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I want to write an essay of not more than 2 pages A4 talking about the above subject.

BAIL

 

WHAT IS BAIL?
Bail means the release of a person from custody or prison upon security given for his appearance in Court on an appointed date or upon an undertaking given by sureties to produce him in Court on such a date. There are four types of bail, namely:
- a personal bond with security;
- a personal bond without security;
- a bond with surety, but without security;
- a bond with surety or sureties and with security

 

WHEN IS BAIL AVAILABLE ?
A person accused of a bailable offence e.g. cheating forgery or defamation is entitled by law to appear or be brought to court and released on bail when he is arrested or detained without a warrant by a police officer.

In non-bailable cases, for example, when a person is accused of infanticide, theft or rape, bail is not completely prohibited but rather, is available at the discretion of the Court or police officer in charge of a police district. There is, however, an important limitation on this discretionary power. Bail must be refused if there are reasonable grounds for believing that the accused has been guilty of an offence punishable by death or life imprisonment, but exception may be made for any person under 16 years of age or any woman or any sick or infirmed person accused of such an offence.

Conditions may be imposed by the Court in granting bail (only in respect of a non-bailable offence) such as requiring the accused to surrender his passport. Failure to comply with any required condition may result in the accused being kept in remand until trial.

WHAT FACTORS WOULD THE COURT CONSIDER IN GRANTING OR REFUSING BAIL ?
The discretion of the court on whether to grant/refuse bail hinges primarily on the question of the likelihood of the accused absconding or the likelihood of repetition of the offence with which he is charged while on bail. Factors concerning the accused normally taken into account by the Court include:

· The nature of the offence charged
· The apparent probability of conviction
· The likely sentence
· His family ties and relationship within the community in which he lives.
· His reputation, employment status and monetary conditions
· His prior criminal record
The amount of bond imposed should be sufficient to secure the attendance of the person arrested and must not be excessive. Where a defendant who has been committed for trial is on bail to appear at the trial and it is intended to present an indictment against the defendant the director of public prosecutions or, as the case may be, deputy director of public prosecutions or a person duly authorised by the director or deputy director in writing in that behalf, either generally or in a particular case, shall cause notice to be given to the defendant or the defendant’s solicitor and to each of the defendant’s sureties (if

any) advising of the time when and the place where the indictment will be presented.

 

Reference:

 

 

 

 

 

CULTURE

Culture & Media

 

We look at all different meaning of word culture.Culture is it about who we are- so everyone has an opinion

(The word culture) came to mean, first, ‘ a general state or habit of the mind; having close relations with the idea of human perfection. Second, it came to mean the general state of intellectual development in a society as a whole’. Another meaning of culture is body of the arts’.  The 1960s was a period of change for Australia. The ethnic diversity produced by post-war immigration, the decline of the United Kingdom and the Vietnam War (to which Australia sent troops) all contributed to an atmosphere of political, economic and social change

On September 11th, 2001 much of the western world turned against Islam as they never had before. In the years that followed 911, the world witnessed the invasion of Afghanistan and Iraq; events that have helped turn parts of the Muslim world against the western world.

When comes to media in particular ethnic community has impact on their lives due to  terrorist attacked happened. They trying to give negative view on culture( Islam) so we think that what their give us information regard this religion then we think they’re bad people so we starting getting hating them, however the media tells us things that are true however they do not tell us everything. We are usually only shown certain sides or aspects of things and other stuff is left out. Therefore we adapt to a single sided view of different cultures based only on what is covered by the media. if we were told everything we would probably have different opinions than those that are made per the media

 

The contribution that media portrayals make towards stereotyping, and the impacts

this has on local communities, was explored from many angles. The adverse

influence of the media was associated with a disproportionate number of negative

stories about different cultural groups, the undue emphasis of certain negative

terms linked with cultural groups, and in some cases the inaccurate use of

evidence.

The media adversely influences people’s views about different cultures, affecting

perceptions of Australia as a nation.

 

 

ASSIGNMENT INSTRUCTION: BC501 Question and Discussion to complete

 

Questions To Answer

 

 

1)         View the video debate between Mark Cuban and Fred von Lohmann.
            <>

           

List and discuss five points they both agreed on and five points they disagreed on. (10 marks) (150 words)

 

 

2)         Channel conflict can be defined as any situation where two different marketing or distribution channels are competing for the same sale with the same brand.  The use of the Internet as a channel to reach consumers has lead to potential channel conflict.  Answer the following questions:

 

a)     Discuss two types of channel conflict which may occur and why.

b)     Explain how the online distributor/retailer can handle channel conflict and discuss two examples of companies who have encountered channel conflict by selling their products online and how they managed the conflict. (10 marks) (150 words)

 

 

3)         Discuss search engine optimisation (SEO) and list five techniques for designing web pages to maximise SEO. (5 marks) (100 words)

 

4)         You want to buy a digital voice recorder to record law lectures, and live music occasionally.  Recommend the best recorder currently available (in terms of sound quality, file transfer and value) based on user reviews. (5 marks) (100 words)

 

5)         a) Discuss how Web2.0 has influenced social network channels. 

b) What is a possible future impact web2.0 will have on education and how we learn? (5 marks) (100 words)

 

6)         Read the Business Week article ‘Dude, You're Getting a Dell—at Wal-

Mart’ <>

Discuss the positive and negative implications of the article for online retailing.

(5 Marks) (100 words)

 

7)         What is web analytics used to measure?  Choose two measurements and describe them. (5 marks) (100 words)

 

8)         What are five main differences between the Internet and other forms of

            communications media? (5 marks) (100 words)

 

BC501 Question and Discussion to complete

1. YouTube Debate: Mark Cuban and Fred von Lohmann

            Cuban Both of them agreed that youtube is not the primary issues but the future youtube that will arise in the long run. Both of them also believes that the law must focus on limiting the access to the technology that are used in developing innovations regarding the uploading files in different sites with  same service. Both of them agreed that it is the choice of the business to ask for the private information of their users and that web host must not modify the uploaded files of the users in order to follow the law of the DMCA.

            They argued that youtube is not qualified on the privileges that were stated in the DMCA. Fred believes that youtube etc. will help small enterprises to have a free way of marketing but Mark disagreed. Mark also says that lack of private information of the user will result in difficulty in tracking down the users that are disobeying the law.

2. Channel Conflict and the Internet

            Channel conflict is the result of the interdependence of reseller and manufacturer and the overlap among the marketing functions that they are performing and the limited resources that are used while performing it (, 1995, ). The latent conflict exists when the conditions are right for contention but the company is not aware about it. Another type of channel conflict is the perceived conflict that occurs when one of the channel member senses that some oppositions are present in the chain. One of the primary reasons of conflict is the goal incompatibility.

            Apple is an example of companies that encountered channel conflict but managed it by giving exclusive distribution to AT & T. Another example is the J. Crew that encountered a problem about inconsistency of their traditional and Internet-based stores. To prevent the said problem the company had focused on managing and organizing both their Internet-based and traditional stores.

3. Search Engine Optimization or SEO

            Search engine optimization or SEO when correctly done will serve as a powerful online marketing strategy by enabling millions of online users to find and organization’s website among the millions of the top search results (, 2003, ). There are three foundations for a successful SEO: the text components; the link components; and the popularity component (, 2003, ).

            There are different technique that can be used in order to maximize the usability of search engine optimization of an organization such as Title Tags, ALT Tags, font tags, metadata description and headers.  

4. Best Recorder in Terms of sound quality, file transfer and value

            As of now, Olympus DS-4000 Digital Voice Recorder is gaining its popularity. Millions of users are telling positive things about the benefits and advantage of the said DVR. It offers a noise reduction features; it can record as well as playback WMA files. Because it is using a USB features, files can be easily saved from any computers and it can also be used as a storage device for other important files. It also record digital speech standard or DSS format in order to meet the needs of transcription.

It is also cost-effective since it offers different features that are not available from the previous model.

5. Web2.0

            Web2.0 is all about tying together the collective intelligence as well as eliminating the software release cycle and it tackles about providing services and not products. It shows greater openness and transparency in the process in the social dimension by using open style and keep-it-simple approach (, 2007, ).

            Web2.0 can be used for education purposes in the future because of its popularity. For example, in youtube, there are useful videos that can be used as a reference for any important events that had happened in a given period of time, therefore, students will be able to understand it clearly than to read it in a book and other written references.

6. Online Retailing (Dell and Wal-Mart Article)

            One of the main advantages of the e-retailing is that it enables different companies to target an immeasurable market. This is one of the competitive advantages of the DELL, one of the leading PC sellers in the world. But just like any marketing strategy, online retailing also offers major disadvantage, just like in the case of DELL, although they are well known around the world due to their e-retailing process, their competitors are taking the lead of sales because they are not offering the traditional way of selling goods. It is also an advantage if your customer will be able to see the products everywhere.

 

7. Web Analytics and Measurements

            Web analytics is the study that pertains to the behavior of the visitors of a given website. The most popular measurement that is used in Web analytics is the web traffic data that is conventionally extracted out from the web server of files and previously was derived from the web clients using the JavaScript page tags. Another is the web transactional data that are obtained from the information that was gathered from the transactions of the client with the website. It can be the number of the customers, the number of the orders and the average size of the transaction that was made in a given date (, 2004, ). 

8. Difference between the Internet and other forms of communications models

            Internet has its big difference in other forms of communication such as the radio, the television and newspapers. That is the reason why, most of the businesses are establishing the Internet as their main strategy for marketing. One is that it offers a more wide and vast variety of information than television and other media. Another is that it is more entertaining. Internet also is more interactive than other form of communication. Another is that it offers a worldwide of updates. The last and the most important aspect is that it is cost-effective compare to the other said communication forms.

 

 

 

 

 

 

 

 

 

 

Bibliography

Traditional fairy stories reinforce cultural stereotypes; modern ones subvert them.To what extent do you agree with this statement?

Fairy Tales

Introduction

            “Traditional fairy stories reinforce cultural stereotypes; modern ones subvert them.”

            Fairy tales have long been part of mankind's history. Fairy tales are part of every person's childhood. Fairy tales give children a view of what they may be facing in the real world. However, these truths are often not blatantly presented and are given in a manner wherein children can easily ingest them. This is due to the reason that children are not as developed and mentally and emotionally mature as adults.  Furthermore, fairy tales often conjure stereotypical images of heroes and heroines in the stories. Heroes are often portrayed as handsome, masculine and brave. While heroines are portrayed as beautiful, fair and have a knack for being to kind to the point that they are abused. These stereotypes are present in almost all fairy tales existent. Fairy tales also present a sense of helplessness and, in the end, victory over such helplessness. Also, fairy tales clearly distinct light from dark, and takes nothing in between. Evil is portrayed as viciously evil, whilst goodness is portrayed as being really good to the point of ludicrousness. However, these are concepts easily ingested by children. Children do not know the concept of being in between, they only grasp the idea of being at both polarities.

            In this paper, we shall discuss the statement above and its implications on this genre of literature.

DISCUSSION

            Fairy tales present an escape for the fears and wants, not only of children but of adults as well. Fairy tales are presented in a way that they can be easily ingested by children listening to them. Fairy tales, in whatever manner, often always allows good to prevail over evil. However, this approach always present stereotypes, not only for the heroes but for everyone involved in the story as well. However, it has been argued that this pattern is no longer the same in modern fairy tales. Modern fairy tales explore the possibility of steering away from the stereotypical matters in the stories. Examples of these modern fairy tales could be Shrek, The Princess Diaries and many more. These stories explore the possibility of coming up with a happy ending even if there exists many areas which do not correspond to the usual mixes of fairy tales.

Stereotypes

            In fairy tales, many stereotypes exist. Often characters are aesthetically overly-perfect. Heroines are either very beautiful, or possesses qualities that are not often possessed by normal mortals. Heroes are most often handsome, dashing or very strong. These characteristics are some of the things that mortals often wish that they possess. Therefore, they incorporate these in stories wherein they can extend these to lengths which are not humanly possible. These stereotypes offer a good view of what people were like in the olden times when these stories were created. However, some of these stereotypes must not be celebrated since they bring negative connotations, even distort realities and implant negative thoughts into children's consciousness.

            According to the article, “Fairy Tales Send the Wrong Message” by , fairy tales are all well and good in providing an outlet for children's imagination. However, many stereotypes exist in fairy tales. Furthermore, many of these stereotypes have negative connotations to them. The issue of sexism can also be brought up in connection to fairy tales. Females are often portrayed as useless, dependent and often too kind to the point of idiocy. Women in these stories often cannot fend for themselves and often rely on external help in order to be taken away from their misery. Often these so-called princesses rely on their male consorts or partners in order to win over their villains. Women are also characterized as weak, as displayed in various fairy tales wherein they cannot fend for themselves. These women do not have the initiative to move for themselves, often succumbing to the abuses of their evil stepmothers and other such villains. But whatever she lacks in value, she gets in other aspects.  Women in these stories are often reliant on their external attributes. These are their arsenals and most often the key to get them out of any horrible situation where they fall into. Their beauty would often beguile man and beast alike and would help her in he distress. Furthermore, they are also often assisted by otherworldly creatures, other than men, to alleviate her misery and raise her in status. Moreover, being delighted by position, money and aesthetics are one of the distinguishing attributes of women in fairy tales. This is due to the fact that, as cited by Moore, in the story “the Iron Stove”, the woman was greatly happy to have found out that the stove was indeed a handsome and rich prince, and not just a talking stove.

            Men in these stories are portrayed as clever, handsome, intelligent, strong and brave. Almost all positive traits are attributed to men of these stories. They always come to rescue their princesses in the end of the story. Also, they often get what they want and are always awarded for their “bravery and intelligence”, since women in those stories are treated as helpless  and only reliant on their external attributes to get out of a sticky situation. Men however, rely on their wit and cleverness. Their often resort to trickery, thievery and even murder to take possession of what they want.

            These traits can be classified as gender-biased traits. Men are often always more favored in receiving positive traits, women are lucky enough to be given beauty and a “good and kind heart”. Women are expected to be submissive and to wait on men. Men on the other   hand are expected to be smart, and clever, and should be able to win a beautiful damsel in the end. These traits are unequally distributed due to the fact that these stories were created at times wherein people were given gender-specific roles. Furthermore, people were expected to act on these roles given to them. So women were expected to act as they are and men were expected to do the same.

            Materialism can also be found in fairy tales (). In fairy tales, rewards often await heroes and heroines in the end. Whether it be worldly riches, a kingdom, or a good-looking spouse, the hero is sure enough to get it in the end. Furthermore, material riches can also be one of the factors that makes the hero do what he is supposed to do, the princesses are just icing to the cake. As pointed out, in fairy tales, having much money can solve all of you r problems. One can become a prince or a princess if they have enough money to become one. These values are blatantly displayed in fairy tales. Often, heroes go through such troubles just for the rewards and spoils of their adventure. Furthermore, values such as family ties are not clearly promoted in these stories. Families are usually broken and poor, many are part of second marriages. Moreover, many are victims of abuses and their blood parent doesn't usually do anything to prevent such abuses. Their blood parents are portrayed as people who cannot do anything to alleviate the misery of their children, instead, they add to the misery because they are in fear of their spouses.

            Another issue pointed out by Moore is that these changes in status and fate are often intertwined with magic. Moving upward in the social ladder for these characters are due to the fact that a magical being, entity or item has helped them numerous times. This trait is blatantly displayed in Alladin and the Magic Lamp. In this story, Alladin is a poor boy, yet of good-heart. He is a trickster and is also tricked by a sorcerer to fetch a lamp from a cave which contains traps. When the lamp is retrieved however, the sorcerer attempts to trick Alladin again by leaving him inside the cave. But Alladin is clever enough to keep the lamp. As he rubs the lamp, he is able to summon the all powerful genie which helps him on many occasions, especially in augmenting his wealth and power. With the help of the genie, he is able to win the hand and heart of the princess ( Again, here we can see the materialistic side of the characters within the story, as pointed out by ). A few years later, the evil sorcerer returns and is able to trick the princess into giving him the lamp ( Another stereotype, the woman's being gullible). The evil sorcerer is able to summon the genie and almost succeeds in eliminating Alladin if it were not for his magic ring which in turn holds a lesser genie. That story clearly displays the character's reliance upon the solutions the magical entities can come up with. Often, a disregard for one's reliance on himself is displayed in these stories and one's reliance on luck, magic and fate are one of the most prized values ().

            Another issue tackled in the article is the issue on racism.  Racial discrimination has been present in humankind ever since the conception of the word discrimination. The term racialism is a term which is a derivative of the term racism. Racialism is a term which is meant to soften the negative connotations associated with the term racism. Both terms represent the belief that a certain race is either inferior or superior to other races because of certain traits that they possess (2007). According to UN International Conventions "the term "racial discrimination" shall mean any distinction, exclusion, restriction or preference based on race, colour, descent, or national or ethnic origin which has the purpose or effect of nullifying or impairing the recognition, enjoyment or exercise, on an equal footing, of human rights and fundamental freedoms in the political, economic, social, cultural or any other field of public life." (1966).

            Discrimination and prejudice studies have constantly been conducted and published for decades and they have indicated that such occurrences are a reality among minorities. Racial discrimination has been a staple of minority groups throughout the ages. In the work setting, racial discrimination topics have been a staple in organizational studies. (1995) Even in instances where minorities are to engage in recreational activities, they are hounded by certain prejudice by the majority. (1998) Even at the time when these people intend to have fun, they are pursued by such unfair treatment. Though this does not justify that minorities engage in criminal activities, one must recognize that even if they start complying with rules, the existing society wields everything that is not fair on their midst.  In fairy tales, racism, though not blatantly announced, is often part of the central themes and aesthetics of the story. Being white, the person represents everything good, whilst if a character is black, he is automatically bad and evil. As Moore pointed out, the stories are basically of European decent and often biased towards their culture. Since Europeans are characterized by their fair skin and other fair attributes, then they always place characters as they are, fair and white. However, villains are characterized by being of dark colors, and being dark, they are automatically evil. Moreover, bias continues as many stories only consider characters of their own race as beautiful. This is quite offensive since the place that we live in is composed of many races and many cultures. Being a part of a minority group implies a degree of inequity right away. Meaning there is an inherent disadvantage that one acquires to the moment he/she considers himself/herself a part of the minority. This has been the problem in any state with a highly diverse population. Though it is primarily seen in the United States, this situation is not restricted to its boundaries. This takes place in Europe and Asia. (1995, 2004) Thus, this establishes it as a universal phenomenon.

            However, there is one last stereotype not mentioned by , the distinctiveness of evil and good. In fairy tales, when one is evil , one is evil through and through. There is nothing in between. When one is good, one is good, no matter how many evil things he has done, he is still considered good and a hero since he rid the world of evil.

Comparison to Modern Stories

            There are many modern fairy tales that exist today and they are very much different from the fairy tales that exists. Modern fairy tales explore the possibility of that were not even thought of during earlier times. For example, modern fairy tales are not afraid to give their character flaws. These heroes have characteristics which are inherent to normal beings. Furthermore, many of these characters reflect the lives of normal people. An example of a modern fairy tale would be Shrek. The story talks about a very unlikely hero, which is, more often than not, the villain of fairy tales. This unlikely hero is shoved from his beloved swamp to save the land of fairy tale characters hate him as much as he hates them. And later on, he gets to marry the poor princess in the castle which is in fact an Ogre like himself. The princess was cursed to become human during the day and would turn back into an ogre at night.

            The story involves many changes from the fairy tales of olden times since it is a light-hearted tale, and involves an unwilling hero who only wishes to sleep in his swamp in silence.  No matter what he is offered, riches and fame, he refuses it all because he only wishes his “privacy”. However, he relents in the long run and allows himself to be led to a perilous journey to rescue a princess. The story employs uses the Ogre, Shrek, as the main character of the story, thus defying the stereotype of handsome, attractive and rich prince-charming. He is able to pull through for the people around him, despite his obvious discomfort and selfishness. This is another feature of the modern fairy tale. Heroes are no longer portrayed as saint-like characters. Modern fairy tales have heroes who can give in to fear, selfishness and the darker side of human nature. This aspect proves to be good in the eyes of the audience since they can identify with the characters that are in the story. These characters are more in touch with reality, and therefore have more humanistic side to them.

            Stories such as that often reflect human nature perfectly, without the sugar-coating. As was mentioned, older fairy tales often give their characters ethereal characteristics. Many people have justified that this is due to the fact that people want to become these people in the stories. They want to be brave, handsome or beautiful, to possess wonderful riches, to possess characteristics only available to them in fantasy and the imagination and to possess an incredible amount of good luck. So in order to possess such characteristics, they incorporate these characteristics to characters within their stories. In contrast, modern fairy tales cease to use such themes and motifs, opting instead to display man's weakness as it is and not to cover it with wondrous things. Modern fairy tales display shortcomings as they are.

Conclusion

            In conclusion, I would like to state that modern fairy tales clearly subverts cultural stereotypes. Though fairy tales give children a chance to widen their horizons and imaginations, according to Moore, they give to children thoughts which cannot be considered good for the social and emotional growth of the child. This hinders the open mindedness of the child, and resulting in his being one of those people who tend to cast stereotypes among others, and even himself. Modern stories break the barriers set up by traditional stories and thus creating a bigger and more open world for all the people in the world. However, this is not to say that modern stories do not have its flaws. They do have their flaws. However, they make up for these flaws by creating an environment which is more inclined to the realities of life and less on the sugar-coating.

            Fairy tales, as was mentioned, have a knack to create stereotypes of every character and event in the story, a timid father, an evil stepmother and stepsisters, evil witches and other creatures, good fairy godmothers, handsome princes and beautiful princesses. These stereotypes are results of an enclosed society of the olden times wherein the makers of these stories have limited exposure to the rest of the world and considers the rest of the world as bad and and evil since it does not belong to their country and culture. However, these stories present values to children, like not to wander after dark, share whatever little they have, be kind to others, and good always prevails over evil. These values are some of the few things that can be found in such fairy tales. These values should be cultivated and combined with modern day stories to create perfect stories that reflect the things that children should foster and understand.

PERFECT PRUDENCE

                                                                            

 

Perfect Prudence

 

            The book, entitled “Perfect Prudence”, basically talks about the uncanny abilities of little miss Prudence. According to the book, Prudence basically “tops on everything, from maths to spelling, to singing and dancing.” Prudence is the personal choice of teachers when they make a show on “Jack and the Beanstalk”. This play entails the utilization of many students and cast since there are many parts to play. But as the production goes underway, the teachers assign everything to Prudence, and Prudence on the other hand, does not complain. She plays Jack, Jack's mother, the cow, and the Giant. Soon after, only Karen Brown was left to play her banjo. However, this too was taken over by prudence. All the things that is related to the play is taken by Prudence. Soon, the big day comes. Prudence is ready to put on her best show. And that she does. However, she forgot to pull the curtain on the last minute.

            The book is meant to target the young audience, which are around the age of 6 to 10. These children cannot yet fully digest if the book is written the way it is when adult people are the audience. Therefore, the writer must take into consideration which type of audience he is writing for. As was mentioned, in the case of this book, the main audience are children, therefore, the book and the story it contains must be presented in a such a way that children would find it easy to understand the story being told to them. The purpose of the story affects its composition. The story's purpose is, on my understanding, to convey to the audience the folly of a little girl who may be good in everything, but can be “stupid” at the time when her intelligence and alertness is greatly required. The purpose, as well as the context, affects the composition in such a way that the composition must first fit the audience, then the context and purpose next.

            The book is a combination of visual and written language which seeks to express the themes and the issues tackled in the short story. The written ls basically the most used language after the spoken language. This is used as a medium to convey a person's thoughts and ideas through the use of the written word. The written word can be extended in the hands of a skilled writer. The writer can create worlds with only words. However, some people find it difficult to understand the written language alone. Therefore, it is vital to employ another type of medium which can greatly aid the writer in conveying these ideas: the visual language.

            Let us define visual language. Visual language is a concept wherein a person can communicate through the visual medium. By using visual language, the conveyor is not limited to using the written language in conveying his thoughts. Furthermore, with the use of this type of medium, one is given the chance to convey his idea perfectly to many more people. Visual language's use in the book is extensive. This is due to the fact that the book mainly employs the visualization of the idea to convey it properly and put in it the proper justification. If the writer mainly relied on the written language, it would be drab and the humor of the story would be lost to faceless words.

            Basically, the book's presentation is appealing, not only to children, but to the older generation as well. The book's presentation includes the visual content which is vital in keeping the attention of children and also conveying the idea and purpose of the book with the aid of the written word. The story, bit by bit, uncovers itself to the audience. It does not present itself right away. Instead, it chooses to tackle every little part of the story, from the selection of the cast, to the idiocy of Prudence in forgetting that she did not let bring up the curtain. Furthermore, with the visualization, it is easier for the audience to take in the happenings within the story and with less use for words. The use of bright colors are one of the main good features of the book. It captures the attention of the audience as well as helps in conveying the ideas properly.

            The flow of the story is also very significant and very well prepared. The flow is very simple, however, it is also very interesting. The flow is enough to keep the audience captivated till the end. The book is not so long, just 30 pages of illustrations and a few words. However, the book conveys so much in the little allotment that it is given.

            The cultural impact of the story is basically huge, tackling the issue of favoritism among educators. It is not an uncommon occurrence. It has happened in many settings and has affected many people. This story sought to illustrate the folly of the educators who gave everything to their best student, “Prudence”. Because of too much belief in the girl, in the end the show became a disaster. It touches that issue. Therefore, educators should be well-aware of the issue on favoritism.

            However, there are also problems in the use of visual language. Sometimes we tend to disagree thoughts or ideas of others first, because it is not the same as our representation of what we see. Second, one may not see the sense of the idea, therefore, one may argue of its validity and therefore its presentation. Lastly, one may want to consider only his idea, and not someone else's. But the real reason why people disagree is because they tend to see one side of the issue, in the context of the book, their own understanding of the visualization.

            Who would have thought that so many treasures were hiding beneath the surface? This question can be presented when one comes up with many ideas connected to the story. Well, in the same way, the people in our society are filled with their own treasures-- their personalities, their hopes, their dreams, their talents. But one needs to look beyond the surface to discover them. Take time to learn what the people are interested in and what they are capable of in order for them to build a humane society. Uncover the unique and priceless treasures of your thoughts. Sometimes when one tries to justify, our conversation doesn't cohere from one idea to another. One must look into the issue more rather than judge the whole affair in a brash manner.

           

ASSIGNMENT INSTRUCTION: WRITTEN DISCOURSE IN THE CLASSROOM

Write a term paper based on one of the issues raised in the text, Children’s speech and children’s writing.  (1994). Learning to Write.

 

Organize your response, after a 2-3 sentence introduction to the article, answering the following questions:

           

(a)        What are for you the most significant points/issues raised in the text?

 

(b)        Why do you consider these points/issues especially significant?

 

(c)        How does the reading expand concepts you have learned about discourse/written discourse/teaching writing?

 

(d)       In what ways is the article relatable to your own context as a teacher of English?

 

(e)        What are some questions/issues that you are left with as you finish reading this article?

 

 

The Organization’s environment

 

The Organization’s environment

 

            The PESTLE Analysis establishes a good analysis of the an organization’s environment is  by breaking them into essential and obvious sorts.

Political. The resources, human and economic, make this country the most promising country in Asia in the ability of its people and the nation itself to make a stand in the global community that defines the information world at present.

 

The central government that time devoted most of the investments, for redistribution of industrial development, to the country’s inland regions instead of allocating the money in the richer coastal parts and “moved” the population into the poorest provinces that reversing it made the beneficiary regions collapse as the few other parts prosper. The price system was the other form of the redistribution system which overvalued the manufactured products and undervalued the agricultural ones (2002). However, the balanced redistribution system economic strategy of the central government collapsed because the provincial manufacturing industries have to significantly contribute to help the poorest regions which gave way to rapid growth in agricultural prices.   

Economic. The concept of endogenous economic development highlights a Hong Kong needs to allow change and make room for the growth of its production system by developing and utilizing the potential of local resources especially its people through the investment of private firms and holdings as well as of the government itself through national economic policies. The economic growth and structural change are the result of investment strategies and decisions of enterprises operating in the market and integrated into the conditions economic dynamics of territory affecting the production of the organization, the relational system and innovation as well as the learning process.

Socio-cultural. It became a large united country with an advanced culture at a very early stage, outpacing most of the world in areas such as art and science.

Technological. The tremendous growth of technological advancement has become the driving force of contemporary industries.  The diffusion of the internet has revolutionized the business arena.  The use of the Internet is changing high-tech marketing overnight while different industries have been trying to use it as part of their marketing strategy. It has not only reconfigured the way different firms do business and the way the consumers buy goods and services, but it has also become an effective instrument in transforming the value chain from manufacturers to retailers to consumers, creating a new retail distribution channel ( 1999).

 

Hong Kong was able to adapt with modernization along with the technological advancement in progressive other countries. As the manufacturing capital of the world, Hong Kong is among the leading users of highly advanced equipment in production, supply chain management, marketing and sales. This has long been evident in the bulk of produced goods in the country as well as the generated services provided by the different industries of Hong Kong. Applications of advanced technologies in the country can be likewise observed in the emerging utilization and function of the Internet not just in business but also in other disciplines like politics and social welfare, environment conservation, culture and the arts, media and communications, and in education and research.

 

Legal- Mutual recognition of rules between, the business organization and the policy-makers of the prospect country should be at all times observed in order to avoid legal confrontations and eventual failure of the marketing strategy. Gaining the trust of the local government and reviewing the economic policies and legal matters that govern the country in which the product or service will be made available will be a strong ground from which the advertisers can make as a take off point in pursuing the any further business venture.

Environmental-  The Body Shop must consider the issues on the sustainability efforts in relations to the preservation of Hong Kong’s natural resources. In relation to the defined frontiers of their production are environmental issues that may come in conflict with the natural resources exploration. The aggressive environmental campaigns against mining activities should be overcome by the company to prolong its venture as a significant player in the international retail industry.

 

 

 

 

Strategic Direction

Most companies find it impossible to create any kind of sustainable competitive advantage based on product alone. It is common knowledge that every one of the successful companies sought and found a precise understanding of how it could create a customer-centered competitive advantage.  (1996) emphasized the idea to take advantage of the competitive situation not just by being better in how that product gets sold, serviced, and marketed at the customer interface. It requires that companies create breakthroughs in how they interact with customers, and design a way of interacting that makes an indelible impression on customers, one that so utterly distinguishes them from others that it becomes a brand in itself.

Perhaps the space between the new organization design and implementing it into actuality is the whole coverage of organization change and development. People are adaptive to change. However, certain skills must be present from the initiators of change so as to successfully implement their project. Thus, managers need to have the necessary abilities not only in detecting what needs to be changed but also how to effectively introduce the change. Companies employ detailed business plans and strategies in order to gain several benefits from its competitors such as increased profits and enhanced customer relations as company objectives. According to (2000) balance between enhanced company processes and renewed objectives should be critically appraised in order to ensure the success of the company.

 

Business institutions can control and influence the quality and standard of life of their employee, customers, business partners, the people in the community in which they operate. There are even times that their influence or control goes beyond the community or area where they operate. This is true, since the influence of businesses does not end within the company or their customers. Because their products and/or services may reach people other that their customers. Thus, they have such great responsibility, not merely within the company, with their employees, customers, business partners, but also the far greater number of people outside the company.  A company has such great power, this is because a single decision the company makes can affect a number of people and in cases of large companies, thousands of people.  Thus, there is no question that the company should be social responsible. It is how much they should be socially responsible that is of concern. And it depends on the company’s capacity to do so and how willing they are to do it.

            The Body Shop (HK) is a global company with a number of branches worldwide. It is quite obvious that they also have a great number of employees, business partners, small and large producers and most importantly a large number of customers. The company mainly adheres to the greenest and eco-friendliest policies regarding its products, starting from how they are produced till its post - production. This alone is an act to commend for. In our time today, companies are more concerned with profit-making. There are those who are concerned on how their products are produced but few goes to the point that they concern themselves to what happens in their post- production or to the point of concerning themselves whether their products have negative effects to the environment or other people other than their customers.

            Recently, L’oreal cosmetics bought The Body Shop and become its new owner. The L’Oreal Group is known for their continuous innovation in order to impr4ve the quality of their products and the services they have to offer to their consumers (2004).  Part of their strategic plan is to cater to the best interest of their costumers, in other words, costumer satisfaction.  Through giving a wide variety of products, consumers have a whole gamut of products and services that they can choose from and which best serves their preference.  Through constant research and passion for innovation, L’Oreal best caters to the demands of women of different cultures.  The Company also sees to it that they know the latest trend, or better yet, set the trend in the market as to attract more consumers.

Part of the L’Oreal Group’s strategic plan is the marketing of their products worldwide.  From the bloom of L’Oreal during its primary stage, the Company already catered to the demands of women worldwide.  In line with this, they are also well aware of the diversities of women around the world.  Part of this strategy is to formulate products that suit other women from other parts of the world (2004).  Through research and development of their products, the L’Oreal group has already covered most parts of the globe and still got high approval ratings from their clients.  Just recently, L’Oreal received the Diversity Best Practices 2004 Global Leadership Award for embracing diversity, not only in their employees, but also in their consumers ( 2004).  L’Oreal’s taking consideration of women of color is especially appreciated by its consumers for they are also being given the chance to enhance their features and embrace their diversity without having to conform with the traditional concept of beauty, particularly that of the white women.  The L’Oreal Group also has employees who are considered minorities, such as the women and people of color.  Valuing of the people’s culture and ideas is important to the Company in order to best serve the interest the consumers, the employees and the Company.   Since, L’Oreal Group is the owner of The Body Shop; will there be new marketing strategies for the company?

 

 

INNOVATION IN ORGANIZATIONS

 

 

INTRODUCTION

            Amicably, having such creative working environment within an organization which relates to suitable working culture facilitating an environment that will enhance organizational power is an idea that has been put forward as the organizational climate is regarded as an attribute of the organization, conglomerate of attitudes, feelings and behaviors which characterize life in organizations and exists independently of the perceptions and understandings of the members of the organizations (1996).  Research on innovation has identified number of human, social and cultural factors which are crucial for effective operation of innovation at the organizational level (1997). These factors according to OECD (1997) are centered on learning as it is learning by organizations which are critical to an organization's innovative capabilities. Thus,  (1966) and  (1991) viewed innovation in terms of interaction between market opportunities and the organization's knowledge base and capabilities. A learning organization is system in the organization that is capable of changes that require members to act upon the change and which needs learning to do so. It is one in which learning and work are integrated in an ongoing and systematic fashion to support continuous improvement that will occur in levels within an organization, individual, group, organization and global (1991).

 

 

DISCUSSIONS

 

            Accordingly, organizational innovation involves the process of creating commercial services from inventions that can be both technological and non-technological innovation. The non-technological innovation discussed in the present study is focused on organizational innovation and together with technological innovation since organizational innovation occurs as part of the process ( 1989 ). Moreover, technological innovation comprise of innovative products and processes and significant technology improvements in products and processes (1997). The technology could be tangible goods or processes such as component parts or machinery or intangible know-how such as advance knowledge of road building techniques and must be embodied into the operations of the recipient organization. One way for organizations to become more innovative is to capitalize on the employees' ability to innovate. Aside, employees can help to improve business performance through ability to generate ideas and use such building blocks for novel and better products, services and work processes (1986;1988;2000;  2002; 2003). In order to realize good flow of innovations, employees need to be both willing and able to innovate.

 

 

 

 

            Moreover, various innovation studies explore the influence of leader behaviors using models developed in relation to performance outcomes leader behaviors that positively affect outcomes such as effectiveness and efficiency rather than innovation-related outcomes. Based on Leadership Quarterly,  ( 2004) concluded that one cannot expect existing leadership models to be entirely applicable to the leadership of innovative individuals. Also, most available research has focused on employee creativity, while the implementation of ideas is explored far less often. Innovation researchers often address a broad range of factors in their studies and, at most, include very brief measures of single leader behavior as one such factor amongst many (Cooper).

 

Innovative Behavior

            Some innovation theorists describe the innovation process as being composed of two main phases: initiation and implementation ( 1973;2000). The division between the two phases is believed to be the point at which idea is adopted like for example, the point at which the decision to implement the innovation is made. There ends with the production of an idea, while certain stage ends as soon as the idea is implemented (2002).

 

            However, innovation includes the implementation of ideas as innovative behavior is being directed towards the initiation and application of new and useful ideas, processes and products (1990). Thus, innovative behavior can be seen as multi-dimensional, overarching construct that captures all behaviors through which employees can contribute to the innovation process and are dealt in the process of individual innovation (2000; 2004;  2005). Then, in order to initiate innovation employees can generate ideas by engaging in behaviors to explore opportunities, identify performance gaps as well as produce solutions for problems. Opportunities to generate ideas lie in things that do not fit expected patterns, such as problems in existing working methods, unfulfilled needs of customers, indications that trends may be changing (1990; 1994). For example, employees with strong personal commitment to particular idea may be able to persuade others of its value and the employees can also invest considerable effort in developing, testing and commercializing an idea. Unlike creativity, innovative behavior is intended to produce benefit but, it cannot be said to comprise application only as innovative behaviors encompass employees' behaviors directed at the production of novel products, services and/or work processes ( 1990;1994). In essence, creativity can be seen as part of innovative behavior that is evident in phases of the innovation process, wherein the performance gaps are recognized and ideas are generated in response to perceived need for innovation (2002).

Leadership

            Although the impact of leaders seems appealing, most behavioral leadership studies look at effective outcomes rather than innovation-related outcomes. Available research on relationship between leader behavior and individual innovation has investigated transformational leadership, participative leadership, and leader-member exchange theory (2003;2003). As transformational leaders stimulate followers to view problems in new ways and help them to develop to their full potential, this is likely to result in the enhanced creativity of followers. Participative leadership involves the use of various decision-making procedures that determine the extent to which people can influence the leader's decisions and have the autonomy to design and perform their own tasks. Participative leadership can take different forms, including consultation, joint decision making and delegation (2002).

            Some suggest that the quality of relationship between leader and follower is also related to innovativeness (  1987). High-quality exchange relationships include providing employees with challenging tasks, support in risky situations and provision of task-related resources and recognition, in facilitating individual innovation. In line with the idea, (1999) found positive relationship between high-quality relationships and creativity in study among R&D leaders and employees of chemical firm and thus,  ( 2004) found that high-quality relationships had positive impact on the broader construct of innovative behavior.

Innovative Role Modeling

            Thus, acting as model for creativity was expected to increase the chance that followers would practice idea generation themselves. In an experiment using student participants, Jaussi and Dionne did indeed find a positive and direct impact of role-modeling on creativity.  ( 2001) found that individuals who were provided with creative work model were able to learn what was considered creative and exhibited more creative behavior.

Intellectual Stimulation

            Ideally, intellectual stimulation may create opportunities for employees to voice ideas that may otherwise be overlooked and is believed to trigger idea generation in particular. As most studies treat intellectual stimulation as part of the broader-defined construct of transformational leadership, research efforts have yet to focus explicitly on connection between intellectual stimulation and innovative behaviors. In study in R&D firms,  (1994) demonstrated that when managers expect their employees to be innovative, employees tend to perceive their leader as encouraging and facilitating their innovative efforts and demonstrate more innovative behavior.

 

 

            When individuals know that idea generation is important, they are more likely to show this behavior ( 2004). For example, ( 1991) examined the effects of two types of goals on creative output. Once creativity goal was assigned, individuals were primed to focus attention and effort and exhibited higher levels of idea generation and that even when there is no formulated goal; the individuals are more creative when being informed that it is considered to be important.

Innovation Support

            Furthermore,  (1996) examined the influence of personal and contextual factors at work on employee creativity and found that supportive supervisory style is one of the drivers of excellent creative performance. Then,  (2004) focused on influence-based leadership, defined as changes in the behavior of a person due to the actions or presence of another person. A leader's support for innovative efforts was predictor of idea generation and implementation efforts of middle managers.

 

 

 

 

 

            Truly, sense making construct shared meanings that shape the organization’s purpose and frame the perception opportunities that the organization needs to work on. Working with problems and opportunities often become occasions for creating knowledge and making decisions. An organization possess certain types of knowledge: tacit knowledge embedded in the experience and expertise of individuals; explicit knowledge codified as artifacts, rules and routines and cultural knowledge expressed as assumptions, beliefs and values. The creation of innovative knowledge involves the conversion, sharing and combination of all three forms of organizational knowledge. Whereas innovative knowledge represents potential for action, decision making transforms this potential into a commitment to act. Decision making is structured by rules and routines and is guided by preferences that are based on interpretations of purpose and priorities of the organization. Where new capabilities as well as innovations become available, they introduce alternatives as well as uncertainties.

            Thus, the organization’s capacity to learn and innovate depends on its ability to manage and integrate complex, unpredictable network of processes in which people enact and negotiate own meanings of what is going on; stumble upon and engage with innovative knowledge to make it work and work within improvised set of rules and routines to solve tough problems (1995). In belief-driven processes, people start from initial set of beliefs that are clear and plausible and use them as nodes to connect more and more information into larger structures of meaning. In action-driven processes, people start from their actions and grow their structures of meaning around them, by modifying the structures in order to give significance to those actions. People may create meaning in order to justify actions that they are already committed to, or they may create meaning in order to explain actions that have been taken to manipulate changes in the environment. However, an organization develops its tightly integrated bundle of tacit, explicit and cultural knowledge that when applied it will constitute such core capability. Core capabilities give the firm its distinctive competitive edge, because they have been cultivated and are hard to imitate. According to (1995), core capabilities is the result of employees’ knowledge and skills; physical technical systems; managerial systems that include reward and incentive systems; and values and norms that determine what kinds of knowledge are sought.

Innovative Organizations

            The concept of innovation has history and diverse meanings (2003;2003), based on competition between companies and the different strategies that can be used to compete. Since then, there have been diverse strategies being used to compete like for instance, as efficiency approaches and quality movement involving standards, flexibility and innovativeness ( 1998). Innovation covers the whole organization from ideas right through to the introduction of service into the market as the alignment between R&D, production and market is vital (1999). Indeed, the design and implementation of innovative production lines, labor conditions and business missions are part of the innovation process in order to deliver added value to stakeholders of such company through valuable knowledge.

           In organizations, it becomes embedded not only in documents but also in organizational routines, processes, practices and norms. The creation of explicit out of implicit knowledge is one of the key principles of organizational knowledge creation ( 1995), understood as social and cyclical learning process. Nowadays, combination of efficiency, quality, flexibility and innovation is essential as innovation is more than technical organizational, it then, demands social policy. Successful innovation means more research and development; R&D must be transformed into products and services that will be sold in the market and will lead to added value for stakeholders. The alignment between R&D, production and marketing is crucial and might lead to new designs of production and work processes. Innovation is process in which valuable ideas are transformed into new forms of added value for the organization, customers, employees and stakeholders as the transformation process is now a learning process for the organization to safeguard continuity on the basis of innovation based on creativity (1995). Explicit knowledge has an innovative and exclusive function for organizations as a collective good; this knowledge or expertise is not easy for other organizations to copy (1992; 2002). If an organization wishes to benefit from invisible knowledge, this knowledge must be elicited, shared and codified into explicit knowledge.

 

            In addition, several companies do it by socialization processes by externalization, by combinations and by internalization as these processes and studies about elicitation make clear how complex the processes are in retrieving information from memory, mostly learned informal way as there implies to creating knowledge in lieu to learning the value of innovation as illustrated in the below diagram ( 2000).

Knowledge creation-innovation-learning spiral model

 

            The basic assumption now is that innovative activities within the organization processes really do exist from the strong stance of innovative organizations entailing the fact that knowledge creation is requirement for innovation process, and that the processes will lead to reflection and learning to learn and other ways. Generally, following the cycle of learning processes in an organization might improve innovative ability on the basis of which economic and competitive advantage could be better organized from within. Then, there will be the need for innovative knowledge to be induced from outside the processes of knowledge creation and innovation. Therefore, it can be ideal that, maintaining continuous relaxed resources helped to create better innovative cultures in organizations. The ample support like, the ideas of  (2002) as being recommended that certain exempting employees from ordinary tasks in order to concentrate valuable efforts on the development and implementation of innovative ideas and activities at hand one example is when employees are being assigned to work on innovations only as part time and have experienced working on project as something extra to their daily activities and often resulted in longer development times since, the daily work remained the number one priority.

CONCLUSION

            In conclusion, it can be real that one way for organizations to become more innovative is to capitalize on the employees’ ability to be innovative through providing inventory of leader behaviors that may influence employees' innovative behavior within knowledge-intensive services use in order to stimulate innovation among employees. Therefore, the useful importance of creating positive and safe atmosphere that encourages openness and risk taking seems to encourage idea generation and application as creating balance between stimulating innovative behavior and ensuring effectiveness and efficiency forms in the organization challenges respectively. Resources such as organized feedback are needed to enhance employees' motivation and ability to reach successful implementation as the process can amicably help to provide financial rewards to encourage the desired behavior.

RECOMMENDATION

            Accordingly, innovation can be better understood by such recommendations pointing towards strategy innovation, process innovation and business innovation and will have to represent the ideal assumption of innovative activities within organizations such as for instance, the enterprise can opt to carry them out jointly but, as the company opts to take on more ways of innovation, it will assume much higher levels of risk and commitment. Firstly, innovation concept in its innovation perspective can possibly be separated into voluntary product innovation and obligatory product innovation as such voluntary innovations are promoted and disseminated by the organization itself, whilst obligatory innovations are imposed by certain competitive as well as environmental forces and it does not always meet with approval from diverse collectives within the organization. An example would be the need to review the composition or packaging of products for legal reasons when they are being introduced in new countries. Secondly, strategy innovation needs to be carried into in-depth approaches and be identified with the help of achieving and acquiring better radical strategy innovations and incremental strategy innovations. This integrates real changes for the organization and requires significant changes in business practice, while incremental innovations may be carried out with minimum change, commitment and risk through which maintaining the same strategy. Radical innovations are least safe as they imply greater proportion of experimentation and interactive problem solving requiring greater flexibility and higher learning curve from the organization. Thirdly, there needs to have process innovation as difference is that if product innovation is what people create and strategy innovation is what they should do to create it, process innovation reflects what people have available to do that way. Usually process innovation precedes product and strategy innovation, given that what creating innovative plans is the outcome of what organizations do in order to create it and of what they have to do the innovation process. Thus, organizations creating disruptive innovations such as innovations that involve significant novel technologies, require considerable change in consumption patterns and are perceived as offering substantial benefits are often cited as examples of pro-activeness. Also, the innovativeness of organizations happens when innovative products are created and the strategies are implemented and fresh markets are reached. So many organizations can be global or innovative, but small group are highly internationalized and have superior innovations, specifically those that invest abroad and spend more resources to innovate such ways from such applications.

 

WRITTEN DISCOURSE IN THE CLASSROOM

 

There are different aspects of children’s speech and children’s writing presented in this chapter. Language when used in writing and speech affect its structure. The problem with language is that it has been around in everyone's life so long that people almost cease to be aware of it and it is not obsessed with correctness and grammatical rules. It allow children make clear to themselves that their already partial or implicit awareness of what is involved in using language and the explicit nature of this knowledge should lead to increased confidence and control in their handling of language ( and , 1983). There will employ a form of grammar which can describe language as it is used and which is relevant to every levels – from the syntax of sentences through to the organization of longer texts. This kind of grammar is able to describe the considerable differences between spoken and written English and can prepare its usefulness to the school institution for a wider curriculum of language and modern pedagogy study particularly in children’s speech and writing. In children’s speech and writing, language is among the most important features. In this instance, the structure of language – may it be in sentence and use of words – when spoken or written is evaluated.

 

(a)              What are for you the most significant points/issues raised in the text?

In my own opinion, the most significant issues raised in the text are simple sentence construction (syntactic) and textual simplicity in words.

 

(b)              Why do you consider these points/issues especially significant?

Considering that the subject of speech and writing are children, it is very important to categorically evaluate the simplicity of form of sentences. Children are not yet fully develop in terms of their cognitive ability and they are not yet capable of understanding complex sentences. It is practically important to consider that simple sentences should be used in speech and writing in order to facilitate ease of understanding and absorption of the message. In the same manner, simple words are seen to be more effective as children possess limited vocabulary. As a part of the widespread acceptance of English as the universal language, there is a need to completely qualify the vocabulary knowledge of every learning individual most especially the ones belonging to the starting stages of formal education like children. These two points/issues are especially significant because it is the most basic considerations in dealing with children’s speech and writing.

 

(c)              How does the reading expand concepts you have learned about discourse/written discourse/teaching writing?

 

The reading expands the concepts and knowledge I have learned about discourse/written discourse/teaching writing by providing some techniques on how to evaluate syntactic construction in sentences and the textual simplicity of words. It also gave me an idea on how to present or create speeches and write-ups that will be suitable with children. Primarily, this reading helped me to recognize the important role of simplicity in dealing with children’s speech and writing.

Furthermore, the reading allowed me to try my analytical capability in trying to determine what is syntactically and textually acceptable in children’s speech and writing. By studying the examples presented in this reading, I learned the extent of language vocabulary of children and the need to enhance it through various pedagogical approaches like speaking and writing.

(d)              In what ways is the article relatable to your own context as a teacher of English?

 

There is a need to show learners the living, dynamic nature of grammar as opposed to static, rule-based instruction insisting on only one “right way” ( and , 2002). The article, as stated in the previous discussion, aided me in the further understanding and consideration of the capabilities of children as main subjects. Teachers need to be able to make explicit what is happening in the language of the texts they share with children, to bring together their classroom knowledge of how stories, poems and many other kinds of texts 'work' with a more detailed knowledge of how words are used in English and other languages to 'make sense': how they are combined in certain patterns and in particular sequences in order to frame questions, to make statements, to give commands, or to create a whole variety of meanings and this together with the labels given to the roles that individual words or phrases are playing within such meaningful sentences, is really what grammar is and does (, 1990)

A common pattern of errors may then lead to the teaching of direct lessons on grammar points. This article gave me an idea on how to teach children’s speech and writing in a more effective and enjoyable manner. The example above might lead me to look at the formation of verb tenses generally, including the spelling conventions involved regardless of their pronunciation. From their work in English, students particularly children will know that language exists to convey meaning and, while listening and speaking, will look for gesture, mime, facial expression and knowledge of the context to help them construct that meaning. They will increasingly become aware that many language systems are used to convey meaning (, 1990). With this article, I came to realize that simplicity is very important.

(e)              What are some questions/issues that you are left with as you finish reading this article?

 

Since the concept of simplicity is relative, I am presupposing that there is a need to qualify or evaluate on what is simple or not in the perspective of children. A child is not able to identify what is simple or complex. The young learners must come to realize that not every single word needs to be understood. They should be encouraged to live with 'gist understanding' and to check out their sense of the probable meaning by reference to other ones.

Since, there is opportunity for teachers to focus upon the specific nature of grammatical patterning and use of vocabulary, in relation to the production of a range of different text-types, the focus on grammar need not be introduced in de-contextualized activities but rather in the achievement of definite purposes in meaningful contexts. ( and , 1992) The typical language features of these text-types are familiar to us as adults, and are normally taught directly or learned in the context of study or work. Thus, this made me think on what is the role of vocabulary in the construction of speech and writing for children?

 

References

 

ASSIGNMENT INSTRUCTION: BUSINESS TO BUSINESS

Case Study 2: Pricing: Decisions at Wallace

Wallace is a supplier of equipment for producing plastic components. Most of its customers use the equipment to produced small components that are minor parts for their own products and which are not critical to the performance of these products. They represent only a small proportion of the total cost of items that they buy. Wallace’s business with these customers consist of replacing worn out or life-expired equipment. Wallace finds that these customers are very price sensitive and it finds it difficult to interest them in the advantages of its machines or in further development. Sales to these customers are static, but they still represent around 60% of its revenue.

            Wallace also has a smaller number of other customers with very different requirements. These customers produce higher-value and performance-critical items such as the cases for mobile phone handsets and other electronic equipment. These companies have to change over their machines quickly to make new shapes with different “feel”, colour and strength. These customers face significant problems in designing their components for ease and speed of production and often turn to suppliers for help. Unfortunately Wallace is not the major supplier to most of these customers and its recently appointed marketing manager says:

We have been working with some of these customers for quite a time, but we are often just scratching round for the crumbs that fall from the table of our competitors.

At the same time, the poor profit performance of Wallace in the past means that the company board is unwilling to allow marketing to “buy business” by lowering its prices or “speculatively” develop a whole new range of equipment specifically for these customers. The Marketing Manager’s relations with the Board are not good and the Board “wants results, not talk”

Recently, the marketing management has been working with his development and financial colleagues to simplify the company’s model range and to introduce a pricing policy he believes more closely reflects the real costs of producing each machine. One outcome for this is that it appears that many of its long-established standard machines, bought mostly by its older customers, have much lower production costs than were previously attributed to them. This is because there has been no significant development expenditure on them. In contrast, Wallace appears to be losing money on many of the machines it sells to its newer customers who pay higher prices but require major adaptations to the machines that they buy.

 

Questions:

Produce a report for the Marketing Manager that could be given to the company’s Board of Directors. The report should present the following:

·                     An outline of the pricing issues that face the Marketing Manager at Wallace

·                     A pricing approach to the company’s established customers

·                     A recommendation of whether or not the company should continue to seek business with the new “development” customers and a recommended pricing approach to these customers. The report should explain the justification for any alternative approach that you recommend.

·                     Finally the report should explain the contribution that would be required from different functional areas and cover any wider issues in the approaches to pricing that you recommend

 

 

Executive summary

 

 

Table of contents

 

 

Introduction

 

 

 

Pricing Issues

 

 

Pricing approaches

 

New development customers

 

New customers pricing approaches

 

The contribution from different functional areas

 

 Limitations and recommendations

conclusion

The Impact of Globalization on PETRONAS

The Impact of Globalisation on PETRONAS

 

Introduction

            The world was undergoing tremendous change even before the horrors of 11 September. Both democracy and the market economy have proliferated globally since the collapse of communism, and revolutionary developments in communication and information technology have helped trigger an increasing interdependence between countries at an unprecedented pace. Further, the end of the Cold War signalled the displacement of ideological obstinacy in favour of a heated pursuit towards economic advancement and competition for resources and technology. Economic statecraft, whereby nations use trade, loans, grants and investment to influence the action of other states, is now becoming more important.

             Globalisation around the world – has been one of the most hotly-debated topics in international economics over the past few years. Rapid growth and poverty reduction in China, India, and other countries that were poor 20 years ago, has been a positive aspect of globalisation. But globalisation has also generated significant international opposition over concerns that it has increased inequality and environmental degradation. The most common interpretations of globalisation are saying that the world is becoming more uniform and standardised through a technological, commercial and cultural synchronisation coming from the West. These perspectives equate globalisation with Westernisation.  However, there are other assessments that argue from viewing globalisation as the process of hybridisation, which gives rise to a global melange.

In this regard, this paper attempts to evaluate the impact of globalisation on Petroliam Nasional Berhad (PETRONAS). Basically, the major focus of the international marketing strategy of PETRONAS or Petroliam Nasional Berhad is to adapt to the globalisation scheme. The changes in the environment had been sharply perceived by PETRONAS, as it operates both within and beyond its national boundaries. PETRONAS today is continuously growing; its main objective is to be famous in providing organisations and consumers with oil and gas. PETRONAS is most commonly referred to as the number one oil and gas resources in Malaysia and is entrusted with the responsibility of developing and adding value to these resources. The major concern of this analysis is to determine the level of the company to be geographically positioned in accordance with globalisation degree and with the strategic issue at stake locally and globally. It will be analysed through the use of different models and theoretical concepts in the marketing analysis.

 

Globalisation

The different strategies in different markets helped the company have an initial feel of the different markets. The different strategies also helped the company have a better understanding of how the market works. The different markets help in introducing to the company the cultures and characteristics of the markets thus it became educated with how to adjust in the different setting. Lastly the different strategies helped in making sure that the company encounters lesser problems while starting up a new market. By using different strategies the company has not committed anything that will give it more problems. In developed countries it is somewhat easier to enter because they usually have fully developed communications, distribution and transportation systems, to name but a few facilitating factors.

According to  (2006), the most successful global businesses are aggressively building their global strategies around these themes: (1) increased market access because of the opening up of markets in China, Central and Eastern Europe; (2) increased market opportunities because of the deregulation of many markets, such as the financial market and privatisation of state-owed utilities; (3) greater uniformity pf  industry standards, encouraged, for example, by the European Union; (4) sourcing of products and components initially, but more recently services, too, from a wider range of countries, particularly those emerging markets with a high ratio of skills to cost; (5) more globally standardised products and services, particularly in areas of new technology, but increasingly in more culturally sensitive product areas, such as food; (6) common technology used in many more markets, particularly in areas of information technology, when there is a high cost of research and development that must be recovered through sales in many countries; (7) similar customer requirements leading to transnational customer segments, resulting from increased communication and travel; (8) competition from the same organisations in each major market and thus interdependence of markets; (9) global organisation strategies that increasingly treat the world as one market, among several other themes.

Marketing is a universal activity that is widely applicable, regardless of the political, social and economic systems of a country. However does it nor mean that consumers in all parts of the world must or should be satisfied in exactly the same way (). This is largely the effect of globalisation to the formulation of international marketing strategies, the insertion of the adaptation of such strategies to the particular country in which the company or any international business operates. Consumers from various countries are significantly different due to varying culture, income, level of economic development, and so on. Therefore, consumers may use the same product without having the same need or motive, and in turn may use different products to satisfy the same need.

 

Company Profile

Background

PETRONAS, short for Petroliam Nasional Berhad, is a Malaysian owned oil and gas company that was founded on August 17, 1974. Wholly owned by the Government, the corporation is vested with the entire oil and gas resources in Malaysia and is entrusted with the responsibility of developing and adding value to these resources. PETRONAS is ranked among Fortune Global 500's largest corporations in the world.

Since its incorporation PETRONAS has grown to be an integrated international oil and gas company with business interests in 31 countries. As of the end of March 2005, the PETRONAS Group comprised 103 wholly owned subsidiaries, 19 partly-owned outfits and 57 associated companies. Together, these companies make the PETRONAS Group, which is involved in various oil and gas based activities.

 

Business Mission and Objectives

"We are a business entity"-- PETRONAS and its Group of Companies are on-going enterprises organised and run in a rational, economic and commercial manner with the purpose of enhancing its shareholders' value or wealth. This means that it must conduct itself in a professional, ethical and business-like manner where sound business principles such as clear business objectives, growth and profitability, and being customer-focused are the way of life in the corporation. To achieve this, PETRONAS must be committed to enhancing the capability of its employees, as a corporation is only as good as the people who work for it.

"Petroleum is our core business"-- PETRONAS focuses its energy and allocates its resources to petroleum business, which is its core business. This includes the integrated chain of activities covering exploration, development and production of oil, gas and condensates; refining, trading and supply; marketing; distribution; petrochemicals and other manufactured petroleum products and derivatives. PETRONAS may also undertake other non-petroleum businesses that reinforce its strategy and performance of its core business. To ensure continued future supply of petroleum for Malaysia as well as continued skill building in its core business, PETRONAS would selectively seek opportunities overseas to explore and secure new reserves and develop and add value to these resources.

"Our primary responsibility is to develop and add value to this national resource"-- Petroleum resources are the national resource of a nation, be it Malaysia or any other country in the world. PETRONAS' mission is to develop and add value to these resources wherever it operates, converting these resources into higher-value products that would satisfy the needs of customers and bring benefits to the people.

"Our objective is to contribute to the well-being of the people and the nation"-- PETRONAS' goal is to contribute to the well-being of the people and nation where it operates. To fulfil this role, all of its business activities must be viable and profitable. PETRONAS' contributions - designed to assist in enhancing the quality of life of the people and help in the development of the nation - include the provision of quality petroleum and related products and services at a fair price; promoting and creating business and job opportunities in the petroleum industry; enlarging the country's industrial base; and ensuring safe and clean environment.

 

Corporate Strategy

The Group is engaged in a wide spectrum of petroleum activities, including upstream exploration and production of oil and gas to downstream oil refining; marketing and distribution of petroleum products; trading; gas processing and liquefaction; gas transmission pipeline network operations; marketing of liquefied natural gas; petrochemical manufacturing and marketing; shipping; automotive engineering; and property investment.

 

International Business Strategy

Born out of a need to serve Malaysia and its people, PETRONAS has been genuine in fulfilling national aspirations. The people it deals with on a daily basis acknowledge and commend its strong sense of duty to the nation and its employees loyalty to the organisation.

PETRONAS' passionate spirit is one of its most enduring traits and has been largely responsible for its business success. As a group, it is committed towards excellence and progress. It continually pushes its own limits to discover new strengths and capabilities. As it grew and expanded into other corners of the globe, it retained these valuable traits, exporting its own unique economic model that espouses a philosophy of "Growing With The Nation" wherever it operates.

In contrary to the international business strategy of PETRONAS is the perception that going global does not mean that the company must necessarily have a presence around the world. This simply means that the company must perceive global competition and global markets and has determined the best strategy to prosper in that environment. The word “global” means the entire world, but is made up of smaller, more individual geographic entities, beginning with the market in a particular state or province and extending beyond, thus, does not limit only to the participation of large manufacturers (2002).

 

Effects of Globalisation on PETRONAS

Value Chain

In order to understand clearly the activities leading to a competitive advantage in petroleum business, an organisation can begin with the generic value chain and then identify their relevant activities. Thus, process flows can be mapped, and these flows used to separate the individual value–creating actions.

            Once the prudent actions of an organisation are defined, connections between actions should be identified (Porter, 1986).  A connection is present if the performance or cost of one action affects that of another. As stated, competitive advantage may be acquired by optimising and coordinating linked actions.

Value-chain analysis appears at every step of an organisation goes through, from raw materials to the output. The objective is to deliver greatest value for the least possible total cost.  The value chain also is useful in outsourcing decisions.  Understanding the connections between actions can lead to best decisions that can result in either a cost advantage or a differentiation advantage. The goal of these activities is to create value that exceeds the cost of providing the product or service, thus generating a profit (2000). In the case of PETRONAS, the entire operation of the business should be examined and evaluated in order to determine the service delivery processes that strengthen as well as weaken the business. This will result to managerial options to eliminate the liabilities that detract the business or the need to developed and intensify some aspects of the operations. 

 

Porter's Diamond

Globalisation plays significant role and effect to different businesses. PETRONAS has company extensive promise to milieu in providing secure and vigorous environment for the employees and for the community. Actually, PETRONAS is devoted to scheming, creating, upholding and operating amenities that guard the people in terms of physical resources. As part of globalisation changes and international approach of the company, PETRONAS is committed in reducing the crashing of business in environment through protection and recycle ways and use of energy programs in promoting dirt free air also water and decrease landfill squander as stated in universal system of conduct as based on subsequent environmental philosophy such as the following:

Ø  The business industry is mannered by fulfilling the appropriate laws and system and provide secure and vigorous milieu

Ø  minimise the collision of PETRONAS business on situation through techniques that are publicly accountable and systematically base and efficiently thud like for example materials recycle ways and maintenance

Ø  mounting program that encourage dirt free air as well as water and power conservation and the decrease of land wastes

Ø  through sustaining programs that inform and educate as well as motivate PETRONAS employees to help preserve good atmosphere

Ø  By assisting together with diverse business organisation in finding answers for diminishing pollution problems and the back-up process applied to ecological policies

PETRONAS is able to offer service required by the customers and the employees are motivated to optimise input and obtain practice in diverse areas of operation like for instance, if PETRONAS decided to surmount the international market so there can be options the company will come across and it is important that the management of PETRONAS should choose marketing strategy that is suitable for their products and services being offered for the PETRONAS to be more competitive as there can be stabilisation of political as well as economic power as there is the providing of needed environment encouraging to marketing activities as well as overseas investments. Likewise, culture is imperative feature in understanding PETRONAS’ market status as the company operates effectively for universal position as to how business culture will pressure PETRONAS’ market efficiency for their success and or failure.

 

Manufacturing and/or Services

In regards to the globalisation practices of PETRONAS, technology tends to affect the business process of the organisation.  In the case of PETRONAS, when production technology is high, production will become more efficient that can lead to increase in supply.  However, technology is not the only factor of production existing in the producer’s plant. There exist more complex interrelationships between these factors to be able to exploit the improved efficiency of one.  The most crucial of all is governing human resources.  Without proper guidance from the leaders of a firm, production efficiency will not hold because of resistance, de-motivation or just a plain technological ignorance.  Technology is not 100% automated and human intervention as well as errors is inevitable.  In addition, technology may also be intended for a specific segment of the industry, say, large corporations. As such, aggregate supply may not necessarily increase because small entrepreneurs who cannot afford to buy the technology cannot contribute in increasing supply.

 

Operation

In business operation of PETRONAS, the general rule is that when the cost of operation in global business will rise, producers will cut back on product leading to decrease in supply.  However, the evidence of the price-sensitive oil and exporting industries continuing their businesses is a primary exemption to the rule.  The existence of learning curve, oligopolistic market structures and risk diversification of large international firms has the ability to absorb price shocks to the cost of inputs, technology, organisational changes and government polices (e.g. taxes).  As observed, there is an eminent presence of rationality exemplified by these producers.  Since they have the financial, structural and strategic depth, they enter an industry which has dynamic and unpredictable cost of production.  In this way, they may have financial loss from time-to-time, but long-term gains will be pervasive due to the opportunity to dominate the market.    

 

Global Marketing Strategy

            To promote the company and its product in global marketing context, the company may use TV/video advertisements, print advertisements and the concept of e-marketing. Business meeting were also imposed by the company to reach their target market. These promotion and communication strategy will tend to meet the consumers from different places everywhere in the globe, especially those target markets or consumers that needs oil and gas supplies. As part of promotion strategy, PETRONAS should made it a regular practice to move its best managers from positions in one business unit to assignments in the other two business segments to promote the transfer of skills, practices, know-how, and innovative ideas from one business to another because it is believed that such shifting of key personnel helped PETRONAS capture strategic fit relationships among its different businesses, build stronger competitive capabilities, and keep managers’ thinking fresh and innovative.

 

Global Competition

One of the impacts of globalisation is the increase in competition among other firms in the same industry. A global firm (e.g. PETRONAS) may be in a better position to compete with its global rival, as it can enhance its resources globally ( 2003). Being able to participate in its foreign target market makes the global firm more advanced and more developed compared to its rivals in the same industry, for it is able to meet the standards and demands of its foreign customers. From this perception, major suppliers and stakeholders would prefer the global firm to other firms.

            To attain success in globalisation, PETRONAS should be also aware to the possible effect of competitions.  Rivalry analysis, price tactics, marketing strategies and business development procedures should be carefully evaluated.

 

Functional and Business Strategies

Marketing

A lot of business organisations and companies engage in and focus on international marketing, with the desire for more profits, sales and recognition from consumers. International marketing also allows business organisations opportunities for further development and improvement, in terms of their products, services, strategies, systems, and operations. This is because international markets offer vast business opportunities for firms with a product or service in high demand, in line with newness, cultural adaptation, attractiveness, and appropriate marketing strategies that can assist them particularly (2007). In addition, when PETRONAS focus on international marketing, they are given the chance to gain more knowledge and information in their industry, thus, having the opportunity to provide more innovative services and products to their consumers. Merging, acquiring and partnering with local companies have been a key component of PETRONAS’ international expansion and response to globalisation.

 

Production/manufacturing

The several macro factors, which affect the global market and the business organisations are important to assess and examine for they can largely determine the success of the business organisation in the market. PETRONAS must be able to have skills in developing new products and innovating new technologies to cope with the changes happening in the society today. Along with developing new products, PETRONAS must also produce effective marketing strategies to provide solutions to the challenges that they face. In addition, it will also be necessary to anticipate problems and plan, in case a specific problem comes their way. This would help the company prepare and come up with alternative solutions for easy implementation of plans.

 

Human Resources

As part of the business advantage of PETRONAS in globalisation, the company should continue recruiting and retaining the best and brightest in a variety of exciting and challenging fields. As their practice, PETRONAS tends to discover these talents from amongst the local and overseas graduates.

In partnership with their continuous business growth, they should continue the talent search exercises to meet their increasing human resource needs. It is also admirable that PETRONAS offers occupational mobility along either the technical or managerial tracks, and ample opportunities for learning and growing.

 

 

Conclusion

Over the last few years, the importance of international marketing has increased as globalisation has increased the range of possible opportunities for proactive organisations with aggressive growth strategies. To develop the capabilities of PETRONAS to make effective strategic marketing decisions, they need to have the ability to understand the changing dimensions of the market in which they operate and the impact this has on their competitive advantage. They need to be able to challenge the traditional thinking and develop an innovative culture through learning and knowledge management in order to re-orientate and reformulate competitive strategies, in order to sustain their advantage in the market. They must have the ability to appraise strategic marketing decisions and assess strategic options with regard to the potential return on any investments made.

 

 

 

 

 

 

BUSINESS TO BUSINESS

Executive Summary

Pricing strategies is one of the primary concerns a company has. The pricing strategy is the one that will dictate the relationship between the company, its clients and the environment.  The pricing strategy will also be the one that will provide assistance for the company to stay in the industry for a longer period of time. One company that has concerns about its pricing strategies is Wallace.  The paper will discuss about the pricing issues that face the Marketing Manager at Wallace. The paper will discuss about a pricing approach to the company’s established customers.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contents Page

1.      Introduction

2.      Pricing Issues

3.      Pricing Strategies

4.      Pricing approaches

5.      New development customers

6.      New customers pricing approaches

7.      Contribution from different functional areas

8.      Limitations and Recommendations

9.      Conclusion

References

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Introduction

Explaining the popularity of organizational change in sense making terms it can be argued that change has become a conventional management practice, developed and sustained through a powerful management discourse, whose on-going character influences the decision-making of large and small companies, profit and not-for-profit companies alike ( 2003).  Whether or not the adoption of a particular program of change is the right course of action for some companies doesn't seem to matter. Decisions to implement change programs are based on plausibility rather than accuracy.  Over time, the emphasis on change programs has switched focus from ways to improve employee satisfaction to a goal today of customer-driven corporate effectiveness ( 2003).

 

 But something more than a change in focus has occurred. The notion of organizational change has taken on new meaning. Since the early 1980s, it has become an imperative rather than a technique to be considered at appropriate times, a holistic rather than a piecemeal approach to organizational effectiveness ( 2003). Organizational change is done by a company when it believes that the company is not adjusting to the new trends in its environment. Organizational change can be in the form of retraining of employees, changes in business processes or changes in prices. One company that wants to do some kind of organizational change is Wallace. The company wants to create various changes that will help the company attain its goals. The company is trying to determine the price changes suited for every product they have.

Pricing Issues

Global firms adopt different pricing schemes around the world and these results in some practices being viewed as discriminatory.  This means that consumers are charged different prices for an identical product without a logical reason for doing so. Price discrimination is legal in the United States as long as price differences can be justified based upon costs. When consumers from two nations are charged different prices, it is discriminatory unless valid reasons can be justified for these practices. Valid reasons include tax, tariffs, transport, or higher manufacturing expenses ( &  2003). In the United States, firms must adhere to the - Act, which states that a seller must charge any industrial buyer the same price for goods as long as the conditions of purchase are identical. But price discrimination is routinely practiced in many nations. There is little doubt that pricing is a complicated issue in global sales transactions (  &  2003).

 

However, charging different prices to consumer segments, gouging, and dumping all result in some consumers having to pay more than a fair price for their products ( &  2003). The pricing issues that the company encounters include the kind of changes to be done on the prices; how the change in prices can affect the operation of Wallace and how the old and new clients will react to the changes in the prices. The different pricing issues must be given proper solutions in order for the marketing manager to improve his relationship with the board of directors.  

Pricing Approach

The market pricing approach is used when the environmental improvement under consideration causes an increase or decrease in real outputs and/or inputs. Examples may include a decrease in timber harvest and/or extraction of minerals from a legislative enactment that effectively expands the acreage set aside as a wilderness area; the expected increase in fish harvest due to the implementation of a new water pollution control technology; or an increase in crop yield arising from a legislative mandate of a higher air quality standard. In the above examples, benefits from environmental improvement are identified in terms of changes in outputs or inputs; more specifically, timber, minerals, fish and crops (2000).

 

These outputs or inputs are expected to have market prices that accurately reflect their scarcity values or, where this is not the case, shadow prices can be easily imputed. Thus, where environmental improvement is directly associated with changes in the quantity or price of marketed outputs or inputs, the benefit directly attributable to the environmental improvement in question can be measured by changes in the consumers’ and producers’ surpluses ( 2000). For the established clients, the pricing approach for them should concentrate on providing them the best product for the equivalent amount of price they pay. The company should maintain well made products for appropriate prices. The prices for established clients should not be too high nor too low. Rather it should be priced according to the quality of product made for them.

New development customers

Just as customer retention has a positive impact on profitability, customer defection can have a negative impact. The very reasons a loyal customer is so profitable are the same reasons a lost customer is so detrimental. Simply stated, it costs less to sell and service a loyal customer. New customers are more costly. Therefore, defection by a long-term customer can cause a dramatic loss and affect the bottom line much more quickly than defection by a new customer does. It is difficult for a business to realize how expensive it is to lose a customer ( &  2002).  Today's accounting systems are designed to show short-term gains and losses and do not help track the benefits of maintaining a relationship with a customer over a long period of time. Expected cash flows over a loyal customer's lifetime cannot be evaluated using current systems. Yet it is clear that a satisfied, loyal customer can contribute a great deal to the financial bottom line of any company ( &  2002).

 

For some reason, the thrill of chasing new customers and of closing the first deal seems more challenging than keeping the customers a company already has. Finding new customers often involves flashy advertising, new sales techniques, and innovative marketing approaches ( &  2002).  If the marketing manager of Wallace believes that the new customers will give benefits to the company then he should push through with seeking business with the new development customers.  But he should ensure that old clients are well taken care of.

New customers pricing approach

A variety of motivations explain the adoption of a new customer approach by global companies. A major reason is the cost of conducting personal visits or customer sales call continues to increase. Firms cannot afford to allow their sales force to make unproductive sales calls. Firms have come to believe that a more efficient method of marketing is to establish and maintain long-term relationships with their customers. When a long-term relationship is established and nurtured, it is less necessary to spend significant amounts of money advertising to make customers aware of the product offering and then employing a sales force to stimulate demand for unwanted products/services to potential customers (  &  2003).

 

Global customers expect low manufacturing costs, excellent design, and having their needs met. The firm wants to form a relationship with its best customers because this orientation appears to generate lower-cost customers. The firm expects the sales force to work the marketplace to reach new customers or to find outlets for products that have been overproduced or under-engineered. While a firm’s orientation may change slightly, depending upon the market situation, the firm normally adheres to a single orientation more than the rest ( &  2003). For new customers the price of the product should be lower since the company is trying to convince the client that it has the best product. Lower price is a factor in why clients subscribe to a company. With lower prices added with the best product come clients that are loyal.

Contribution from different functional areas

To assist management and its staff in getting a handle on important factors affecting a company’s total operations, including innovative directions, the principle of spending time with customers goes a long way toward understanding their point of view. This recognition about the customer’s importance suggests that the customer is more than the next step in the distribution chain ( 1999). The different functional areas can help the company determine which is the best action. It will provide details on what kind of activities should be instigated by the company for it to achieve its goal and for it to solve its problems.

 

Recommendation

The company will be successful if it will concentrate on providing better products to established clients wherein Wallace will make sure that the products will be of the best quality and it will turn into something that will serve as a primary material for other companies.  With proper use of strategies and resources the company can create products that other companies will crave for as part of their own resources.

 

Limitations

There are limitations if the company will pursue changes in pricing. If the company will create changes in the prices, it has first to consider the effect of the changes to the clients. If the company will create changes in the prices the company cannot go beyond the prices that the clients can afford. If the company will go beyond this border the company might lose clients and they might a hard time in finding replacements. The company cannot also reach the boundaries set by the laws of a certain country.

 

Conclusion

The pricing issues that the company encounters include the kind of changes to be done on the prices; how the change in prices can affect the operation of Wallace and how the old and new clients will react to the changes in the prices. For the established clients, the pricing approach for them should concentrate on providing them the best product for the equivalent amount of price they pay. If the marketing manager of Wallace believes that the new customers will give benefits to the company then he should push through with seeking business with the new development customers. 

 

References

Analysis of a horror game

Introduction

            The horror genre has continued to fascinate audiences through the combination of frightening plots with nonverbal elements. Horror movies are typical examples of fear-inducing media content. They tend to dwell on blood and gore as well as the expression of terror by the victims. Primarily, this genre is enjoyed due to the fear based arousal that is enjoyed and valued by viewers seeking excitement.

            This genre has also appealed to videogames. Horror survival videogames are the same as the horror films in the sense that they evoke the same feeling. The difference though is the experience of audience in these two media forms. It  remains debatable whether videogames are more effective conveyors of horror than films. Films have the advantage in terms of scaring the audience since the film maker controls every scene and thus leading the audience to scary moments. On the other hand, horror video games remove the fourth wall and place the player directly into the story, thereby overcoming the obstacles of film makers when telling a scary story.

Concept of Horror

Horror is a feeling of revulsion occurring after something which is frightening is seen, heard or experienced. It is the feeling one usually gets after coming to an awful realization or experiencing a hideous revelation. By contrast, terror is the dreadful feeling and anticipation that precedes the horrifying experience. Horror then combines the feeling of terror and revulsion. In addition to this, horror is the genre of film and games that relies heavily on horrifying images and situation to exhibit reactions from the audiences ( 2007). The pleasures of horror involve surrender, passivity and discomfort.

 (2004) argued that horror consist of the recognition that things are not as they ought to be which in turn requires implicit comparison and evaluative judgment or appraisal. The object of horror is concrete as opposed to abstract, specific rather than non specific. Hence, one might dread the unknown or be generally anxious but is properly horrified only by a particular and more or less immediate event or object of perception. Horror evokes no action readiness although one might react to horror by turning away or screaming. In such case, it is a spectator emotion even in real life ()

Resident Evil

            Resident evil is basically a survival-horror game which requires the killing of large numbers of demonic creatures in a virtual environment which is reminiscent of the horror film. In this game, you kill anything that is moving with the exception of the victim or the hostage. Survival horror is generally understood to be a game in which the player leads the character through uncanny narrative and hostile environment where the odds are weighed decisively against the avatar. The game involves the use of puzzle solving and exploration as it progresses. The player often contends with limited supplies of ammunition and health hence making the “survival” horror. The player is portrayed as being unfamiliar to the areas where the game takes place which contributes to the feeling of isolation and discomfort in the player. Resident Evil took the stylistic aspects of the first survival horror computer game and consolidated them. However, it is more innovative in terms of the graphics, atmosphere and sophisticated narrative (2004).

In Resident Evil 1 you will find zombies and more disgusting creatures that you can imagine. The story started with the news of people murdered and bearing bite marks on their bodies which makes it appear like they have been eaten. The team of STARS was sent tot eh Arklay Mountain to investigate but they end up missing. Later on another team was sent consisting of the main characters: Chris Redfield (male protagonist) and Jill Valentine (female protagonist). They investigate but then terror shows up as the team ran into a creepy mansion. The main characters wander around the mansion infested with zombies. They are trying to escape but puzzles are placed everywhere. The game does well with survival horror because it has limited amount of ammo so it is not just about killing the zombies but also ensuring that there is enough saved later.

In many ways, Resident Evil is a Gothic horror movie. It follows the number of conventions of the gothic movie. It begins with an abandoned mansion explored by the main characters and frightened by every sound and shadow. It features horror archetypes such as zombies and mad dogs. The setting is part dimly lit and shadowy for the most part. Finally, it employs black metal music, a hybrid of heavy metal and Goth trance music (2006)

Stimulation of Horror, Fear and Terror

Videogames are like films in one major aspect. The atmosphere was basically a combination of fear and tension. They also communicate to the player through the eyes and the ears. These games provoke sensations of fear. The player must trigger the avatar’s gestures and movements and guide it to the space which implies a particular symbiosis – plus there is the player’s tactile manipulation of the controls. Aside from the first person shooter point-of-view in the Resident Evil Survivor, the game also includes cinematic points of views. These takes a montage effect when the player becomes the editor by making each scene “cut” to a new angle when a certain stage is crossed. These cuts are designed to surprise the player in the same way that the game exploits cinematic shock moments(2004).

These shock moments typically involves the appearance of a monster or explosion which are further enhanced through physical sensation, loud noises and moments of physical violence (2004). Horror was depicted in Resident Evil in terms of the zombies, rabid dogs, giant spiders and other types of disturbing images like persons with half body eaten. The graphics are nicely detailed. The characters suffer from square polygon body parts but they are animated very well. Zombies appear as if they are stumbling and creeping towards you realistically. You will see all the gore in the opening cinema like decapitated head and blood gushing through the head of the zombie. Overall, the graphics capture the feel of the horror movie.

The use of eerie ambient music also plays an incalculable part not just in the mood but also in the playing of the game. The change in the style of music for confrontation scenes or for dramatic moments serves to exacerbate the urgency of the game. The background music sets the creepy mood. What makes the game scarier is the creepy piano music playing on one’s ears while playing. It makes the already scary game even scarier. Sometimes you can also hear the footsteps of the zombies coming towards you and that helps a lot during the game. When you are caught by some monster by surprise, the music will switch to a heart pumping track. Even the moans of the zombies can send chills up your spine. Playing through for the fist time, the dark, moody, horror flick music which you come in contact with in the game is enough to make you play with the lights on. You never know what is on the next corner and the music score of the game follows the attitude to the fullest making your pulse race.

The audio effects truly make the game suspenseful to play. You may not see the zombies but you may hear them clearly as they lurch somewhere just out of the sight or range and then coming into view. The sound of the dead feet on the carpeted floor speeding up makes you want to look behind you in a split second. Aside form this, there is also the thumping of the spider legs in the distance, the sound of the dogs on the concrete and the flow water in certain points which all makes it feel like real. It gives the feeling that you are not just playing the game but actually in there beside the character. Above all, Resident evil is a triumph of suspense. There are enough clues to the puzzles and the enigma of the overarching story holds the interest of the player. Additionally, the narratives develop to illustrate a sense of progression. This is evident when the zombies are replaced by mutated plants or spiders which are superseded by mutant such as “lickers” or the arch boss itself: ( 2004).  

Difference from Horror Films

The horror genre has been widely used in films designed to elicit fright, fear, terror, disgust or horror from the audience. Evil forces, events or characters of supernatural origins intrude the real world and wreak havoc to the ordinary life. Most of the characters include vampires, zombies, monster and other fear-inspiring characters. The fascination from horror explains the adaptation of video games into movies such as Resident Evil. It was a game series which has already include tow Hollywood motion pictures. The movies are mostly panned by the critics and elicited mixed reactions from fans. It gathered praise for some fans for bringing the series to the mainstream audience and also received criticisms regarding the incomplete adaptation of the Resident Evil Games. Another noticeable thing is that the movies contain elements that directly contradict from the games. Beyond these differences is the difference in the experience of horror from the two media forms ( 2007).

Many films had significant impact on the revival of horror games whether in terms of setting the atmosphere, the structuring of narrative through boss encounters or sequences of gore. However, the process of adaptation is reversed. Films are increasingly turning to games for inspiration. The sole example of the adaptation of a survival horror game is the Resident Evil. One of the appeals of this survival horror game is the illusion of free will: the ability to control an avatar in his journey. There is of course no such thing as freewill. Any walkthrough indicate that the gameplay is merely about the stages of a narrative with little fluctuation. This applies even if the genres offer multi-narrative layers with a range of possible choices, solutions and endings (2004).

The limitation of freewill is a deficiency but the sense of being out of control is inherent in the experience of horrors across all media. The sudden loss of control is an important part of the pleasure of horror as it places one in the seat of a carnival ride. The horrors of the Resident Evil reflect the increasing pervasion of reality by horror. The cover of the Resident Evil 2 carry the question, ‘Can you survive the horror’? The question works to place the game within the rhetoric of the horror film. Yet something greater is needed to survive the interactive nature of the horror game. One needs to learn the skills to withstand the onslaught of evil monsters and restore equilibrium (2002). Unlike the horror film, the game place a strong emphasis on the acts of doing that extends beyond the kinetic and emotional responses that are common in the cinema.

            Games based on films bear only superficial resemblance to the originals. Horror games organize and manage the game playing experience to create suspense and tension. These games are structured at deep and surface levels according to the principles of ‘manichean’ moral duality, a factor shared by games with horror films. Its presence suggests that the pleasures of playing such games centers on the experience that oscillate the pleasures of doing and not doing. In the game, the player is in control of the gameplay which creates a dynamic rhythm between self determination and pre determination (2002).

            Indeed, the interactive dimension of the game is organized to further intensify and extend the types of emotional and affective experiences offered by the horror film. The horror genre has made transition to videogames for several reasons. First, horror offers death as spectacle and actively promises transgression. It has the power to promote physical sensation. Like many horror films, horror-based videogames used conventional and basic notions of good and evil. In Resident Evil 3, the avatar has to restore the balance in the world corrupted by evil forces threatening the humanity. The main aim is to defeat the manifestation of these forces and the game is structured to his quest. This game deploy surface story that reference the good versus evil format of horror films (2002,).Whatever the players do min most horror based games, they have to occupy the avatar of good and not evil, As

A central issue in the technology of video games concerns how the active user role and the first person point of view will change the experience of the users. If the critical empathic distresses result from the film viewers’ being a mere witness, these processes will change in the games’ interactive environment and perhaps the expected outcomes will vary in response. According to  (2000), video games differ as a result from the change in appraised coping (2003). Whereas the appraised coping potential of a film character determines emotional experience of the viewer, appraisals of the player’s own coping potentials controls emotional experience in videogames. This is a process which is relatively closer to relatively closer to real life. The more active and realistic experience of horror in virtual reality environment facilitates both cognitive and action coping strategies to eradicate negative emotions with means that are not available through film exposure ().

The active user issue has been given great attention by those concerned in the information technology although this is something which entertainment scholars have been slow to address.  (2000) challenged whether the audience members would want to labor as much interactivity demand and found out that games allow the users to alternate roles between witness and player perspectives (2003). The understanding of this multifaceted experience becomes more challenging with the complex emotions from horror.

There are a number of reasons why the horror genre has transformed into video games. The interactive nature of the gameplay amplifies the dynamics of the generic horror including patterns of passivity, peril, attack and flight. By switching between gameplay and cutscene, games are able to intensify the awareness of the dynamics between being in control and out of control. With the film, it is easier to scare the people. The path of the characters and the camera are totally in the control of the film maker. This allows the film maker to move the audience towards that ultimately scary moment. However, video games allow the audience to take control of the characters and therein lies the difficulty in making a truly frightening game. Horror games like Resident Evil evokes horror as films do by moving the player from the land of the familiar into the realms of the unfamiliar. This transition is enhanced through the use of sound and visuals that evolves towards disturbing occurrences.

The success of Resident Evil is attributed to its complicated universe. In other words, multiple layers and substrata of the game’s universe have mapped out a virtual world far beyond the simulation of contained action. Fundamentally, Resident Evil is experiential. It is an experience that has succeeded due to the number of factors and decisions, least of which is the gameplay which is comparatively simple and immediately accessible. As compared to other games in the horror genre, the mortal dangers are comparatively few. The principle challenges of the game lies on rational thought and problem solving ( 2004).

Conclusion

            Horror has continued to be a fascinating genre not only in the film industry but also to video gaming. The main purpose of which is to induce fear to the audiences. Primarily, this genre is enjoyed because of the excitement and the suspense it brings to the audience. The advent of survival horror games such as Resident Evil is another manifestation of the never ending fascination to the horror genre. There are evidences proving that horror based games are derived from horror films. In fact it is the films that set the atmosphere for this particular genre. However, the trend is reversed today with the likes of video games such as Resident Evil being adapted to films. Surely, both media forms evoke the kind of fear and terror they aim. However, differences are apparent in terms of scaring the audience and getting them involved with horrifying scene. It is the latter which explain the popularity of video games since the film cannot get the audience into the same experience as that of the interactive environment of the video game.

 

 

ASSIGNMENT INSTRUCTION: CARTER CENTER

Conflict Resoultion  & Mediation Due Dec. 19^th

 

 

For this assignment, access . Once on the Internet site:
1. Click on Peace Programs (Top Bar)
2. Click on Conflict Resolution Programs (Top Bar)
3. On the right bar, under Conflict Resolution Program Links, click on Activities by Countries

Within this site, there are 11 country case studies in which the Carter Center has served as a mediator. Selecting one country, provide a brief overview of the conflict resolution situation. Additionally integrate the review with the assigned readings from “The Dynamics of Conflict Resolution, by , .

 

Here is the lesson notes from the professor that may help also.

Lesson 3

Negotiations and Mediation

 

 

 

I.    Negotiations & Mediation: The Construct

There are two basic paradigms for understanding mediation: structuralism and social-psychological.

Structuralism: posits that - with persuasion, incentives, and disincentives - parties to a conflict can be lead to a negotiated settlement. From this perspective, the causes of conflict are objective issues that can be resolved through negotiation. The prime condition for settlement is when all parties to the conflict “perceive the costs and prospects of continuing a war to be more burdensome than the costs and prospects of settlement.”

Social-psychological: the focus is on the processes of communication and exchange as a way to change attitudes and perceptions. A key to this process is engaging wider groups of civil and opinion leaders into the discussions. From this paradigm, conflict can occur over objective reasons but it can also reflect subjective and social fractures.

II. Life Cycles of Conflicts

The typical life cycle of a conflict includes:

• A period of rising tensions between or among parties

• Confrontation

• Outbreak of Violence

• Escalation of military hostilities

• Cease-fire

• Formal settlement

• Rapprochement

• Reconciliation

At the lowest level of violence, there may be more chances for mediation. At this stage, attitudes and perceptions have not hardened and institutionalized channels of communications are still open. Negotiations at this level are relatively low-risk. However, negotiation is less attractive because the parties have not let experienced the costs or limits of what can be gained on the battlefield. Violence in support of unilateral goals may still be seen as a viable option to compromise and negotiated settlements.

Inversely, higher levels of violence see fewer opportunities for engagement of belligerents in negotiations but greater likelihood of mediation success.

Who mediates is an important consideration and is dependent on the willingness of parties to the negotiations and the need to demonstrate force to move the negotiations to a possible settlement. The US resolve to use increasing levels of force in the former Yugoslavia did achieve a settlement. The same resolve, however, did not deter Saddam Hussein from attacking Kuwait or be more forthcoming with UN Weapons Inspectors. The issue here may well be the ability of a belligerent to correctly perceive the intentions of others.

III. Regional Actors

As we look at various regional organizations (Table 1), it is typically organizations that have a security or military component that have the capabilities to participate in peace support operations. Of course, there are distinctions between the capabilities of NATO, the European Union (EU), the Commonwealth of Independent States (CIS) and other regional organizations like the African Union or Economic Community of West African States (ECOWAS).

Table 1

 

 {] provides a thorough background on several regional organizations:

1. The North Atlantic Treaty Organization (NATO), sometimes called North Atlantic Alliance, Atlantic Alliance or the Western Alliance, is an organization for defense collaboration established in 1949, in support of the North Atlantic Treaty.

The core provision of the treaty is Article V, which states:

The Parties agree that an armed attack against one or more of them in Europe or North America shall be considered an attack against them all. Consequently they agree that, if such an armed attack occurs, each of them, in exercise of the right of individual or collective self-defense recognized by Article 51 of the Charter of the United Nations, will assist the Party or Parties so attacked by taking forthwith, individually and in concert with the other Parties, such action as it deems necessary, including the use of armed force, to restore and maintain the security of the North Atlantic area.

This provision was intended so that if the USSR and its allies launched an attack against the Western European allies of the United States, it would be treated as if it was an attack on all member states, including the United States, which has the largest military in the alliance and could thus provide the most significant retaliation. However, the feared invasion of Western Europe never came. Instead, the provision was invoked for the first time in the treaty's history on September 12, 2001, in response to the September 11 attacks on the United States the day before.

2. The Economic Community of West African States (ECOWAS) is a regional group of fifteen countries, founded on May 28, 1975 when 15 West African countries signed the Treaty of Lagos. Its mission is to promote economic integration.

It was founded to achieve "collective self-sufficiency" for the member states by means of economic and monetary union creating a single large trading bloc. The very slow progress towards this aim meant that the treaty was revised towards a looser collaboration. The ECOWAS Secretariat and the Fund for Cooperation, Compensation and Development are its two main institutions to implement policies.

Member states of ECOWAS are Benin, Burkina Faso, Cape Verde, Côte d'Ivoire, The Gambia, Ghana, Guinea, Guinea Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone, and Togo. The current executive secretary is . The current chairman is President  of Niger. In 2002, Mauritania left the organization.

3. The Commonwealth of Independent States (CIS) (in Russian: Содружество Независимых Государств (СНГ) - Sodruzhestvo Nezavisimykh Gosudarstv) is a confederation or alliance consisting of 12 former Soviet Republics: Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan.

The creation of CIS signaled the dissolution of the Soviet Union and, according to leaders of Russia, its purpose was to "allow a civilized divorce" between the Soviet Republics. However, many observers have seen the CIS as a tool that would allow Russia to keep its influence over the post-Soviet states. Since its formation, the member-states of CIS have signed a large number of documents concerning integration and cooperation on matters of economics, defense and foreign policy.

4. The Organization for Security and Co-operation in Europe (OSCE) is an international organization for security. In its region, it is concerned with early warning, conflict prevention, crisis management and post-conflict rehabilitation. It has 55 participating states from Europe, the Mediterranean, the Caucasus, Central Asia and North America.

5. The African Union (abbreviated AU), founded in July 2002, is the successor organization to the Organization of African Unity (OAU). Modeled after the European Union (but currently with powers closer to the Commonwealth of Nations), it aims to help promote democracy, human rights and development across Africa, especially by increasing foreign investment through the New Partnership for Africa's Development (NEPAD) program. Its first chairman was South African president .

Goals for the African Union include an African parliament and a central development bank. As with its predecessor, the OAU, the African Union is based in Addis Ababa, Ethiopia. The Pan-African Parliament opened officially September 16, 2004, in Midrand, South Africa. Because of the membership of the Sahrawi Arab Democratic Republic (Western Sahara), Morocco is the only African nation that has chosen not to be a member.

The AU's first military intervention in a member state was the May 2003 deployment of a peacekeeping force of soldiers from South Africa, Ethiopia and Mozambique to Burundi to oversee the implementation of the various agreements. The mission was known as AMIB and has since been taken over by the United Nations, which has designated it ONUB.

The AU faces many problems, from the HIV epidemic and poverty to many civil wars. In response to the ongoing Darfur crisis in the Sudan, the AU has deployed 300 soldiers, mostly from Rwanda, to Darfur to protect the AU observers. As of 2004, it is considering the deployment of up to 2,500 peacekeepers to the region. In 2005 there was a donor's conference held in the African Union's headquarters in Addis Ababa where enough money was raised that it is believed there will be enough money to raise AU troop levels to 7,000 in September and to 12,000 in the beginning of 2006.

In response to the death of , president of Togo, on February 5, 2005, AU leaders described the naming of his son   the successor as a military coup [1]. Togo's constitution calls for the speaker of parliament to succeed the president in the event of his death. By law, the parliament speaker must call national elections to choose a new president within 60 days.

As of 2005, current conflicts also include the:

• Algerian Civil War,

• Casamance Conflict,

• Second Congo War,

• Somali Civil War,

• Second Sudanese Civil War and

• Second Ugandan Civil War.

IV. Nongovernmental Organizations (NGOs)

The term NGOs represent a type of institution so varied and broadly defined that it is almost impossible to generalize about these organizations. The role of a number of these organizations involved with humanitarian assistance and development has expanded in the post-Cold War era to include not only humanitarian aid but also conflict resolution and reconciliation interventions. NGOs are being asked to perform four basic functions:

1.      monitoring human rights violations,

2.      acting as neutral mediators among warring factions in a conflict resolution role,

3.      providing humanitarian relief, and

4.      influencing foreign policy decisions in Western capitals.

The reason for such an expanded role includes:

·         NGOs are the best early warning system for impending conflict. On-site workers tied to an information-management system at the central headquarters can be effective in getting the news out.

·         NGOs have deep roots in the community usually at the lowest level of social organization that can provide contact points in conflict areas.

·         Where government has collapsed, NGOs may be the only source of authority.

·         NGOs can diminish the traumatic consequences of civil violence by the distribution of relief efforts.

·         During complex emergences, NGOs are often the only organizations with the operational capability to provide needed assistance.

·         NGOs with no affiliation to or formal connections to any government might be well positioned to intervene.

·         NGOs with a focus on developmental assistance consider longer-term consequences of their actions and better understand the complexities of each conflict.

However, there can there be problems created by NGOs as well.

·         In conflicts where law and order has broken down, humanitarian assistance workers might find themselves in situations that require their rescue.

·         Relief efforts can also distort the local economy as well unintentionally providing the means of support to a belligerent party. In this case, the conflict could be prolonged.

·         The proliferation of organizations and their autonomy often prevent the development of a coherent plan.

·         NGOs with church sponsorship might have a theological aversion to the use of military force and would make coordination and collaboration difficult in some peacekeeping operations.

NGOs – just like all organizations -- have strengths and weaknesses as they carry out their humanitarian assistance role.

 

 

 

 

Site survey, site analysis and site concept

Website Analysis

            This paper is an analysis of Australia’s official website (). The website is analyzed using various website features such as appearance, search engine capability, and technical features. All the features of the website are discussed. In the end, the website is evaluated and summarized; suggestions are given to improve the features of the website. The chosen website is a website that promotes tourism for Australia; it offers various links to different websites that has the same objective; promoting the country’s tourism.

 

Appearance

            The homepage is very attractive even though it is very noticeable that it is not balance because the main interface of the homepage is not balance at the center of the screen; it located in the foremost left side of the screen. There is still a relatively large space between the interface and the scroll bar. This space is not necessary and is of no use in the website. The color scheme for the website is like the ocean that surrounds the continent, which reflects warm and easy, like Australia itself.

            The homepage is like a Geographical Information System (GIS) in which the user can navigate to the continental map of Australia; with three different map view options such as basic, satellite, and topographic view, and four different map layer option views. These options can be accessed at pop-up window that is located at the small map located ate the top right part of the page. The user can also use this feature to view the different regions of the Australian continent or the main map that is located at the center of the page’s interface.

            The continental map of Australia located at the middle of the page is pre-divided according to regional boundaries and jurisdiction. In order for a user to view and gain information about a certain state, the user must click the name of the state that are written in bold on the map (beside a magnifying glass in a circle), or a user can click the name of the major city of Australia that are also located on the map. The homepage in general is visually appealing and an eye candy. The interface of the website is user interactive, making it interesting to navigate and explore.

 

Search Engine Friendliness

            A search engine is available in the homepage which is located at the middle left-foremost side of the screen. Like other conventional search engines, this search engine requires the user to input the necessary tag for the information that he/she is looking for such as states in Australia, historical places, etc. and in return the search engine returns a number of related topics from the entered tag. For example: I entered the tag “kangaroo” in the search engine input box. When I click the go button or the enter key at my keyboard, the search result returned an exact 258 hits on the information that I am looking for. On top of the search engine input box is the phrase “Search Australia”, written in capital letters, which means that the search engine will only return information that are related to Australia. Even though the search engine is as simple as the conventional search engine found on any web pages, the difference of the search engine on this web page is the restriction on the search result that it provides the users. The results of the search that a user conducted are restricted to topics regarding Australia.

 

Other technical issues

            The noticeable technical feature of the webpage is the language select option found on the lowest left-most part of the screen where the user can change the language from default English language to Chinese language. There are only two languages available for the user to choose from, this may be because of the reason that English is the universal language and the official language in Australia and Chinese is one of the most spoken language in the world. Once a user decided to change language, the page reloads and then changes the language according to user preference.

            On the lowest part of the screen are shortcut buttons that a user can use for easy access; without having to access the main screens geographical map. This feature gives ease in access and convenience in navigating to the webpage. The GIS concept of the website makes navigation visually appealing; where in the user can breakdown the navigation process according to state, and once a state is chosen by the user, it is then broken down according to region and boundaries of that particular state. There is also a drop-down option for travel information. Important travel and working information in Australia are located in this feature. The user can select from information regarding Visa and useful tips, etc. The continental map can be viewed by the user in three different ways. Also there is an option wherein the user can view the different climate of the country according to calendar month. The main road and transportation highway of Australia is also accessible as well as the distance from one state to another, or from any point in the country can be viewed by the user. There are also some important facts about the country that the user can access. The GIS concept of the website made manipulating and navigating information related to the surface of the Earth easy for users.

            Additional technical feature of the website are the videos that can be viewed and the electronic postcards that can be send by the users. This feature is located at the pop-up window titled “experience”. The contents of the video promotes Australian tourism; featuring some of the magnificent tourism spot located in Australia. The electronic postcards also features the various tourism spot of Australia, that can be send by the user to friends, relatives, or love ones via Electronic mail. Also there is a feature wherein the user can access recent government sponsored promo that promotes the country’s tourism. This can be accessed at the pop-up window titled as “Feature”.

           

 

 

 

 

 

 

Sample Screen

 

 

 

 

 

 

 

 

 

 

 

Homepage screen shot

 

Summary

            The website is easy to navigate because of its GIS concept. Although the website is just a link to various official state websites of Australia, it offers sufficient links to various government websites that promotes tourism. The different states of Australia have their respective websites that promotes the states tourism through multimedia presentation. The website () is a great link that facilitates a great interactive concept, making user navigation easy and informative.

            The information that the homepage provides are informative and essential for individuals who are planning to travel to Australia, as well as, the links that the homepage provides is a necessity for travelers. The links found on the website will not redirect a user to a separate page; instead the link will be loaded on the same page, although other links found on the website redirects a user to another page such as the “Corporate feedback” link. It would be convenient if the map could be printed by the user (for reference). The map view with the major transportation road will be a great additional feature in the website and also printable version of the facts and information regarding travel and tourism. The main downfall noticeable in the website is that links are loaded on the same page instead of loading it on a new webpage. Loading the link to the same page might cause some confusion on the pat of the user; especially users with low technical expertise which can make users lose their interest in using the website.

            Language option feature has been a widely used feature for websites. The language option of the website is a convenient way for other culture to understand the content of the web site, although it lacks the option to choose from other language. Language is undeniably understand and used everywhere, but the truth is not everyone can speak and understand the English language and some prefer the use of their native tongue. It is also important to consider other language such as German, Japanese, etc. and not just the English and Chinese language in the language option of the website. Example of a website that has a broad language selection is . A broad language selection will make the content of the website understandable to mostly anyone, anywhere in the world.

           

Suggestions

            It is important for any website to accomplish its goal through comprehensive planning and execution. All there are positive and negative aspects of a website, it is important to continuously develop the features of the website to retain its usability over the years. The website has some great features and concept making easy to navigate for users of all levels. Although there are some features suggested for the further improvement of the website.  The following are the suggested development for the website to make it more comprehensive in its features and contents:

Ø  Adjust main interface at the center of the screen;

Ø  Add other language selection from the given option;

Ø  It would be better if the map could become printable;

Ø  Add other shortcut features at the top page not just at the bottom page;

Ø  The facts that the website offers should be printable, as well as, the travel in formation that the website provides; and

Ø  All links should be loaded on separate page.

           

            The best feature of a website is the ease in navigation. If a user cannot easily navigate and explore a website, that user will not likely remain to continuously explore the website. The color scheme of the website, which generally represents the personality of the website, is also important for the initial impression of the user for that particular website. The warm color of the website reflects the kind of experience that a visitor would likely experience in their visit. Also an important factor is the overall concept of the website, for a website that promotes a country’s tourism, it is important to include various images and videos of the great tourist spots of the country, as well as, important information on how to easily travel the country and the necessary information that an alien traveler will need when they pay their visit to the country.

 

 

 

BHP BILLITON CASE STUDY ON INTERNATIONAL FINANCE

BHP BILLITON CASE STUDY ON INTERNATIONAL FINANCE

MULTINATIONAL FINANCIAL MANAGEMENT

1. Company Background

BHP Billiton is a global leader in the natural resources sector formed from a merger in 2001 between two complementary companies – BHP (Broken Hill Proprietary Company), an Australian company, and Billiton, a British firm. The organization is headquartered in Melbourne, Australia, with significant corporate management presence in London, as well as corporate centers in Johannesburg, South Africa and Houston, USA. The company provides a range of products: aluminum, base metals, carbon and stainless steel-making raw materials, diamonds, energy coal and petroleum. The firm has a total workforce of over 100,000 people from their areas of operation.

2. Company Goal

According to the 2006 Annual report, BHP Billiton’s primary business goal is to create long-term value through the discovery, development and conversion of natural resources, and the provision of innovative customer and market-focused solutions.

3. International  Business Methods Utilized

Exporting. Primarily, they export mining products to their countries of operation. For instance, they sell lump ore and fines from Australia and Samarco sells pellets from Brazil to steel producers, which are principally exported to China, other countries in Asia, Africa and the Middle East, Europe and the United States. Further, most of their export sales are made under short and medium-term contracts in Europe, Asia and the US.

Importing. They import but this is only one of their support activities, as they sometimes have to purchase equipment and acquire of services from outside Australia.

International Joint Ventures. They have various international joint ventures with other companies. They hold a 38.5% working interest in the Zamzama project, a 33.76% working interest in the West Cameron 76 joint venture, a 30.95% working interest in the Starlifter (West Cameron 77), a 43.66% working interest in the Mustang (West Cameron 77) joint venture, a 45% working interest in the Angostura development joint venture, a 46.1% working interest in the joint venture of the Liverpool Bay asset, a 16% interest in the Bruce field, an effective 45% working interest in the Ohanet joint venture, a 45% interest in the joint venture contracted under the 401a/402a PSC, among many others. They are likewise a participant in the North West Shelf (NWS) Project, an unincorporated joint venture. Also, they hold a 90% share of Minerva development in a joint venture agreement.

Foreign Subsidiaries. In addition to the joint ventures, they also have subsidiaries which help them operate internationally. For example, Ingwe Collieries Limited, a wholly-owned subsidiary, they are able to operate six coal mines in the Witbank region of Mpumalanga province of South Africa. Jersey Limited is likewise a wholly-owned subsidiary of BHP Billiton Plc. Additionally they have the Billiton Investment 3 BV, Billiton Investment 3BV and Billiton Investment 8 BV (BHP Billiton Shareholders) subsidiaries.

4. Significant Agency Problems

Due to the immensity of the scope of their operations, the major problems lie in the a great demand for everything the world's biggest mining company pulls out of the ground, especially iron ore and coal (the two elements that produce steel), but with too few workers for their size. Also, because of the nature of their business, they touch on the very delicate issue of environmental protection in the course of their business operations. Further, since they operate in several countries where ownership of land is uncertain and where disputes may arise in relation to ownership, there is a risk that this may cause disruption to some of their mining projects and prevent the development of new projects. Additionally, the business could be adversely affected by new government regulation such as controls on imports, exports and prices, new forms or rates of taxation and royalties.

5. BHP Billiton Expansion Plans

BHP Billiton’s current chairman, Don Argus, stated that his organization believes that they have unique opportunities and challenges as a result of the new industry environment, most importantly the potential for a multi-decade of high demand growth driven by China, India, Russia and the developing South American economies. The integration of WMC Resources’ assets into the BHP businesses and the sale of its fertilizer business were successfully completed during the year with the result of significantly boosting nickel and copper production during a year of strong prices, adding uranium to BHP’s product range and providing growth options for the future while continuing to optimize the business portfolio. Their global exploration activities continued to increase as they search for the next set of options for growth, many of which will be in regions that will create their own set of challenges, as they focus more intently on opportunities in sub-Saharan Africa.

INTERNATIONAL FLOW OF FUNDS

1. Countries of Operation

BHP Billiton has operations in the major resources provinces of Africa, Australia and Latin America, as well as a presence in the markets of North America, Europe and Asia.

2. Effect of Changes in International Trade to Export Business

Diversified across products, markets and regions, our asset base provides relatively stable cash flows regardless of variations and risks in areas such as commodity prices, currency exchange rates and geopolitical conditions. This was shown in their consolidated cash flow statement, where the entry for the effect of foreign currency exchange rate changes on cash and cash equivalents is a positive US$1M, as compared to last year’s negative US$6M. Their export activities was affected in that foreign exchange rate movements resulted to the rise to a wider range of deferred tax assets and liabilities and an increase in the volatility of deferred tax balances.

INTERNATIONAL FINANCIAL MARKETS

1. Foreign Exchange Market Utilization

The foreign exchange market is used by BHP as the medium in where it facilitates trading with other multinational corporations. Also, since they seek for foreign exchange to purchase the materials and acquire the services that they need, the foreign exchange market is the playing field of such activities.

2. Eurocurrency Market Utilization

Since BHP makes bank deposits in the various countries that they operate in, it makes use of the Eurocurrency because the latter are the deposits residing in banks that are located outside the borders of the country that issues the currency the deposit is denominated in. For instance, an African bank where they put in their money has a deposit denominated in Australian dollars; the deposit is called Eurocurrency deposit.

3. Eurobond Market Utilization

The Eurobond market, together with the Eurocurrency, is utilized by the MNC under study as they avoid domestic interest rate regulations, reserve requirements and other barriers to the free flow of capital ( 2004). BHP uses it because they most of the times need to issue Australian currency to be traded outside of Australia and in a different monetary system, like South African rand.

4. Stock Listing

BHP Billiton has a primary listing on the Australian Stock Exchange, and secondary listings in Germany (Frankfurt) and Switzerland (Zurich). In addition, American Depositary Shares (each representing two ordinary BHP Billiton Limited shares) evidenced by American Depositary Receipts (ADRs), trade on the New York Stock Exchange. Further, they are also listed in the Johannesburg Stock exchange and the London Stock Exchange.

EXCHANGE RATE DETERMINATION

1. Currencies Utilized in Conducting International Business

The currencies in which the BHP uses to conduct its businesses are: Australian dollars, Pounds Sterling, US dollars, South African rand, Euro, Chinese Yuan, Brazilian real, the Chilean peso and Colombian peso, among dozen others.

2. Last Year’s Changes in the Currencies

The US dollar is the main currency used by BHP to conduct most of its businesses. The said foreign currency has witnessed some notable swings versus major currencies in recent times. For instance, over most of 2005, it expanded 13% against the Euro and nearly 18% vs. the yen, while between March and May 2006, it sharply decreased in value against the mentioned currencies, losing almost 10% of its value. Also, the UK Pounds Sterling saw a 12.05% and a 15.11% positive movement as against the US dollars and Japanese yen, respectively, during the last year.

CURRENCY DERIVATIVES

            For the multinational company, expert knowledge and skills are essential in managing the vast and complex global array of financial markets, financial institutions and financial instruments. BHP Billiton trades in the financial futures and options exchange market to protect or hedge the firm against future financial risks such as adverse interest rate movements by using interest rate futures contracts.

GOVERNMENT INFLUENCE ON EXCHANGE RATES

            Aside from the US dollar, one other foreign currency used by BHP is the UK Pound Sterling (GBP). As against the dollar, it has the following changes on the daily basis, starting last week:

02/09/2007 1.96620 02/10/2007 1.95380 02/11/2007 1.94980

02/12/2007 1.94970 02/13/2007 1.950 02/14/2007 1.94640

02/15/2007 1.95230

            Further, the Oanda site showed the following data, which is additional evidence that the GBP changes on a daily basis as against the US dollar:

Currency Pair	Current Rate	Previous Day	Last Week	Last Month	Last Year
EUR/USD	1.3072	0.60 %	1.02 %	1.10 %	9.84 %

           

INTERNATIONAL ARBITRAGE AND INTEREST RATE PARITY

            The 3 month yield comparison of the US treasuries and the UK government bonds show that the foreign interest rate of the latter is higher at 5.35 as against the former’s 5.14. Given this information, the GBP is at a forward premium, meaning the USD is at a discount. For the MNC under study, a working assumption is that interest rate parity holds for the inter-bank rates in this information, and therefore there is no profit in trying to get a better deal by borrowing in GBP and hedging or by borrowing in USD.

 

 

 

 

 

 

 

Strategic Development of Intel

A Case Study on the Strategic Development of Intel

 

This paper is a study on the development strategies implemented by Intel that enabled the company to maintain its competitive position in the market over the years.

Introduction

Integrated Electronics (Intel) is an international corporation that fosters innovation and revolutionizes technology. It commits itself into pushing boundaries of innovation for the purpose of making the lives of people easier and manageable. As a company in constant motion to the pursuit of innovation, Intel inspires its partners to develop products that drive the standards of the industry. Moreover, its end goal is not solely focused on making a faster technology but about the impact of such technologies in improving the lives of the people (2007). To achieve its mission, the company has to implement and adopt development strategies that will foster its competitive advantage in the market. This encompasses the ability to utilize internal resources in accordance with the external factors of the market. Additionally, the responsiveness to changes is a value that must be adhered. As the market changes, demands increase and thus the need for more innovations.

Over the years, Intel has proved to adopt strategic approaches in order to maintain its position in the market by utilizing the most of its core competencies. This initiative is not focused on the product alone but on the entire concept of its management. Moreover, the corporate ventures of the company have become increasingly beneficial to it. This entailed the access to emerging technologies which gave Intel a somewhat monopolistic position in the market since it is the world’s largest corporate venture in technology.

Internal/External Environment

Since Intel was established in 1985, it has created its position in the market as a pioneer in circuit memory products. During its early years, the company was ahead of the silicon technology. Its strengths in terms of technological excellence were partnered with the goals set by the senior management. The culture it has established on its internal environment was a top down approach which is balanced with the recognition of knowledge and technical excellence. The strategic planning was informal with potential ideas from engineers and marketers assessed and supported by the top management

(2005).

Alongside with its early success, Intel was faced with the decision of distancing its product development areas. Additionally, technical areas to excel were one of the choices it has to create. Among its weaknesses are the internal rivalries on the technological expertise of some products. However, Intel with its new approach to technology was able to rethink its idea by shifting from being product based. Marketing developments and middle management priorities are eventually adopted by the company. Formal strategic planning was introduced but apparently resulted to repetitive business plans.

Moreover, the company is faced with the challenge of broadening its horizons. The competition in the market has prompted the company to maintain its competencies and thus adopt new strategies. With the advancement of the digital age, the company remained driven by innovation to gain competitive advantage while considering its past mistakes towards becoming more market savvy.

Porter’s Five Forces Model

Market Competitors – horizontal collaboration with major competitor such as the Advanced Micro Devices (AMD)

Suppliers – vertical collaboration with suppliers of services

Buyers – partnering arrangements with lead customers such as Microsoft and Apple

Substitutes – alliances with companies of digital appliances that complement and substitute PC

New Entrants – collaboration with the communication, entertainment and the wireless companies such as BridgeCo, Entropic and Musicmatch.

Value Chain Analysis

This value chain analyzes the development to the competitive advantage of Intel. It consists of the series of activities that culminate in the total value delivered by the company to its customers.

Inbound Logistics

• Independent  manufacturing process

Operations

• Technical excellence incorporated with the senior management. New business groups formed from the top management to propose new business plans

Outbound Logistics

• Alliances and partnerships with lead customers of products such as Microsoft and Apple

Marketing and Sales

• The flourish of activities and ventures provide more venues for sales. The future for all kinds of  semiconductors other than that of  PC’s

Service

• Creation of customer relationships with the avoidance of designing products that is not desirable to them.

Support Activities

Procurement

• The low/high price strategy is employed to set a competitive price for a new product and at the same time offering sales on other products.

Technology Development

• With the advancement of the digital age, the company’s efforts were directed to wireless technology development

Human Resource Management

• Recruitment process focused on the hiring staff suitable for the culture. High performances are associated with rewards.

Firm infrastructure

• The culture it has established on its internal environment was a top down approach which is balanced with the recognition of knowledge and technical excellence. The strategic planning was informal with potential ideas from engineers and marketers assessed and supported by the top management

PEST Analysis

The following is an analysis of the external macro-environment in which the Intel operates. It involves the four relevant factors including the political, economical, social and technological factors respectively.

Political Factors

• Industrial Espionage and Anti Trust Laws

Economic Factors

• Alliances and Acquisitions
• Slowing of PC demand and rise of low cost PC

Social Factors

• Trust and Brand loyalty of consumers
• High Spending power
• Boost in Consumer Confidence

Technologic            al Factors

• Technological advancements prompted by Digital Age
• Wireless technology development

SWOT Analysis

This analysis presents the internal and the external factors that affect the business strategy of Intel. It includes the internal assessment of the functional processes of the company by identifying its key strengths and opportunities. With the identification of these key factors for success, external factors are assessed with the weaknesses and the threats that are faced by the company.

Strengths

• Company Name Recognition in Computer Brands
• Product Specialization
• Outstanding Financial Performance
• Flourishing Company/Corporate Ventures
• Value to Employees’ Diversity and Competence

Weaknesses

• Technical problems on products
• Internal Rivalries on the products’ technological competence
• Informal strategic planning
• Lack of  innovation and the repetition of strategic planning

Opportunities

• Increasing Demand for Computer Products in the Market
• New technologies for business innovation

Threats

• Presence of major competitors such as Advanced Micro Devices (AMD)
• Lack of technical areas to excel
• Threat of Infringement and Espionage

Strategic Drift and Strategic Fit

As the market continues to change and the demands increase, Intel was compelled to become more flexible to cope up with the competition. Part of flexibilities is defined by its past strategic approaches and those that it has chosen to do repeatedly. Over the years, idea system of the company is focused on the ideas that are born out of their marketers and engineers. The tough competition though has necessitated the company to adopt changes and make decisions on what particular technical areas it is likely to excel. Thus, distancing the development of product areas was ensued. Fundamentally, the technical excellence was the core principle at Intel. Strategic freedom is left on the corporate managers that in turn incited internal competition in terms of technical competence of products.

The strategic fit of Intel indicates how its mission and strategies fit its internal capabilities as well as its external environment. At the time when internal rivalries were experienced within the company on the issue of DRAM, it adopted new ideas focusing on the development of marketing and setting priorities on the middle management. At this same time, the potential of microprocessors was seen as a strategic direction for the company. The potential of PC though escaped the attention of managers. The corporation upon its expansion makes the informal strategy development difficult. Thus, business units established their sub committees that developed business plans submitted to the corporate.

(2005)

            The performance on the microprocessor industry earned the company financial gains. However, with the advent of the Internet era, more challenges are faced by Intel and thus changes are again introduced to fit the market. Given this need, internal business ventures were started. New business groups and the entire company work collaborated in proposing businesses that are externally strategic but are also deemed to foster development of internal competencies

(2005). Indeed, the changes undergone by Intel since its establishment pave the way for the shaping of the marketing strategy of the company. While being driven to innovation, it continuously adopted strategies that will fit its internal abilities as well as external factors.

          Additionally, Intel has found its place in the corporate venture being considered as the world’s largest. This initiative was out of the need to form alliances that will enable the company to gain insights on the latest technological developments. Clearly, it has adopted this strategy in the effort to keep up with external factors and the changing market as a whole. 

Strategic Value of Intel’s Core Competencies

Collaborative arrangements aimed at multiplying internal resources enable the company to gain core competencies. With the particular market it caters, the corporate core competence was focused on introducing innovative products while at the same time strengthening the internal management. As such, the coordination becomes simplified and the technologies throughout the corporation are consolidated. These processes enable a fast adaptation to changing conditions of the market while maintaining the competence to produce competitive and innovative products by the Intel.

The microprocessors are determined as the core product of the company. As such, the ability to champion microprocessors is essential. After the adherence to the microprocessor, the company regained its entrepreneurial flourish. The creation of new business groups was encouraged among the top management. Thus, new businesses and ventures are created. Interface between these new business and the entire company were created for the development of internal competence and externally strategic business proposals. Managers understood the rationale for having alliances. The strategic intent of the corporate ventures was to promote technology development especially in the era of internet. Ultimately the ability of the management to combine corporate wide technologies and production skills to achieve competencies are the sources of advantage. The alliances and ventures add to the competencies of the company in terms of competing in the market.

Strategic Value of Corporate Ventures

Investing in ventures is an essential element for the company especially in this area wherein the new technologies entail the adoption of many players. A corporation with the enormity of Intel is able to gain insights on emerging technologies from start ups. Considering this, Intel has become the largest corporate venture in technology. Fundamentally, ventures are aimed on monitoring new technologies and finding acquisition targets. Such fosters growth and blocks other products that may compete with that of the company. Indeed, strategic reasons are behind the corporate venture program. At this, access is gained by the investing company to the technology portfolio of the company. Hence, making the investment is more of a research and development expense.

Through the Intel Capital, investments and acquisitions are made for the growth of the internet economy that supports the interests of the company. Parts of the investments are hardware, software and services companies in different segments of the market such computing, investment, networking and wireless communications (2007). Intel continues to seek out and invest on companies worldwide both on established and new technologies. Part of the undertaking is the evaluation of prospective investments and guidance on business and technology to their portfolio companies (2007).

Strategic Benefits of Corporate Ventures

• Development of business relationships
• Insights to emerging technologies in the market
• Reduction of potential risks on missing technological developments
• Blocking products that may compete with Intel’s
• Supplements to the research and development investments
• Adoption by many players of the company’s technologies

New activities and ventures has enabled Intel the acquisition of access and rights for dozen of new products. Moreover, it has put its efforts in promoting wireless technologies through investments. The digital age even increased the propensity to invest in other companies from those designing chips that link devices at home to those used for networking. Companies that sell software recording and organizing music are also invested upon (2005)

With the strategy of having corporate venture, Intel is indeed capable of leading the industry of designing, marketing and selling chips.

 

 

 

 

 

CARTER CENTER

Brief Overview of Conflict Resolution Situation in North Korea

            When North Korea revived its nuclear program in early 1990s, the action was perceived to be the greatest threat in national and international peace. North Korea had been consistently committed to strengthening their military power and scientific researching. The evidences of such are formidable armed forces, with state-of-the-art artillery and missiles, advanced rocketry and nuclear capability. In particular, North Korea deployed anti-ballistic missiles in Alaska; posed military threats in Washington; intercepted North Korean ships; attacked President Kim Jong II and condemned efforts of peaceful resolution through then President Bill Clinton and South Korean Leaders. Other concerns for North Koreans are the pre-emptive war and first-use of nuclear weapons as well as a possible convergence between North Koreans and terrorist nation or groups.

            When the Clinton administration gave the go signal for Former President Jimmy Carter through Carter Center to intervene and mediate the conflict, the six-party between China, Japan, Russia, United States, and North and South Korea held in Beijing arrived at a satisfactory agreement. However, neither North Korea nor the United States complied with the said agreement. The life of negotiation and dialogue evolved in assisting North Korea in improving food security through potato production. The US Agency for International Development and Department of Agriculture provided for food-for-work program to North Koreans. As President Kim decided to frozen the nuclear program and resume talks with the US, the results are the subsequent cancellation nuclear reactor, closure of plant’s spent fuel and replacements of plants with safer light-water reactors.

Integration

            The occurrence of resolution between the US and North Korea a structural negotiation. The proof of diplomacy between the two nations are proven by North Koreans assurance to decline from becoming a nuclear powered nation whereas the US commit at a non-attack to the country. Inter-boundary mediation between neighbor nations had been also successful. Since the conflict is at the lowest level of violence, there are relatively low risk, low cost negotiation, higher probability of mediation and communication channels that are still open despite the presence of an army. The negotiation involved impasses as US positively intervened to provide North Koreans assistance on aspects that the latter proved to be in inadequacy such as employment and national food security.

            Former President Jimmy Carter never seizes to communicate with North Korean leaders until they arrived at a commensally agreed-upon settlement. The connections among parties are segued on reframing the issue and shifting the focus to a more relevant issue such as production and food security and perhaps employment for nationals. The branding of North Korea as an ‘axis of evil’ member and other accusations are smoothen out in between talks. Though the first negotiations are not taken seriously, both parties – US and North Korea – showed unwillingness to relinquish power over another. Either US or North Korea took the role as distributive or integrative negotiators instead the subsequent dialogues conform to a win-win solution wherein no people will get harm and no government will rule over another government.      

 

Reference List

 

International Business : Softdrink Industry

INTERNATIONAL MARKETING STRATEGIES

 

According to  (2006), the most successful global businesses are aggressively building their global strategies around these themes: (1) increased market access because of the opening up of markets in China, Central and Eastern Europe; (2) increased market opportunities because of the deregulation of many markets, such as the financial market and privatisation of state-owed utilities; (3) greater uniformity pf  industry standards, encouraged, for example, by the European Union; (4) sourcing of products and components initially, but more recently services, too, from a wider range of countries, particularly those emerging markets with a high ratio of skills to cost; (5) more globally standardised products and services, particularly in areas of new technology, but increasingly in more culturally sensitive product areas, such as food; (6) common technology used in many more markets, particularly in areas of information technology, when there is a high cost of research and development that must be recovered through sales in many countries; (7) similar customer requirements leading to transnational customer segments, resulting from increased communication and travel; (8) competition from the same organisations in each major market and thus interdependence of markets; (9) global organisation strategies that increasingly treat the world as one market, among several other themes.

Marketing is a universal activity that is widely applicable, regardless of the political, social and economic systems of a country. However does it nor mean that consumers in all parts of the world must or should be satisfied in exactly the same way ().

 

PEPSICO

PepsiCo Inc. is a major producer of carbonated soft drinks, other beverages, and snack foods. Its beverage division, Pepsi-Cola Company, bottles and markets several popular brands of soft drinks in the United States and throughout the world. PepsiCo also owns Frito-Lay Company, the leading snack-food maker in the United States. PepsiCo is based in Purchase, New York. PepsiCo’s soft drink products include Pepsi, Diet Pepsi, and Mountain Dew. Other beverages include Lipton Brisk and Lipton’s Brew iced teas, All Sport athletic drink, and Aquafina bottled water. Frito-Lay products include Lay’s and Ruffles Potato Chips, Fritos and Doritos Corn Chips, Chee-tos Cheese Snacks, Tostitos Tortilla Chips, Rold Gold Pretzels, and Grandma’s Cookies (2001).

PepsiCo’s leading soft drink, Pepsi-Cola, and its chief rival, Coke, have dominated the soft-drink market for decades, although Pepsi has traditionally remained behind Coke. In 1950 Coke outsold Pepsi by 500 percent worldwide. But Pepsi’s aggressive advertising campaigns aimed at young consumers and major bottling and marketing deals made Pepsi a close rival to Coke by the 1980s. PepsiCo has also enjoyed great success with its canned and bottled Lipton brand iced teas, earning higher sales than the Coca-Cola Company’s Nestea products. Also, in the United States, Pepsi had virtually an even market share with Coke in the mid-1980s, when the Coca-Cola Company changed the formula for Coke. However, as Coke regained popularity worldwide in the late 1980s and into the 1990s, it again became the global soft-drink leader. In 1996 Pepsi-Cola International, PepsiCo’s international beverage production and marketing division, suffered difficulties in Latin America, one of its most important markets. The company was particularly hurt by the loss of a bottling plant to the Coca-Cola Company in Venezuela (2001).

 

Market Entry

Just three decades ago, the competitive environment of the carbonated soft drink (CSD) industry was based on a recognition of and implicit acquiescence to the dominance of The Coca-Cola Company. Beginning in the 1960s, however, Coca-Cola's dominance has been increasingly challenged, particularly by Pepsi-Cola. The new competitive environment is well publicised and intense. The Cola Wars were declared and the battle continues. Pepsi-Cola and Coca-Cola are widely recognised as being two of the premier marketing companies in the world. A great variety of new products and package types have been introduced. Celebrity advertising has been raised to a new level. Coca-Cola even changed the formula for Coke. These and other developments in the CSD industry came about from major changes in strategy by Pepsi-Cola and Coca-Cola. To some extent these strategic changes arose from Pepsi's challenge to Coke's dominance of the industry. In addition, several factors external and internal to the industry have been important catalysts for these changes. Rather than simply reacting to a changing competitive environment, PepsiCo and The Coca-Cola Company have created and implemented strategies that turned the new environment to their advantage (1993).

Part of a marketing strategy is the utilisation of the marketing mix.  The marketing mix principles is controllable variable that is why it can be adjusted on a frequent basis to meet the changing needs of the target market and other dynamics of marketing environment ( 2004).

           

 

Marketing Mix of PEPSI CO. TO HOST COUNTRIES (4Ps)

Product

As previously discussed, the main product of the PepsiCo are softdrinks and beverages which was distributed worldwide. These products will be available for the customers anywhere to host countries (i.e. China, India and Europe). Through Diversification, PepsiCo is able to cover all food and beverage alternatives.  Its beverages alone are not limited to carbonated drinks but also, ready to drink teas, orange and fruit juices, mineral water and through the recent acquisition of Quaker Oats, isotonic drinks.  Once, it had only catered to salty snack foods, but today, it also caters to sweet snack foods through ready to eat popcorn and healthy alternatives through Quaker Oats.  This provides a wide variation of choices for consumers who may opt for a tasty food or healthy food lifestyle.  PepsiCo also began acquiring quick fast-food restaurants and services such as Pizza Hut, Kentucky Fried Chicken and Taco Bell (all of which remain dominant in each respective market). These restaurants were also used as a means to capture customers into drinking PepsiCo’s beverages.  At the same time, PepsiCo continues to acquire products such as 7UP, Lipton, Aquafina and Mug, and restaurants such as California Pizza Kitchen, East Side Mario’s, and Chevys Mexican Restaurants.  Celebrities such as Michael Jackson, Ray Charles, Billy Crystal, Shaquille O’Neal, Andre Agassi and Madonna appeared in their many advertising campaigns, boosting sales.

 

 

Pricing

Similar to their local strategy, the advantage of the company is when it comes to its pricing tactic.  In order to be known into the market place, the company provides its target market with an affordable cost while providing them a high quality products and services.  The company gives the customer and client a price that is enough and matches the quality of their products.

 

Placement/Distribution

To be known internationally, one of the strategies that the product utilises is on a joint venture with distinguished distributor of beverages and food services. The company also utilises the so-called e-marketing to be known globally.

 

Promotion/Communication

To promote the company and its product, the company uses video advertisements, print advertisements and the concept of e-marketing. These promotion and communication strategy will tend to meet the consumers form different places everywhere, especially those target markets or the consumers in the working place. 

            From the capabilities of PepsiCo, they should launch a new commercial that focuses on the new “PEPSI FOOD GOOD: I LOVE IT EVEN MORE!” theme. It should show visuals and verbal encouragement in making the customer knew the quality of the Pepsi products for them to love it even more. The trick here is that the commercial should look like it favours the new features of Pepsi products more than the products of the competitors. In addition, Pepsi products must also employ its traditional advertisement strategy which includes famous celebrities and athletes to be involved in the commercial like the Pepsi commercial with no less than Beyonce Knowles to endorse Pepsi products (1996).

Although, these promotional tools that is use to promote the Pepsi brands can be considered as one of the strength of the company, the marketing department is still aware that they must used other promotional or communication tools to sustain their competitive position. In addition, the market nowadays has been greatly influenced by the modern technology such as the internet ( 1993). 

 

Forces of Globalisation of Markets

The several macro factors, which affect the global market and the business organisations are important to assess and examine for they can largely determine the success of the business organisation in the market. Pepsi Co must be able to have skills in developing new products and innovating new technologies to cope with the changes happening in the society today. Along with developing new products, Pepsi Co must also produce effective marketing strategies to provide solutions to the challenges that they face. In addition, it will also be necessary to anticipate problems and plan, in case a specific problem comes their way. This would help the company prepare and come up with alternative solutions for easy implementation of plans.

 

PESTLE ANALYSIS

Just three decades ago, the competitive environment of the carbonated soft drink (CSD) industry was based on a recognition of and implicit acquiescence to the dominance of The Coca-Cola Company. Beginning in the 1960s, however, Coca-Cola's dominance has been increasingly challenged, particularly by Pepsi-Cola. The new competitive environment is well publicised and intense. The Cola Wars were declared and the battle continues. Pepsi-Cola and Coca-Cola are widely recognised as being two of the premier marketing companies in the world. A great variety of new products and package types have been introduced. Celebrity advertising has been raised to a new level. Coca-Cola even changed the formula for Coke. These and other developments in the CSD industry came about from major changes in strategy by Pepsi-Cola and Coca-Cola. To some extent these strategic changes arose from Pepsi's challenge to Coke's dominance of the industry. In addition, several factors external and internal to the industry have been important catalysts for these changes. Rather than simply reacting to a changing competitive environment, PepsiCo and The Coca-Cola Company have created and implemented strategies that turned the new environment to their advantage (1993).

Although Pepsi Cola attacked Coca-Cola's dominance and achieved near parity with Coke in bottled soft drinks, both Coke and Pepsi have benefited from fighting the Cola Wars because the battle between them has stimulated continuing growth in an industry regularly pronounced by the experts for many years to be on the verge of maturity (1993). As the industry existed in the early 1970s, the reasons for predictions of impending maturity were not difficult to see. The apparent limits of the human stomach argued strongly against further significant growth of per capita consumption of soft drinks. New strategies, such as joining the parade of product modifications and introductions of other food manufacturers, and bringing what had long been a very effective independent distribution system in-house, required basic major modifications of the competitive advantages of Pepsi-Cola and Coca-Cola (1993).  The result of these and other new strategies has been a continued, rapid expansion of Pepsi's and Coke's domestic sales. The limits of the human stomach have not yet been found, and all other liquids, from coffee to water, face continued competitive pressure from Pepsi and Coke (Muris, Scheffman & Spiller 1993).

 

IMPACT OF GLOBALISATION TO INTERNATIONAL MARKETING STRATEGY OF PEPSI CO.

Globalisation plays significant role and effect to International Businesses. Pepsi has company extensive promise to milieu in providing secure and vigorous environment for the employees and for the community. Actually, Pepsi is devoted to scheming, creating, upholding and operating amenities that guard the people in terms of physical resources. As part of globalisation changes and international approach of the company, Pepsi is committed in reducing the crashing of business in environment through protection and recycle ways and use of energy programs in promoting dirt free air also water and decrease landfill squander as stated in universal system of conduct as based on subsequent environmental philosophy such as the following:

Ø  The business industry is mannered by fulfilling the appropriate laws and system and provide secure and vigorous milieu

Ø  minimise the collision of Pepsi business on situation through techniques that are publicly accountable and systematically base and efficiently thud like for example materials recycle ways and maintenance

Ø  mounting program that encourage dirt free air as well as water and power conservation and the decrease of land wastes

Ø  through sustaining programs that inform and educate as well as motivate Pepsi employees to help preserve good atmosphere

Ø  By assisting together with diverse business organisation in finding answers for diminishing pollution problems and the back-up process applied to ecological policies

Pepsi is able to offer service required by the customers and the employees are motivated to optimise input and obtain practice in diverse areas of operation like for instance, if Pepsi decided to surmount the international market so there can be options the company will come across and it is important that the management of Pepsi should choose marketing strategy that is suitable for their products and services being offered for the Pepsi company to be more competitive as there can be stabilisation of political as well as economic power as there is the providing of needed environment encouraging to marketing activities as well as overseas investments. Likewise, culture is imperative feature in understanding Pepsi’s market status as the company operate effectively for universal position as to how business culture will pressure Pepsi’s market efficiency for their success and or failure. Furthermore, in terms of promoting the Pepsi’s services and products, Pepsi Company can use certain media advertisements like TV or print and be open to concepts of e-marketing as Pepsi’s strategy will be inclined to assemble consumer preferences of the services being offered and products provided.

The marketing plan and strategies for Pepsi is not complete without having attention and consideration to valued and loyal customers as customers will play a crucial factor of marketing planning agenda of the Pepsi company in addressing reasonable sanctions for productivity and development as well as customer preservation as Pepsi company can utilise in gaining critical market strategy advantage over its competitors for the survival of growing spirited environment (1999). Pepsi should evidently recognise the targeted element and stakeholders as to which marketing strategy should be directed (2002).

 

CONCLUSION

A competitive market system creates incentives for firms to vie for large market shares. Sometimes one firm is so successful in this fight, it acquires a dominant position in a market. From the firm's point of view, a large market share is good. After all, dominance implies power and control. It creates a real potential to increase profits. From society's point of view, however, dominance may not be quite so desirable. For the power that goes with dominance can be acquired and used in a number of ways. While some of these ways may promote economic welfare, others might reduce it. If the reductions are large and long-lived, people may want to reconsider whether dominance should be affirmed in all cases (1998).The company is expanding its markets on countries it has not yet completely conquered like some parts of Asia. Some parts of Asia is currently controlled by coca cola their rival company. Pepsi Co is continuously doing the best it can to match or exceed their competitors reach.  The company is using everything available to reach more markets and outdo their rival. By having different markets more options can be used by the company. PepsiCo’s leading soft drink, Pepsi-Cola, and its chief rival, Coke, have dominated the soft-drink market for decades, although Pepsi has traditionally remained behind Coke. But Pepsi’s aggressive advertising campaigns aimed at young consumers and major bottling and marketing deals made Pepsi a close rival to Coke by the 1980s. The company is continuously reaching places it has not reached before. It is conducting expansions to reach new territories and increase its profitability and clients. The company uses new branches and subsidiaries in different countries to have more territories and reach more people more. These branches have been oriented and trained regarding company policies and procedures. It also uses different expansion techniques so that no problem occurs.

 

 

 

 

 

Greenpeace and Apple Inc : Its Corporate Ethics and Governance

Greenpeace and  Apple Inc

Its Corporate Ethics and Governance

Part A

Environmental Issues of  Inc

            One environmentalist stated that “usiness has a special obligation or responsiility to protect the environment, ecause of they have the power.” This should e done and implemented y different usinesses although there is no formal environmental law that requires these enterprises to do so ecause they still have the deontological ethics towards the environment that will help them to maintain their good ehaviours and independence in the market. On the other hand,  (2007), argue that the corporate power is out of control. Companies and organizations have too much power ut they are not using it in order to care aout their community as well as their environment.

            owie (1990) argued that there are many enterprises or businesses that are violating their important moral oligations, thus all of these violations has a negative impact on the environment such as dumping toxic waste and hazardous materials illegally.

             Inc is an American multinational corporation that focuses on designing and manufacturing consumer electronics and the related software products.  is considered one of the est electronic companies in the world ut they are also facing different environmental issues.

            Green peace (2007) recently appointed an independent british scientific laboratory to conduct a test to the different products or technologies of  Inc. More particularly, the test was conducted to test the 18 internal and external parts of the  iPhone in order to test if it contains any poisonous or hazardous chemicals or material (2007). The result of the test shows that half of the different parts of the said product contain a venomous, toxic and damaging chemical or material called the Polyvinyl Chloride Polymer or also known as the PVC and rominated Flame Retardants or FR ( 2007).

Tale 1 chemical found in iPhone and its effect to the health

The environmental organization also found out that the  Macook also contained FR and PVC, and got the top position of the highest level of the said chemical among the five rands that have een tested. Aside from the said chemicals there are also hazardous chemicals or materials that have een found from the product such as lead (2007).

            Greenpeace also said that there is more and more rand and usinesses that are failing to involve in protecting the environment ut they are continuing to produce a product that contains some toxic and hazardous chemicals and materials (2006).

            According to Greenpeace there are many reasons why  got the lowest ranking in the most environmental friendly electronic companies such as failing to emrace the precautionary principles in handling different regulated sustances and chemicals as well as providing continuous maintenance and improvement in eliminating PVC and FR (see appendix a for the criteria for ranking). As of now  got the lowest rank, lower than Sony, Dell, HP and Nokia for the gloal policies and method in getting rid of or reducing different harmful and dangerous chemicals as well as taking responsiility aout taking care of the products once it was disposed of the consumers (2007).

Egoism

            Egoism is also known as self-centeredness or a situation or event where in an individual, organization or usiness are thinking for their own good only and not taking much effort in thinking aout other people that might get affected. said and elieved that the natural condition of human is the primary reason that leads them to a morality of self-centered ( 2000). Another important meaning of egoism is the universal egoism which pertains to the event when someone considers his or her perspective aout what is morally right ased on their own interests (2000).

            Although  already knew that their products have different chemicals as well as materials that are ad for the health of the human beings and the entire environment they are still continuing to produce such product just for the sake of their sales and their financial status. According to the video that have een released y Greenpeace, the result of the test that has een conducted aout the iPhone shows that it has romine, chlorine and phthalates. Its antenna has the highest romine level of 10% y weight. Its headphone contains PVC and phthalate level of 1.5% y weight. Although their new product has a lower level or hazardous materials and chemicals, there have een companies that have already environment friendly phone particularly the Nokia that offer a moile phone that is PVC free as well as the Sony Ericson and Motorola that removed some of the worst chemicals from their moile products (2007).

Utilitarianism

            The main importance of the utilitarian theory is to predict the effects and outcome of an action. The main character of this theory is that it will e ale to pertain and connect to all the entities that are involved and who will e affected the most y the decision (2002).  This theory have een disoey y the , ecause although they already knew that there are hazardous or dangerous chemicals, sustances as well as materials with their products they are still not doing anything aout it or they are accepting that there are some irregularities aout their system. Another thing is that the said company is not thinking aout the safety and enefits of the people as a whole. We only have one world, if we destroy it, all of us will e affected regardless of the social, financial and moral status.

Rights and Justice

            The main concept of the right and justice theory is that it focuses on the concept that a society is protected and given a highest priority ( 2002). It is ased on doing thing ased on what are your rights and eing alance.  inc. has its right to manufacture or produce different products that is ased on their strategy as well as their usiness rule. On the other hand, the society or the environment as well as their customers also have their right to live healthy and safe.

Deontology

            Deontology theory deals with the states that people should stay and remain stick with their oligations and duties during the process of analyzing the ethical dilemma (2002). In one way or another  Inc had disobey the ethics of deontology, this is due to the fact that even they knew that they have their products or processes that are using different dangerous sustances and materials, they are still using it, according to the report of Greenpeace.

On the other hand, their environmental issues had lead or push  Inc. to e more transparent, open and outspoken aout their business policies and plan regarding their different activities and task aout environmental aspect. We can see in this situation that ecause of the different issues that Greenpeace have thrown against them, the company have decided that the right thing to do is to show them the track record of the company regarding their environmental safety activities.

Another thing is that, it pushes the company to do the right thing y producing and developing new products that will pass to the safety and quality criteria. ecause it is not just for the sake of sales or the satisfaction and demand of the customers and other stakeholders ut also it is the right thing to do as part of respect and concern aout the environment.

Part

The Stakeholder Theory

            Stakeholder theory reveals and directs how the manager functions, and operates rather than dealing with the management theory and economist. The said theory answers two core questions: first, it ask the purpose of the firm, that help the managers express the shared sense of the value that they have created that helps them to ring their core stockholder together and eventually push and drive them to have outstanding performance and determine their purpose and marketplace financial metrics; and the second,  tackles aout the responsiility of the managers to their stockholders, that will help the managers to express on what they want to do to their usiness and what kind of relationship they want as and need to create to meet the expectations and needs of their stakeholders ( 2004) (see Appendix D for the diagram of the stakeholder theory).

             inc. faced the challenge of their environmental issues y making their products more greener and changing their rand name into Greener .  This is to ensure that they are meeting the needs and the enefits of all of its stakeholders more specifically their customers.

Tale 2 Stakeholder Analysis of  Inc Environmental Issues

Supplier

             has implemented a company wide hazardous sustance management and restrictions that enales the company to restrict different dangerous sustances and materials (2006). The said regulation will ensure that all of the different processes of the company such as safe handling, movement, storage, recycling, reuse as well as disposal will e done with accordance to the environment friendly ways ( 2006). The suppliers must identify as well as manage the different sustances that can cause hazardous effects if released to the environment and must comply with the different laelling law and regulations for recycling and disposal system. In addition to that, suppliers must post their material safety data sheets using the primary language of their workers that shows the different hazardous or dangerous materials that are used in the workplace and must train those workers who are working with the said sustances (2006)

            Aside from the said regulation the company is also implementing their wastewater and solid waste emissions that helps the suppliers to properly monitor, control as well as treat different aspects of sanitation of the entire facilities (2006). The company also focus on how they will help to lessen air pollution y implementing air emissions of all volatile and ozone depleting chemicals as well as implementing pollution prevention and resource reduction ( 2006). The company is also strict when it comes to their environmental permits and reporting (2006).

Customer

            The main ojective of the company is to ensure that they are meeting the demands and needs of their customers y offering different advance products, after their environmental issues, the company have een more focus aout the safety of their customer. The recent product that was released y the company, which is the iPhone, the advertisement and the press release of the company shows that the phone has een the safest among their products. As a matter of fact the company already planned to release their products that are free from PVC, FRs as well as the arsenic y the end of the year 2008 (2007).

            Another thing that the  has added to their product is to increase the energy efficiency of their product for the sake of their customers or the users of their products and therefore will e ale to help their customers to conserve energy consumption that eventually help the entire environment ( 2007).

Community

            With accordance with their product design, the company have decided to eliminate the Cathode Ray Tue or CRT displays in order to make their product lines more environmentally friendly.

             is also focusing on their responsile manufacturing y restricting the use of all of the environmentally harmful sustances, materials and compounds as well as process (2007). With accordance to the said aspect of the usiness practice, the company have implemented their restricted sustances program that limits the use of all heavy metals as well as substances that can affect the ozone (2007) (See Appendix E for the details).

Government

             inc. has faced the government y making their progress or improvement more visile or transparent. y doing this, the company will inform different government agencies and department with regards to their actions aout their environmental issues.

Director

            The company uses the descriptive approach in order to let the director or the officials of the company to see the needs of the company in order to meet the demand of other important stakeholders most especially the customers. All of the environmental issues that they are facing serve as a reference on what to do in the future.

Pressure Groups

            There most prominent environmental organization, which is the Greenpeace, that is claiming that the company is defying the environmental responsiility of  Inc. In order to face them, the company uses the descriptive method y opposing the rating and criteria that the Greenpeace chooses in order to judge their environmental issues. The company have showed their strong environmental issues that led the industry to restrict and an different toxic sustances like mercury, cadmium and hexavalent chromium and the FRs ( 2007).

            The evidence of the said activity of the company is when the legal institutions approved the release of their iPhone. This event helps the company to clean their name with accordance to the environmental issue of their iPhone (2007).

Legitimacy

            They customers y giving them high tech, improved as well as safe products; the community, y ensuring that all of the materials and sustances that the company is using is safe for the overall health of the environment as well as individual health; the government y giving information aout their actions; and the pressure groups y implementing transparency of their activities and action as well as showing that they are following the standard that will take care of the environment.

Virtue Ethics

            Virtue ethics focus not on the act ut on the agent that is doing the act. It helps to avoid different dilemmas or problems due to the fact that it does not focus on making a decision aout two adverse outcomes ut on the side of eing a certain kind of person. It can also e analysed as a medicinal analogy ( 2007).

            Virtue ethics enters in the picture when a certain individual or organization is doing their things with accordance with what is the right thing to do that will enefit the majority of the people or entities who are involved ( 2007).

            After the environmental scandals or issues that have een criticised y different environmental agencies and organization more particularly the Greenpeace, the company have declared or showed all of their accomplishments and plans with regards to the environmental aspects of their company ( 2007).

            One of this is that the company have already disposed or eliminate the use of the cathode-ray tue or CRT during mid of the year 2006. Another thing is that all of the manufacturing factories and products of  worldwide have already complied with the Restriction of Hazardous Sustances Directive of RoHS during the same year ( 2007).

            At the end of the year 2008, the company is planning to totally get rid of their use of the mercury y transitioning to Light-emitting Diode or LED acklighting for all displays that will help the company as well as their customers to e more technical and economical feasile ( 2007).

            Another plan of  is to wholly eradicate and aolish the use of PVC and FRs at the end of the year 2008 to ensure much environmentally and health friendly products ( 2007).

            Recycling of e-waste is also one of the tasks that the company give focus after all of the issues aout their environmental aspects. During year 2006, the company have recycled aout 13 million pounds of e-waste that is equivalent to 9.5% of the weight of all of the company’s products. y 2010, with their efforts and other activities, the company forecasted that they will e ale to recycle the 19 million pounds of their e-waste (see Appendix F for the Percentage of the Weight Recycled of the past sales of ). 

             is also implementing proper disposal system of different sustances and materials that they are using. All of their e-waste are collected in the North America and eventually processed in the USA, therefore there is no shipping of disposal overseas that are done y the company ( 2007).

            The company is also focusing on their different activities and processes that are done y their official and authorized recycling vendors. Like their suppliers that company also set their standards, policy and rules and regulation that will ensure that all of the entities in their overall manufacturing and processing supply chain will follow the same standard and rules of the company.

Part C

            As of now, there is no law or regulations enough to handle different environmental issues aout different companies that are using different sustances, materials and chemicals that can harm the health of the people as well as destroy the environment. ecause of the said reason, different companies particularly those multinational and huge companies are just doing their initiatives that is ased on their ethical virtues as well as ased on their own organizational laws and regulation.

            ecause there is no law that will limit or set the activities and processes of different companies it will e hard to distinguish if a certain company is already doing something that is ad for the environment. Another thing is that most of the companies will do some environmental initiatives ut it will also e ased on the different aspects of the company as well as how it will affect their overall performance.

            If a law that will handle the issues of environment and the different companies, will e implemented, it will help to centralized or set one standard that should e followed y different companies. y doing this, it will push them to e more friendly to the environment as well as it will make them to create or implement their own policy that will follow the entire or the mother law. Eventually, this will help all of the entities or actors that are involved in the picture to ecome more aware of what they can do to help the environment.

 

 

 

Appendices

 

Appendix A: The Criteria for Ranking

 

Source (2006)

 

 

 

 

 

 

 

 

Appendix : Overall Score of

 

Source (2006)

 

 

Appendix C: The Detailed Score of

 

Source (2006)

 

 

 

Appendix D: Diagram/ Schematic of Stakeholder Theory

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Source: (2006)

 

 

 

Appendix E: Sustances that are anned y the

 

 

Source: (2007)

 

 

 

Appendix F: The Weight of the Recycled Product of

Source: ( 2007)

 

 

 

                                                         

 

 

 

SYSTEM DIAGNOSIS

System Diagnosis

 

Introduction

            Having an effective organisational development means that the company should also have an accurate diagnosis. Diagnosing an organisational system is one of the important aspects of determining whether different operations and functions or even departments of a certain industry work in achieving the goal of the organisation.  Organisational diagnosis includes the determination of a model for understanding the organisation, gathering and analysing information and drawing pertinent conclusions for potential improvements or changes. For this particular case, the goal of the report is to provide an organisational diagnosis using the open-system model. The case was about the Rural Ambulance Service implemented within the areas or regions of Victoria, Australia.

            The open-systems model is an organisational diagnosis model which provides a useful starting point for diagnosing different departments of the organisation. The main view in this open-systems theory is that organisation system are composed of different departments which are influenced by various external forces.  The external forces may affect the accessibility of raw materials, competitions and government regulations ( & , 2005).  In order to have an effective performance, the organisation must be able to align the functions of subsystems, with the best leadership and organisation structure to ensure strategic alignment.  The vital elements of open systems include inputs transformation, output boundaries and feedback. The model works on the tenet that to have an effective organisational system, different subsystems must be aligned with each other. Such alignment consists of the relationship between inputs, transformation and transformation and outputs and among the subsystems of the transformation process ( &  2005:).

            In this regard, the Rural Ambulance Service will be diagnosed in three levels: the strategy, structure and processes of the Victorian Ministry of Health, in line with its ambulance services, the human resources involved in designing the new ambulance service system and the individual tasks and position who are involved in the organisational change.

 

Diagnosis: Organisational Strategy,

Realising the importance of providing quality and efficient ambulance services the Victorian ministry of health has provided each of the five major regions in Victoria their own ambulance service. Such system is implemented too ensure that the service will be available for various local communities in the region. However, it has been perceived that those five larger regional ambulance services have a limited breadth in terms of management and specialist business skills which affects the provision of quality and efficient services among the public. In addition, having five different organisations also leads to high infrastructure costs. With these problems, the Minister announced to have structural changes for the rural ambulance service.

The new structure has been decided after considering which key functions should be carried out at the central level and which functions should be decentralised within the five major regions. The main goal of this new structure is to maximise quality. Access to suitable ambulance services, efficiency of the ambulance service, comprehensiveness and continuity and clients inputs. On one hand, the new structure aims on minimising infrastructure costs, inconvenience and dissatisfaction among patients. In order to achieve this goal, the ministry of health must be able to determine to get essential resources including human resources, budget and even the support of the local communities and transform such resources into a meaningful idea to be able to have a new structure that will meet the needs of the regions and local communities.

As mentioned, the goal of the new structure is to have a central management system that will administer the functions of different rural ambulance service for the five regions of Victoria. In addition, the company also aims in reducing departments and unit functions by identifying key resources for the decentralised approach. From 8 human resource functions, the new structure reduced it into only functions which are necessary for the operation of a single rural ambulance service. These include three groups: head office level, regional level and area level. The Head office would be accountable for a range of corporate and management functions at a strategic and policy level; the regional level would be accountable for operations in a large geographic area of rural Victoria and would provide operational management support to a number of local communities within the region, as well as coordinating the implementation of statewide policy within the region; and area level would be directly accountable for day-to-day management of a small number of ambulance branches which includes focusing on quality assurance and managing relationships with key stakeholders. It can be said that, the new structure of rural ambulance service has been able to establish a departments which is strategically aligned to meet the needs of the public. In addition, each of the departments has been given accountabilities and responsibilities which are aligned effectively. The functions of these key resources are aligned in corporate, human, technological and operational services.

All in all, using the open-systems model, it can be said that the Victorian ministry of health and the project team members who are involved in planning and executing the new structure for the rural ambulance service in Victoria. The state government of Victoria has been able to align the responsibilities of each of the human resources to achieve their goal of having a new system that would be efficient for the public. The new rural ambulance service is being set in four levels which is human, functional, technological and organisational capabilities.

 

Reference:

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CASE STUDY ASSIGNMENT: SOCIOLOGY ( FICTIONAL )

Case Study

 

Sabrina is a 22 year old woman with no formal qualifications, who currently lives with her boyfriend Craig, 28 years old, in private, rented accommodation. Sabrina works part-time at a local petrol station, often working unsociable hours. Craig is in receipt of Disability allowances for an industrial injury sustained three years ago. He has limited mobility and requires regular out-patient treatments. The couple have a son, four years old and a daughter of 14 months. When Sabrina is working the children sometimes stay with her Father who lives quite nearby. Craig’s parents are both deceased and Sabrina’s Mother lives in Zimbabwe with her partner.

 

Lately, Sabrina has begun to struggle with shift patterns and has become agitated and depressed. Her Father has found it increasingly difficult to look after the children at such short notice, as her boyfriend Craig is spending more time with his friends, playing golf and going fishing, sometimes on trips away.

 

Sabrina has visited her GP expressing anxieties about her situation and relationships and requesting formal counselling. Some of her thoughts, according to the GP are of a suicidal nature. Additionally, the GP is aware of previous involvement with the Social Care agency for substance misuse and is concerned enough to consider referring the matter to the agency, in order that they may undertake a ‘risk assessment’. Sabrina is against such a referral and when she shares the information with her boyfriend he becomes aggressive and angry blaming Sabrina for their current difficulties.

 

Sabrina visits the Social Care agency a few days later requesting practical and financial support in relation to the children. The office is aware of the GP’s concerns, and the duty manager feels that the situation requires allocating to a worker and monitoring. Over the next few months you are the social worker identified in this case………….

 

 

 

Question?

1. The starting point of the analysis is the case study, not the literature.

2. Read carefully and identify which problems/difficulties exist for the service user.

3. Try to understand why these problems exist.

4. Make some kind of hypothesis as to where the problems stem from.

5. Support your hypothesis with the literature in order to develop objective views.

6. Search the literature for competing arguments and approaches put forward by theorists/researchers.

7. Compare, contrast and critically evaluate the literature against your own case study.

8. Remember to stay focussed on the assessment criteria provided.

9. The difficulties the service user faces may be addressed in both hierarchical and circular ways.

10. Remember you are not making an assessment of the situation rather demonstrating your understanding of the links between theory and practice in order to interpret the difficulties from various perspectives.

11. Consider the strengths and limitations of the Service user and the possible explanations involved.

12. Finally appraise the pertinent/big issues in relation to anti-oppressive/discriminatory practice in light of your findings.

 

The lecturer’s recommended approach:

 

 

 

Questions (starting point)                 

 

 

 

 

 

 

 

Evaluation           Theories & Concepts                     Claims      

 

 

 

 

 

 

Evidence       

·      

 

evidence

 

·       studies

·       research

·       texts/quotes

 

IT : The Next Five Years

The Body Shop

1.0 Context

The basic entrepreneurial abilities offer a lead on how to manage a business enterprise especially those operating in the international business environment i.e. The Body Shop. In this paper, it highlights the role of an entrepreneur, Dame Anita Lucia Roddick, DBE in business success in accordance to its relationship between the tools or resources of The Body Shop with the people working in the company and the systems that that the company employ in business processes. Moreover, the concept of culture, communication and commitment is given importance in overall and continuous improvement of a business firm ( 2004). With respect to the excellent entrepreneurial capabilities of Dame Anita Lucia Roddick, DBE, the company, The Body Shop,   and its Board members are now using effective business strategy approach as their competitive advantage.

 

1.1 Methods of Enquiry

            Data classified on the basis of intervals of time constitute vital information in the control of business activity, since this is the most effective method of showing the changes that are taking place in a business, an industry or in total economic activity. Closely related to the problem of measuring changes in business activity is the making of forecast of future activity.  The management of operation requires a continual making of decisions regarding the future and the basis for such forecasts is the record of the past performance.

            When observations of this kind are arranged in a time sequence and separated by (or represent) more or less regular intervals of time (months, years, decades, etc.), the progression of values is known as a time series.  The concept of trend in economic time series rests in large part upon the secular growth of population, capital and resources.  On the other hand, this work attempts to determine and analyse the strategic development in The Body Shop i.e. the integration of information technology to business practices.

            These days, everyone talks about the virtues of interactive marketing and building long-term relationships with customers by relying on websites, call centres, and bricks-and-clicks integration. We all know there is a compelling case for treating different customers differently and focusing on “share of customer” as a metric of success. To some of us now, it seems that this new world of competition was created entirely from the development of a newly available Internet technology, or that it was simply imagined out of the thin air of entrepreneurial drive and business guru creativity.

            Actually, this work aims to explain the role of information technology to the development of The Body Shop using the Multiple Realities Enquiry. With this, it is then understood that the study will be focusing on the current status of The Body Shop down to the other parts that may possibly affect their medical/clinical practices. These information will lead to the credibility of the study and is important to isolate factors that may have affected the success The Body Shop. As such, the information-gathering will then be based on the method of the research being done and will also be utilising from the information taken from the literatures.

1.2 The Entrepreneur

            Dame , DBE is the founder of the Body Shop, a company engaged in beauty products. is one of the known personalities engages in ethical consumerism. She also involved in activism and campaigning for environmental and social issues including involvement with Greenpeace and The Big Issue (2007).  She was appointed by Queen Elizabeth II as Dame Commander of the Order of the British Empire in 2003. However, in 2004 she has been diagnosed with liver cirrhosis due to long standing hepatitis C.  She only revealed it to the public by 2007 and then promoted the work of the Hepatitis C Trust, and campaigned to increase awareness of the disease ( 2007).

            In review of her past,  was once a victim of war. She was born Anita in a bomb shelter in Littlehampton, Sussex, in an Italian Jewish immigrant community, and she was brought up in a family of 4 children. But because of her conviction to help other people and promote the beauty of life, she became successful in her business. As reported in  (2007),  really poses the true virtue of a good entrepreneur.   has an enthusiastic vision, promoting the vision with enthusiastic passion, developing strategies to change the vision to reality, taking initial responsibility to cause a vision to become a success, and being a positive thinker and a decision maker.  According to  (2000), these characteristics determine the factors or attributes associated with entrepreneurial behaviour, which also become crucial to establish the success of the business organisation in the market.

With regards to the good qualities of Roddick, a study done by  (2003) identifies two groups of several factors that influence entrepreneurial behaviour. These factors include locus of control, risk taking, achievement motivation, problem solving style and innovativeness, perception and work values, which are in turn affected by external factors, such as culture, role models, work experience, education, and environment.

            Locus of control is important as it helps demonstrate the self-determination of an organisation, which helps determine a higher rate of entrepreneur activity. With an increased self-determination, the company is ready to take risks, which makes the entrepreneur pursue a business idea when the probability of succeeding is low (2000; 2001;  2003). This means that the entrepreneur has the courage and the persistence to engage in his venture, even without the assurance of succeeding. The third personal factor is the entrepreneur’s value system, which entails examination, understanding of one’s place in the society, and the individual’s idea about persons and things (2003). This includes the perception and the achievement motivations of the entrepreneur, for their values determine their attitude towards their dedication with their work. The fourth factor is the entrepreneur’s problem solving style and innovativeness, which is the central value of the entrepreneurial behaviour, since it is successfully taking an idea or invention to market. Innovation and problem solving capabilities are expected to be the core of the entrepreneurial capability of an entrepreneur, for they are faced with a number of challenges as they try to implement new ideas and solve problems, so their innovativeness counts (2003).

Similarly, these factors are affected by external factors for these external factors interact largely with the mentioned attributes. The education of an entrepreneur is one major concern for his or her knowledge and experience, especially concerning high technology and heavy competition, can affect his or her decisions in the organisation. Related to education is the entrepreneur’s perception or interpretations, which play an important role in the total motivational process, for he or she needs to believe that certain strategic actions done will produce positive results, profits, sales, or market share ( 2003). Culture, role models and support also affect these factors, for these three external factors can influence the decision-making process and the personality of the entrepreneur. Culture affects the propensity to act, thus, the actual number of entrepreneurs that will attempt to start a business is also affected. Some cultures have more role models available than others do, which makes entrepreneurial success based on family and community support ( 2003). It has been reported that social norms had a significant influence on predicting entrepreneurship, as might be due to the high level of locus of control, which would decrease the influence of social pressure ( 2003). 

            Basically, the factors driving entrepreneurial behaviour of Roddick include the complexity of issue, resource scarcity, urgency of issue, strong local leadership, and good enough partnerships (2006). These determine the success in business ventures by its interaction and interrelation, which brings good effects to the company if used wisely. Entrepreneurship is an important aspect in the society, for without it consumers will not have many choices in the market. The emergence of new entrepreneurs in the industry leads us to conclude that many would like to take risk, many have the proper values, many are well educated regarding business, and many have the courage to innovate and improve. This is beneficial to the society, for many citizens can be open to alternatives and suit their preferences. 

 

2.0 External Environment

 

A known British chain of cosmetic stores called “Body Shop” which is found almost all over the world shows tremendous success in previous years is also the company The Body Shop International plc. Actually, The Body Shop agreed to a £652 million takeover offer by a French cosmetics group L'Oréal on 17 March 2006. The Body Shop was founded by Anita Roddick, distinguished for selling its own line of products not tested on animals, and produced in an ecologically sustainable approach (2007).

The Body Shop aims for sustainable growth as a broad market leader in cosmetics as well as for segment leadership. In both cases, the brands of The Body Shop will play a crucial part. The Body Shop is able to establish its broad leadership usually by merging with other strong cosmetics companies and their products, which are then combined into a new, larger company. Offering training to its employees, improving the company operations, and the introduction of new beauty products and technologies then reinforces the positions of the various products of The Body Shop. This practically results in economies of scale that is able to create a distribution network for both its local and international products. If a market is already in the control of other companies, The Body Shop devotes its attention towards the development of a premium segment with its various beauty products ( 2007).  With this regard, the next sections will be discussing the SWOT and PEST analysis of The Body Shop.

2.1 SWOT Analysis

SWOT analysis is a part of doing a strategic analysis of The Body Shop.  SWOT analysis sizes up a firm’s resource strengths and weaknesses and its external opportunities and threats to provide a good overview of whether a firm business position is fundamentally healthy or unhealthy. 

 

Table 1. SWOT Table of The Body Shop

Strengths:	Weaknesses:
Established name in the market Basis for strong management team Possibility to evolve into range of offerings Location is highly suitable Very focused management/staff Well-rounded and managed business Marketing plan in place	The Body Shop efforts toward global expansion have become a weakness in the company’s reputation. Lack of awareness amongst prospective customers particularly internet-based marketing Potential need for much larger premises Emerging new technologies may move market in new directions
Threats:	Opportunities:
Major player may enter targeted market segment Economic slowdown could reduce demand Market may become price sensitive Market segment's growth could attract major competition	Market segment is poised for rapid growth New markets offer great potential Distribution channels seeking new products Potential to diversify into related market segments

 

            The Body Shop is an industry leader in terms of market performance and developing innovative new products of beauty and cosmetics.   The strengths of The Body Shop are its brand name recognition.  The Body Shop has been around so long; the brand is recognised and respected both internationally and domestically.  The Body Shop has effectively marketed their products and in addition understands the importance of a quality product.   Strength of The Body Shop is their brand loyalty; The Body Shop has consistently produced quality products that appeal to its consumers. Research and development organisation of The Body Shop is one of the company strength, which has the ability to keep the company’s pipeline full in innovative new products. 

            The Body Shop has their couple of weaknesses despite of being successful in the business. The Body Shop efforts toward global expansion have become a weakness in the company’s reputation. Lack of knowledge in Internet Age is another factor that really weakens the company, the company is behind on their ability to use systems and the company is just developing their system on on-line services.  The Body Shop has new opportunities and markets that they must penetrate and take advantage of to continue to be a world leader and sustain profits and growths.  The ability of The Body Shop to build up strength in all product lines is an opportunity to the company with a flexible in the market shifts.  The Body Shop advertisements make impact in the company.  People wait for new and innovative advertisements that bring opportunity to reach the public through promotion and advertisement endeavour.

            The wider competition in the market is always a threat to a competitive company both domestically and internationally.  The Body Shop currently dominates the market, but The Body Shop competitors pose a potential threat to the company’s reputation. There are certain possible situation might affect the company, if The Body Shop cannot stay one step ahead of their competitors in terms of product design and customer satisfaction the corporation could flounder. 

 

2.2 PEST Analysis

Another marketing model for analysis that can be utilised in order to analyse the corporate strategy of The Body Shop is the PEST analysis.  PEST Stands for Political, Economic, Socio-cultural and technological factors that influence Nike’s overall performance in the market place.

 

A. Political Sector

A company will not be able to gain success if they will not consider legal and political sector as part of their strategy.  The Body Shop has observed business ethics. Hence, the company considers legality in all their actions.  They make sure that all their products will be useful in response to their social responsibilities.  Politically, The Body Shop has tried to be helpful in the society.  In fact, the company has established The Body Shop that supports science and technological advancements.

 

B.  Economic Sector

            Economically, The Body Shop is secured by having continuous growth rate throughout the years.  Through the Management for excellence strategy, the company as been able to established an economic stability to continue to serve and offer people from different agencies and sectors private or public, locally and globally.

 

C.  Socio-cultural Sector

Culture is an important factor in understanding an industry, because for any organisation to operate effectively it must for some extent have a general set of believe and assumptions on how culture will influence the productivity and the success or failure of any company. Culture environment is one of the important principles that influence the organisation.   (1991) identifies that there are four dimensions that differentiate cultures at a national level (power distance, individualism-collectivism, masculinity-femininity, uncertainty avoidance), which help to understand that people arrive to organisations with their own national culture. 

In The Body Shop, the management sees to it that they value the opinion of their employees no matter what is their nationality.  Since, this company is competing globally; it cannot be denied that they need employees form different cultures to be in the company to help in the decision making.  It is also indicated that the international managers has been able to create a positive relationship in the local managers. Moreover, the management of the company has seen to it that they would be fair in treating all their employees. As part of the strategic change imposed which is the Management for Excellence, The Body Shop has been able to allow each and every human resources regardless of their culture to voice out their opinion to further enhance the corporation’s structure ( 1996). And on the other hand as part of the society of The Body Shop, the members of the company always ensures that they would efficiently have a facility and technology that would be able to carry out products that would eventually satisfy all their clients. 

 

D.  Technology Sector

            The complexities of achieving business success through increased efficiency, effectiveness and competitiveness, combined with innovative applications of modern technology, has heightened the awareness of both Technology and business managers towards more strategically oriented approaches for planning and management of any industry ( 1993) .As mentioned earlier, the company establishes a research and development department which is responsible for the maintenance of the quality of the product of the company, innovativeness, and ensures technological advancement for all the activities of the company. 

 

2.3 Conclusion

With respect to the SWOT and PEST Analysis and as part of the efficient qualities of Roddick in entrepreneurship, the Body Shop is actually considering the concept of effective corporate governance with respect to IT implementation as their competitive advantage.  Roddick, as head of the decision-making body of the company, creates a good system not only in selling their products but also in maintaining expressive relationship to their overall stakeholders. Maintaining good relationship to stakeholders reflects to their effective corporate governance (2007).

It can be said that the company has a very good framework that has been established in order to deal with different corporate matters. As discussed in SWOT and PEST Analysis and from the information gathered from their site, there is usually a properly structured program that is further reinforced by company policies and other procedures for the proper guidance of the directors in their daily duties (2007). As a result, the company has a clear reference guide to its business operations and corporate governance. The Board of Directors guided by the entrepreneur virtues of Roddick which oversee the businesses and the decision-making routines as well as the financial aspect of things, keeps watch. In addition, this includes the maintenance of the standards with regards to corporate governance in the corporation’s different sectors (2007).

 

3.0 IT Implementation

At the business organisation level of The Body Shop, innovation and IT development simply means managing the elements of the innovation process and maintaining an innovative culture within the company. Roddick have been added the responsibility of managing innovation and IT implementation as the premise for doing business in the 21^st century. With the proper handling of such a delicate task, the organisation is given the edge that it needs to retain or improve its competitive position in the increasingly complex and globalised market ( 2005). The challenge of Body shop, therefore, lies in the need to innovate on technology and business models, deal with uncertain environments, cutbacks and massive worldwide economic, political and social shifts. This wide array of new concerns for the organisation’s management may increase the complexity of doing business in this day and age, but it certainly improves the company’s ability to survive in the cutthroat field of enterprise.

The creative destruction process has captured the central paradox of market capitalism that in order for the system to become successful in creating wealth, it should be most efficient in destroying unproductive industries and enterprises through innovation (2001). This replacement of weak industries with fresh and vibrant ones have driven companies the world over to innovate the way they do business in order not to be regarded and eliminated as a ‘weak’ part of the business game.

 

3.1 Risk Analysis

Companies whether it is small or large are already acting in advance in order to combat the possible risks that may arise in the future. According to  (2005) in the wake of 911, the insurance market have changed, big companies reconsider the possible risks and how are they going to use insurance, in The Body Shop after the prices increased the company look past the typical path of buying insurance directly but instead The Body Shop considered wholesale insurance through captives.

With respect to the possible risk that The Body Shop might face, the company effectively arranged their board members according to their functions. The Board is made up of ten directors; two are executive while six are non-executive (2007). Because of this, there is a fair division of responsibilities and other tasks among them. And while the non-executive directors are independent from the others, they are still able to contribute their experience and knowledge during Board discussions.  Without a doubt, The Board is in-charge of caring for the company’s operations, assets, and its shareholders. All-in-all, the board aims to work with these factors in the hopes of maximising performance. Because of this, it is The Board that is responsible for the finalisation of budgets and strategic plans. And in order to ensure the firm’s competent operations, The Board conducts a monthly review of the company’s businesses in relation to its financial movements (2007).

Furthermore, there is a company law that obliges The Board of Directors to carefully prepare each year, a financial report that would have to be accurate and reliable reflecting the true state of the company.  All things considered, The Board of Directors is the one that is responsible for the proper safekeeping of accounting statements and to ensure that these records are precise and truthful. In addition, the board is in-charge of guarding the company’s other assets as well as making the necessary steps in order to prevent complications such as fraud and other types of risks.

            Aside from the board of directors, the company also has other committees as part of their corporate governance. Just like the board, other committees have a well-established reference guide which also discusses their duties and their scope of authority within the corporation. Composed typically of independent directors who are non-executive, the remuneration committee handles the outline for the company’s remuneration policy which would eventually be reviewed by the board. Moreover, this group is also responsible for the various remuneration packages that are given to executive directors. On the other hand, there is also a nomination committee which is also made up of mostly non-executive directors. The responsibility of this group is to recommend to The Board on which people should be appointed as directors (2007).

            There is also a group known as the audit committee. Compared to the other two, the members of this committee is purely composed of non-executive directors. This group’s duty is to make proper recommendations with regards to the company’s accounting policies as well as overseeing financial control within the corporation (1998). For this reason, the committee usually receives and reviews financial reports and other statements delivered to them. Then, they make a comprehensive report before they submit it to The Board. Of course, there is also the group’s evaluation of the risks involved which has always been done to assist with the company’s next business move, and have further control of the corporation’s different operations.

Apparently, The Body Shop has a clear code of ethics and all employees must affirm their acceptance of this code. The code of ethics includes a conflict of interest policy to ensure that key corporate decisions are made by individuals who do not have a financial interest in the outcome separate from their interest as company officials. The company also actively monitors compliance with the law and the global financial policies and practices over critical areas. These areas include internal controls, financial accounting and reporting, fiduciary accountability and safeguarding of our corporate assets.

 

3.2 IT Strategy/Planning - Porter's Framework

The twenty-first-century realities of globalisation, rapid changes in technology, increasing competition, a changing workforce, changing market and economic conditions, and developing resource shortages all increase the complexity of modern management.  Whereas strategic planning was a competitive advantage in the past decade, it is a necessity of global thinking in this century. Planning strategically is certainly a new requirement in the global business world. In order to survive the new business challenge, global thinking and practice must permeate all corporate activities. Successful companies are, of course, the first to consider the global marketplace as their arena for competition. According to  (1993), strategic management has become a vital part of most, if not all, organisations. “Almost all organisations of any reasonable size have some kind of strategic planning.”

 

            3.2.1 Value Chain Analysis

In order to understand clearly the activities leading to a competitive advantage in cosmetic business, an organisation can begin with the generic value chain and then identify their relevant activities. Thus, process flows can be mapped, and these flows used to separate the individual value–creating actions.

Once the prudent actions of an organisation are defined, connections between actions should be identified (Porter, 1998).  A connection is present if the performance or cost of one action affects that of another. As stated, competitive advantage may be acquired by optimising and coordinating linked actions.

Value-chain analysis appears at every step of an organisation goes through, from raw materials to the output. The objective is to deliver greatest value for the least possible total cost.  The value chain also is useful in outsourcing decisions.  Understanding the connections between actions can lead to best decisions that can result in either a cost advantage or a differentiation advantage. The goal of these activities is to create value that exceeds the cost of providing the product or service, thus generating a profit ( 2000). In the case of The Body Shop, the entire operation of the business is examined and evaluated in order to determine the service delivery processes that strengthen as well as weaken the business. These results to managerial options to eliminate the liabilities that detract the business or the need to developed and intensify some aspects of the operations. 

 

3.2.2 Porter’s Five Forces

A Five-Force model (see Appendix 1) was conducted in the context of the global cosmetic industry. Despite being a market leader, The Body Shop is not yet resting on its laurels of success, but instead, continuously innovating and developing their company in order to maintain what it has managed to achieve up to this time. Thus, they have constantly formulated competitive strategies in order to attain this. Forces outside the industry are significant primarily in a relative sense; since outside forces usually affect all firms in the industry, the key is found in the differing abilities of firms to deal with them. The most dominant strategic management paradigm in recent years is known as the strategies model (1991). The state of competition in an industry, in this case the banking industry, depends on five basic competitive forces, which will be discussed in Appendix 2.

The strength of the competitive forces in an industry determines the degree to which the inflow of investment occurs and drives the return to the free market level, and thus the ability of firms to sustain above-average returns. ‘The underlying structure of an industry, reflected in the strength of the forces, should be distinguishable from the many short-run factors that can affect competition and profitability in a transient way’ ( 1998:3). For instance, variations in the economic environment over the business cycle manipulate the short-run productivity of the retailing industry, as can material deficiencies, strikes, and the like. Even though such factors may have strategic implications, the focal point of the analysis of industry structure is on categorising the basic, fundamental features of the industry rooted in its economics and technology that shape the arena in which competitive strategy must be set (1998).

The five competitive forces – suppliers, buyers, competitive rivalry among firms currently in the industry, product substitutes and potential entrants to the industry – reveal the fact that the competition in the retailing trade goes well further than the already existing chains (2001). Customers, suppliers, substitutes, and potential entrants are all ‘competitors’ to firms in the industry and may be more or less prominent depending on the particular circumstances (1998). All five competitive forces mutually establish the amount of industry rivalry and productivity, and the most influential forces are prevailing and becoming decisive in terms of strategy formulation. In Tesco’s case, even them who have a very well-built market leadership in the retailing industry where entrants have little or no threat will receive small returns on their profits if it has to face a superior quality and lower-cost alternative.

 

3.3 Conclusions

From the previous analysis, a major factor involved in the improvement of The Body Shop involves the establishment and utilisation of company performance measures or indicators that in turn measure their customer’s satisfaction. These measures or indicators are measurable characteristics of products and services that the company typically utilises in order to study and improve company performance. The indicators that will be chosen should be able to represent the essential factors that are crucial to the improvement of operational and financial performance. Through the analysis of accurate information brought about by the tracking processes, the measures or indicators themselves can possibly be analysed and improved to support such goals.

 

4.0 Key Issues

With regards to the entrepreneurship practices of Roddick, the Board of Body Shop has been able to attain complete control of all matters regarding the company. Their self-perseverance and obligation to their duties and finally, their obedience to the company laws all contribute to the development of the corporation. As such, The Board constantly believes that all the data pertaining to financial information and other facts regarding to their operations that are currently being used is reliable. The Board’s authority is clearly recognised within the company. And because of this, it is able to have a solid grip on the corporation’s actual operations, stakeholders and its financial concerns. Needless to say, because of the corporation’s proper structure and its commitment to the stakeholders and to the community as well, the board of directors has proven that it can efficiently handle both its ethical and legal responsibilities.

On the other hand, the company, The Body Shop as a whole will gain new development once IT is implemented in the organisational process. New technology means improved and quality service can be provided by the company to clients. The Body Shop can gain competitiveness in the beauty and cosmetic industry; where technology is considered the latest trend that determines competitive advantage. Implementing IT in The Body Shop procedures and practices can improve the quality of service that they can provide to the clients. Implementing IT in The Body Shop is at the heart of company’s vision in improving dissemination of products and services worldwide, connecting people, processes and information. IT will help The Body Shop to ensure a secure, integrated, and comprehensive view of each customer; better quality service; increased customers safety; reduce cost; improved customers access to the company; and to enhanced the business workflow and operation efficiencies. Also, IT can streamline various beauty and cosmetic processes and provide employees with help in reaching their both their personal and business goals.

 

4.1 Soft System Methodology

Systems deal with the complex organisation of a number of different connected elements (1999). A system is defined as a part or element which interacts with each other in order to function as a whole, therefore showing properties that are properties of the whole and not properties of the component parts. Based on the previous discussions, it is found out that information technology (IT) is a key resource of The Body Shop, together with people, finances and material assets. Thus, it is accepted to state that technological development is an issue. The discussion above revealed that through effective information technology management of the organisation’s resources and systems, organisation administrators can add value to the services delivered to employees and customers of The Body Shop, reduce risks in the organisation’s business, reduce the costs of business development and service delivery and encourage improvement in internal business processes and external service implementation. On the other had, it is recommended that when developing an innovative information system just commence to make sure it produces important information and not data. It is better to build a report that is ideal for a specific need then to make a report based on a predefined concession between several users. The shaped information will have value and increases insight into information needs and the way the business is looked at. Adding more and more information to the system and solving the problems as they occur will eventually lead to a system as mentioned. In fact, that is the way any functional Information Technology is developed. Having an experienced team helping you take the first steps and educating the teaching staff in the first period can make all the difference.

To completely evaluate the information technology management of the organisation, it is advisable to adopt the analytic deductive enquiry.  With respect to IT integration in The Body Shop, this work will analyse the organisation’s current situation and business operation and therefore identify and possibly resolve its problems situations through the use of Soft Systems Methodology.

 

4.1.1 Stage 1-The Problem Unstructured Stage

During this stage, the customers and employees of the organisation identifies the problematic situations that the organisation is currently experiencing or suffering from. With respect to the case of The Body Shop, the problems is about lack of IT used in communicating the customers and dissemination of beauty and cosmetic products. 

 

4.1.2 Stage 2 – The Problematic Situation expressed

            In this stage, the analyst gathers all the information in order for him to be able to provide some description of the problematic situation(s). One of the techniques in identifying soft problems is through the creation of rich pictures.           In The Body Shop case, it illustrates that currently, The Body Shop is having a problem situation on the time that has to be spent on distribution of products and services to the customers. Furthermore, since the organisation has received increasing demand for its cosmetic products and services, the time and quality of services have become difficult to find aside from the fact that they have become more expensive because of IT improvement. The rich picture of this problem situation was presented below.

 

Figure 1- The Body Shop’s Distribution of Products and Services Rich Picture

Adopted from:  2004

4.1.3  Stage 3 – Root definitions of Related Systems

          In this stage, root definitions are formulated. Root definitions express the core purpose of some purposeful activity system. Furthermore, a root definition is expressed as a transformation process that takes some entity as input, changes or transforms that entity, and produces a new form of the entity as output.

            The related system would be the personnel hiring system and IT implementation. It is because the issue in The Body Shop is the lack of time by administrators and the staff to distribute the services and accept inquiries thus the need for IT is essential. With respect to the IT personnel, since head administrators have minimum knowledge regarding IT systems (e.g. most of staff are beauty experts with no IT background) there is a need to find additional personnel who will perform these tasks and handle the corresponding responsibilities.  There is a need for the manager to find the personnel who have the required skills to perform the tasks and handler the responsibilities.  In order for the newly hired personnel to effectively perform his tasks and responsibilities, there is a need for the personnel to be trained on the tasks and responsibilities that he has to accomplish.

 

Table 2. The CATWOE Analysis for the Root Definition of Personnel Hiring System

Customer	l  the customers, the Body Shop
Actor	l  the manager, the additional personnel, the IT system
Transformation	l  the employment of additional personnel to perform the distribution of beauty and cosmetic services through IT system
Weltanschauung	l  the employment of additional personnel and IT implementation will improve the quality of service of the organisations as well as the organisation’s performance
Owner	l  the manager/administrator
Environmental Constraints	l  cost of additional personnel, skill (s) and / or capabilities of the additional personnel

4.1.4 Stage 4 – Conceptual Models

            In the fourth stage, conceptual models of each of the root definitions are drawn. “A conceptual model is a human activity model that strictly conforms to the root definition using the minimum set of activities” (2004).

            Based on the Conceptual Model (refer to Table 2. for the Conceptual Model of the root definition) it can be seen that it is a continuous process. In order to address the first issue of the lack of time to distributing services, new personnel must be hired in order to perform those tasks. The personnel to be hired should have the skill to do those tasks i.e. to mandate the planned IT systems. After the desired personnel who is believed by the manager to possess the right skills and capabilities is hired, the personnel should be trained in accordance with the tasks that he has to perform and the responsibilities that he has to take. After which, the newly hired personnel should be evaluated based on his performance and his contribution to the performance of the organisation. If it is seen that the personnel can perform the tasks, no additional personnel should be hired. However, if it has been evaluated that there is a need for additional personnel, the process discussed above, repeats until the tasks are well performed in accordance to the needs of the organisation.

 

4.1.5 Stage 5 – Identification of feasible and desirable changes

            In this stage, the feasible and desirable changes are identified based on the evaluation of the organisation’s problem situations. There are several kinds of changes that can be done in an organisation, the most common three are: changes in structure, changes in procedure and changes in the attitude within the organisation. These changes are identified in accordance with the problem situations identified and described in the previous stages.

            In order to resolve the problem situation, which is the lack of time to distribute the products and services, it will involve a change in the structure of The Body Shop. The additional personnel and IT system will significantly change the organisation’s structure not only because it will add to the increase in the number of people who work for The Body Shop but also the division of tasks.

            The problem will be addressed through a change in the organisation’s procedure. Because formerly, The Body Shop only has existing services to be offered to its customers.  However, this time The Body Shop will offer the customers a variety of services that suits to their needs. Inevitably, some beauty and cosmetic industry procedures will change because of the different services that The Body Shop will possibly offer, since each and every kind of services needs a different approach of implementation.    

 

5.0 Synthesis

The discussion of the capabilities and resources of The Body Shop with respect to the entrepreneur capabilities of Roddick revealed very consistent regarding its strategies. This is coherent with their traditional inside-out approach. However, the need to reconcile both the inside-out and outside-in approaches becomes imperative now for The Body Shop. The analysis among the cosmetics industry environment as well as the corporate governance of The Body Shop and their capabilities revealed certain gaps, most of which are biased towards the industry environment. However, these gaps paved the way towards determining a number of recommended strategic options to secure the competitiveness of The Body Shop. Also, The Body Shop has to find a balance between adherence to internal forces within the management and to the changing forces of the environment in order to implement such strategic options.

Based on the discussions above, it is found out that information particularly the implementation of Information Technology (IT) is a key resource of the organisation, together with people, finances and material assets. Thus for the next five years, it is accepted to state that information technology is a business issue in The Body Shop. The discussion above revealed that through effective information management of the organisation’s resources and systems, organisation administrators can add value to the services delivered to customers, reduce risks in the organisation’s business, reduce the costs of business development and service delivery and encourage improvement in internal business processes and external service implementation. On the other had, it is recommended that when developing an information system just commence to make sure it produces important information and not data. It is better to build a report that is ideal for a specific need then to make a report based on a predefined concession between several users. The shaped information will have value and increases insight into information needs and the way the business is looked at. Adding more and more information to the system and solving the problems as they occur will eventually lead to a system as mentioned. In fact, that is the way any functional Information System is developed. Having an experienced team helping you take the first steps and educating your staff in the first period can make all the difference.

 

Appendix 1. Porter’s Five Forces Model

 

Appendix 2. Porter’s Five Forces Global Cosmetic Industry Analysis

Industry Competitors. In the global cosmetic industry, regulatory and technological changes are the main catalysts, making entrenched competitive structures obsolete and mandating the development of new products, new processes, new strategies, and new public policies toward the industry under analysis. Financial centres, in vigorous competition with each other, have undergone further regulatory change in their efforts to capture a greater share of international trade in financial services, even as common efforts at the regional and global level have tried to support safety and soundness and a reasonably level competitive playing field. Basically, there are numerous cosmetic players in the industry, included in the list is The Body Shop, who strive for market leadership in all their business aspects. As such, the level of industry competition is very stiff and very aggressive.

Potential Entrants. Natural barriers to entry in the global cosmetic industry include the need for capital investment, human resources, and technology and the importance of economies of scale. It also includes the role of contracting costs avoided by a close relationship between the vendor and its client, which in turn is related to the avoidance of opportunistic behaviour by either party. The competitive structure of the industry therefore depends on the degree of potential competition. This represents an application of the ‘contestable markets’ concept, which suggests that the existence of potential entrants causes existing players to act as if those entrants were already active in the market. Consequently, pricing margins, product quality, and the degree of innovation in this industry exhibits characteristics of intense competition even though the degree of market concentration is in fact quite high.

Buyers. Cosmetic products and services have a long history--a history rich in product diversity, international scope, and, above all, continuous change and adaptation. These competitive changes have forced adaptations, and in general have improved the level and efficiency of services banks offer to clients, thereby increasing transactional volume. Coupled with these, the customers have become informed and savvy users of cosmetic and beauty services that The Body Shop-like companies offer. They have required that service providers meet their very specific individual needs, therefore showing that clients to this industry have shaped what it is right now. This means, on an overall note, that buyers have a high influence on the workings of the global industry pertaining to beauty and cosmetic products and services, as they have the ability to affect it.

Suppliers. The suppliers to this industry are mainly the providers of technology and materials in beauty products that cosmetic firms use in the conduct of their businesses. There is an enormous variety of new ‘hard’ and ‘soft’ technologies at work within the said industry. Hard technologies include advances in telecommunications, computers, analytics, software tools, and video communications, which are enabling participants to have better information at lower cost; to integrate this information with thinking, communication, and analysis; and, finally, to use the resulting knowledge along with other technologies to distribute services to clients more efficiently, effectively, and economically. Soft technologies, or financial innovation - things like, say, the use of derivative instruments such as interest rate and currency swaps - often use these hard technologies to rethink the delivery of services. Out of these hard and soft technologies have come the securitisation and globalisation movements so often talked about in the press. From the above enumeration, it could be said that suppliers significantly affect the cosmetic industry through their tools of trade.

Substitutes. There is a high level of substitutes for the beauty and cosmetic industry, evidenced by the numerous numbers of major players in the global market. The cost to transfer to another beauty firm is also relatively low, so the substitution rate is pretty high.

 

 

CASE STUDY ( FICTIONAL ): SOCIOLOGY

Case Study

 

Overview of the Case

            The case is about a 22 year old woman who is struggling about the situation she is experiencing in terms of personal and family matters. Although, the client has been able to relate this matter to a GP, this did not help Sabrina in her situation because of the anxiety of the GP regarding her situation.   To find solution for her problems, Sabrina visited the Social Care agency. Herein, she is requesting for practical and financial support with regards to her children. Since the Social Care management is aware of the concern of the GP, the manager feels that Sabrina’s situation requires assigning here to a social worker to monitor her situation.

This client was chosen for the following areas of interest: (a) her relationship with her family and (b) her social behavior. Through a relation model, I will be using Object Relations theory in my analysis of my work with this client.  I intend to develop hypotheses regarding the problems and issues encountered, to enhance awareness of how his psychological life has influenced the quality of behavior and her relationships with her family, specifically her husband and to learn how to translate theory into clinical application and assess such application. This model includes ’s attachment theory (sociological theory), 's theory of object relations (psychological theory), and 's self psychology (psychological theory).

 

Problems/Difficulties Exist

            In this case, the existing problems that can be considered are the problems of the client regarding her relationship with her partner. Sabrina is having a problem in dealing with her situation because of lack of support from her partner. As mentioned in the case, Sabrina’s partner is spending more time with his friends than her children. In addition, she also has a problem in terms of parents’ supports, since her father is refusing to take care of her children and her mother is in Zimbabwe with her new partner. As she referred her case to a GP, it has also been found out that her confessions may lead to suicidal tendencies if not given enough attention.

 

Analysis of the Problem

            The client, as described above, is a 22 year old woman who is experiencing problems in terms of her social behavior and her family relations.  Sabrina has been living with her partner and her two children (four year old boy and 14 months daughter).  She is working as a part-time employee at a local petrol station and can be described as unsociable. Because she is lacking for good qualifications she is having difficulty in finding a better job. Her partner, Craig has been in an accident three years ago and is now depending on the Disability allowances given by the company.  Being a working mother, she finds it difficult to manage her time in taking good care with her children, so she is depending on her father who is living nearby. Aside from this, the problem of Sabrina is rooted from the inability of his partner in supporting her.  Craig is busiest spending time with her friends, playing golf and others than to spend his time with her children. This situation triggers depression and frustration in the part of the client.

The client was self-referred for a consultations part of her own plan to help herself adjust to her situation and to prevent further problems.  She presented with a flat affect and expressed anxiety related to interpersonal situations and tasks.  Interpersonally she was withdrawn and socially isolated.  Behaviorally she was inactive, unable to socialize with other people.

The client’s psychosocial functioning was somewhat impaired by the interaction of her familial situation and her methods of coping.  The client struggles throughout her relationship with Craig and to find time for her children.  Depression was ever-present and unwelcome companions. 

 

Evaluation

In the development of personality, some authors found that the notion that people in having different problems is because of three issues: (1) the inability to trust oneself and others, the fear of loving and forming close relationships, and low self-esteem; (2) the inability to recognize and express anger, the denial of one’s own power as a person, and the lack of a sense of autonomy; and (3) the inability to fully accept one’s sexuality and sexual feelings, and difficulty in accepting oneself as a man or woman.  According to the  psychoanalytic view, these three areas of personal and social development – love and trust, dealing with negative feelings, and developing a positive acceptance of sexuality – are all grounded in the first 6 years of life.

The focus at the commencement of therapy was to create a safe, supportive, and non-judgmental environment in which to talk and to alleviate the client’s feelings regarding her situation; how it contributes and influences her situation as well as her subsequent adjustments with her relationships.  I  present three conceptual additions to the model and probably based my work upon them: (a) describing the experiences of the client through the use  self-psychology through mirroring self-object early in the therapy.; (b) examine the client’s problematic experiences using dialogical sequence analysis, an intensive method for studying the moment-to-moment process through the psychosocial aspect of depression and ’s attachment theory; and c) I extend the developmental stages to describe the inter-subjective exchange between client and therapist by introducing  object relation theory.

First, Kohut (1984) implies that providing mirroring self-object experiences early in the therapy will be a great factor for its success.  's work has formulated into the investigation of self-object experiences. This experience which is usually with other people that encourage the self and which give meaning to the experience of the self as well as self-esteem.  Through the analysis and investigation of the background of the service user (client), it shows that her experiences from her situation, made her self-esteem became lower because of the fact that nobody within the family had been given her support, specifically in taking care of her children.  Furthermore, clinical experiences with patients who had idealizing or mirroring changes led to initially observe that there were two types of self-objects.  These include those that respond to an approval that the child’s innate sense of vigour, greatness and perfection which is mirroring). The mirroring transferences rooted from repeated and relative mirroring failures of the clients or parental substitutes that happened during the client’s childhood. Accordingly, it is as if the client is missing a part of her and is in need of other people to ensure her self-esteem. During this stage, the client continuously turns to the support of the therapist’s or social worker’s response so as to identify how important and worthy she may be. The client tries to seek approval and affirmation from other people to overcome her sense of anxiety. Apart from mirroring, the other form is the idealizing transference which includes those people to whom the client can look up for support and with whom the service user can merge as an image of calmness, infallibility and power or influence But, this session had focused only to the use of mirroring in assessing the problems of the client by which the client’s position is to view herself upon her own experiences or situations.

Second,  (1988) in his attachment theory advances a multidisciplinary stance in which psychoanalysis is integrated with ethology and socio-biology, psychobiology, the cybernetic theory of control systems and modern structural approach to cognitive development.  Affectional bonds are formed as a result of interactions with the attachment figure, that is to say, between child and parent or partners. Emotional life is seen as dependent on the formation, maintenance, disruption or renewal of attachment relationships. In acquiring this theory in this study, it has evidently shown that the depression that the client had faced was due to the reason that her relationship with Craig is struggling and that her relationship with both her parents is also having a problem.  She has a problem within her situation due to her relationship with Craig and the fact that Craig is not providing her all the support she needs, financially and emotionally.

Third,  (1965) stresses the importance of establishing the holding environment.  Object relations theory is an offshoot of psychoanalytic theory that emphasizes interpersonal and social relations, in the client’s history, she is depressed by the fact that she cannot lived up with her relationship with Craig and the lack of support from her parents. Object Relation Theory (, 1965) used in this study aims to identify the significant person that is the object or target of another's feelings or intentions of the client which is nonetheless, Craig and her father. With the analysis of the client’s depression she is longing for interpersonal relationns that would allow her to feel what she had missed with her relationship and this suggests that the residues of her relationships really affect her being at the present.  Object relations theorists are interest in inner images of the self and other and how they manifest themselves in interpersonal situations.

 

Strengths and Limitations of Sabrina

            The service user in this case is Sabrina. It can be said that Sabrina has several strengths and limitations. One of the strengths of the service user in this case is her ability to find solutions to her problems by referring herself to a GP. Since Sabrina is aware that the help of a psychologist will eventually help her in assessing and finding to her problems, she has been able to seek the help of a practitioner. In addition, she also has the strength of controlling herself although she is feeling so much depressed with her situation.  Although she has a problem in terms of her relationship with Craig, Sabrina can be considered as a good mother to her children.

            On the other hand, Sabrina is also facing some limitations.  One of this is the discovered suicidal tendencies that have been found by the GP.  With her confessions, the GP has found Sabrina capable of escaping in her problems by ending her life.  With this problem, the GP has referred Sabrina to Social Care agency to help her in her problems.

 

Assessment

Social workers drew attention to the role of patriarchal power relations in all spheres, from the families of clients to the hierarchy of social services departments, and emphasized the need to raise awareness of these relations and to challenge them (1989). Both from within the women’s movement came further demands that the world of social work acknowledge the diversity of oppression in the society and organize to tackle it.

            Analysis shows that the problems of the patient can be considered as discriminatory in nature.  Because of her situation, Sabrina can be discriminated in her request with her financial needs. Being a social worker, I can say that I am anxious about this potential discrimination of the client, in this regard; my responsibility is to find ways to practice anti-oppressive actions with the clients needs.  In doing so, evaluating the potentialities of the client is one way of helping the social worker continue to be provided with the support from the agency.

These are difficult times for women and difficult times too for social works. The attempt to construct an anti-discriminatory social work has taken shape out of a growing recognition of the specificities of oppression, according to gender, race, class, age, disability and sexual orientation ( and  1989). It emphasizes the diversity of experience and the validity of each person’s experience. It seeks to develop an understanding of both the totality of oppression and its specific manifestations as the precondition for developing an anti-discriminatory practice relevant to all spheres of social work.

 

Conclusion

This study draws on the work of , , and others to emphasize and integrate central themes in the case of the client.  Those themes were explored through the process of mirroring.  The visual and sensory power of the image deepens the my understanding to the problems that the client is facing and brings her back to life through in the daily clinical practice. Within the following sessions, the work was done by the use of self psychology and object relations theory to know the client’s holding environment and containment, her transitional space and her transitional objects.  In the following weeks as the monitoring continues, the aim of treatment became the illumination of the nature and functioning of the personality of the client in  context of herself regarding her personal relationships; to understand the client’s disturbed part, i.e. antisocial, functioning of human nature (defenses); her aggression and inability to love and co-operate consistently; and her tendency to disrupt the socialized community life she so much needed (,1982, ,1984,,1965), mirroring, idealization and twin-ship, the self and internal objects.

 

 

Reference

Strategic Business / Information Technology

CURBISHLEY ROYAL HOSPITAL

Introduction

In the current setting of globalized and internationalized systems of commercial affairs among hospitals, they are often subjected to situations wherein they have to contend with circumstances provided by internal and external factors from the industry they operate. Tools and other theories to deal with such circumstances have been developed through the years. Among these tools is the strategy provided by information systems. These are the tools used by a hospital in order to make sound decisions for the organization. It is the collection of relevant information that provides them the tools needed to deal with a specific situation which they may encounter in whatever aspects of their operations. (2002) The key word in this discussion is basically the term “relevant” information. The use of this information may possibly spell the success or failure of the operations of a business.

Information, thus, may well be the top asset of a hospital in these contemporary times. (2002) It is the management and usage of this asset that helps a company in realizing its organizational goals. Information on certain aspects of the hospital like those in accounting, products, suppliers, and competitors are among the things that a hospital have to take into consideration. This study will be looking into the system as well as the strategy that entails in managing such information in Curbishley Royal Hospital. Actions like the methods of inquiry with regards to the acquisition of information will also be considered. In this manner, a particular case will be analyzed in this context.

Specifically, the case of Curbishley Royal Hospital will be taken into consideration. In order to fully understand the importance of information systems (IS) on a company, the study will also take into account the effects of factors that inevitably affect the conduct of operations by Curbishley Royal Hospital. With all these discussions, the paper will then present a set of arguments regarding the possible future of information technology (IT) in the coming years. The said arguments will be in line with the preceding discussions and case study of the effects of the internal and external factors influencing the IS strategy of organizations in general. 

TASK 1: Modes of Enquiry

As stated in the introductory part of the paper, information is probably the most important asset of a company. In keeping with this premise, the acquisition of this information is similarly important. The following discussion will describe and critically analyze the modes of acquiring such information through enquiry: simple, complex, and innovative. 

A.        Simple

1.         Inductive-consensual

This system is characterized by the process of inferring a general conclusion with a set of information presented to an organization. ( 1995) Normally, this is basically among the most uncomplicated manner of inquiry considering the outcome of this system is most probably based on the accessible data that an organization has acquired. The most recognizable examples of this simple enquiry system would be the “Delphi” model. (1995) This model basically intends to look at a specific problem in a single perspective and deliver a single ultimate solution.

In looking at the said model, and mode of inquiry for that matter, it is basically a system that exhibits an empiricist system. Given the characteristics and advantages of using such a system, there is indeed several attributes of the process that are likely to provide pitfalls for an organization. One such problem, and maybe the most important thing to note, is that the attribute of the said system of only considering a single perspective and looking for a definite answer. That would be possible in an ideal environment; however, reality does not really permit that kind of smooth sailing for organizations. Questions regarding situations in which organizations encounter are basically complex and entail several views of the issue. To this end, once could surmise that this system is only effective on a limited number of situations. Being a simple and basic form of enquiry probably entails that it could only be effective in simple and basic issues for the organization. Moreover, this also shows that the system is framed in a narrow-minded character of looking into problems and consequently caged in a limited form of thinking since it only deals with “well-structured problems.” (1995) However, this does not mean that the system provided by the Delphi or Inductive-Consensual approach is not really effective and should be discarded as an irrelevant method. Analysis and proper examination of the data collected by an organization is still important, it is just that in the actual setting, things are not as simple as it merely entails a single best solution, especially if there is some uncertainty regarding the biases of the analysts and accuracy of the data.          

2.         Analytic-Deductive

The system provided by the Analytic-deductive model reveals a rational model of inquiry. The basic assumption on this kind of system is that indicates that every human problem could be converted into a formula wherein specific situation aptly apply. (Linstone and Mitroff, 1995) Similar to the preceding mode, this system assumes that there is indeed a single “truth” or a number that would solve a particular problem.

In this manner, it is seen that both the previous and this system holds somewhat similar weaknesses in such a way that it holds a single solution as key of the problem. It similarly disregards any question that does not pose any sound attributes. Those lacking of “logical consistency” are readily discarded. ( 1995) It appears that the two believe that the world is built on a collection of plain actions and pieces that could be disassembled and rebuilt to rectify issues that it encounters. To a certain extent, the said system entirely takes on an indicative approach in its inquiry that it disposes the possibility that there may well be other conditional circumstances that would affect the situation. This basic flaw of the simple systems discussed here are attempted to be rectified by the complex systems discussed in the following parts.   

 

 

 

B.        Complex

1.         Dialectic

The presence of conflict serves as a “guarantor” for this system. (1995) In keeping with the discussions of the preceding parts, it appears that the “truth” in this system is contested by a couple of factions with differing views. The system is characterized in such a subjective way that the data presented in this context is caused to undergo several other interpretations with reference to the viewer of the said data. To a certain point, the data in this system does is not used in a manner as to resolve an issue or a set of issues, it is used to present the differing views of the parties involved.

Similar to the setting in courtrooms, the idea in this system would probably take on a really complex process since the concept of the “truth” is contested, not actually how to resolve a problem. In this system, it appears to be time-consuming and virtually pointless since after all is said and done, nothing is resolved, and instead a problem is essentially ascertained. So basically, this system is used to make sure that there is a problem. And given that the “truth” is subjected to several interpretations, the actual outcome of the process may well be uncertain considering it is openly subjected to biases of the decision-makers as well as the possibility of defective information used in this context.

2.         Multiple Realities

This mode of inquiry presents a considerably complex system as compared to the previous types. The premise in this context is that the model and the data are inseparable aspects of a problem. It is somewhat a more comprehensive type of process since it consists of a “range of representations” and a complementary “range of solutions.” (1995) This means that the perception of the observer, the data set and the model, is presented and considered concurrently with the other existing sets that presents other views and understandings of the problem. And to a certain level, the observer is immersed in the observation process. In this manner the observer is given a broad and more comprehensive view of the situation and the attached circumstances that entails from other perspectives.

In looking at this picture, the system of multiple realities presents the observer with a more objective stance by presenting a set of other data set derived from different perspectives. The problem in this scenario is that there is still a possibility of the observer’s bias to be present. Moreover, there is also the possibility that the number of perspectives and data set provided may well create an overload of information to the observer. Irrelevant information as well as those considered to be false may mislead and eventually change the conviction of the observer which may result to disastrous outcomes. 

C.        Innovative

1.         Unbounded systems thinking (UST)

This system is an incorporation of all the IS systems that has been presented in this discussion. In this system, it assumes that everything interacts with everything. (1995) This means it favours none of the previously discussed systems, instead the process is presented in a manner that every system is used appropriately in this extent. The key word in this system is “unbounded,” which means that this is not governed by any model, theory, or belief of any individual or set of people. By this, it possesses the simple and complex attributes of the previous systems. It presents an idea of truth in the first two systems; and it recognizes the concept of conflict and the presence of other perspectives as presented by the subsequent systems. Though it could be seen that the shortcomings of the said systems may well be complemented by each other, the concept of unbounded system thinking is considerably new. Being an innovative however presents the possibility that there are unforeseen pitfalls in this process.

B. Choice of Mode of Enquiry

The systems presented in this part of the paper reveals the existence of inquiry systems that are available for the observer. These are systems that could eventually resolve problems for organizations. On this context, it appears that the UST appears to be an ideal system to use in this study. Though there are still reservations on whether there are possible unforeseen pitfalls in using such system, it would show a basic understanding of both simple and complex systems available to the observer.

TASK 2: External Environment

 

The external environment of an organization has a significant effect on its overall operations. To a certain extent, this is a cliché. ( 2000) It is the manner in which the organization deal with the environment which it operates on establishes its resolve on its market orientation. The past and existing literature has established several accounts on how companies prevailed over such changes in the environment. In a certain point, it is in the environment of the organization that spells how they will develop eventually in their operations. Organization’s capacity for innovation also depends on how they deal with such pressures from the said environment. ( 2002)

This part of the paper is going to analyze the effects of the external environment of a company with its IS system. The company of focus is Curbishley Royal Hospital . Recent changes have been noted in the information system of the said airline company. After taking note of the said system, the paper will also look into the factors that might have affected it such as socio-political, technological, economic, and geographical aspects of surrounding British Airways. After the said discussions, the possible effects of the said factors and a conclusion will be taken into account by the researcher.

 

Socio-Political Factor

Curbishley Royal Hospital and other medical institutions are affected by government rules and regulations which were created to ensure that quality and safe health services are being provided. This means that the implementation of IT in Curbishley Royal Hospital should meet the quality standards set by the government. Safety standards should also be considered when integrating IT as well as environmental protection standards such as.

Social factors that influence the strategic IT of Curbishley Royal Hospital include the people’s demands for improved services such as fast, user-friendly computers, processing systems and other social perceptions. People also want convenience in using hospital services as well as excellent customer service which might include customized services.  Some patients also want to know as much information about the diseases, the medicines and the benefits they can get so they demand for available information especially now that the use of the internet is very rampant.

Technological Factors

Technology affects the IT strategic decision making of Curbishley Royal Hospital in various ways. First, due to the shorter life cycle of different technological products today such as computer, laptop, robots and automation products, hospitals are hesitant to engage in technological innovation. Technology also allows Curbishley Royal Hospital to enhance customer service with its website. The Internet is also a way of acquiring customer information.

Quality Sources of Reference

 

In this report, the quality sources of reference will be used to analyse the impacts of IT on Curbishley Royal. Through the quality sources of reference, diverse positions over a common issue can facilitate the decision-making of Curbishley Royal, in terms of applying the IT strategy for example. The quality sources of reference basically use the conflict factor so as to bring a new truth to the surface. By witnessing two polarized views on IT, business operators can effectively weigh their options as well as help them foresee possible results or effects caused by the application of this IT strategy. Below is a table analysing IT issues by means of the quality sources of reference.

 

ISSUES ON IT	CONVENTIONAL PERSPECTIVES	CONTRADICTING PERSPECTIVES
1. How does IT affect the hospital industry?	IT may provide multiple benefits for the  hospital industry, which includes but are not limited to customer relations, increased profitability and enhanced customer relations	The use of IT in hospitals can provide a number challenges to the, including the costs of installation, system breakdown and depreciation, professional expertise assistance and the universal business requirements effectively apply IT.
2. What are the Requirements needed to apply IT?	Information System and Technology can be used to ensure the successful application of the hospital strategy.	There is a need for the integration of different strategies in order to utilise IT successfully in the hospitals. These include training, monitoring and constant evaluation of the implementation of this IT.
3. What skills are needed to implement IT?	Technical and professional skills are the  important abilities for the implementation of IT	Management, operating and monitoring skills are vital to implement IT effectively. All these skills must be supported by training activities.
4. What are the bases of implementing IT?	The need to adapt to the changing customer trends is the sole basis of hospitals for applying the IT strategy into their operations	Changes in the economy encouraged hospitals to develop strategies that will promote good customer relation and to develop a group of fixed clientele.
5. What is the role of IT in the hospitals?	IT is vital in ensuring that the hospital services adhere to the needs of the target market.	IT is applied for the purpose of enhancing good customer relations and to satisfy the customers from them to become loyal in the hospital.
6. What role do hospital workers have on utilising the IT as a strategy?	Hospital workers with IT background or skills are very important in the application of the IT. They can play the role of operators and evaluators of the strategy.	All accountabilities for IT application must involve the hospital employees and staffs. Hospital personnel with no IT background must be trained to optimize the impact of the IT strategy. Role distribution is important to maximise the employee's IT capabilities.

 

TASK 3: Impact on IT Strategy

On its most recent years of operations, Curbishley Royal Hospital is operationalizing a program dealing with “Three Cs”: company, customers, and competitors. The hospital is placing its attention on a more recent model of dealing with customers, total customer satisfaction. This means that the hospital is not only involved with the actual provision of the health services. They have also included in their concern the post-service recognition of quality and safety of their services. This indicates that Curbishley Royal Hospital recognizes the fact that ensuring that every protocol carried out during the provision of the health service is not sufficient to ensure the satisfaction of the clients. Ensuring total customer satisfaction compels them to ensure quality even after the clients have left their establishments. This is done by continuously ensuring that the market knows the level of safety, comfort, and high level of service quality given by the organization.

Curbishley Royal Hospital similarly takes into consideration aspects regarding their company. They have invested a great amount of funds to deal with research and development (R&D), health service modification, and advertising attributes of the organization. In analyzing this course of action taken by the hospital, it would appear that these would help in acquiring the paramount quality in terms of the available products in the market. Though it is expected that such a huge investment would entail an initial downturn for Curbishley Royal Hospital, this would merely be short-lived. The long-standing results would entail profitable outcomes. Similarly, with the increased development in the said areas, considerable number of the consuming public would be able to take benefit of the said improvements. This will consequently help in building the market share of Curbishley Royal Hospital.

Consequence Analysis Table:

IT Issue	Effect on Staff and Patients	Negative Consequence Analysis
1. Lack of technical assistance from professional expertise	-       The lack of professional help may result to project failure and inefficient project implementation, leading to unsatisfied patients and staff	-       This issue will cause significant wastes in effort, time and resources; -       Failed project can have a significant effect on the staff and patient’s morale which may affect their works.
2. Problems between IT strategy and organizational culture	The contradicting relations between the strategy and the hospital culture can affect the IT process particularly its implementation. If this issue will not be solved, it could lead to removal of existing and tested hospital staff and the patient’s loss of confidence.	- the removal of some existing and tested hospital people and the patient’s loss of confidence due to unmatched strategy and culture can lead to significant losses, such as  profit. Resources invested on the strategy will also be put to waste.
3. Insufficient Evaluation of the the IT's outcome	- The lack of proper project control and monitoring can also lead to project failure. Therefore, no patient or staff will feel the effects/benefits expected out of the project.	- Inadequate maximization of the beneficial effects of the IT strategy can cause delayed recovery of investment allotted for the project. The total failure of the project due can cause the loss of trust among patients and staff.

 

TASK 4: Key Issues

            To be able to efficiently initiate such IT integration activity, it is important that Curbishley Royal Hospital should establish a strategic planning.

Hospitals in this industry will be installing an Information technology plan as a part of their annual planning process. The emergence of such information systems as a major part of the operations of the health care industry has revealed its potential to help companies emerge as top players in the industry. The use of IT will help managers and vital decision makers of the hospital to create the appropriate course of action by facilitating information throughout the organization. Operations in production, marketing, customer relations, distribution, finance, human resources, and network processes are among the basic areas to which an organization would be able to streamline its functions with IT.  

Nonetheless, the success of an IT plan installed in the Curbishley Royal Hospital, or any other industry for that matter, depends on the attitude of the decision making entities in the individual companies towards the use of IT in the decision making process. It has been noted in several studies, as it has been established in the discussions above that the emergence of IT has enhanced the operations of hospitals to a level much higher compared to earlier decades. From the basic use of these IT processes and installing the appropriate IT plan, the firm would be able to generate sensible and the best possible policies for their organisation to implement. 

TASK 5: Mode of Enquiry Critique

One of the consequences of using this approach is that the decision-maker may use factors which may be irrelevant to the issue given. In this manner, problems in having more conflicting issues may provide difficulties for the decision maker to efficiently decide on the problem or issues. In addition, with too many options developed with this system, the decision-maker will not be able to critically analyse each which may affect the decision to be made.

CONCLUSION: IT in the Next Five Years

As mentioned, the only constant in this world is change, and information technology development is the one which are more affected by these changes. In the next five years, the emerging information system and technology that may affect the application of information system in hospitals may include internet applications and virtual teaming. The increasing competition among hospitals forces them to develop new technology and tools to help them to stay competitive or even survive in the market and to serve the changing demand of their customers.  Internet is an example of the latest significant technology, considered a revolution in hospitals. The use of internet in hospitals has emerged for at least two crucial reasons. Firstly, it serves as a new alternative channel other than traditional branch network for customers to contact hospitals. Nowadays, more and more customers, especially younger ones who are quicker to accept new technology, are accessing Internet to transact their financial affairs. These on-line customers demand even more control over their personal finances and value “anytime, anyplace, any where” customized access to financial services (1999).

In conclusion, the application of new systems in Curbishley Royal Hospital, such as information systems and technology, is particularly important to the modern times. At present, hospitals must actively identify the different alternatives that can be applied to their operations so as to become successful. As customers are vital to the hospitals, certain strategies must be applied in order to improve existing customer relations. IT as a strategy for hospital improvement involves a number of processes, of which technology plays a significant role. In order to apply this successfully and effectively ( 2003), analytical techniques must be utilized in order to assess the various features related to IT. Through these techniques, business operators will be able to identify problem areas in advance and develop options that will resolve them.

 

 

 

 

 

CAROLINA FURNITURE COMPANY

Introduction

Furniture is a consumer durable, the consumption of which is characterized by major disparities between economically and culturally different groups and households. The demand for furniture is characterized by a relatively high price elasticity, thus making the industry dependent on economic upturns and downturns. In general, the demand for furniture is influenced by the level of and the changes in household income, as well as demographic variables and construction activity: new households mean new demand. Nevertheless, in the developed countries, replacement purchases, based on factors such as changes in taste and income, dominate the market, and here the attractiveness of products from competing industries does play a certain role: when new tourist destinations become available the consumption of furniture drops. When outbreaks of terrorism at popular holiday resorts make families stay home the furniture industry experiences boosting sales (. 1998).

 

 The furniture industry has traditionally been characterized by a clear-cut home market orientation. As a result, country-specific, and in some cases, region-specific demand conditions have been of decisive significance for its development. In particular fittings are influenced by culture-bound factors, whereas younger urban households can more easily accept imported furniture with international design into their living rooms. Demand for furniture varies by countries in ways which are difficult to explain solely on the basis of demographic or economic differences. It can be assumed that these inherent differences in demand conditions exert both push and pull effects on the international trade of furniture, which has been increasing in recent decades (. 1998).  The paper will discuss about the case study and the different questions regarding it.

 

Question 1

In finance many contend that the world has become more dangerous, both for individuals whose wealth is exposed to seemingly larger and larger swings in global equity markets and for corporations whose cash flows seem to depend more and more on unpredictable cross-border variables. The evolution of financial products in a risk sense has closely paralleled the evolution of health and safety risks. The good old days when the only real financial instruments to understand were stocks and bonds have been replaced by the arrival of new and often more complex financial products like index amortizing swaps, exotic options, finite risk insurance products, and other fancy instruments. But just as society had to take a risk on the canning process in order to reduce the danger of botulism from home canning, financial society has had to risk financial innovation. And that financial innovation has, like canning, led to opportunities to further reduce risk ( 2001).

 

 Risk management is the process by which an individual tries to ensure that the risks to which he/she is exposed are those risks to which he/she thinks he/she is and is willing to be exposed in order to lead the life he/she wants. This is not necessarily synonymous with risk reduction. As indicated, some risk is simply tolerated, whereas others may be calculatedly reduced. In still other instances, some individuals may conclude that their risk profile is not risky enough. A man who is extremely late to an important meeting and about to watch his bus pull away from the curb may not only willingly fail to look both ways at a cross walk, but he might perhaps quite rationally conclude that the risk of being late is so much higher than the risk of being hit by a car that bounding across the intersection when the light is green seems like the right judgment call ( 2001).  Hedging is part of risk management. To hedge means to minimize a company’s exposure to unwanted risk. By hedging, California Furniture Company can make sure that it can create subsidiaries in other countries so that they can protect the foreign currency cash flows. By hedging the company has an option to create a subsidiary or a branch in other places thus they can give added focus in protecting its foreign currency cash flows.

 

Question 2

Modern technology enables managers to demand constant access to an updated overall picture of payments showing the patterns of cash flows in the immediate future. This picture will enable managers to consider both individual situations and the overall situation, and to predict whether extra liquidity is present in the form of reliable predictions of payment received, or whether predictions of payment made are present, such as a financing requirement that must be covered in good time ( 1997).As  was researching about the company’s records he found out that unless the foreign contracts were hedged the cash flow from these transactions would depend on the current rate of a foreign currency at the time the payment will be made.

 

Question 3

Money is generally borrowed through either the money market or the capital market. In the money market the lender is typically a bank and the maturity of loans is predominantly less than one year. In the capital market money is borrowed by issuers selling securities to investors. Money market transactions involve a positive and a negative cash flow in one currency at different times. Money market transactions create net cash flow positions but do not create net exchange positions. Merely borrowing or lending a foreign currency does not create a net exchange position. Only buying or selling currency can create a net exchange position. Borrowing Swiss francs for three months will cause a positive cash flow of Swiss francs now and a negative cash flow of Swiss francs in three months' time, but no exposure to the exchange rate ( 2003). 

 

Unless the Swiss francs are sold they will be available to repay the loan on maturity and so exchange rate changes will bear no relevance to profit or loss. Foreign exchange transactions create both net cash flow positions and net exchange positions. Mismatched cash flows may be offset by either money market transactions or foreign exchange transactions. However, net exchange positions can only be offset by foreign exchange transactions ( 2003). Hedging DM inflows in the money market would be done by borrowing the foreign currency with the same maturity as the expected inflow. The amount of borrowed foreign currency is then converted in the spot market and then it is invested in the domestic money market.  

 

Question 4

Hedging foreign investments against foreign exchange rate risk can reduce some of the diversification benefits of international investing, but it can be advantageous to investors who believe the future spot value for a foreign currency will be lower than the currency futures price. Although each particular hedge may result in a positive or negative return after the fact, the average return from using a hedge over time should equal the required expected return, if markets are efficient ( 2000).  In particular, although the use of a hedge with a nonzero beta can affect the expected return on a portfolio, the effect on expected return is a linear function of the effect on the risk of a diversified portfolio, and so the major effect of hedging on a diversified investor is to move the investor's portfolio up or down the capital market line (CML) ( 2000). The best choice to hedge the DM transaction is the one wherein DM would be converted in the spot market and then invested in the domestic money market. In this way the DM would be protected from being devalued and it has a bigger chance of growing in a few months. This can help in making sure that the business’ interests will be protected.

Question 5

Forward contracts for foreign exchange struck during the current period require payment and delivery sometime next period. No funds are transferred during the current period in connection with these contracts. Consequently current-period decisions with respect to the forward market do not impact directly upon any other markets during the current period, in terms of financing the payments or distributing the revenues generated by these contracts. For this reason, the excess demand for foreign exchange in the forward market is linearly independent of the current-period excess demands in the remaining markets. Last-period's transactions in the forward market do impact the excess demands in the other markets during the current period ( 1997).

 

 But, because last-period's forward market presumably cleared, all current excess demands in the financial markets may be viewed as linearly independent of last-period’s excess demand in the forward market. Nevertheless the current forward market for foreign exchange is important because the current forward exchange rate affects the relative prices of the various factors of production in both countries as well as current spending and current end-of-period inventories ( 1997). There are 3 cash flows that the company will expect when it will hedge in the forward market. The cash flow for a 30 day forward is ¥0.007740. For a 90 day forward the cash flow would be ¥0.007454. The cash flow for a 180 day forward is ¥0.007435. The cash flows will depend on the terms and the situation in the forward market.

Question 6

Capital could come either from domestic savings or from foreign inflows. Due to severe economic dislocation and persistent government deficits, investment from the private sector has been crowded out by government borrowing and foreign capital flows were not sufficient to meet the requirements of modernizing the economy ( &  2000). The establishment of a stable macroeconomic environment is a necessary condition for increased savings, investment and foreign inflows-all of which are central to the growth process of a country and a firm. But macroeconomic balance is by no means a sufficient condition for growth if resources are poorly utilized ( 1993). The JY inflows would be hedged in a process that was also done with the DM inflows wherein the JY with the same maturity as the expected inflow will be converted in the spot market and then it is invested in the domestic money market.  By doing this the company can make sure that the foreign currency loan will have the same maturity as the foreign currency inflow thus the loan can be paid with the foreign currency inflow.

 

Question 7

Different studies compare the statistical influence of the world's three most widely circulated currencies that include the Japanese yen as well as the dollar and DM on the observed values of various lesser moneys, excluding formal pegs. The study shows that the lower the figure shown for an individual country, the greater the correlation between movements of its money and the anchor currency ( 1998). The JY inflows should divided into 2 parts wherein some would be kept in a safe place or invested in something that can bring benefits to the company while some of the inflows can be used to pay certain loans.

 

Question 8

The concepts of cash flows risk and return and shareholder value are extremely important in financial management. They form its fundamental building blocks, have a profound effect on financial decision-making, on the value of a business, and consequently on the wealth of its owners. Profits do not represent cash flows ( 1999).   Although profits may be used as the traditional accounting measure of a firm’s financial performance and a firm may report healthy profits in its annual accounts, it does not necessarily mean that cash is actually available to pay bills and fund investment. For example, depreciation and other provisions are included in a profit and loss account but they are not cash flow items (1999).  The net cash flows for hedging the $$ cash flows in the market would amount to $250,000. The net cash flows would benefit the company in such a way that additional capital and financial resources can be added to what the company already has.

 

Conclusion

Hedging is part of risk management. To hedge means to minimize a company’s exposure to unwanted risk. By hedging, California Furniture Company can make sure that it can create subsidiaries in other countries so that they can protect the foreign currency cash flows As  was researching about the company’s records he found out that unless the foreign contracts were hedged the cash flow from these transactions would depend on the current rate of a foreign currency at the time the payment will be made.. Hedging can be used to generate and protect the cash flows of the company.  The use of hedging created different changes for the company in terms of its financial status.

 

References

Financial Reporting and Regulatory Framework - ACC3003

Background

Non-current assets such as real estate properties receive an ample degree of error in value estimation due to several factors (  2002).  Each real estate is situated in different environments with various levels of urbanization and development.  Second, the relationship of the owner, agent and buyers are individually unique which cannot be duplicated by simply the same classification of assets.  At the time of selling, there is also digression caused by liquidity preferences of those actors observed in bargaining especially when middlemen are not present. 

            To complete the difficulties in real estate valuation, illustration from commercial properties can be used.  Valuation through comparison is an uncanny way in this situation since the property only requires minimal variation in physical design and location to obtain a non-replication status.  The income flows that can emerge using this property are also applied with different approach depending on the lease contracts.  These contracts are contextualize from the heterogeneous decisions of owners/ tenants which makes valuation through comparison further complex in both effectiveness and process.

            There are several processes in which real estate valuation can be carried; namely, direct comparison, summation, capitalization, hypothetical development, depreciated replacement cost and discounted cash flow analysis (1991;2003;1994).  They are distinguished by activities being done (e.g. compare similar properties, inclusion of rental or development values or future cash flows and waiving of depreciated costs), unique features (e.g. computation of yield, use of analytical reasoning, estimation of added value, need for scenario planning and application of net present value technique) and where are they practically useful (e.g. residential properties, vacant land, purposes of taxation, commercial establishments, specialized assets and subdivisions being developed). 

            However, as much as discussion is worthy to be given to these valuation processes, they are limited to real estate properties which are mere part of non-current assets in the balance sheet of companies.  They do not measure the value of intangible assets, long-term receivables and other investments.  As the paper is focus on the ability of corporate valuation methods to make their balance sheets free from “true and fair” value distortions of specific non-current asset elements, the paper is more concerned on general costing/ valuation approaches that are used to determine non-current asset values.  This includes four major approaches; namely, historical cost, fair value, current cost and realization value (2007; 2007). 

 

Historical Costs

            This method assumes that the firm will continue to operate in the foreseeable future without regard to liquidation particularly on non-current assets such as fixed assets (2001).  This concept is acceptable on a certain extent because a firm is created and its operations are being supported by capital assets that are largely non-current assets.  With these assets, the firm is basically a going concern entity and can exist for infinite period.  Historical cost approach argued that non-current assets are very different to current assets as the latter is bound to sell within its life time in which it makes it appropriate to value current assets also at current prices.  This approach supports the idea behind the responsibility of accountants not to valuate rather allocate historical costs to present and future periods.  Non-current assets are assumed to be idle for sometime until they are allocated as the period is reached.  In effect, balance sheets will be adjusted based on residual value that are left unallocated. 

               Since historical cost approach requires costing of non-current assets at their acquisition price, non-objective and Excessive speculation from a volatile market environment with regards to valuation is reduced.  Although reliable because the approach gives the valuation an explicit basis, it is weakened by the fact that the approach disabled the propensity of the assets to increase in value when appropriate (e.g. development is applied or interest rates are decreased).  Used mostly in valuing corporate plant and equipments, historical cost approach does not only emphasize the amount of money being paid to acquire the asset but also amortization and depreciation that must be allocated periodically (2007).  In this manner, this approach is not necessarily irrelevant with regards to adjusting for market changes at least natural changes such as change in time.  This is not peculiar since due to its name which is focused on time horizons.      

            Another underlying concept that this approach embodies is enclosed to the belief that setting the value of the asset at its acquisition cost at the time of purchase is consistent to the impression that the firm is betting on this asset for an equal amount it can receive in the future.  The firm is motivated to buy the asset simply because there is a potential economic return (1998).  This argument is especially true when one is thinking of a rational behaving firm who is profit-oriented and whose actions are defined by monetary terms.  On the other side, not all economic decisions even they are rational harvest expected returns due to risk factors that are beyond the control of the firm.  The earlier recognition of the inability of historical cost approach to consider market forces rather isolated corporate actions is echoed in this bottleneck. 

 

Fair Value     

This approach fill-in the shortcoming of historical cost as fair value approach seeks to obtain substantial market information to estimate the price of non-current assets.  According to (2005), this approach determines the price by which two parties can exchange the asset and ending-up both better off.  Such price is said to provide the seller and buyer of the asset advantageous pricing position.  Like historical cost, fair value follows the assumption that the entities are operating under going concern stance to prevent the obstacles to the supposedly optimal transaction for each party such as adversary terms on the contract.  However, this approach goes beyond historical cost features because the former further assumes that seeking this optimal transaction is not easy and substantial marketing campaign should be initiated by either party. 

                 Fair value is synonymous to highest value of an asset because the best use of the asset is presumed while legal and financial provisions with regards to the transaction are solved (2004).  Although this sounds very promising, computation for fair value basically requires more complex criteria than historical cost.  Liquid trading markets in which the asset is traded should be available.  In its absence, market evidence can be reflected by a specific exchange between willing and able parties.  However, the alternative is rather hard to find or hard to believe for a firm to valuate its non-current assets.  The former is more consistent to the definition of the fair value but once the non-current asset is not explicitly quoted users of this approach may find it useless.  The sophistication seen in market forces is basically the source of both strength and weaknesses of this approach.  In the advent of absence of both market evidence and isolated transactions, fair value would tap to depreciated replacement cost or income approach and accept the market buying price of an asset as best price.   

            Fair value accounting is more transparent than historical cost accounting.  This is the basis why the Financial Accounting Standards Board (FASB) is confident to the ability of fair value approach to impose a greater level of regulatory oversight towards companies and also economic crisis ( 2007).  In contrast, an individual firm may not applause this advantage of fair value approach.  With regards to non-current assets, a firm can benefit from the ability of the approach to meet the demands of an interested buyer or trader.  If the firm wanted to appraise, collateralize or sell its non-current assets, this approach can be the best metric in order for the sale to be lucrative in the market. 

Current Cost

Also referred as replacement cost, this approach is the valuation of non-current assets through establishment of expected or actual market value at the period when the operations/ production begins (2005).  At part, it is similar to the fair value with differences in time horizon in which the market prices is claimed into the asset.  There is a requirement that the operations must start initially before the appropriate value for the assets will be determined.  In effect, when the non-current asset is idle or generally not in function, its value is zero as there is no back-up pricing assumption that current cost approach is using.  The main strength of this approach is derived from the definition of FASB for assets that emphasize the probability of future gains from their use (1990).  The gains will not be obtained without the future being obtained. 

            In this regard, historical cost approach is blemished because all it accounts is the reduction of the value of non-current assets through depreciation and allocation.  However, in the case of land and properties including patents, their value will necessarily increase once they prove to be an income-generating asset.  The current value approach assumes that the asset is in income-producing form where the fair value approach is mere accepted as supporting information (1990).  Future benefit of non-current assets are not considered in historical cost while fair value focuses much on market factors (e.g. meeting of the minds of opposite parties) rather than the asset itself.

            In the real estate industry, the importance of the future benefit concept is vivid due to sensitive fluctuation of real estate prices.  Further, the industry particularly the value of buildings is largely influenced by their ability to incur revenues to their owners/ tenants rather than the bulk of properties these building owners/ tenants have.  Historical values become irrelevant in the advent of capitalizing the cash flows that emerge in the course of business executed in those properties.  The significance of current cost approach is shown when users demand accurate financial statements.  Historical cost approach disregard appreciation and impairment of assets through time which can lead to misguided decision-making as the acquisition value does not reflect any financial difficulties of the firm triggered by the underlying assets.          

 

Net Realizable Value

This is a valuation approach to non-current assets wherein the entity intends to sell such property.  This can be computed by decreasing the value of the property by the cost associated with the disposal which largely relates to transaction costs (2007).  This is a very different context compared to the earlier approaches except partially to fair value.  But fair value does not intend to explicitly sell non-current assets but to relate the quotations for buying and selling assets to pricing the assets in question.  This approach, thus, is useful when the non-current asset is bound to be sold and yet is currently recorded in the books of the company.  It discloses to users important information about the standing of the company when the asset is already dispatched and future benefits are halted.  In effect, the weaknesses of this approach also arise from this one-sided boundary (e.g. not going concern).

  Sample Organization: Waters v Welsh Development Agency

            This case highlighted the inability of Development Method of Valuation (HDMV) to aid in deriving sound judgment for the purpose of determining the value of land alone.  Although the use of HDMV concerns with valuing improvements which is the distress arising from the natural reserve qualities of the subject land, the case shows the far more important aspect of initially identifying if the improvements intended in the subject land is conclusive in its valuation ( 2006).  However, HDMV would have helped when the natural reserve qualities of the subject land is included in the valuation attributable to the claimants.  The valuation method would have provided the total sum of compensation the claimants should receive from the respondents.  In the contrary, the process is not been tapped as it was initially admitted that the value of the subject land was exclusive with the improvements the acquirer can provide after the purchase and after the development ( 2006).     

 

            The preceding statement can be partially answered by Residual Method of Analysis (RMA) because of its ability to measure the socio-economic qualities of the subject land.  Impliedly, it may have been used when the possible increase in value of the claimant’s land after acquisition by the respondents is terminated in arriving at the compulsory acquisition compensation ( 2006).  RMA has the capacity to strip back the value of the land without the pre-supposed improvements.  The Court admonished that the increase in compensation primarily due to the improvements of the land from the acquirer’s developmental efforts is invalid ( 2006).  RMA is a more active tool than HDMV because the value of the subject land is required less with the value of improvements.  Another, RMA is an analytical technique where the bounds of HDMV are very limited.  However, RMA socio-economic indicator is undermined because the acquisition features of the subject land of providing habitation for national birds from the primary work of constructing a barrage is not injected in the computation ( 2006). 

 

            The case noted several learning on determining property value.  First, the seller should expect that a buyer would realize an enhanced value for the subject land as it would appear to be non-saleable if positive characteristics are not eminent.  This is in conjunction with the “value to the owner” principle in which the claimant should establish his own share to increase the value of the subject land (2006).  In effect, no other value attributable to the subject land should arise if the need and purpose of the acquirer is already triggered.  In the latter case, the supposedly increased in value would be passed on to the buyer.  This provision convinced that HDMV is useful for the buyer alone to establish the level of development in the acquired land.  On the other hand, RMA can be useful in the perspective of the Court to explain fully the reduction in the value complaint of the claimants.  The claimants can use HDMV to compare the probable increase in the purchase price to the cost of litigation to assess their risks, that is, there should be a positive net gain between them. 

 

            Secondly, the “special and pressing want” of the acquirer-authority should be disregarded in imposing the fair compensation value for the claimants and the subject land ( 2006).  There is no reason that the increase in motivation and interest of the buyer can amplify the land’s value.  The Court implied that the seller cannot use such to push his self-vested concentration that ultimately bends the real value of the property.  This is learning for HDMV and RMA to exclude potentiality assessment beyond ones that can be realized in the strict open market.  Here, the buyer are seen as homogenous and should be approached in determining the value of the subject land accordingly.  Third and last, when assessing property value, the Pointe Gourde or “no scheme” principle applies (2006).  This means that there should be no increase in the value of land due to the implementation of a certain project.  This is helpful in rationalizing the improvement-based limitation of HDMV.  Its unique feature to evaluate the benefits of land or property development takes away its ability to evaluate the land or property instead.  In the contrary, RMA mitigates this shortcoming by readily reducing the land value with developments to arrive with the value without the development. 

 

Conclusion

As discussed, there are at least four approaches on how a firm can valuate its non-current assets that will be posted on its balance sheets for the purpose of giving “true and fair” view to users.  These approaches are distinguished by their different strengths and weaknesses and therefore should serve as a note to companies that valuation methods are relative in each different asset, corporate case, economic conditions, market forces, and the like.  Perhaps, national and international accounting standards can lay the ground in which companies can assure the validity of their balance sheets.  But since these approaches are accepted traditionally by firms due to serving of vested- and profit-interest, lack of rigid regulation may motivate companies to use them on their own terms.  The case further shows that the processes regarding non-current asset valuation also have their advantages and disadvantages.  This is the same consequence as the approaches.  In effect, balance sheet presentations will obtain their “fair and true” views if companies and users are aware of these approaches and processes and also regulation is strict to their implementation/ restriction. 

 

 

        

Strategic Business Analysis of Proctor & Gamble

Strategic Business Analysis

 

Introduction

            Procter and Gamble (P&G) is presently considered as one of the largest companies worldwide. Base on its 2003 company report, P&G markets nearly three hundred product brands. Whisper, Tide, Clairol, Downy, Pantene and Pampers are some of the world renowned brands marketed by the company. The success of P&G is not only evident by its wide product coverage but by the amount of its sales obtained from about a hundred and sixty nations. In addition, the company’s growth has also been made evident by its hundred and fifteen manufacturing plants scattered in eighty countries. The progress of the P&G is also attributable to its workforce, which is made up of more than ninety thousand employees. One of the keys to the company’s present success is the business strategies it has implemented over the years. One of the strategic changes which are remarkable in the industry is its launch of Organisation 2005. Primarily, the goal of this paper is to analyse the launch of Organisation 2005 within the industry. The paper will discuss the factors that trigger the initiation of Organisation 2005 using SWOT analysis. In addition, this case study analysis also aims to relate the Organisation 2005 with the eight managerial Tasks for strategy execution, a model which has been formulated by and his colleagues.

 

Task 1 SWOT ANALYSIS

            It is a common fact that competition in the business world is very tough. Hence, the management of different organisation are trying to find the best way in order to be successful and achieve their organisational goal. For example, business, nowadays, have to cut cost to the bone by downsizing, outsourcing, offshore IT development and management.  The growth and success of an industry now depends on its ability to innovate to execute new business strategy effectively. Many organisations see that changing the business strategy must become a part of the core competency of every part of the organisation and its network of business partners (2003). It is noted that management adheres to different changes because of some factors. Like any other organisations or industries, Procter & Gamble has also been able to initiate change in their business strategy. In order to address the company’s problems due to the changes in the industry, P&G tried to develop a new strategy that will basically allow the company to have competitive advantage. The company also wanted a strategy that will improve its ordering and billing systems as well as quality of services for the consumers. This part of the paper provides insightful details regarding the organisational factors that drive or triggers them to initiate Organization 2005 strategy. The organisational factors will be analysed using SWOT (Strengths, weaknesses, market opportunities and threats.

The strengths and weaknesses actually characterize the internal analysis of the company. Issues such as the reputation of the company, the type and quality of its product, manufacturing costs, the effectiveness of their sales team, profitability, innovativeness on research and development, market share and other issues of the company’s capabilities are recognized as strengths and weaknesses ( 1997).

 

            Organisational Strengths

            As mentioned, the main objective of P&G is to have a new business strategy that will enable them to sour growth in the mature market (2005). One of the organisational strengths that trigger the initiation of Organization 2005 is the ability of the management of P&G to develop a new strategy that will enable them to outgrow or compete with the emerging competitors and the ability of the management to identify the important aspects of the business to be changed.     In addition, strength of the company that triggers them to pursue Organization 2005 is the ability to anticipate stakeholders needs which can be done by restructuring the organisational structure. Furthermore, P&G is also known as a company with much ambition when it comes to outgrowing their rival companies, in this regard, their strengths that triggers or generates the initiation of Organization 2005 is the perseverance of its personnel and staff to enhance the marketing strategy of P&G in the global market. The company possesses a strong brand name in the industry that represents both value and quality. This strength emphasizes P&G capability to still attract customers even after the initiation Organization 2005.

 

Organisational Weakness

            Although, P&G has their organisational strengths that trigger the initiation of Organization 2005, which involved changes in their business strategy, the company also encompasses some weaknesses. One of the weaknesses that can be attributed with P&G is the inability to sustain business strategy change because of some management issues and problems. Based on the case, Jager has not been able to sustain effectiveness in his initiation of Organization 2005, which affects the whole strategy execution. Furthermore, the inability of the management to anticipate cross-cultural conflicts and issues because of employee transfers can also be considered as a weakness for the company.

While the internal side of the company represents its strings and weaknesses, the opportunities and threats on the other hand is external in nature. Opportunities may be recognized in rising markets, extending service networks, growing economies or capitalizing on the competitor’s flaws. Threats on the other hand, represents issues such as the introduction of new competitors, changing market trends, alliances formed by competitors as well as the transforming demographics. Both of these factors are interrelated with the company’s strengths and weaknesses. Opportunities may be used in the maximization of the company’s strengths. Though the company is already operating globally; however, the number of its international branches are only limited to a few countries. This then does not optimize the ability of the company to effectively operate internationally even with its Organization 2005 approach. In addition, as a diversified organisation, the strategy may affect the launch of Organization 2005, especially when the management have not been able to integrate the value of diversity with the new strategy.

 

Organisational Opportunities

Because of the strategies that Procter & gamble has implemented throughout the years, the company has many opportunities ahead which can be considered as factors that triggers their initiation of Organization 2005.  One of the organizational opportunities that P&G possess is in terms of the growing interest of the management with technological facilities. The new business strategy (2005) requires the use of information technology, especially in acquiring and managing data. This interest on technology will enable P&G to meet its goal as it implements Organization 2005. The integration of the business units of P&G can also be considered as an opportunity for the implementation of the new strategy. Furthermore, the company has the resources to support the business strategy, which includes technological support for better marketing activities are which is included in the business strategy (2005). Forming strategic alliances, merging or taking over other local and global industries is also another possible opportunity for the company to strengthen its operations, overcome competitors and support its future success through its Organization 2005.

 

Threats

            Even if Procter & gamble have various strengths to pursue Organization 2005, the company has also some threats which may affect its implementation. This includes the experience of P&G when it comes to having low sales throughout the 1990s. In addition, it has been mentioned in the case the Procter & gamble are experiencing product decline because of the existence of rival companies which have faster innovative abilities and effective management strategy.  As the company is starting to change the entire business strategy, other threats or conflicts may not be met even after its initiation of Organization 2005.

The organisational strengths, weakness, opportunities and threats that has been mentioned above, can be considered as essential factors on determining the needs of initiating Organization 2005 within Procter & gamble. The strengths that have been mentioned in the above analysis can be said to be good factors that will help the company have a successful implementation for Organization 2005. On the other hand, the weaknesses that has emphasized can be noted to be a major obstacle for Procter & Gamble to pursue it their change management approach through the Organization 2005.

            The opportunities serves as a guiding forces for Procter & Gamble to continuously believe on the benefits of pursuing Organization 2005 in spite of their weaknesses in some aspects, while the threats can also be considered as a guiding aspects to be given attention by the management of Procter & gamble to ensure that their initiation of Organization 2005 will guarantee success and will be able to meet their organizational objective of being the number one industry in household and healthcare and hygiene products.

 

Task 2: Eight Managerial Tasks

            Perhaps, every organisation wants to initiate a management system and strategy that could maintain the organization’s capability, strength and competitiveness. Several trends such as globalisation and the advancement of information and communication technologies (ICT) have changed the way people run their lives and how businesses perform their services. These changes have made the competition tougher and business organisation should be able to find a way to cope to these changes in the market environment by enhancing or improving their organisational performance.

The outstanding profitability performance of a growing number of firms is not accidental—these firms profit because they have built world-class management systems. This does not mean that there is anything mechanical or bureaucratic in the way they operate. Quite the opposite; these firms shape their processes and methods so that they work together for high performance. These firms perform well because they are designed to grow in profit, size and management capability. Their managers focus on the behaviors, strategies, processes and measures that must work together as a system to find and satisfy customers.

Organizational change is an important aspect of business establishments and companies as this concept allows operational improvement. By means of organizational change, companies are able to adapt new technologies and implement more effective strategies. In turn, this results to increased profitability, higher market share, better internal and external customer relations, enhanced operations and other significant advantages. Generally, the beneficial outcomes brought about by organizational change direct businesses to growth and progress. Moreover, this helps companies overcome major challenges. In considering a strategic change, the management must also consider the aspect of strategy implementation. Strategy implementation has been heralded as the key to corporate strategic success. It has been said that in order to strategically implement an organisational change, it is essential that the management should consider the eight managerial tasks for strategy implementation (See Appendix 1) formulated by  (2005).  Using this model, the Procter & Gamble initiation of Organization 2005 will be assessed.

            The eight managerial tasks include (1) allocating resources, (2) building a capable organization, (3) exercising strategic leadership, (4) shaping corporate culture to fit strategy, (5) tying rewards to achievement of key strategic targets, (6) installing support systems, (7) instituting best practices, and (8) establishing strategy supportive policies.

 

Allocating Resources

            Resource allocation often confronts organizations whether public or private inn which decision-makers are challenged to choose the most appropriate means of obtaining success. The most common resource that organization managers attend includes the company’s assets in the form of money, workforce, and technological infrastructures. Of these resources, financial management is common since money serves as the lifeblood of firms particularly those in the profit-seeking ventures. Resource allocation decisions normally involve the presence and participation of the stakeholders of the organization in order to undertake proper assessment and evaluation of options and alternatives. Often times, key strategic resource allocation decisions confront the administrative people when it comes to financial investments of the organizations that are held accountable for whatever output the decisions result to. In Organization 2005 strategy of Procter & Gamble, it can be noted that the management has been able to allocate resources effectively. Although there are some obvious glitches in the management of Jager, the case has also shown that the management have allocated the resources appropriately. In terms of financial resource, the new strategy involved substantial costs. In this regard, of the estimated $1.9 bn in costs, only $400 mn were planned to be used in 1999 and $1 bn over the next two fiscal years (2002-2004).  In line with their human resource, the company has been able to allocate its manpower intensively, though part of the strategy is to cut cost by eliminating 10,000 positions in fiscal 2001 and another cost-cutting of 5, 000 employees after 2001.

            On one hand, during the management of  the new CEO has also give attention to allocate IT infrastructure as part of the change strategy for implementing Organization 2005. P&G Information technology spending had reached $1 bn in 2002 and still increasing. As part of the strategy, Lafley had incorporated various information technology initiatives which include collaborative technology in order to facilitate planning and marketing, Web-enabling P&G’s supply chain, and data standards, business-to-consumer E-commerce and data warehouse project to be able to deliver timely data to desktops worldwide. In doing so, Procter & Gamble had decentralized its 3,600-person IT department to ensure that 97% of their employees now worked in the company’s individual product, market and business teams, or were part of global business services, which supported shared services that includes infrastructure to P&G units. The remaining 3% worked in corporate information technology.

 

Building a Capable Organisation

            As noted in the case, it has been said that the main objective of implementing Organization 2005 is to accelerate the growth of the company. Organization 2005 includes comprehensive innovations in the structure of Procter & Gamble, work processes as well as culture to enable the employees to make themselves become more flexible and speed up the innovation.  In addition, the company also aims to leverage the global presence of the company and become competitive in the global market. In terms of the first managerial tasks, it can be said that, based on the case study, the management o Procter & Gamble has been able to build a capable organisation. First, the management of P&G has been able select the most appropriate individual who will handle or managed the said organisational change. In this regard, as a CEO and as the main person who initiate the Organization 2005, Jager has been able to choose the most appropriate individual that will implement the changes. However, since the Organization 2005 has some flaw during its execution, it can be attributed to the inability of the chosen individuals to meet the real objective of the strategy. In terms of human resources the imperative tasks that has been implemented during the change process include the designing of the work environment and organization structure to move from present departmental structure to the new team based structure, develop new Human resources policies and programs to help employees make the transition and upgrade current employee skill sets and/or hire new employees with relevant skills.

            In order to build a capable organisation, it is also essential that the management must ensure that they are able to dientify the core competency of the business to initate the changes. For all practical purposes, “core competencies” seem to be the same concept as “critical capabilities,” “resources,” and the other possible fads since they all advocate the building of competitive advantage based on “something” internal to the firm. Typically, a core competence is defined in relation to the competitive impact of its output; that is, a core competence provides the firm with (sustainable) competitive advantage via the way it is executed (1991) or via its attributes; for example, a core competence is firm-specific and hence difficult to imitate (1991). However, even if these definitions are useful in terms of competition and strategy, they are not very operational (1992), which sometimes create some serious difficulties in identifying and developing the core competencies of a firm (2000). Hence, organization must be able to determine its core competencies in an operational manner. Once the company has identified its core competency, the next thing to do is to develop all other aspects which can be helpful for achieving the organizational goal, i.e. growth.

Core competencies of the company also represent its competitive advantages; these include features of the company that enable it to overcome business competition and other relevant challenges that they may encounter during the implementation of Organization 2005. In Procter & gamble’s case, one of these core competencies is its workforce or people. Talent and skills are among the most important factors a P&G must look for in its employees.

            Based on the case study, upon the implementation of Organization 2005, the company also considered to have a support-team to make sure that the strategic change will meet its goal. In building capable organisations, the company have been able to think all the important aspects of selecting employees suitable for implementing Organization 2005. Although Jager has experienced problems which led to his resignation, Lafley, on the other hand, have taken over the position and have continued what Jager has started but with some changes.

 

Exercising strategic leadership

            In managing strategic implementation, one must also consider how the management exercise strategic leadership. Accordingly, leadership is an important aspect of management. As stated by a few authors (2005), managing strategic implementation requires full leader participation and involvement instead of designating individual groups who will shoulder all the responsibilities. The involvement of leaders serves a number of purposes. For instance, this helps in preventing the resistance of employees to changes brought about by the implementation of a new strategy. The enthusiasm and determination of the leaders to make the strategy work can positively influence other company staff. Furthermore, this also helps in creating a sense of commitment and loyalty (2005).

            The presence of leadership in strategic change is also one effective factor in addressing technical and non-technical issues. It is important however that the appropriate leadership style is used. In the case of the implementation of Organization 2005, it can be said that there are two leaders who have been responsible for the initiation of the new business strategy: Jager and Lafley. Based from the case study, Jager has become a good leader at the start of the implementation. However, the inability of Jager and his team to anticipate possible dilemma upon Organization 2005 implementation has impacted the whole change process which makes the strategy fail and have forced Jager to resign from his position. As said in the case, there are certain problems that have been encountered in the leadership of Jager. First, Jager had tried to put too much pressure on the Procter & Gambles managers into bringing their products to market faster. The inability of Jager as a leader to decide strategically is also an issue. This can be seen in the dual acquisition of Warner-Lambert and American Home Products, which were useless during that time. In addition, Jager has also become a leader who became reckless in all his action hoping that he will regain what they have lost.

            The next leader who handled or managed Organization 2005 is Lafley, a veteran in the company. As  saw the mistakes of the previous leader of Procter & gamble, he made it sure that he will lead P&G to achieve success. In addition, Lafley can also be noted to use a distinctive leadership style.        Leadership style is the pattern of behavior used by a leader in attempting to influence group members and make decision regarding the mission, strategy, and operations of group activities (2000). In this regard, it is said that Lafley has been able to apply the right leadership style in the right moment and situation to effectively implement Organization 2005. By acting as a responsible leader,  has been able to inspire employees to put the good of the whole organization above self interest. In addition, upon the implementation of the Organization 2005 Lafley also stimulate employees to be more innovative, and he also take personal risks and are not afraid to use different types of methods in order to achieve the objective of implementing Organization 2005.

 

Corporate Culture

Many definitions have been used to characterize corporate culture. Probably, the most common was the one based on Schein’s point of view in which his fundamental assumptions comprise the core and most important aspect of corporate culture. He defined corporate culture as the pattern of creating shared common assumptions that the organization learned as it resolves problems of outer adaptation and inner integration that has been considered valid making it possible for others to pass it down to new members as the appropriate way to think, perceive and feel organizational concerns (1992). In this perspective, Schein appears to emphasize on having a common goal or unified direction among organizational members which is based on the past challenges and experiences the business had successfully overcame. These common goals are then achieved through past practices and strategies that are guaranteed to work. In line with the implementation of Organization 2005, it can be argued that Jager has been able to have unified corporate culture to implement the new strategy.

Through the Procter’ & Gamble’s corporate culture, the company has been engaged in sharing of learning upon implementation of Organization 2005. Sharing of thoughts and experiences with others implies that corporate culture in Procter & Gamble promotes a certain level of stability among the members of the organization to achieve the goal of Organization 2005. This can be seen under the management of Lafley than in the management of Jager.

Corporate culture is founded by certain elements. In this case, values within the Procter & Gamble are the main foundation of corporate culture. The value of the organization serves as its defining elements where symbols, practices, standards and other related matters are derived. Values can be defined as a consistent belief that a certain mode of personal or sociable conduct is preferable against a contradictory mode of conduct. Through this element of corporate culture, employees of Procter & Gamble are able to establish a social identity which in turn generates meaning and connectedness.

 

Tying Rewards to Achievement of Key Strategic targets

            In strategy implementation, the management of the company must be able to ensure that they are able to have a reward system. The employee reward policy is intended to align employees with organizational strategy by providing incentives for employees to act in the firm's interest and perform well over time. Expectancy theory carries a clear message that employees must feel confident that their effort will affect the rewards they receive. Perceptions of equity are therefore crucial in an employee's decision to remain and produce valuable work. Equity is a multidimensional construct, embracing external equity (the degree to which a firm pays employees the rate they would find in the external labour market), internal equity (the degree to which a firm differentiates pay between employees on the basis of performance in similar jobs), and individual equity (the degree to which employees are rewarded proportionately to their individual performance) (1993).

            In the case of Procter & gamble, it can be said that although the goal of the Organization 2005 is to reduce the units of the business structure by laying off some of its employees, other part of the strategy also have a reward and motivational approach, to motivate the performance of the remaining employees. Lafley, in particular, have used a reward approach to increase organizational performance and effectiveness. The company’s reward approach is known to be capable of reinforcing the behaviours crucial to the implementation of Organization 2005 strategy.

            The company creates reward policy in order to motivate and encourage the workers and employees to render their performances to the very best they can and to make a difference individually or by group or teams to ensure that the objective of Organization 2005 strategy will be achieved.  The policy also gives recognition to those employees whose works is exemplary or that employee who has contributes to outstanding achievements and accomplishments of the mission and objectives the implemented strategy.  The incentives used by Procter & Gamble may be monetary or non-monetary.

All in all, it can be said that rewards and recognition go a long way to keeping employees motivated, satisfied, and committed. Management should recognize employees for both their progress toward and achievement of desired performance goals. It should show appreciation for small accomplishment as well as big ones. The recognition must be ongoing to reinforce employees' need to feel that they're doing a good job.  Moreover, the best forms of recognition typically have little or no cost.

Employees are one of the driving-forces that generally contributes for the success or failure of any organization. Therefore the company should be able to create an overall policy that will make the employees feel that they are being valued so that they will be encourage and motivated to provide quality services and help in achievement of Organization 2005 goal.

 

Installing Support systems

            In order to ensure that the implementation of the strategy will be successful, the management must be able to install support systems. In line with the implementation of Organization 2005, it can be uttered that the management of Procter & Gamble has been able to install a support system to initiate the changes. Based on the case presented, part of the support system made by Lafley is its restructuring of the management team. Herein, Lafley restructure the positions of the company to streamline the operations and to be able to meet the objective of Organization 2005 strategy.

            In addition, as part of the support system Lafley also invest on information technology. It is said that through the alignment of information technology and business strategy within Procter & Gamble, the business value of the company could be maximized, and the competitive threat can be minimized (1997;1996). Herein, strategic alignment used by Lafley by investing to IT as a support for Organization 2005 can be distinguished as the process that provides a long-term engagement of the business strategy and the Information Technology resources ( 1998). 

Wognum & Lam, (2000) stated that strategic alignment addresses whether the program concept of a certain business is aligned with the relevant organisations' goals, strategies, problems, and developments.  Moreover, to ensure strategic alignment in business, an organisationally paying attention, formative evaluation model should include training stakeholders, such as trainees' managers and upper-level management, in early stages of design when training content is determined.

Some studies suggest that no business or corporate strategy is complete if there is no information systems strategy. For most firms it is the business strategy that increasingly is dependent on, or made possible by, investment in
appropriate information systems. For some, however, the corporate strategy may be linked closely to information systems, especially if information technology provides the infrastructure through which the firm positions itself in its sector or plans to diversify or integrate into another sector. Planning for strategic information systems should be an important and integral part of the firm's competitive strategy development process which has been done during the management of Lafley. This point has been emphasized as more and more cases have been documented of businesses exploiting IT for competitive advantage and building their competitive strategy upon information systems which limit or enhance the competitive forces operating in their market place. Planning for information systems can no longer be treated as either a budgetary exercise or a longer range resource allocation process.  Information systems planning becomes a strategic exercise concerned  with alignment of IT with business needs, identifying strategic opportunities from IT and ensuring appropriate levels of investment  in IT and information systems are made.

 

Instituting Best Practices for Continuous Improvement

The conception of best practice conceives the subsistence of collection of highly commendable performance of work practice which enhances the overall performance of the organisation that implements its notion (1994; 1995). Best practices may include but not limited to different management approaches such as knowledge management, strategic management, supply chain management, performance management, information technology management and others. Having been able to realise the importance of having a new strategy within Procter & Gamble to increase sale, it can be said that before Jager and his team implemented Organization 2005, this strategy adheres to best practices.

Best practice is the process of specifying an organisation’s objectives, developing policies and plans to achieve these objectives, and allocating resources so as to implement the plans. In this regard, it can be said that the implementation of Organization 2005 has been able to follow the aspects. Before implemented Organization 2005, he made it sure that the objectives has been set, and different policies has been made to support the objective.

Accordingly, successful strategy requires the firm to choose the markets in which its distinctive capabilities yield competitive advantage. But the adaptive,
incremental nature of strategy means that the starting-point is where the
firm is now, specifically in terms of best practice management approach.  Strategy is the direction and scope of an organisation over the long term: which achieves advantage for the organisation through its organization of resources within a changing market environment, to meet and satisfy the needs of the markets and fulfil the expectation of stakeholder expectations. Best Practice helps Procter & Gamble and the management to answers both the questions "where do you want to go?" and "how do you want to get there?" but the first question is answered when Jager and the management team has set the objective of Organization 2005 and the second is answered when the management plan the strategies. While developing a corporate strategy that adheres to best practice for any profit organisation, the management have kept in mind the demand of the customers and the marketability of the products and services offered. However, base on the case, it can also be noted that some of the products and decisions made by Jager did not adhere to the objectives which leads to the failure of achieving the objective of Organization 2005.

 

Establishing Strategy-Supportive Policies

            Part of strategy implementation is to establish strategy-supportive policies which will serve as a guidelines and control system for the initiation of the new strategy. Strategy-supportive policies adhere to the needs of the organisation on having a policy that will standardise the implementation of the strategy. In the case of Procter & gamble’s Organization 2005, it can be said that Jager has not been able to have a strategy-supportive policies. One of these policies is the risk management or risk prevention policy. In relation to Organization 2005, one of the main risk management efforts that Procter & Gamble can apply is the assurance that all project management requirements are available. Professional expertise, financial resources, feasible schedule and proper monitoring techniques should be used by the business so as to ensure smooth project planning and implementation. Efficient planning procedures should be followed by the members of P&G. Information about the strategy should be properly disseminated to other employees so as to obtain their opinions and useful insights about the new business strategy. It is also important that possible problems that could arise during the implementation of the Organization 2005 should be identified. In addition, the Organization 2005 fails because Jager did not use any strategy-supportive policies to address and resolve the problems that have been foreseen in the implementation of the new strategy.

In this regard, it can be said that before implementing a strategy, business should always note and consider all possibilities or problems that can occur in relation to the changes or development and provide a policy to lessen the impact of the conflict.

For strategy implementation, one applicable strategy-support policy that the company may use is the employment of a monitoring system. Through established monitoring systems, problems or possible causes of future problems can be detected easily. It is important that the members of the monitoring team actively participate in this risk management procedure. In a monitoring effort, regularity is important. A definite monitoring schedule should then be set and followed.

            Another strategy-support policy is the implementation of a feedback system. In this strategy, quality team leaders will be assigned per company unit; it is the responsibility of these leaders to take note of the developments of the quality systems project of the company. Information from employees or management regarding defective processes may be immediately reported to the leaders. The feedback system then allows the immediate resolution of quality problems even when monitoring procedures are not scheduled.

            Furthermore, the company may also use other strategy-support policy which is related to mentoring and coaching. In order for the employees of P&G to contribute for the success of the new strategy, it is important that they are given sufficient information and training. This then makes mentoring and coaching an important element of strategy implementation. These two concepts are particularly important before the new strategy is fully integrated in the operations. How to handle customer concerns, ensure product safety, deliver accurate and timely services and prevent product errors are some aspects of Organization 2005 that need proper mentoring and coaching.

In order to apply these two concepts into the project, the company may conduct training sessions for every department unit. Knowledgeable speakers will be invited to discuss the important activities, changes and responsibilities involved in quality management systems. During these sessions, visual aids will be used to promote effective learning. It is important that during these teaching procedures, the specific duties of the staff are explained in detail. These sessions will also allow the department staff to voice out their queries about the project. Once the project has already been implemented, team leaders assigned for each department will provide assistance to their subordinates. New project updates will also be relayed through the team leaders.

            Mentoring and coaching, though most people mistake them as synonymous, are two different terms. In mentoring, it is the responsibility of the mentors to teach basic skills and knowledge to their mentee. According to Watt (2004), the objective of the mentors is to enhance the present knowledge of the mentee. In addition, it is also the aim of the mentors to encourage the individual development of their mentees and provide learning guidance. By means of mentoring, open and effective communication is established, which is very useful not only in educating employees how to integrate quality into their daily duties but also to address the problem on the new strategy.

 

Task 3 Procter & Gamble Acquisition of Gillette

            A unique business phenomenon that is slowly becoming commonplace is consolidation between firms wanting to attain strategic value for their respective organisations. Merger and acquisition (M&A) deals have become part of daily business according to  (2000), to the point where news reporters anticipate ‘merger Mondays’ (a phrase that refers to the usual flurry of such activity at the beginning of the week). Industry-wide consolidation has now grown so pervasive that it in fact has spawned its own lingo, with such terms as bolt-on, roll-up, tuck-under, and carve-out describing various types of transactions. In M&A announcements, it will be frequently claimed that the deal is a true 'merger of equals' that creates superior access to resources and provides a strong global platform to accelerate growth, and will, in all certainty, create significant value for shareholders and represents an outstanding opportunity for customers and employees alike. A number of companies have deemed that through M&A, they will be able to achieve this. Others observed that while examples of failed mergers far outnumber examples of successful ones, there are some companies that have learned how to integrate acquisitions well. Since the aim of the company is to create value for its shareholders, the company has to create a competitive advantage to exploit its inconsistencies in the markets in which it operates – both its trading environment and its financial environment.

Question 1:

Acquiring or merging of two companies are said to be a strategic option for diversified companies because of the strategic business benefits that it would bring to the company. According to  (2002) merger and acquisition will immediately impact the company with changes in ownership, in ideology, and eventually in practice.  In order to have a more successful expansion, the company should provide some marketing strategy for the company in which Citigroup has been able to consider. Hence, one of the strengths of this merger is the diversification strategy imposed by Procter & Gamble right after the merger has been done. 

Furthermore, there are three criteria of core competencies which can also be considered as the strength of the merger or acquisition. These core competencies include superior customer value, business similar in way related to core competency and difficult to imitate or find substitutes for. It seems that the creation of a new diversified company through merger has achieved to a certain extend the above criteria in a way that it did provide something different. In particular, reported in Business Magazine that as a result of the merger, some company was able to centralize computer systems, finance, human resource, project management, and procurement.  In addition, one of the strengths of the merger is its ability to strengthen the competitiveness of the merged company.  Strategic alliances through mergers present an especially attractive avenue for the financial industry since the multinationals will be able to integrate different communications segments quickly, capture a developed customer base, consolidate smaller niches, remove a rival and prevent competition from doing so, and accelerate the implementation of new technologies with combined resources.

Merger became the dominant methods of consolidation and the primary objective was to control assets (assets during those days were the newly invented machinery and equipment, and plants and productive capacity since the economic driver was scale and efficiency of production), and the best way to control assets was to own them (1998).

In addition,  mergers enables the surviving entity to combine assets and activities, substantially lower costs, and become a strong competitor-banks merge and close branches, credit companies merge and move down the scale-economies curve; manufacturing companies merge to combine facilities, increase scale economies, and spread the cost of R&D over volume; companies merge to improve the economics of the supply chain-and in all cases, integration of physical assets is vital in achieving the economic objectives of the combination ( 1998). In the company given above, the advantages brought by its implementation of merging: 1) Establish a base. Obtain a going concern in a particular location.  2) Establish a niche because of the expansion of products offered in terms of financial and insurance services. 3) Increase productivity and profitability. Increase output with unchanged fixed costs, yielding higher profit and 4) Expand geographic coverage. Through merging the company has been able to establish a competitive position not only in the local market but also in the global environment.

On the other hand, merging offers the above advantages and additional ones, such as: 1) Succession planning, which is a way to secure retirement through new ownership. 2) Reduced work level: a way to share responsibility among more people and 3) Security of a larger organization. Through this, the company can be able to cope with larger competitors. Merger can create or enhance strategic assets as well as distinctive capabilities. Furthermore, Kay (1993) stated that merging with other businesses can sustain exclusivity, or maintain the value of a competitive advantage, if they inhibit entry.

            Question 2   

The competition in the business arena has been very stiff and complex.  In this regard, the organization must be able to utilize a strategy and management system that will enhance the performance of the business so as to outgrow its rivals (2005). In today’s rapidly changing and improving companies and businesses, individuals at all levels are also increasingly called upon to demonstrate the ability think strategically.  As the business wants to expand abroad, there are certain tasks that need to perform.  Businesses grow in two distinct ways; by natural so called ‘organic’ means, or by acquisition and merger. The acquisition and merger route is appropriate when growth in traditional products and markets is restricted, due to market size or share, for instance, or when a higher level of growth in turnover is needed, for whatever reason. However, starting up or acquiring businesses outside of current markets and products diversification is an excellent way to strengthen a company.

According to  (2003) there are reasons for acquisitions including different kinds of efficiency improvement such as replacement of inefficient management product, financial, and tax synergies.  Other possible reasons are the tendency to achieve monopoly power, valuation discrepancies which are caused by information asymmetry as well as a number of agency motives such as growth maximization, free cash flow, and employment risk reduction. 

In addition, acquisition allows two previously unrelated companies to achieve economies of scale or synergies.  Under the economic theory, two entities, when combined or been merged may be worth more than if they had remained independent.  This is especially true where a merger allows the companies to either eliminate overlapping cost centres or may reduce transaction costs between two firms.  As a result, the unified firm may reduce costs, improve quality, and boost output.  Synergies also result where the combined enterprises is less risky than the constituent corporations.

One of the recognized acquisitions was the acquisition of Procter & Gamble with Gillette, worth $57 bn. In January 25, 2005, P&G announced that they would acquire Gillette saying that the merger of the two would bring together competitive advantage in marketing and distribution strengths for P&G, whose products are marketed mostly for women together with Gillette’s highly recognised brands which are marketed for men. In the case of Procter & Gamble, it can be said that acquiring Gillette shows some strategic benefits. First, the acquisition recognises and strengthens the existing strategies of both entities by combining complementary businesses and strengths to create an international force in providing products for men and women while maintaining the Company’s commitment to the independent products through enhanced wholesale distribution and retail services. The company’s ultimate aim is to deliver products that make people look and feel their best not only for women but also for men. In order to do so, the company values performance and continuously strives to fulfil promises to shareholders through setting high standards of practice that are recognised by all internal and external stakeholders. It intends to lead the industry with its products while demonstrating expertise in conceptualising, marketing, selling and distributing its brands.

            Expansion of the business is an important and interesting aspect that can also be considered as a strategic business benefit of the acquisition of Procter & Gamble with Gillette. Acquisition has been recognised to be one of the strategic ways in business operation growth and expansion.  In line with the strategy of Procter & Gamble, it can be said that the used of acquisition have been able to provide the company a more comprehensive, efficient and effective ways to have a sustainable company growth. Mergers and acquisitions allow the company to grow both internally and externally because through mergers the family of the company has increased, not only in its local operation but also in global environment.

Further, through the effective used of merger, Procter & Gamble is able to gain competitive advantage among its rival companies. Competitive advantage only arises from establishing differentiation.  According to  (2002) the more competitors stake their strategic thinking upon being the lowest price producer or delivering the highest quality, the more they start to look alike in their marketplace, thus losing their competitive edge over one another.  In meaning, competitive advantage arises out of a meaningful differentiation from one other player in the market.  It is better to understand that developing a successful strategy in standard cycle market proves to be relatively simple for other companies.

However, if looked at too simply, a company will choose a strategy that is too narrow or too broad based on the other factors of choosing a strategy. Determining which customer needs to satisfy is an area where choosing the incorrect strategy can result in a decreased competitive advantage. Hence, with the acquisition of Procter & Gamble with Gillette the company has been able to offer products for men that suit the needs and demands of their respective consumers.   Moreover, through acquisition, the company had been able to gain a competitive advantage by making their product readily available in different parts of the world and always unique compared to other rival companies.

Since the company, had gain different ideas on different kinds of products or services demanded by their customers, especially men, the company had also been able to diversify it products and established better brands which are mentioned above. It can be said that effective acquisition is the key factors for the success of Procter & Gamble.  The company’s merger and acquisitions strategy allows the whole organisation to perform better in the marketplace.

Yet the ultimate success of the deal may depend on how well the acquirers manage the difficult organizational and human resource integration issues at their newly purchased company.  For example, sometimes interpersonal issues can emerge from the top of an organization when key managers cannot agree on a general corporate direction.  More often, interpersonal conflict arises because company employees and division managers have different perspectives regarding the needs of the company wants (and needs) from a merger.  If these human resource issues are not resolved, they can result in the turnover of key people, people refusing assignments, post-merger performance drops, and morale problems.

Profits and revenues are secondary ventures that could also generate business to compete in the market.  According to  (2000) companies that diversify too broadly into unfamiliar products or industries can lose their market focus.       Acquisition, as a corporate strategy of companies, can be examined in two aspects: the financial considerations and the profitability and gains of the company in acquiring, and the employment issues it generates, specifically, the existing employees of the company before the merger. The inevitability of mergers in the face of the increasing economic competition propelled a bulk of literature addressing the issues and considerations that companies must consider before doing so. In a fast-track economy, many companies are forced to enter mergers or involved in acquisitions in order to compete with the global market. Thus, several companies merge or acquire other companies with the purpose of bringing future financial gains for their companies. At the same time, a merger is also a refuge for company’s failures manoeuvring to keep themselves afloat in the market.

               For a long time the trend of merging and acquiring has been happening in the international corporate arena.  In the case of Procter & Gamble, the company used merger to stay in the competitive market and perform better within the marketplace, by providing innovative and new products in terms of financial and insurance services through the ideas that the management gain because of merging with other companies. It shows that without such strategy, the company may not be able to expand its business portfolio and reach more and more customers from local to international market.  

               It can be concluded that merging, along with the concept of strategic management and other efficient marketing approach, can make a company to succeed in achieving its goal of providing quality products with their target market.  However, decisions should be made strategic also. This means, that the company should have the ability to decide which among the companies can be helpful to the company itself. 

 

Appendix 1

 

 

                                                                                                           

CASE STUDY: FINANCIAL HEDGE

1. How the hedge will accomplish the goal of CFC of protecting the value of its foreign currency cash flows?

            Spot exchange rates are risky for MNEs as the primary determinant of host country demand depends largely on the price of its goods, services, labor and entrepreneurship (GSLE).  Particularly true to unstable currencies, price competitiveness of an exporting MNE is pegged on fluctuations of host country’s currency.  If spot rate suggests that the host (say, Japan) currency depreciates, home MNE (say, based in US) GLSE becomes expensive since importers face a stronger dollar.  When sold to end-users, adverse reactions such as added-costs without added-value or simply look at the exporter’s products as unfair may result.  If the spot rate change is cyclical, the MNE is on a relatively comfortable zone.  However, when fluctuations are regular and the direction is unpredictable, the submission of MNE to trade depends on how much risk it can hold.  When MNE investors become anxious in achieving expected foreign cash flows, this is when hedging becomes useful.  

 

            Since forward foreign currency contracts assume that parties tend to maximize their utility, it can also predict the expected spot rate of foreign currency.  This can be helpful for risk-averse MNEs especially when they are only engaging to get a break-even point or fair gains from trade.  It can simply quote its desired level of foreign currency valuation with respect to its GLSE.  Thus, international trade tends to be stable in both demand and supply since speculation is minimized in favor of arriving at forward rates.  In the financial market, forward rates can also result for investors to continuously invest over a period of with little slack time.  As a result, in-need MNEs can gain access to capital easily and readily.  This will also imply that investors are less speculating rather they become more firm-specific.  In effect, quality of products and efficiency can also be outcomes of forward quotations.

 

2.  What are the expected cash flows from the DM transaction if it is hedged in the foreign market? 

            CFC transaction of DM 2,000,000 falls in 90-day forward which results in US$1,146,600.        

 

3.  How would CFC hedge DM in the money market?  And how much will it receive in the money market hedge? 

            In the money market hedge, the DM 2,000,000 will be subjected to two different interest rates from the currency loan; namely, US$140,940.80 if acquired in prime rate while US$139,193.60 if acquired in LIBOR (London).  In the former, the total money would be US$1,023,859.20 while the latter is US$1,025,606.40 with a difference of US$1,747.20 in favor of the LIBOR. 

 

4.  Which is the best alternative for German transaction?

            Interest rate differential has adverse impacts to multinational enterprises (MNEs) particularly on the aspect of seeking for capital in the financial market.  Disincentive will accrue to them if additional costs of monitoring will result from finding an efficient financial market especially when it is publicly traded in different countries.  When the interest rate of the home country is higher than the host country, home investors would shift to host country.  This will make financial markets more ambiguous for investors, thus, more complicated for their investment decisions.  In effect, the slack time used to speculate and identify arbitrage opportunities result to lesser capital source for MNEs.  This will in turn have adverse impacts on their production and distribution while innovation would not be possible.  Thus, interest rate differential posts bottleneck for the global economy.

 

The conditions of the German transaction are as follows: hotel client is opening, parts of order are already shipped, last consignment will be delivered on the second week of October 1991 and November 14 is the payment date.  This should be hedged in the money market because it is compatible to take advantage of the LIBOR’s lower interest rate.  Therefore, the risk to CFC of not getting the gain in investment in money market is mitigated.

 

5.  What is the expected cash flow in JY transaction in forward market?

            The transaction in Japan falls in the 30-day forward which amounts to US$1,120,500,000. 

 

6.  How inflows in JY be hedged in the money market?  What are the expected cash flows?

            If quoted in prime rate, the expected cash flow would be US$1,049,349,600 while in LIBOR it will be US$1,051,703,910 with a difference of US$2,354,310.  Due to substantial amount of the transaction, it can be hedged in the money market through cross-country investment.

 

7.  What should be done in JY inflows?

            Using the foreign exchange (FE) theory, however, concerned countries and firms can anticipate the level of differential through expectations on inflation rate.  Monetary authorities can simply influence local interest rates depending on the rate of inflation, thus, canceling or mitigating future interest rate differentials.  On the other hand, when differential is already established, forward exchange rates can limit speculations from investors as suggested by IRP theory.  Expected change on spot exchange rate can also be used for forward transactions as long as it is based on interest rate differential (IFE theory).  By these tools, arbitrage opportunity can be closed.  Therefore, it is advisable to use the forward currency alternative. 

 

            The following conditions exist in Japan transaction; namely, the client is large located in the country’s capital, payment will be given in September 1991 and the orders was already shipped in August 1991.  The client has large bargaining power position.  CFC cannot afford to loose this client that forward exchange is necessary.  The large base amount would also infuse too much risk when loan is not paid.  The stocks are issued and CFC has no other asset to pay the loan and its interest if the Japan client extends the payment period due to financial bottlenecks. 

 

8.  What is the cash flow on Singapore transaction in the money market?

            The net cash flow is US$271,866.03. 

 

Appendices

	Germany	Japan	Singapore1	Sing 2
Sale price (DM)	2,000,000.00	1.5E+11	250,000.00	250,000.00
Remarks	Hotel client, opening, parts of order alerady shipped, last consignment on second week of Oct 1991, payment will be given on Nov. 14	large trading company in Tokyo, payment will be given on Sep 18, 1991, shipped on Aug	due on nov 23, 1991 from furniture retailer, shipped in the last week of july	another from the same company on 2/17/92, shipment will be made on December 1991

 

Cash flow in the forward market
	Contract Price	Spot	30-day forward	90-day forward	180-day forward
Germany	2,000,000.00	1,164,800.00	1,159,200.00	1,146,600.00	1,140,000.00
Japan	1.5E+11	1,121,100,000.00	1,120,500,000.00	1,118,100,000.00	1,115,250,000.00
Sing 1	250,000.00	143,700.00
Sing 2	250,000.00	143,700.00
TOTAL	1,121,934,000.00
PREVIOUS
In the money market
	Contract Price	1-month	3-months	6-months
Germany	2,000,000.00		140,940.80
Japan	1.5E+11	7.2E+07
Sing 1	250,000.00		7,515.51
Sing 2	250,000.00			8,018.46
	On LIBOR
Germany	139,193.60
Japan	6.9E+07
Sing 1
Sing 2
	Total at prime rate	Total at LIBOR rate
Germany	1,023,859.20	1,025,606.40
Japan	1,049,349,600.00	1,051,703,910.00
Sing 1	136,184.49
Sing 2	135,681.54
	1,050,645,325.23	1,052,729,516.40

 

              

 

 

 

 

           

 

           

           

 

 

 

REGISTRATION AND REGULATION OF TAX AGENTS IN AUSTRALIA

Introduction

Creating a stable, internationally competitive tax environment for business is an important part of making Australia an attractive destination for investment funds from around the world. To ensure that the Australian tax burden on mobile capital is competitive with that imposed overseas, the country particularly needs to reduce the rates of tax on company profits and capital gains. For example, a capital gains tax on land is a lock in transfer tax that impedes movement between uses ( 1999). To the extent that tax revenues need to be boosted to compensate for planned reductions in company tax receipts, an Economic Growth government will increase taxes on land, labor and congesting or polluting activities.  Taxes on labor and capital are inherently distorting in a way which is not true of taxes on immobile land. It needs to be noted, though, that before too hastily looking to restore the tax base, there are inefficiencies in the delivery and targeting of government services that should be examined first for expenditure savings. Under an Economic Growth government, personal income tax will be replaced to a significant extent with a uniform consumption tax ( 1999).

 

Taxing consumption rather than income has the advantage of discouraging consumption and encouraging investment, a change that will reduce Australia's dependence on foreign investment with all that this implies for our balance of payments. While accepting that a uniform consumption tax is regressive, it also has to be accepted that considerable inequality of income is probably necessary to generate high levels of savings and investment.  In any case, low income earners and welfare recipients will be financially compensated for the one-off price increases associated with introducing a consumption tax. Note also that a uniform tax does not distort the relative prices of business inputs ( 1999). The Post-Materialism Party plans a number of changes for the Australian tax system, including the removal of most taxing powers from the states and the granting of enhanced taxing powers to regional and local bodies. Changes will not include a consumption tax which people believe will become unenforceable with the growth of encrypted electronic commerce. Greater emphasis will be placed on taxing material aspects of economic activity and on taxing personal wealth, capital gains and income to both raise revenue equitably and to implement plans to cap personal consumption ( 1999).

 

Taxes provides additional source of income for the government of Australia, It is used for the state to initiate projects and improve the services they offer to their citizens.  Taxes also are used by the government of Australia to attract more businesses to invest in the country and help the country improve economically.  Registration and regulation of tax agents in Australia is one change that the government is putting its focus on.  The paper intends to describe the current arrangements for registration and regulation of Tax agents and why it is believed that the arrangements are inadequate.   The paper will also examine the proposed arrangements of registration and regulations of tax agents for the country and why the government expects these arrangements to improve the tax practices in the country.

Registration of tax agents

The inefficiencies that taxes bring to the economy depend largely on two factors: the level of the tax rates with which tax bases are taxed, and the elasticity of those bases with respect to the tax rates. With lower tax rates and the more inelastic the tax base, the less effect taxation will have on economic behavior ( 1995).  Within the limits imposed by equity considerations and given their revenue needs, governments that paid some attention to economic efficiency would thus attempt to keep tax rates as low as possible, especially on elastic bases. The tax systems that have come into existence, both in their levels and in their structures, are more the result of political and administrative considerations and of historical developments than of the rational prescriptions of economists. Internationalization of economic activity may not change the objectives that governments try to achieve through their tax systems (1995).

 

 However, by expanding the scope of economic activities on the part of taxpayers in different countries and by widening the range of their actions, the internationalization of economic activity will introduce the tax systems of foreign countries among the variables that influence the economic decisions of the taxpayers of particular countries. Like tectonic plates grinding against each other, the tax systems of different countries will develop arbitrage pressures created by different tax rates, by differences in the bases that are taxed, by different possibilities of avoidance and evasion, and so forth. These pressures will be strong in some areas and less strong in some others and will become more intense as the process of world integration proceeds. These pressures will be exploited by private economic operators to improve their economic welfare thus affecting tax revenue, economic efficiency, and the equity of the tax system ( 1995).  In some cases, they may also be exploited by some governments to gain tax revenue or other advantages at the expense of other governments. The implication of globalization for tax administration and, to a much lesser extent, for stabilization also receives some attention. The discussion identifies differences in tax systems that can continue to exist in the face of the growing integration of the world economies and differences that cannot continue and that somehow must be reconciled ( 1995).

 

The tax agents have an important role in ensuring that the tax system works well for the country.  In order for one to be a tax agent he/she should be fit and should be the proper person for the job. The tax agent should also have expertise in Australian income tax law and other accounting principles. A tax agent would be deemed fit and the proper person for the job if he/she has not filed for bankruptcy; has relevant employment; has good fame, integrity and character; and if he/she has no serious tax offense.  Other qualifications for a person wanting to be a tax agent include the person having completed accountancy course of three years or more.  The arrangements for registration seem to be inadequate since it checks only on the qualifications of the person and not his/her traits and characteristics.

Regulation of tax agents

Australia in the first third of the twentieth century introduced pervasive regulation of economic activity and isolated its markets from the international economy. It did this in pursuit of equity in income distribution and national development. It maintained this system but operated it more moderately through the second third of the century. Australia's economic performance was abysmal relative to other countries that are now rich in the period of strongest commitment to regulatory isolation. It was mediocre in the period of more moderate application of the policies straddling mid century ( & 2003). Most Australians, now as a century ago, live in communities that value the expansion of amenities and opportunities associated with increasing population. It seems that only a comprehensive failure of leadership and management affecting provision of services in the great city of Sydney would cause a retreat from support for national population growth at least at something like the current level of about one and a quarter per cent per annum. This rate is lower than the average for the twentieth century, but would be still the highest of the developed countries ( & 2003).

 

The economy of Australia continues to improve as the years develop. This can be a good thing for the industry and for the company. The improving economy can help the company attract more clients. A better economy can attract the citizens of Australia to buy the healthy products from the company.  One thing that contributes to the improving economy of the country is responsible tax agents. Australia has arrangements for the regulation of tax agents. The regulation of tax agents is focused on maintaining the balance of supply and demand and maintaining the quality of standards. In regulation of tax agents, the balance of supply and demand is maintained wherein the number of tax agents removed due to the regulation will be replaced by the exact number of new tax agents. The number of tax agents is monitored to prevent more problems.  In regulation of tax agents, the quality of agents is maintained wherein the new tax agents should have the same quality of service as those who were tax agents before them.  The regulation techniques may be inadequate because once the person who wants to be an agent passes the recruitment he/she might be a tax agent without the government verifying further his capabilities.

 

Proposed Arrangements

Reforms will always be a part of how a country operates. Reforms can bring good or bad things; it can create changes that not all may necessarily want.  The government of Australia saw the need for reforms in the tax agency of the country. These reforms affect the way registration and regulation of tax agents is done in the country. The proposed arrangements include a deeper understanding of who is a tax agent and what he/she do; another proposed arrangement is to set up registration procedures for both tax agents and Business activity statement (BAS) service providers; a proposed arrangement is to alter how tax agents structure their tax service business; a proposed arrangement is to create a code of professional conduct for the tax agents; moreover a proposed arrangement is provide a wider range of disciplinary sanctions that will be administered by the National Tax Practitioners Board; ;lastly a proposed arrangement include a safe harbor for clients when they experience tax shortfall administrative penalties where a tax agent is involved.  The government believes that the regulations can greatly make the delivery of tax services more effective. The government thinks that the use of the proposed regulations can ensure that the tax agent will perform his/her duties accordingly and they will create problems with the client that will hamper delivery of services. The proposal is needed and can greatly improve the service by the tax agents. The proposal will create faster delivery of service with lesser errors. The proposal will have the desired effect since it covers aspects of taxation and tax agency that needs to be altered. The proposal can reach for its desired effect because the change it intends to make is for the common good of the taxation practices of the country.

 

Conclusion

The tax agents have an important role in ensuring that the tax system works well for the country.  In order for one to be a tax agent he/she should be fit and should be the proper person for the job. . The regulation of tax agents is focused on maintaining the balance of supply and demand and maintaining the quality of standards. The government of Australia saw the need for reforms in the tax agency of the country. These reforms affect the way registration and regulation of tax agents is done in the country. The proposal is needed and can greatly improve the service by the tax agents.

References

 

 

Driving Strategic HR Initiatives through Scalable Internal Coaching Programmes

 

Driving Strategic HR Initiatives through Scalable Internal Coaching Programs

 

            Everyone in Human Resources is striving to become more strategic. It's a legitimate goal, but quite possibly one many HR practitioners are not professionally prepared for. Ill prepared HR professionals get into trouble because they don't know exactly what the word means. It's not enough just to say that you're strategic, because nearly everyone says that these days. It is essential that there is credibility are going to assert as strategic, that will have to understand exactly what is and is not strategic and be able to realise that top management, not HR, makes the ultimate decision as to what is or is not strategic. "What is or is not strategic is determined by senior managers outside of HR. They judge strategic actions or programmes not by the words that describe them but instead by their actual impact on business results, which incidentally, are always measured in money terms. The learning that becoming strategic is a legitimate goal for everyone, including those individuals who jobs do not directly impact a corporate or division level strategy. However, becoming more strategic is also a goal that requires a great deal of advance preparation and coordination.

 

            Most HR leaders go astray by not investing the time to identify what others, namely executive leadership and key customer groups consider strategic. To guarantee success, learn to identify what key corporate goals you can realistically impact, include as many of the essential elements of world-class strategy as possible, and always communicate to others in the other universal business language, dollars. The scalability of internal coaching programs will align human resources as a means integrating decisions about people with decisions about the results an organization is trying to obtain. By integrating human resources management into the agency planning process, emphasizing human resources activities that support broad agency mission goals and building a strong relationship between HR and management, agencies are able to ensure that the management of human resources contributes to mission accomplishment and that managers are held accountable for their HRM decisions.

 

            Nevertheless, there is still a long way to go if HR is to become a strategic partner at all levels. To do so, HR needs to build its own internal coaching competencies to deal with organizational issues, educate itself on agency and program missions, and find ways to offer creative and innovative solutions to organizationwide issues. Thus, business coaching has been expanding from executive coaching exclusive to people at the top of an organization into individualized support for people at all levels. But according to Scott Blanchard: According to , coaching is about to change its connotation as one on one process to that of being a full-scale organizational initiative that measurably magnifies the benefits of training as organizations spend extraordinary amounts of capital to develop and train their workforce.

 

 

 

            Thus, the people in charge of human development are looking for ways to make training programs sustainable, and thus, increase return on investment. According to industry research, when training is combined with coaching, individuals increase their productivity with training alone. This is because coaching helps people organize their increasingly complex lives, providing focus, a clear direction for setting goals and the ability to develop meaningful action plans. Coaching helps to ensure that individuals and their organizations achieve targeted goals. The dilemma has