’s first retail store was opened in 1962, in Minnesota. The company has continually grown to its present day size, operating 1,916 stores in the US. In 2013 Target began operating in Canada, and has since opened 127 stores throughout. Target offers clean, spacious and guest-friendly stores. Their motto is â€Å"Expect More, Pay Less,† indicating you will find good quality, at low prices. They have a variety of their own in store brands. Target has made â€Å"cheap-chic† accessible to everyone, in the form of furniture, fashion and household items, offering designer products at affordable prices. Target reaches younger customers with higher incomes than its competitors. Target aims for high-end buyers, in part because the middle class is shrinking. In general they reach moderate to better income families with active lifestyles and a multitude of hobbies. A Target customer’s median age is 40, and median household income is $64,000. Eighty percent of Target customers are female and thirty-three percent have children at home. 50% of consumers are employed in professional or managerial positions. Around fifty-seven percent of Target customers have completed college. Generally Target’s consumers are interested in buying higher end, quality products. Their primary market is females ages 35-45, therefore this demographic should be the focus of their marketing efforts. Secondary customers could be the spouses of these females who use the products their wives shop for but are not the primary customers making the purchasing decisions. Tertiary consumers could be children in families, using the product but not yet making direct purchasing decisions. These children may become primary consumers later in life, if they associate the brand with positive experiences. Target offers a customer loyalty program which helps generate  and keep customers. This program helps identify customer purchasing trends which enables marketers to create effective, targeted promotions, decreasing advertising costs. The key behind Target’s success is their positioning as a high-end brand despite their low prices, which attracts a group of consumers who normally would not seek discount retailers. Target provides knowledgable, friendly staff that is happy to answer questions and assist customers. A report by Time Trades showed that 85 percent of consumers purchase more when helped by a knowledgeable sales person. Target successfully associates it’s brand with a younger, edgier, hipper and more fun image that it’s discount retail competitors. Most consumers that shop at Target don’t see it as a discount store, but as a superstore where you can buy everything you need conveniently in one place. Target spends 2.3 percent of their revenue on advertising, in comparison Wal-Mart only spends 0.3 percent. Target has been smart with their marketing efforts, especially by partnering with many high-end design oriented suppliers over the years. Target uses bright and eye-catching advertisements with creative presentations. Target puts a lot of work into their displays and understands the power of them, capturing more sales as a result. An example of this is the bins Target strategically places near the front entrance with items under five dollars. This catches consumers’ attention when they first enter the store and right before they head to the checkout. Most consumers identify with Target’s symbol, a bulls-eye and their store color, red without even seeing or hearing the Target name. Target continues to improve their mobile app, which is an in-store shopping tool for consumers. The app includes a section for weekly ads that uses location to show consumers a weekly ad for a nearby store. There is a section in the app that allows consumers to prepare a personalized shopping list. Target’s guest wi fi network which lets consumers see special services and deals for each store also allows Target to monitor where in the store consumers are and what products they are looking for. They have created an online magazine called â€Å"A Bulls-eye View.† Its purpose is to tell stories behind Target’s partnerships, products, events and other things going on with the  company. It does not pitch products but instead stays true to an old-journalism outlook, â€Å"show don’t tell.† For example, an article may be written about how to decorate your home using a Target product line, but will not promote a specific product. â€Å"A Bulls-eye View† attracts 100,000 unique visitors each month. The Target spokesperson, Hausman says Target’s marketing efforts are heading towards building stronger relationships with consumers through social media. This is what â€Å"A Bulls-eye View† is designed to do, build relationships with consumers that will eventually lead to sales. Target has a packaging operations team to ensure products have an appealing structure that holds the product with eye-catching graphics. Target’s advertising and in-store promotions strive to convey the message that they are clean, fresh and offer in style products. They send the message that products are priced well and convenient to buy. Target uses assortment, placing complementary items, commonly purchased together near each other. Through intelligent, consistent marketing Target has turned it’s bulls-eye logo into a lifestyle symbol recognized by ninety-six percent of American consumers. Strivers represent active consumers and are the primary VALS type that shop at Target. Shopping allows these people to demonstrate to peers their ability to buy, and is a social activity. Strivers can be compulsive buyers, depending on their financial circumstances. Strivers tend to like stylish, trendy products, and love fun, which are qualities Target represents and personality traits they aim to appeal to. I think Target’s secondary market is Experiencers, who are generally young and eager consumers. They like self-expression and excitement, and are attracted to new offbeat brands. Target tries to appeal to young, hip, fun consumers. Experiencers tend to spend a lot of their income on entertainment, socializing and fashion, and strive to accumulate trendy possessions. Even though these consumers are young and most likely do not yet have large entertainment and clothing budgets, they are attracted to Target because it is a discount store. Those that follow terminal values of social recognition may be attracted to Target, Target markets it’s company as providing high-end products for a high-end lifestyle. Those that value an exciting life may be attracted to Target’s brand since its image is exciting  and fun. Other-directed consumers may be more likely to shop at Target; they observe their peers to decide what is acceptable. Many of Target’s advertisements demonstrate social acceptance portraying groups. Target shoppers use routinized response behavior for most of the items they would purchase. Most Target guests are shopping for every day household items, which are items they have experience purchasing. They do not need more information or time spent researching the product. Those that use routinized response behavior have experience purchasing the product, and a clear idea of their expectations. The more a product becomes routine to buy for a consumer, the less reactive they will be to advertising efforts and discounts for similar products of different brands. Consumers at Target may use limited problem solving, occurring when shoppers are thinking about purchasing new versions of previously purchased products that may have additional features. Another instance when limited problem solving would be used is when a consumer is undecided about which brand or version of a product to purchase. Consumers may need more information to understand the differences between product brands. Limited problem solving is often used with occasional purchases like clothing, movies, and cosmetics. Since Target has such a wide variety of items for sale, there are many different decision-making processes used. Extensive problem solving is probably the least common decision-making process used by Target shoppers. Extensive problem solving is used when purchasing a product in a new category that is not well known or when purchasing a high-risk item that is more expensive or presents a psychological risk. With extensive problem solving there is no consumer preference for a certain brand or product. The purchase process in long and a lot of time is spent on research. There are few products sold at Target that require extensive problem solving, perhaps electronics like computers, televisions and video game consoles. The same product may not produce the same decision-making process in every consumer. A Target shopper that is accustomed to a certain product will have routinized response behavior, whereas a consumer who is new to a product will probably use limited problem solving for the same purchase. Survey: 1. How many times in the past year have you shopped in a discount retail store? 2. How many people live in your household, and how many of these individuals are children (under 18)? 3. What is your yearly household income? 4. What industry do you work in? 5. Do you make most of your purchases in a physical retail store or online? 6. What is your age range? 7. What city do you live in? 8. What is your level of education? 9. What are your hobbies and interests? 10. If you could create a retail store personalized to your wants and needs what would it be like? Consumers enjoy shopping at Target because it is a one-stop shopping experience with a large selection. It offers a fun, comfortable and safe shopping environment with low-prices on high quality, well-designed items. Target is process-oriented, focused on getting their work done with integrity towards employees and customers. They have a deep concern for their employees, providing a fair, positive work environment and fair wages. Target is dedicated to meeting their guests’ needs and always catering to the guest experience, which contributes greatly to their success and the positive consumer attitude towards their brand. Works Cited 1. â€Å"History: Target’s Shopping Experience Over Time | Target Corporate.† Target. N.p., n.d. Web. 23 Sept. 2014. . 2. Target Stores. (2014, August 3). Retrieved September 26, 2014. . 3. Abramovich, Gisele. â€Å"Target’s ‘Show Don’t Sell’ Content Strategy – Digiday.† Digiday. N.p., 16 Apr. 2013. Web. 25 Sept. 2014. . 4. â€Å"Target Careers: Advertising & Marketing Jobs | Target Corporate.† Target . N.p., n.d. Web. 26 Sept. 2014. . 5. Barwise, Patrick, and Sean Meehan. â€Å"Bullseye: Target’s Cheap Chic Strategy – HBS Working Knowledge.† Harvard Business School Working Knowledge. N.p., 16 Aug. 2004. Web. 25 Sept. 2014. . 6. Schiffman, Leon G., and Leslie Lazar Kanuk. Consumer Behavior. Pearson, 2010. 7. Johnson, Lauren. â€Å"Target Tightens Focus on Mobile as In-store Shopping Tool.† Mobile Commerce Daily RSS. N.p., 30 Aug. 2013. Web. 10 Oct. 2014. .

Regency Plaza Case Study †Risk Management Process, Review of the Options Essay

3. Risk Management Process of the Regency Plaza Project Regency Plaza is a mixed-use multi million US dollar project carrying quite high stakes. So the risks of it should be evaluated beforehand and managed well in order to make sure that the project wouldn’t over run budget or time and end with a successful result. Here we use the â€Å"Four Stage Risk Management Process† to evaluate the risk management happened in Regency Plaza project. 3.1 Risk Identification Evaluation: how well the project was analyzed and source of the risk identified. In the below table we will take a closer look at how well the risk was identified by Kris Hodgkins. Description| Identified/Not| Constraints and Remarks| Size the layout of the floor plate| Identified| Complicated due to condominiums lying over the hotel rooms over a parking garage, which resulted in fixed column spacing and elevator core locations. | Number, mix and size of the condominium units| Identified| BRA approved maximum number of units to be built was 96, which Hodgkins chose opposing Farley, the marketing consultant’s idea of building spacious 72 units because of Hodgkins’ expected performance targets of $134.4 million gross sales and $26 million net profit out of the project.| Time Constraints| Not identified| Project was on a tight schedule as Kelly Constructions was convinced to cut off 03 month from the estimated 32 months of the project duration, with a promise of minimal changes to the original design. Eventually with the allowance of individual customization in the units, customers (i.e Millers) required drastic changes.| Manpower deficiency| Not identified| Neither RHG nor Hodgkins expect customers to require big alterations. But customers did, causing constant changes in the project design decreasing manpower and efficiency of the construction.| Extra Costs and Delays| Not identified| RHG allowed customers to modify their  units as they please as long as they pay for additional cost but customers asked for big modifications, the cost for wasted materials and extra cost for demolition and delays in construction would go upon general contractor since they got the project on fixed sum contract.| External Factors| Not identified| It is mentioned that in later phase in the project, sales were low and the local economy was weakening.| Customer Dissatisfaction/Complaints| Not identified| With the deficit manpower and budget overrun, service became slow causing several buyer complaint s.| 3.2 Risk Assessment Below is a table for assessing the above-identified risks. Risk | Likelihood to occur| Impact| Effect on the project| 1. Issues regarding size of the layout and floor plate| Certain| High| Project design is affected because of the constraints.| 2. Decisions on number, mix and units of condo to be sold| Certain| High| If 96 units of condominiums to be sold, they would need better marketing and excellent finishing touches.If 72 units to be sold, condo sales might not hit targets Hodgkins was supposed to hit.| 3. Time constraints (Project falling behind schedule)| High| High| Delayed project meant extra cost, which can frustrate the General contractor and customers| 4. Manpower deficiency| Medium| High| Deficit manpower leads to slower work completion and project falling behind schedule| 5. Extra costs and delays| Medium| High for General contractor, Medium for RHG and High for the project| As the General contractor works for Fixed Sum Contract extra costs, which exceeds budget, would go from their profit. Delays would cause customer satisfacti on and loss of sales| 6. External factors| Low| Medium| As the target market is wealthy couples, factors like Economy wouldn’t matter much so would not affect sales in a drastic manner| 7. Customer Dissatisfaction| Medium| Medium| This might lead to loss of some sales/ potential customers because Hodgkins’ marketing strategy is word of mouth and dissatisfied customers wouldn’t recommend the condos to their friends/family| 3.4 Risk Response Development As mentioned above, many of the risks were highly likely to occur. Should any of those occur, it’s ultimately project manager’s task to have a contingency plan, which Hodgkins didn’t have. She also made wrong assumptions in the planning phase of the project thinking that customers would require only minimal changes that wouldn’t obstruct construction process. As mentioned above some risks posted threat to Hodgkins marketing strategy as well but she didn’t consider the risks and eventually failed in developing Risk Response program. 3.5 Risk Response Control As a result of not having a Risk Response plan, Hodgkins could not reduce the impact or the effect those events had on the project. It is true that, she had to manage a multi-faceted project but she wasn’t able to even reduce the additional cost, which was occurring due to her planning and marketing failures, and the deadline being overrun due to various delays. 4. Review of The Options Option| Advantages| Disadvantages| Inform the Millers that it’s too late to allow changes| * No extra costs for General contractor * No construction delays * Millers are able to make the changes themselves| * Millers would be dissatisfied * Careful coordination is required * Sprinkler changes could shut down the entire floor| Push through the changes| * Minimizes the work which have to be ripped out * If the cost is acceptable Millers will be satisfied| * It’s expensive to put a unit on hold * Can take several weeks * It could in return increase the cost to a point where Millers will not be happy with the cost| Hire a small general contractor to finish the unit| * Changes required can be done * No extra cost for the general contractor * Construction would not be delayed| * Managing two general contractors * Possibility of violence and vandalism * Could be expensive * Kelly Contractors would give a very small credit for the work done and materials purchased * Arguments over the responsibility of punch list  items| Stop the work on the unit and hand it over to Millers| * Millers are in control of the cost and the work to be done * No extra cost for the general contractor| * Most banks wouldn’t accommodate lending against the unit * Can shrink the target market * Reduces RGH’s control over the project * Impact on continuing construction operations on a building which also held a luxury hotel| Move Millers to a different unit on the higher floor| * Would buy more time * No need to restructure what’s already been applied * Construction of other floors are undisrupted| * There was no identical unit available on a higher floor * Interior designer’s work will go in vain and would have to redesign * Higher floor units are pricier| All options carry advantages as well as plenty of inconveniences but the best option as our point of view would be moving Millers to a different floor Moving the Millers to a higher floor would buy more time so the cost of the changes can be assessed and approved by the Millers. As there’s no interior work done on units on the higher floors there won’t be any requirements to demolish anything or to put construction of other units/floors on hold, which would content the general contractor and also Millers can achieve the changes they want after approving the cost. There will be no wasted materials also. This option is more advantages because it would keep the general contractor content with the project. On a disadvantageous note, there’s the possibility that Millers might refuse the option as units on the higher floors are expensive and not identical with the unit they chose and also if Millers chose the unit, their interior designer might have the rework her designs which would cost Millers more. But given the good points and bad points, this option remains as the most feasible one.