2.

a. E-Bay

EBay is a trusted marketplace; there are few marketplaces online which are considered
trustworthy, when you buy on eBay you know that you’re safe. It is safe for both sellers and
buyers, but even more for buyers. eBay has over 1 billion live listings on its platform, that’s
the largest catalog by far, you can find almost anything you like on eBay, things you couldn’t
find anywhere else. They entered the online marketplace early and had an interface that
allowed people who were barely able to use a computer to reach an international market.

The eBay customer is the Seller who buys space on the site to advertise his products. The
Seller pays 30 cents to list, plus 10% of the selling price and of the shipping charge to eBay.
EBay provides a large audience and patrols the site to make sure those buyers can make
purchases with confidence.

b. Starbucks

Starbucks seeks to provide a connected customer experience to build and maintain a

long term relationship. More than just offering fine coffee, the coffee giant provides the
“Starbucks Experience” which makes customers feel at home, forming a strong emotional
attachment. Starbucks stores are designed with great ambiance in mind in accessible
locations.
Starbucks was ranked 7th in Fortune’s annual list of “100 Best Companies to Work
For” in 2008. A decade later in 2018, it is still listed as one of the best places to work for (e.g.
Job site indeed.com has placed Starbucks in its "50 Best Places to Work in 2018" list).

Starbucks Reward Card

Starbucks also introduced the Starbucks Rewards Card that provides a host of
benefits. This entices customers returning to make purchases, building loyalty. Starbucks also
launched the Starbucks Customer Experience Survey which allowed customers to share
their thoughts about their experience at Starbucks. This is evident that Starbucks is committed
to establishing long term relationships with the customer.
The Finest Coffee Beans
Starbucks’ uses the finest beans for its coffee. Company personnel often travel
frequently in search of suppliers that meet its standards. In addition, Starbucks also purchased
Certified Organic coffee and Fair Trade certified coffee. In 2009 alone, 14 million pounds of
certified organic coffee was purchased by Starbucks Corp. Coffee is also brewed
with Mastrena, a sophisticated Swiss-made espresso machine. When you visit a Starbucks
cafe overseas, you will be greeted with that familiar taste no matter where you are.

c. Facebook

Facebook Inc.(FB) owns the world's largest social network. Deep pockets and the
company's network effect combine to create a competitive advantage over tech peers and
innovative upstarts alike. Wide operating margins along with returns above the cost of
capital provide quantitative proof of this advantage. However, the dynamic nature of
Facebook's industry casts doubt on the long-term sustainability of its economic moat.

Warren Buffett helped develop and popularize the concept of an economic moat,
defined as a sustainable competitive advantage that allows a company to generate
an economic profit for the foreseeable future. Without a moat, profit margins eventually erode
until they become equal to the return on invested capital (ROIC).

Key Takeaways

 Facebook is the world's largest social media network.

 Wide operating margins and consistent returns above the cost of capital are evidence of
the company's competitive advantage.
 Facebook benefits from having an economic moat in the form of economies of scale.
 The dynamic industry in which Facebook operates casts some doubt on the
sustainability of its economic moat.
 Yet, despite some controversy, Facebook continues to grow and attract record numbers
of users.

Moats can be established by economies of scale, network effects, intellectual property,

brand identity, or legal exclusivity. Buffett's strategy revolves around identifying companies with
sustainable moats that generate cash flow, estimating the present value of future cash flows,
and purchasing stock when the price dips below the present value of those cash flows.
Kevin P. Guinsisana February 29, 2020
MBA-2 Professor: Nancy Alaras
Subject: Operations Management

1.

Vivo is a global smartphone manufacturer with production facilities and R&D centers in

China (Dongguan, Shenzhen, Nanjing, Beijing, Hangzhou and Chongqing), India, Indonesia

and the United States (San Diego). Over the years, Vivo has developed smartphone markets,
with presence in China, India and Southeast Asia (Indonesia, Malaysia, Vietnam, Thailand,

Myanmar and the Philippines). In 2017, Vivo will further expand to regions like Hong Kong,

Macau, Taiwan, Southeast Asia, South Asia as well as the Middle East.

Vision:

To become a healthier, longer-lasting global corporation

Core Values:

Integrity, Team Spirit, Superior Quality, Constant Learning, Innovation, Consumer Orientation

Mission:

●To Consumers: Provide quality products and superior service

●To Employees: Create and maintain a harmonious, respectful work environment

●To Business Partners: Create a fair, equal cooperative platform with mutual benefits

●To Shareholders: Render above-average returns on investment

Employee Training & Development: Vivo believes that the training and development of our

employees are very important. We provide them with a wide range of training courses, a good

career development path and sufficient space for them to increase skillset.

Income & Welfare: Every year, Vivo participates in the industry pay and benefits market

research to ensure competitive employee benefits. We have also set up a performance-

oriented bonus scheme which is open to employees of all capacities. For particularly excellent

employees, we offer a no-cap bonus system and unique training system.

●Employee
●Travel Allowance     ●New Employee Subsidy    
Residence    

●Birthday & Holiday ●Monthly Salary + Year-end Bonus +

●Free Physical Check    
Gifts     Stock/Option    

●Severance Allowance     ●Housing Subsidy     ●Team Building Fund    

●Recreational and Sports

●Meal Allowance    
Activities