Friday, August 30, 2019

Psychometrics Validty and elaiability

Contents Introduction The selection of employees is one of the most significant tasks a human resources practitioner Is faced with. This affects the flow of employees entering and exiting the firm. Many Issues may arise If the recruiting process Is not In accordance with the South African Legislation, namely the Employment equity act and the labor relations act, which governs the reliability validity, bias and fairness of psychometric assessment measures.These legislations have been brought about to protect employees against discrimination and unfair practices which were experienced urine the previous dispensations. In accordance to the terms of the provisions of Section 8 of the Employment Equity Act (55 of 1998) â€Å"Psychological testing and other similar assessments of an employee are prohibited unless the test or assessment being used (a) has been scientifically shown to be valid and reliable; (b) can be applied fairly to all employees; and (c) is not biased against any emplo yee or group†.The psychological measuring instrument we have chosen in accordance with HAPS is the PAIL B. The Ability Processing of Information and Learning Battery (PAIL-B) will e critically evaluated within this essay. This psychometric assessments battery can therefore assist recruiters who use these measures to identify employees who have the potential to grow and learn with In organizations.Furthermore It should be noted that the PAIL B Is a cognitive measure and Is not only used for recruitment and selection in organizations, but can also be used for selection into schools, universities and other areas. Hence, this essay will report the PAIL B through the following headings namely evaluating the PAIL B, Composition of the PAIL B, Validity, Reliability, Bias and Limitations.Evaluating the PAIL B According to Foxtrot and Rood (201 3), It Is an assessment practitioner's duty to evaluate the Information offered about a measure and determine whether it Is valid and reliable for its intended purpose. Foxtrot and Rood (2013), further state that for evaluating a measure, some of the things that an assessment practitioner should consider are: how long ago it was developed; quality of manual contents; clarity of instructions and cultural appropriateness.First conceptualized in 1994 by T. R Taylor, the PAIL B – Ability, Processing of Information and Learning Battery- (Taylor, n. . ), was designed as a set of tests with the purpose of assessing ones vital cognitive capableness. In order for the assessment to be most effective It should be administered on individuals with individuals with a minimum of twelve years educational background (Taylor, n. D. ).The PAIL B is ideal for identifying those who are likely to master new cognitively challenging content in a training context and establishing levels in order to place people in the correct positions. Taylor (n. D. ), has identified three norms that the PAIL B makes use of, namely: stained (scale of 1 â⠂¬â€œ 9) ; tens are used in the Flexibility-Accuracy-speed Tests (FAST), stained are used in the concept formation test; the memory test and Knowledge transfer test while percentiles are used in the curve of learning test.According to Taylor (n. D. ), the PAIL B is divided into five test booklets and two ancillary booklets which make up eight scores namely: Abstract thinking; Speed of information processing; accuracy of information processing; cognitive flexibility; Performance gain in a learning task; final level of proficiency; Memory and understanding and Transfer of knowledge, which ill take approximately three hours and forty five minutes to administer.Composition PAIL Battery Concept formation test This test was designed to assess one's ability to â€Å"think abstractly and conceptually: to form abstract concepts, reason hypothetically, theories, build scenarios (and) trace causes† (Taylor, p. 4, n. D. ). The test is comprised of thirty questions; each consisting of six depictions of similar nature the test taker must identify the depiction that does not share a characteristic that the rest of the depictions share (Taylor, n. D. ). Flexibility-Accuracy-speed Tests (FAST) Taylor (n. D. Suggests that â€Å"this battery within a battery measures speed (quickness) and accuracy of information processing, and cognitive flexibility'. The FAST test is made up of four individual assessments namely: Series; Mirror image; Transformations and combined tests. All four assessments are time sensitive and have been designed in such a way that it is very rare for a test taker to actually complete the entire assessment. It uses shapes of different sizes which may contain either a dot or line in the center. The basic idea of the tests is to identify a pattern and find the omitted depiction.Curve of learning According to Taylor (n. D. ), this test focuses on a learning potential, it aims to assess ones capacity at which they are able to master new skills. It looks a t future achievement potential rather than the abilities that the person already has. The test is split into four timed sessions which requires the test taker to decode a series of paired images into another set of images and once again decode these images to a set of words. Images are decoded with the aid of the first ancillary booklet, the dictionary.Memory test Directly after the test taker has completed the curve of learning test, the memory test s administered. It follows the same concept as the curve of learning where the test takers are required to decode images to words; however the dictionary is now taken away. The performance of the test taker on this test reflects the extent to which the test taker has understood the logical relation between the symbols and words. Knowledge transfer test According to Ferguson (1956, as cited in Taylor, n. D. ), transferring knowledge and skills to similar areas or situations is a vital process of cognitive development.The knowledge transf er test, as the name suggests, measures this ability. The test insists of a series of connected depictions referred to as â€Å"pieces of equipment† (Taylor, p. 19, n. D. ), which have a specific feature in addition to a basic shape. The test taker is required to categorize them under symbols. Test takers are also given the second ancillary booklet. Validity established to ensure that the test is valid for the purpose it is to be used for. Foxtrot and Rood (2013) state that the â€Å"the validity of a measure concerns what the test measures and how well it does so†.In the studies consulted it has been evident that construct and criterion validity were shown to be present in the PAIL B assessment. The construct validity of a measure is the extent to which it measures the theoretical construct or trait that it is supposed to measure (Foxtrot & Rood 2013). The second validation measure of criterion validity was defined by Paella and Wren (2005) who stated that â€Å"Crit erion-Related Validity is used to predict future or current performance†. The method that used to determine criterion related validity is predictive validity.Murphy and Adversaries (2005) define predictive validity as a method of determining criterion validity. It also used to determine the correlation of test takers test score and there criterion related scores. Taylor (1995) investigated the validity on the SOFT, where he gave the measure to 33 first-year university students who had been accepted into the university on merits other than their grade twelve results. Taylor correlated the marks from their SOFT assessments and the marks of the course they took; which were to improve their logical thinking and reasoning skills. Therefore the correlation was 0. 4 (p = 0. 012). Taylor (1995, as cited in Astrakhan, 1998) found in another study which investigated the validity on the Curve of Learning and Memory and Understanding tests was inducted using a sample of 110 workers from a beverage manufacturing firm. The criteria for evaluating workers included facets such as their capacity to learn new procedures and concepts, to understand why things happen in the firm as a whole, and their capacity to plan and organism. These results averaged correlations of 0. 35. The low correlation can be attributed to the fact that a diverse sample was not used.A further study by Taylor (1995) found criterion scores which was given to 43 employees who were enrolled in a course designed to prepare them for a promotion in Junior management positions. The correlations here were reported to be 0. 67 and 0. 79 respectively, which can be interrupted to prove to be an recreate predictor of performance. In an additional study conducted by Lopes, Rood and Maier (2001) on the predictive validity of the PAIL-B in a financial institution; the purpose was to assess the predictive validity of the PAIL test battery, in order to identify learning potential.A sample of 235 successful Job appl icants were used to complete the test battery and found the predictive validity of the test battery was assessed using a canonical discriminate analysis procedure. The procedure was adopted in view of the nominal strength of the manager's ratings, and due to the limited sample size the 5 point rating scale was eventually collapsed too 2 point classification. Reliability It should be noted that an assessment is reliable if it measures the same construct in a consistent and precise manner over time.Foxtrot and Rood (2009) define reliability of a measure as â€Å"the consistency to which it measures whatever it measures†. Split – half reliability was a major psychometric property of reliability used among majority of the literature we consulted. In the PAIL B, (Taylor 1995) elucidates that split half reliability was used to investigate whether or not the PAIL-B is reliable. Foxtrot and Rood (2013, p. 47) define split-half reliability as â€Å"obtained by splitting the me asure into two equivalents (after a single administration of the test) and computing the correlation coefficient between these two sets of scores†.During Taylor' investigations into the reliability of the PAIL B, he used a sample of six groups to test reliability coefficient of the flexibility, accuracy and speed test and the knowledge transfer test. These have reliability coefficients room a low of 0. 70 – too high of 0. 86 and 0. 71 – 0. 84 respectively Taylor (1995). In a study done by the defense force which lasted over a period of three years with new recruits. The purpose was to determine whether the psychometric evaluation processes can reliably predict the learning potential of first year recruits at the academy.The FAST considered the following; firstly, the PAIL B investigated whether the FAST has a positive effect on how quickly recruits learn new abilities. It was found that a significant relationship with a reliability coefficient of (r=O,491) exists between legibility of information processing and steepness of the learning curve. This therefore is below the accepted reliability coefficient of Secondly, it was found that a strong relationship with a reliability coefficient of is apparent between speed of information processing and the total amount of work completed by the recruits.Lastly, it was determined that the small relationship with a reliability coefficient of exists between accuracy of information processing and steepness of the learning curve. This therefore is below the accepted reliability coefficient of However, the results concluded that three components of the FAST, are accurate in predicting how quickly new recruits in the defense force will develop new competencies. The findings also further indicated that the accuracy with which information is processed has a minimal influence on the rate a recruit will develop new competencies (Preterits 2010).In terms of the knowledge transfer test which investigated if there was a transfer of knowledge to crystallized abilities. Meaning it investigated if there was a transfer of what the recruits learnt and how they apply it in combat situations. Preterits (2010) defines crystallized abilities as â€Å"are peccadillo insight or understanding and knowledge that emerge via transfer from existing knowledge and that is subsequently, successfully stored in memory'. The Memory and Understanding sub-test of the PAIL-B was used to measure crystallized ability of recruits.It was found that a positive relationship exists between the transferring of knowledge in what the recruit learnt and crystallized abilities. The reliability coefficient was reported as a positive directional relationship between transfer of knowledge and crystallized abilities. A substantial relationship with a liability coefficient of 5) exists between memory and understanding and crystallized abilities. This therefore suggests that a moderate correlation exists.In terms of the curve of lea rning, it was found that prior learning has a positive directional effect on learning performance thus the results indicate a substantial relationship and moderate correlation with a reliability coefficient of In concluding with this study, it can be said that the defense force's use of the PAIL B (Preterits 2010). A De Geode and Thereon (2010) study concurred with Preterits (2010) where a non- arability sample of 434 new recruits from the South African Police Service Training College in Philipp, Cape Town was used.Even though the size of the selected sample is quite acceptable, making use of a non-probability sampling of the target population, caution should be taken when making generalizations. De Geode and Thereon (2010), found that a score of reliability score of (r= 0. 45). This suggests that a question mark hangs over the success with which at least some of the concealed variables comprising the results of the learning potential police recruits. Standard Error of Measurement F oxtrot and Rood (2013, p. 49), â€Å"explain that the standard error of measurement indicates the band of error around each obtained score, and examiners should aware of the standard error of measurement for each subtest before interpreting the test – takers score†. Therefore, assessors must be cognizant of the test takers history and current circumstances. Factors such as culture, transient conditions, prior learning and test wishes can have an impact on the variance between the true score (obtained under perfect conditions) and the obtained score.Preterits (2010) outlines hat prior learning of an individual and their familiarity with taking assessment has a significant impact on their ability to perform in test conditions. While Dodos (2000) was of the view that a testes culture as well as environmental factors will also affect the scores of the historically disadvantaged people of South Africa. Bias Prior (2011) explains that bias â€Å"implies that test scores obt ained for various subgroups of a given population cannot be interpreted in the same way across the groups†.Taylor (1995) suggests PAIL-B was designed as a learning potential test and therefore emits any biased based on cultural differences. This is a result of the test being a non-verbal test, except for the instructions, and the test comprises of mainly geometric depictions thus language does not become an issue of concern. Astrakhan (2008) concurs with Taylor (1995) in a study conducted with a sample of 400 individuals, 66 testes had African surnames while the large majority can be classified as white.The data analysis for both race groups were highly correlated indicating that there is no potential for bias. However, it should be kept in mind that his was not a representative sample. Further studies were consulted to investigate the potential bias in the PAIL B. A sample of 20 psychological professionals from various fields, were asked to investigate the cultural bias of th e PAIL-B; found that 6 out of the 20 felt that the test was bias (Dodos 2000). Thus, it can be stated that there is a potential for bias based on one's culture.Similarly, Preterits (2010) concurs with Dodos as he found that the PAIL B was accused of being biased and under representing the cognitive capacity of individuals from historically disadvantaged backgrounds. Thus, in order to bring recruitment practices in line with legislation in the Employment Equity act, these tests was subsequently replaced with a selection battery thought to be less susceptible to culture, race and gender bias. This resulted in the measure being removed from use in the context of the defense force.Limitations of the PAIL B diverse enough for the representative target population. This is further verified by Astrakhan (2008), who also did not make use of a diverse sample. Therefore based on the literature from these authors, it is evident that accurate conclusions cannot be ran indicating that there are l imitations in the above studies. Conclusion In the end the results show that, the PAIL-B is able to predict the performance of individuals not only in certain institutions but for any selection at an accurate level and therefore makes the battery a vital instrument to use.It is evident that the PAIL- B is a somewhat outdated measure but still proves to be valid and reliable in measuring cognitive abilities today. However, caution could be taken when administering the PAIL-B, as some authors have found that bias is present in historically disadvantaged groups. This essay therefore reported on the PAIL B through evaluation of the PAIL B, Composition of the PAIL B, Validity, Reliability, Bias and Limitations. Recommendations Firstly, it should be noted that the PAIL B is an outdated selection battery.In order for organizations to make fair decisions in line with the Employment Equity Act, a more relevant battery needs to be considered. Secondly, it should also not be used in its indivi dual capacity within the recruitment and selection process and is it advisable to be used in harmony with other valid information such as candidates' curriculum it's and other test results. Thirdly, the use of the PAIL can be considered bias in instances where people from different cultures and race groups are affected.In addition, Astrakhan (2008), De Geode and Thereon (2010), should make use of a more representative sample in order to draw conclusions about the reliability of their studies. Lastly, we also propose that measures within the battery not require such strict prior learning criteria as these have been shown to bias the historically disadvantaged individuals who have not had exposure to prior learning. Reference List psychometric test administrators toward the PAIL B as a culture fair assessment with special reference to the employment equity act.

Thursday, August 29, 2019

Strategic Marketing Managment Case Study Example | Topics and Well Written Essays - 750 words - 1

Strategic Marketing Managment - Case Study Example (Barnes, 2006) As mentioned by Jobs, he has big marketing plans for Disney and people will surely love the experience of a new electrifying world within next five years. Another positive thing is, CEO of Disney Robert A. Iger possesses a kindred strength. He is self-affirmed early adopter who loves his one hundred and twenty channel Sirius satellite radio fitted in his automobile. According to Iger, he got a call from the Apple CEO who wished him well and showed interest in working together. At the same time, this coalition has ample of risks, too. Jobs will have to find a way to keep away from conflicts as he administers Apple and remains present on Disney's board too. Steve will also need to prove he can take on the new responsibility of supporting player. The similar thoroughness that helps him in manufacturing great products may make it tricky for him to stand by if somebody is doing something that he thinks is wrong. Iger does not look much secure either. He has refurbished his management style for Disney and implemented some improved operations too. Moreover, Disney’s stock is nearly the same as it used to be few years ago. (Sultana and Arun., 2006) Lots of people wonder how Jobs will utilize his distinctive skills of strategic marketing management to media industry. Jobs undoubtedly have too much to present to Walt Disney. During past few years he has exhibited a methodical justification of his thoughts and leadership. Steve Jobs has already experienced an outstanding expedition in which he has seen several ups and downs however ultimately he has always accomplished something while working for his brands. In the beginning Disney and Pixar had to face inter-organization opposition. But undoubtedly, Jobs is making every effort to give Apple and Pixar a radical drive by using his intelligence, policies and procedures to capture market. This coalition of Jobs with Disney is full of promises. Through this association or this direct horizontal strategic affiliation there is an expectation that if it works well then Disney will soon turn out to be the leading group in world of media. Another major assistance of this coalition is public likeness of Steve Jobs that will definitely help Disney in long run. Steve is famous for acquiring latest strategies for manufacturing and then marketing his products considering the preference of customers. He believes he has to launch great products in order to get great sales and heavy profits for the company. (Sultana and Arun., 2006) Steve highly prefers quality on quantity. After this coalition of Steve and Disney, it is expected that he will make his center of attention the products, which are made under the name of Disney since if he makes an Apple iPod or an animated film, he strongly believes if the manufactured good is accurate then the business will also do accurate in terms of profit. Jobs is also willing to exhibit the dedication of Apple and Disney for marketing each other. Since both these companies always showed interest in acquiring the most up-to-date technology in order to deliver their best in their products. (Finki, 2011)For instance: according to the plan free of cost advertisements of Disney movies will be publicized on various products of Apple that will enlarge their target market and will also bring an advantage above its other

Wednesday, August 28, 2019

Rare Earth Minerals Essay Example | Topics and Well Written Essays - 1000 words

Rare Earth Minerals - Essay Example According to the IUPAC, these elements include Yttrium, Scandium and the fifteen Lanthanoids of the periodic table. Yttrium and Scandium exhibit similar physical and chemical properties. They usually exist in their compound forms in the same ore deposits and that is the reason why they are termed as rare (Saunders, p23). With the exception of the radio active promethium, the rest of the rare earth minerals are relatively plentiful and they are distributed all over the earth’s crust inform of ores or minerals. Centum is one of the rare earth’s element, however, it is the 25th most abundant element with a concentration of 68 part per million (Saunders, p24). Due to their geochemical properties, these elements are greatly dispersed all over the earth’s crust and are only found in traceable amounts which can be economically mined in the forms referred to us rare earth minerals. The question that we should asks ourselves, is why the united States hire and pay China to ship in these minerals to manufacture products such as missiles even though they are equally distributed across the globe? It should be noted, that most countries have little interest to mine and exploit these elements since they have several negative effects on the surrounding. One of the most dangerous wastes resulting from the exploitation of these minerals is the radioactive waste byproducts which many countries still can not handle (OECD Nuclear Energy Agency p37). This is the reason why the U.S. shut down its largest rare mineral mine at the Mountain Pass California. Currently, China is the leading producer of cheap electronic gadgets made from these rare earth minerals mined at high environmental costs. What is their worth? The prices of the rare earth minerals increased significantly between January and August 2010 by an average of 300 per cent. For example, the Samarium, a rare mineral that aids navigation in M1A2 Abrahams tanks has increased from $4.5 per kilogram to $34 per kilogram (Geological survey(US), p61). This is attributed to the artificial intervention by the Chinese government. Most of the industries all over the world including the U.S. industries have been relocated to China because the Chinese manufacturing firms that utilize the rare earth minerals enjoy monopoly powers. Some of the industries that have relocated to China due to Tax break and Quotas include Diaodo Electronics (Japan), Rhodia Group (France), General Electric (USA) and New Material Technology (Canada) (Geological survey(US), p62). Foreign international firms have collaborated with the Chinese local enterprises since the Quotas system only relate to raw materials but not the finished or partially finished rare earth minerals’ products. A Chinese investor, Rogers, told Indian business television, that â€Å"The future of the rare earth is great. What is happening is the prices are going through the roof because the Chinese do control the supply. But it is a pure s imple capitalistic economics now† (Geological survey (US), p64). Production of the rare earth mineral across the world The current survey that was conducted established that the total amount of rare earth minerals in the entire world is approximately 99 million tones. The United States and China are the key producers of these reserves. China controls about 36 million tones, which is 30 per cent of the total

Tuesday, August 27, 2019

Document paper proposal Essay Example | Topics and Well Written Essays - 250 words

Document paper proposal - Essay Example Beliefs about the self can also be structured around cultural notions about the status of one’s family. For instance, a woman who bears a child will use her community’s beliefs about mothers to construct her own convictions about who she is. If she is a working mother, she may also use her society’s ideas about different occupations to create her own self identity (Shoemaker 49). Society, for the most part, can help an individual to construct meaningful ideas about their worth. However, this is not always the case, and when society is judgmental towards one’s particular community or gender, it will inevitably influence how people see themselves. According to Mohamed Rafiq, Maya Angelou’s poem, ‘Phenomenal Woman’, appears to have been an exercise in encouraging women to define themselves by qualities other than those stipulated by society (Rafiq, 36). The scholar Mary Lupton, who has studied the poetry of Maya Angelou has also stated that the poetess used statements such as "the curl of my lips" (Line 9) and "the stride of my steps" (Line 8) in her poem, ‘Phenomenal Woman’, to show that a woman is more than a body that has society’s standards of beauty. She wanted to stress that women are already fully female without necessarily adding all the things that society stipulates (Lupton, 5). According to Chasar, Langs ton Hughes, who lived at a time when African Americans were subjected to segregation in all areas of life, allowed his warped self identity to show itself in his poems (Chasar, 59). This is an example of how society’s warped view of something can influence a person’s self identity. In his poem, ‘Cross’, Hughes stated, According to the scholar, Shaduri, Langston expresses regret for saying things that were the result of his doubt in who he was and the worth of that (Shaduri, 94). He had inherited that legacy from his

Monday, August 26, 2019

Sector Matrix Framework Essay Example | Topics and Well Written Essays - 2000 words

Sector Matrix Framework - Essay Example This paper aims to evaluate â€Å"Sector Matrix Framework† for its usefulness in analyzing demand and supply linkage. This evaluation will compare Froud’s Sector Matrix Framework with Porter Value Chain concept and Gereffi’s Global Commodity Chain Framework. Value Chain Approach Concept Michael Porter in his 1985 book â€Å"Competitive Advantage: Creating and Sustaining Superior Performance† gave the management concept of the value chain. A value chain is a firm’s chain of activities to produce its output. It focuses on the organization’s process view. Porter classified the hundreds of activity of converting input in to output in two categories. Particularly, primary activities, which include â€Å"inbound Logistics, Operations, Outbound Logistics, Marketing and Sales, Service† (Porter, 1998). These activities are â€Å"Involved in the physical creation of the product and it sale and transfer to the buyer as well as after sales assist ance† (Porter, 1998). The other category is of Support activities, which includes â€Å"Procurement, Human Resource management, Technological Development, and Infrastructure† (Porter, 1998). ... Porter believes that a firm to achieve competitive advantage should focus on its discrete activities in â€Å"designing, producing, marketing, delivering, and supporting its products† (Porter, 1998, p.33). That is why he introduced value chain as a valuable tool for systematically analysing these activities. Analysis of Demand and Supply Porter value chain approach analyse demand and supply on the bases of value adding procedure and the industry structure. Porter believed that the interdependent processes of the value chain adds value to the product and, as a result, finally generate demand. He was further of the believe that as value chain delivers value to the customer with firms obtaining competitive advantage for the production of the product it helps to determine the supply (Sople, 2012, pp. 37-41). According to Porter, the demand and supply balance is very much dependent upon the structure of the industry. As the industry structure plays a vital role in determining an or ganizations profit, it has a significant role in achieving and maintains demand and supply balance of a product. Evaluation Although, chain concept is one of the most applicable and successful concept for achieving competitive advantage it is not without drawbacks. Chain concept is not of much help for a diversified firm operationally defined as one sells related and unrelated products thus compete in different industries. It works for commodities, which do not need infrastructure and complementary services before there usage. The chain value analysis of Ford would evaluate that the company due it to it being involved in more than one generic strategy suffers from lack of competitive advantage and exhibits below average performance. There may be some

Sunday, August 25, 2019

How do the media portray applied psychology Essay

How do the media portray applied psychology - Essay Example (Fryer, 1950) Media is an important vehicle for getting the message across to the right frame of audience at the right time and in the right capacity possible. It would not be wrong here to suggest that the role of media in any field is more than any other social and cultural domain that has come of age in the recent times. Media can literally shake the very basis of the disciplines and professions which are existent in the current times and it would not be long before we find out for our own selves that the media would take over our lives and start ruling us like none other. The question however present here is of understanding the relationship between the applied psychology and the representation of the same in the different media forms like electronic, print, outdoors and others. (Guilford, 1950) The relation between the different forms of media and the psychological basis depends entirely on the way the dependents, i.e. the consumers and end viewers think of it. It means the values attached with the media portrayals are important in their relation of the psychological self. The role of media in the ranks of the applied psychology brings into consideration the intricate aspects of gender portrayal as well as identity crisis at times. With this, there is the question of understanding the media activities and the players who actually run the whole show. (Groome, 2004) Applied psychology applies both at the industrial level within the media and also goes down towards the organizational basis. What this means is that the media stands at the crossroads of both of these significant areas. Media has a much larger role than it is perceivable at any point in time. Applied psychology regards the role of the media in the same light as it would give to any other significant feature within the cultural and social perspective. In all essence, applied psychology studies the mental processes

Saturday, August 24, 2019

Businesses desire to achieve a competitive advantage Essay

Businesses desire to achieve a competitive advantage - Essay Example The paper tells that companies that achieve a competitive advantage can exploit that edge in order to obtain higher sales than other companies in the marketplace. Organizations can achieve a competitive advantage by exploiting their brand value. A brand strategy is generated over time by investing a lot of money in advertising and marketing campaigns. Technological superiority, innovation, and patents are other ways to gain a competitive advantage. Companies that achieve a competitive advantage are able to increase their market share. These firms are also able to attract more customers than its competitors. Examples of companies that have been able to dominate an industry by gaining a competitive advantage are Starbucks Cafà ©, Microsoft, and De Beers. Microsoft utilized innovation to stay ahead of the competition. Starbucks Cafà © beat out the competition by providing a superior product and better customer service. The competitive advantage that De Beers enjoys comes from its supp ly chain superiority and access to greater sums of capital. Organizations that have a competitive advantage are able to retain more customers and build brand loyalty. Higher customer retention rates are desirable. Based on Pareto’s 80/20 rule approximately 80% of a firm’s revenues come from 20% of its customers. Most companies that are the market leaders in their respective industries reached that status by having some type of competitive advantage. Good business strategies are needed for managers to implement a competitive advantage.