Business Environment in India

India Business Environment Analysis MNGT375. 102 – International Business Fall 2009 – Thursday 6:30PM Mr. Dennis L. Noah By: Brandon Barrett Andrew Murphy I. General Characteristics of the Country The country’s terrain varies by region. The renowned Himalayas lie to the North while highland plains occupy the south, home to the Deccan Plateau. The West conveys a different terrain bringing large deserts. As a result of the terrain varying from region to region the climate follows suite. In the south the climate is tropical but moving northward it becomes more temperate. ,000 km of coastline cover India’s borders making it very accessible. The Arabian Sea and the Bay of Bengal allow water transportation to be done easily for most of the country. The country has a somewhat established infrastructure. The infrastructure does not support its 1 billion plus people properly but despite that its infrastructure is sufficient for the short run and will only improve i n the future. Telecommunications in recent years has experienced significant expansion due to the deregulation of telecommunication laws. The cellular service industry is experiencing extremely rapid growth. However the telephone density is merely 40 out of 100 people across the nation. There are a total of 81 million internet users which is a huge untapped market available. There are 349 airports in all of India. 250 of these airports have paved runways; however the other 99 airport’s runways are unpaved. There is 63,327 km of railways throughout the country which is a very established railway system. There is 3,316,452 km of established roadways in India which is the second largest amount for any country in the world. There are 53 national highways which carry a majority portion of the traffic. In addition to roads, there is 14,500 km of waterways mainly in rivers and canals in India. India contains 11 major seaports The conditions within India are not the finest. India is a premier destination and source of human trafficking for commercial sexual abuse and forced labor. Men, women, and even children are exploited and forced to work on mills, factories, and women are forced to marry unwillingly. India is also the world’s largest producer of Opium for pharmaceutical purposes; however an undetermined but high rate is also illicitly developed. Despite obvious obstacles in India’s current economy, the potential for this untapped market is infinite and an intelligent investment for many multinational corporations. II. Political & Legal Environment The system of government in 23 states closely resembles the federal system Union (Political structure, 2009). However, seven Union territories in the country are administered by the President. The Chief Minister (CM) of a state government has the executive powers while the Governor, elected by the President, is the head of Executive (India's politics, 2009). The Council of Ministers of a state is lead by the CM and is responsible to the elected legislative assembly of the state just like the federal government (Political structure, 2009). The judiciary is independent of the executive in India. The Supreme Court (SC) is the apex court in the country. The High Court stands at the head courts of the states. Each state is divided into judicial districts presided over by a district and sessions judge, who is the highest judicial authority in a district (India's politics, 2009). â€Å"There are courts of civil jurisdiction, known in different states as munsifs, sub-judges, civil judges and the like. Similarly, criminal judiciary comprises chief judicial magistrate and judicial magistrates of first and second class† (India's politics, 2009). Corruption has gone down in India due to transparency, reformed and free judicial system (Country profile: India, 2009). The Supreme Court is supreme; it has original, appellate and advisory jurisdiction (Daniel, 2004). Its exclusive original jurisdiction extends to all disputes between the Union and one or more states or between two or more states and protects the Fundamental Rights of people (India's politics, 2009). The Supreme court has 25 justices and one Chief Justice (CJ) appointed by the President and hold the office till the age of 75 years (India's politics, 2009). It does not deal with criminal cases (Daniel, 2004). III. Economic Environment Despite economic woes that swept through the United States, and in turn the rest of the world in mid-2008; India has weathered the storm while outpacing recovery relative to many other developed and emerging nations. Year to date the Bombay Stock Exchange small cap index has outperformed the S 500 and Dow Jones Industrial Average by over 100%. Appendix A) Financial markets have recovered at an unprecedented pace; however, fundamental and economic indicators suggest this rally is fueled by massive injections of liquidly, government intervention, and quantitative easing therefore deeming growth unsustainable. While evidence from monetary, fiscal, and economic policy globally suggest a double-dip recession is palpable; consumption between the Old World (US, Western Europe, Japan) & New World (Total World minus US, Western Europe, Japan) has changed. Currently emerging markets are expanding and consuming more than developed economics. Contrary to prior trends, OPEC’s largest customers now lie within emerging economies, and China is now the main consumer of Asian goods not the United States. India is poised to exponentially contribute towards New World growth driven by a free-market democracy, emerging middle class, capitalistic mindset, young English-speaking entrepreneurial population, and large inflows of foreign direct investment. (Market Commentary Report, Marc Faber) According to Citi Emerging Markets outlook nominal GDP in US$ bn was 1175. 0 in FY08 compared to 913. 5 a year before. Real GDP yoy growth was 9. 0% in FY08, and is expected to contract to 6. 7 in FY09 and steadily grow back to 8% yoyby FY12. Real imports and exports are expected to grow by 17. 9% and 12. 8% respectively in FY09. While imports and exports have experienced negative growth over the past few months the trade balance has narrowed to US $5 bn. Over the next year expected higher oil prices should impact India’s external a ccount considering they import 70% of their crude oil. Majority of GDP growth is driven internally so the nation is less depended on export growth than other countries. India’s current account is expected to be US -$43. 7 bn; exports will make up 169. bn while imports were 286. 5 bn. The current account in FY08 represented 1. 5% of GDP, and is expected to be 3. 8% in FY09. Foreign direct investment was US 15. 4 bn in FY08, and is expected to grow to 20 bn in FY09. According to Citi Investment research public debt should be reduced by US $200M this year. Before 1992 the Indian central government exercised tight control over foreign-exchange transactions and investment. From 1975-1992 Indian authorities managed a floating exchange rate system in which the rupee was pegged against a weighted basket of currencies similar to special drawing rights from the IMF. In March 1993 a free-floating exchange rate system was implemented. In comparison to other exchange rates the INR/USD has been less volatile. In Q2 2008 the exchange rate was 43 rupees for 1 U. S dollar, currently 1 U. S dollar yields 46. 44 rupees. In the past year the U. S dollar has appreciated against the rupee; however, long-term we believe the U. S dollar will depreciate against most currencies. Expansion of the United States balance sheet and monetary base suggests over the next few years the influx of dollars in circulation will devalue our currency and eventually lead to inflation. Operating a manufacturing facility in India does pose some exchange rate risk, but in the long run divesting some operations international may provide an inflation hedge. If the rupee does appreciate against the U. S dollar as expected the facility in India could use their rupee earnings and cash flow to purchase raw materials at a discount and retain earnings in a currency that will hold its value, and yield more purchasing power when converted back to U. S dollars in the future. Foreign capital investment also experienced deregulation with a â€Å"lazzi-faire† approach during the same period. Prior to July 1991 the central government of India followed the Foreign-Exchange Regulation Act. This act required all foreign capital be granted approval by India’s government; after the new foreign investment policy was announced, automatic approval was prescribed for 34 industries deemed high priority with an equity limit of 51%. In regards to ownership, after elections earlier this year India’s foreign investment policy has become even more deregulated. According to the Ministry of Finance the upper level of foreign ownership has been raised from 51% to 74% and in some cases to a 100%. â€Å"The finance minister announced the government’s commitment to a 90-day period for approving all foreign investment. Government officers will be assigned to larger foreign investment proposals and will facilitate Central and States clearances in a time-bound manner. † (Foreign Investment Policy, Ministry of Finance) Other recent policy changes have been developed to provide incentives for foreign firm participation within India. India’s most recent foreign investment policy on the Ministry of Finance website indicates the ban against using foreign brand names/ trademarks has been lifted, the corporate tax rate for foreign companies was reduced to 55% from 65% (domestic tax rate is 40%), long-term capital gains rates were lowered to 20% for foreign firms, and the Indian Income Tax Act exempts export earnings from corporate income tax for both Indian and foreign firms. India has a three-tier tax structure in which majority of taxes are indirect such as sales, value added, and goods and services tax. Intellectual property rights are also regulated; the Embassy of India posts in their policy statement that â€Å"there is a well-e stablished statutory, administrative and judicial framework to safeguard intellectual property rights in India, whether they relate to patents, trademarks, copyright or industrial designs†. Intellectual Property Rights in India, Embassy of India) India has become a developed market place; the Bombay Stock Exchange is the largest in South Asia, and the 12th largest in the world with a market capitalization of US 1. 79 trillion. With the oldest exchange in Asia and a developed regulatory framework; the nation also has a wealth of trade organizations and business associations to set standards and polices for various industries. Currently India has several hundred industry trade associations ranging from Ahmedabad Electri cal Merchants & Contractors Association to the Wood Furniture Makers Association. The Federation of Indian Chambers of Commerce and Industry and the Confederation of Indian Industry can be valuable government organizations when researching various compliance regulations and associations related to your firms industry. According the Federation of Indian Chambers of Commerce & Industry website there is a Manufacturing Committee aimed at making the industry globally competitive while indentifying possible risks and threats faced by the sector. Firms manufacturing small household appliances would join the Indian Electrical and Electronics Manufacturers Association (IEEMA). Founded in 1948, Indian Electrical and Electronics Manufacturers’ Association (IEEMA) is the representative national organization of manufacturers of electrical, professional electronics and allied equipment having over 550 members, Whose combined annual turnover is over Rs. 1,00,000 croresi. e. US $ 22 billion. † (About Us, IEEMA. org) The Southern India Engineering Manufacturers Assoc iation (SIEMA) might also be a valuable association to join which aims at protecting the interests of engineering companies. The Focus on the Global South organization indicates India currently has nine main regional trade agreements, and has 18 more under negotiation. Operational agreements include Agreement on South Asian Free Trade Area, Asia Pacific Trade Agreement, Bangladesh – India Amended Trade Agreement, Bhutan-India Agreement on Trade, India-Maldives Trade Agreement, India-Singapore Comprehensive Economic Cooperation Agreement, India-Sri Lanka Free Trade Agreement, India-Thailand Free Trade Agreement, and the Indo-Nepal Treaty of Trade. The most recent agreement was signed in 1992, and all have a scope on the trade in goods; however agreements currently in negotiation focus on goods, services, investment, and economic cooperation. (Overview, Focus on the Global South) On par with many other emerging countries, India’s main industries are in the agriculture, service, and industrial sectors. Specifically the retail sector is the largest industry and the second largest employer after agriculture which accounts for about 60% of the population. Press Releases, Department of Commerce) India recently has been a premier outsourcing destination because of its low-cost but skilled and educated labor. The information technology and software sector has been successful in developing a global footprint with a slew of small business servicing niche areas in the IT market. Examples include firms that provide supply chain management, CRM, and turnkey solutions to specific industries. India is also on the technological frontie r with companies leading the way in smartcard and RFID development and implementation. The largest company in India is Reliance Industries which operates in the oil and gas industry; however, it has become a major conglomerate with a market value of US 91. 53 mi. (India’s 40 Largest Companies, Forbes) The company’s activities span from exploration and production of oil and gas to petroleum refining and marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles, retail and special economic zones. (About Us, Reliance Industris) Second, is Oil & Natural Gas Company with a market value of US 61. 1 mi then the State Bank of India with US 24. 09 mi and assets of US 188,565 mi. In emerging and developing countries it’s normal for oil & gas, financial, and utilities companies to be the largest, because they build the foundation for growth and stability. India’s economy can only grow as fast as the financial and banking sector expands and the infrastructure that supports power, communication, and networking firsts ne eds to be in place before a modern market place can develop. Historical and present day, India is still considered a country with high political and terror risks. Recently attacks in Mumbai and tensions with Pakistan have caused some turbulence in financial markets; however, any organization with a long-term focus should not be readily concerned about political and economic risk because India is only bound to benefit from democracy, growth, and deregulation that benefits free-markets and trade. Geopolitical threats are concerning, but from a U. S standpoint the situation is not any better considering were in two wars. Divesting some operations in India could actually serve as a political and economic hedge reducing our exposure to specific threats the United States may experience. According to the Transparency International’s Corruption Perception Index of 2009, India ranked 84th out of a 180 countries with a score of 3. 4 out of 10. While India does not rank well on the CPI index it is still at the top of all South Asian countries. According to New Delhi most corruption lies in bribes and speed money to low-level public officials to â€Å"speed things up†. Following general elections on May 13, 2009, the Indian National Congress won 206 seats an additional 61 from before. The Indian National Congress represented 28. 5% of the vote following the Bharatiya Janata Party with 18. 80%. (Election Commission of India) Both major parties represent different alliances the United Progressive Alliance and the National Democratic Alliance. The United Progressive Alliance is said to lean more on the left side of the political spectrum with socialist and communist ideologies; however, the finance minister has made it clear through economic reforms that reflec t a market-based economy works best. Attention needs to be given to the apprehension between India’s governments and the finance minister’s economic objectives. Nonetheless, policies have recently continued to favor a free market approach. Last February the Indian government introduced its Union Budget for 2009-2010 which aimed at economic revival from the global slowdown. â€Å"Three fiscal stimulus packages in the form of tax relief and increased expenditure on public projects along with RBI taking a number of monetary easing and liquidity enhancing measures were introduced. † (Union Budget, New Delhi) India’s economy along with many others needs to adjust to a new economic landscape which includes Asia’s economic surge, America’s decline, and regional agreements. The stimulus packages are used to fuel growth rates in gross domestic product while creating profit maximizing incentives and protection for various industries. While India’s regulatory framework is still undergoing major development in terms of trade and economic policy; they also have made exponential progress. The nation is growing at over 1. 5% yoy with a rapidly emerging middle class which will drive consumerism in years to come. India is moving forward in the right direction by encouraging investment and ensuing political stability. We have a positive outlook and believe the current environment could be beneficial in minimizing the initial injection of capital to start operations. IV. Cultural and Socioeconomic Environment Religion and culture plays an important role in social relations and business in India. Traditional Indian society is defined by relatively strict social hierarchy. The influences of Hinduism and the tradition of the caste system have created a culture that emphasizes established hierarchical relationships (Social Hierarchy, kwintessential, 2009). Every relationship has a clear- cut hierarchy that must be observed for the social order to be maintained. About 81. 4% of the population of India practice Hinduism, 12. 4% practice Islam. Other religions include Sikhism, Christianity, Buddhism and other religions (Background note, U. S Department of State). The Indian caste system describes the social restrictions and discrimination in India, in which social classes are defined by thousands of groups, often termed as â€Å"Jatis† or castes. Discrimination based on caste is officially illegal, but remains prevalent, especially in rural areas. However, the government has made strong efforts to minimize the importance of caste through active affirmative action and social policies (Society and Culture, Times of India, 2007). India has a high context culture, many things are left unsaid. They do not like to express ‘no', be it verbally or non- verbally. Rather than disappoint you, for example, by saying something isn't available, Indians will offer you the response that they think you want to hear. If terms such as â€Å"We'll see†, â€Å"I will try† or â€Å"possibly† are employed then the chances are that they are saying ‘no'(Manners, RiddhiShah, 2005). Religion, education and social class all influence greetings in India. This is a hierarchical culture, so most senior persons or eldest are greeted first. Shaking hands is common, especially in the large cities among the more educated who are accustomed to dealing with westerners. Men may shake hands with other men and women may shake hands with other women; however there are seldom handshakes between men and women because of religious beliefs. They say â€Å"Namaste† by putting two palms together as a respectful greeting. Business cards are exchanged after the initial handshake and greeting. Using left hand to exchange business cards or gifts is considered disrespectful. It is also important to know that Hindus do not eat beef and Muslims do not eat pork (Meeting/Dining Etiquette, kwintessential, 2009). In Indian society, aggressiveness can often be interpreted as a sign of disrespect. This may lead to a complete lack of communication and motivation on the part of the Indians. Criticism about an individual's ideas or work needs to be done constructively, without damaging that person’s self-esteem (Doing Business in India, 2009). Hospitality is a key part of doing business in India; most business discussions will not even begin until tea is served and there has been some preliminary talk (Manners, Riddhi Shah, 2005). Indians prefer to do business with those they know. Relationships are built upon mutual trust and respect. In general, Indians prefer to have long-standing personal relationships prior to doing business. It may be a good idea to go through a third party introduction. Labor is abundant in India. It is currently estimated to have a total workforce of 397 million where agricultural and allied sectors accounted for about 60 percent of the total workforce. Only 28 million workers are employed in the organized sectors. Almost70 percent of the Indian workforce is under the age of 30, and 80 percent of the young people entering the workforce do not have high-school education or skills that are needed in the job market (Human Capital, 2009). With a majority of unskilled labor, many well-educated individuals within the ranks of the unemployed and under-employed, including technicians and engineers, can also be found without much difficulty. One area of focus for both Indian and foreign investors has been on information technology. This sector has been described as the engine of growth of the Indian economy. The Indian software industry is growing at a rate of more than 50 percent a year, and the country appears to be on track to achieve IT exports of $50 billion by 2010. Approximately 10,000 Internet companies were established in India in 1999, and after years of experiencing a brain-drain effect, Indians are returning home to start and work for technology companies. However, labor shortages are beginning to occur at the highest levels of some service industries especially in IT enabled services (Human Capital, 2009). The numbers of persons with managerial and other white-collar skills are increasing as newly established management institutes begin to produce graduates. There are 5,114 industrial training institutes as well, which have a total capacity of around 742,000 students, offering courses in engineering and non-engineering trades. Even for those graduates from professional disciplines, quality of education imparted is a major issue. Only 25% of engineers, 15% of finance, and accounting professionals and 10% of professionals with Indian degrees are suitable for work in multinationals companies (Globalization and education, 2008). It is important for an investor to meet local business community and start networking at Indian trade fairs to make the right connections. Local business consultants, government agencies and local US embassy also provide necessary information and assistance to start up a business there. It is also good to think of using a local agent or setting up your own office and take legal advice on regulations that may apply to the product or service. V. Industry Specific Information There are hundreds of privately owned companies that make small motors in India but there are no public companies that manufacture this product. Since private companies are not required to disclose their activities and financial information to the public, there no industry information available to us. There are at least 450 small motor manufacturers and suppliers in India (Electric Motors, India Mart). The existence of huge number of manufactures indicates that the small appliance industry is doing quite well. Some manufacturers sell their products within the country and some of them have extended their market to other countries. For instance, one of the largest manufacturers and suppliers of small motors in India, New Bharat Group, sells its products to at least 23 countries in Asia and Africa (Export, New Bharat Group). It will be one of the biggest competitors among many other competitors. Along with the economic growth and rapid urbanization, the Indian household appliances market has been growing each year. The household appliances market reflects the sale of six product sectors: refrigeration appliances, washing appliances, vacuum cleaners, dishwashers, room comfort appliances and cooking appliances. The Indian ousehold appliances market generated total revenues of $4. 8 billion in 2008. In 2013, the Indian household appliances market is forecasted to have a value of $7. 7 billion, an increase of 60. 7% since 2008 (Market Analysis, Datamonitor). It indicates that there is a possibility that the market size of electric motors in India will even get bigger. The availability of raw material suppliers is fa vorable to the small motor manufacturers because metal industry is one of the leading industries in Indian economy. Some other materials could be imported from neighboring country China as well (Electric Motors, Indiamart). VI. Benefits and liabilities of current situation Deciding where to locate productive activities for a manufacturing planet is a major business decision in which various risks need to be accessed to ensure the long-term strategic role of the firm and country align. In our case study we decided to own foreign production activities instead or outsourcing and developing a complete turnkey solution. While initial start-up cost and risk increase there is also a direct relationship between profitability. While production activities may already be organized, more focus must be placed on the logistics of the operation. How will the firm acquire materials? How is the location strategic towards business processes? Our organization must look beyond firm specific and product factors that may effect production, and focus on political risk, exchange risk, market risk, etc. If our company begins developing small motors for the appliances we already sell, then our manufacturing planet will aid in making our company more vertically integrated. Being able to supply components required to build the finished product lowers cost, protects proprietary technology, and improves overall business efficiency and practice. Considering equity ownership varies among industries, our manufacturing facility will most likely have to be in conjunction with a local firm. However, considering the engineering and operational expertise, Indian firms that can provide a strategic alliance or joint venture may benefit our organization and business process. Labor capital is one of the main reasons U. S companies have outsourced operations to India. From a human resources perspective India has a young population that’s educated and English speaking – a manufacturing facility would have no problems acquiring college grads for anagement and engineering positions while also obtaining machinist and assembly line workers. The overall labor cost used in the production of appliances would be less in comparison to the United States and quality would not be sacrificed. International human resource management will play a vital role for the firm as a strategy needs to be implemented to get amalgamated to the host c ountry through cultural, language, and practical training. A partnership or strategic alliance will help our international labor relations an ability to develop a competitive advantage while enhancing bargaining power. Compensation would be based on equalizing the base salary in terms of purchasing power between the countries; the standard of living in the home country would be on par for the host country. India with over 1. 1 billion people not only makes for a premier location to operate a manufacturing facility, but more importantly a marketplace for its appliances. Our firm has decided to implement a global standardization strategy that utilizes the local labor force. We feel this strategy is best for reaping cost reductions, economies of scale, and value added location economics. A global strategy would best serve our facility over a transnational or localization strategy because our product doesn’t have to be tailored to tastes across different geographic markets. Considering differences in consumer tastes and preferences don’t change much in what is required of appliances; our manufacturing facility should be focused on achieving economies of scale and utilizing various distribution channels locally with strategic partnerships. India also has several resource endowments that will help in reducing cost of raw materials from accessibility and ease. In addition being close to raw materials required for production reduces transportation cost while shipping cost are also reduced from have a facility in the middle of Asia, the largest potential market. India has a developed and regulated political economy with an individualistic mentality. The nation has a democratic political system in which government officials are elected through the people either directly or indirectly. While political risk does exist given the controlling political party (United Progressive Alliance) drives from socialist and communist ideologies. However, the government is a democracy and the citizens realize a free-market approach is best for their society; thus we consider the government politically stable without the risk found in totalitarian regimes. The economic system in India is evolving and moving towards a market economy, but currently has the elements of a mixed economy with some regulatory restrictions. As the finance minister continues to enact polices that discourage government intervention and open up markets for trade and investment – the economy is rapidly evolving into modern capitalistic system. Along with regulated and historically stable financial markets the legal system also has the framework necessary for protecting intellectual property and ownership. Business laws and incentives have been enacted to encourage foreign development and investment; corporate tax rates have been reduced and equity ownership caps have increased. After accessing the political, economic, and legal environment we believe the potential return and value creation offsets the risk and possible implications faced by operating a facility in India. Inherent with divesting operations internationally the host firm accepts a degree of translation, transaction, and economic exposure. However, given the fundamentals on the U. S dollar outlook in the economic environment section we believe future favorable exchange rate fluctuations will increase the value of our company’s equities, assets, cash flow, and earnings. The caste system is still present in India, but the government has outlawed caste-based discrimination, and their social stratification allows for upward mobility. Considering socioeconomic factors bring production to India not only reduces cost, but will help our firm penetrate a potentially large marketplace as Indian consumers will be more likely to purchase products developed and produced in their home country. VII. Expectations of country competitiveness related to industry The household appliances market is rapidly expanding in emerging countries such as India and China where demand is driven by an emerging middle class. In India it is expected by 2012 the middle class population will be size of our total population, around 300 million. The manufacturing industry specifically dealing with the production of small-motors is a saturated marketplace consisting of over 450 companies. Industry leaders include the New Bharat Group and Havells which supply small motors across Asia and Africa. Considering the concentration of firms in this segment it would probably be most beneficial for our company to partner with a retail distribution chain or technology firm that will be sure to add value while protecting our business processes. Our strategic lliance or joint venture would only be done if it was a government requirement due to foreign investment regulations which it probably will. Given the pace of technological innovation and capital investment the industry is bound to experience heighten competition and barriers to entry in India. Consolidation within the industry is unlikely in the near term as sheer population growth and consumerism we expect will outpace the influx in supply. VIII. Itinerary The itinerary for our cou ntry visit can be found in Appendix D.

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Adrian Gauci Learning and Development Strategy – Adrian Gauci – Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation Supervisor Adrian Gauci EMPLOYEE DEVELOPMENT †¢ Employee Development of HR development is about the provision of learning, development and training opportunities in order to improve individual, team and organisational performance. †¢ The definition of development suggests a fulfilment of innate potential and ability through continuous involvement rather than just timely interventions to satisfy gaps in knowledge and ability.Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation Supervisor Adrian Gauci Learning and development †¢ Learning and development is the process of acquiring and developing knowledge, skills, capabilities, behaviours and attitudes through learning or developmental experiences. It is concerned with ensuring that the organization has the knowledgeable, skilled, engaged and committed workforce it needs. Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation Supervisor Adrian Gauci Learning and development Learning is a continuous process that not only enhances existing capabilities but also leads to the development of the skills, knowledge and attitudes that prepare people for enlarged or higher-level responsibilities in the future. †¢ As explained by Honey and Mumford (1996): – ‘Learning has happened when people can demonstrate that they know something that they did not know before (insights, realizations as well as facts) and when they can do something they could not do Dual MBA (New York) – Business Lecturer and MBA Dissertation Supervisor Adrian Gauci BA (Hons), MA, before (skills). ’Adrian Gauci Learning and development †¢ Development is concerned with ensuring that a person’s ability and potential are grown and realized through the provision of learning experiences or through self-directed (self-managed) learning. It is an unfolding process that enables people to progress from a present state of understanding and capability to a future state in which higher-level skills, knowledge and competencies are required. †¢ Training involves the application of formal processes to impart knowledge and help people to acquire the skills necessary for them to perform their jobs satisfactorily.Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation Supervisor Adrian Gauci KEY L&D TERMS †¢ LEARNING: Learning is relatively permanent changes in behaviour that occurs as a result of practice or experience. †¢ EDUCATION: The development of Knowledge, values and understanding required in all aspects of life rather than the knowledge and skills relating to particular areas of activity. †¢ DEVELOPMENT: the growth or realisation of a person's ability and potential throug h the provision of learning and educational experiences. Training: The planned ; systematic modification of behaviour through learning events, programmes, and instruction which enable individuals to achieve the levels of knowledge, skills and competence to carry out their work effectively. Source: Armstrong-handbook of Personnel Management practices. Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation Supervisor Adrian Gauci Elements of learning and dev Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation SupervisorAdrian Gauci Characteristics of formal and informal learning Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation Supervisor Adrian Gauci ROI †¢ Return on investment (RoI) is advocated by some commentators as a means of assessing the overall impact of training on organizational performance. It is calculated as: Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation Supervisor Adrian Gauci Learning and development strategy Learning and development strategy represents the approach an organization adopts to ensure that now and in the future, learning and development activities support the achievement of its goals by developing the skills and capacities of individuals and teams. It can be described similarly as strategic human resource development, defined as follows. Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation Supervisor Adrian Gauci Learning and development strategy It is fundamentally concerned with creating a learning culture that will encourage learning and will provide the basis for planning and implementing learning activities and programmes.†¢ This concept of a learning culture is associated with that of the learning organization. Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Diss ertation Supervisor Adrian Gauci Elements of L;D strategy Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation Supervisor Adrian Gauci A learning culture A learning culture is one that promotes learning because it is recognized by top management, line managers and employees generally as an essential organizational process to which they are committed and in which they engage continuously. †¢ Reynolds (2004) describes a learning culture as a – ‘growth medium’, which will ‘encourage employees to commit to a range of positive discretionary behaviours, including learning’ and which has the following characteristics: empowerment not supervision, self-managed learning not instruction, long-term capacity building not short-term fixes. Reynolds suggests that to create a learning culture it is necessary to develop organizational practices that raise commitment amongst employees and – ‘give employees a sense of purpose in the workplace, grant employees opportunities to act upon their commitment, and offer practical support to learning’. Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation Supervisor Adrian Gauci Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation SupervisorAdrian Gauci The learning organization The learning organization, as defined by Senge (1990) †¢ The learning organization is one – ‘where people continually expand their capacity to create the results they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is set free, and where people are continually learning how to learn together’. Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation Supervisor Adrian GauciThe learning organization †¢ Harrison (2000) learning organization remains persuasive beca use of its – ‘rationality, human attractiveness and presumed potential to aid organizational effectiveness and advancement’. †¢ Wick and Leon (1995) refer to a learning organization – as one that ‘continually improves by rapidly creating and refi ning the capabilities required for future success’. Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation Supervisor Adrian Gauci EMPLOYEE TRAINING Training is an important part of an organization’s long-range strategy: – Global competition and flatter organizational structures require multi-skilled employees – Focus on life-long learning – Diverse employees with varying cultural values – Developments in information technology require new skills and training strategies – Increased motivation – Individual goals equating with those of the organisation – Social benefits eg traning from government â€⠀œ Newly acquired skills for future use Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation SupervisorAdrian Gauci †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ BENEFITS OF T;D TO ORGANISATIONS Provision of trained human resources Improvements of existing skills Increased employee knowledge Improved job performance Improved customer service Greater staff commitment Increased value of the organisation's human assets The personal development of employees Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation Supervisor Adrian Gauci PROCESS OF TRAINING †¢ SYSTEMATIC TRAINING †¢ PLANNED TRAINING Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation SupervisorAdrian Gauci PLANNED TRAINING †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ Identify and define training needs Define the learning required Define the objectives of training Plan training programme Decide who provides the training Implement the training Evaluate training Modify training programmes basis on the evaluation. MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation Supervisor Adrian Gauci BA (Hons), Adrian Gauci DEFINING TRAINING NEEDS †¢ †¢ †¢ †¢ †¢ †¢ †¢ JOB TRAINING ANALYSIS ORGANSATIONAL ANALYSIS PERFORMANCE APPRAISAL JOB ANALYSIS CUSTOMER FEEDBACK OBSERVATION OF EMPLOYEES RECORDS OF EMPLOYEES PERFORMANCEAdrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation Supervisor Adrian Gauci TRAINING OBJECTIVES †¢ †¢ †¢ †¢ PREREQUISITE EXPERIENCE AND ABILITIES EDUCATINAL OBJECTIVES BEHAVIOURAL OBJECTIVES CRITERIA FOR ASSESSMENT Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation Supervisor Adrian Gauci Learning and Development Activities Learning  and  Development  Activities †¢ case  study  exercises †¢ action  learning  activities †¢ modern  apprenticeship †¢ Employee  mentoring †¢ Group  /  Departmental  Ã‚  Exercises †¢ Situation  Simulation Management  coaching   †¢ Corporate  University †¢ Instruction  Lectures †¢ Outdoor  Learning  Activities   †¢ Training  by  role  playing See Page 1022 (Appendix in Armstrong Book) Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation Supervisor Adrian Gauci The Training System Needs Assessment Evaluation Training Objectives Implementation Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation Supervisor Adrian Gauci Training Techniques On-the-job †¢ †¢ †¢ †¢ Job rotation Apprenticeships Coaching Mentoring Delegation by supervisor †¢ Work shadowing †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ Off-t he-job †¢ Lectures & videos Vestibule training Role-playing/Cases Simulation Self-Study & Programmed Computer-based (CBT) Virtual reality Web-based/Intranet Video-conferencing Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation Supervisor Adrian Gauci Training & Development Strategies Cognitive T&D Strategies Environmental Behavioural Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation SupervisorAdrian Gauci Training Evaluation Criteria Reaction Organizational results Training Evaluation Criteria Behaviour Knowledge Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation Supervisor Adrian Gauci LEARNING ORGANISATION †¢ Learning might be the acquisition of a new skills, new knowledge, a modified attitude or a combination of all three. †¢ The process of acquiring knowledge through experience that leads to a change in behaviour. Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation SupervisorAdrian Gauci LEARNING ORGANISATION An organization that has an enhanced capacity to learn, adapt and change – Systems thinking – Personal mastery – Mental models – Shared vision – Team learning Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation Supervisor Adrian Gauci LEARNING ORGANISATION (CONTD. ) Garvin (1993) has suggested that LO are good at doing five things: †¢ Systematic problem solving-relying on scientific methods, insisting on data rather than assumption. Experimentation Kaizen (continuous improvements) †¢ Learning from past experience †¢ Learning from others †¢ Transferring knowledge quickly and efficiently throughout the organisation Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation Supervisor Adrian Gauci SIX FACTOR MODEL OF LO Kandola a nd Fullerton have produced a six factor model of a LO: †¢ Shared vision †¢ Enabling structure †¢ Supportive culture †¢ Empowering management †¢ Motivated workforce †¢ Enhanced learning Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation SupervisorAdrian Gauci LEARNING STYLES Kolb & Honey and Mumford Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation Supervisor Adrian Gauci LEARNING STYLES Learning style theory can be used in the design and conduct of learning events or personal development programmes. Learning situations can be designed to fit the learning style of participants. Coffield (2005) stressed the importance of individuals’ ‘thinking styles’ – that is, their automatic way of organizing and processing information during learning – and of their ‘learning strategy’, meaning the pproach they adopt to try to overco me the limitations of their natural thinking style. Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation Supervisor Adrian Gauci EXPERIMENTAL LEARNING CYCLE Kolb provides one of the most useful descriptive model of the adult learning process. The LC suggests that there are four stages that follow from each others. †¢ Concrete experience: either planned or accidental †¢ Reflective observation: looking back at the experience. †¢ Abstract conceptualisation: seen as generalising from reflection and developing hypotheses based on experience and knowledge. Active experimentation: Testing the concepts or ideas in new situation. Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation Supervisor Adrian Gauci KOLB`S LEARNING STYLES †¢ ACCOMMODATIVE: Strong preference for concrete experience and active experimentation, learning by errors. †¢ DIVERGENT: preference for concrete experiences , but to reflect on these from different perspectives. †¢ ASSIMILATIVE: Indicates that knowledge is gained by incorporating experiences into already existing cognitive structure. †¢ CONVERGENT: prefer to experiment with ideas.Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation Supervisor Adrian Gauci KOLB`S LEARNING STYLES †¢ Accommodators who learn by trial and error, combining the concrete experience and experimentation stages of the cycle. †¢ Divergers who prefer concrete to abstract learning situations and refl ection to active involvement. Such individuals have great imaginative ability, and can view a complete situation from different viewpoints. †¢ Convergers who prefer to experiment with ideas, considering them for their practical usefulness.Their main concern is whether the theory works in action, thus combining the abstract and experimental dimensions. †¢ Assimilators who like to create their own the oretical models and assimilate a number of disparate observations into an overall integrated explanation. †¢ Thus they veer towards the reflective and abstract dimensions. Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation Supervisor Adrian Gauci Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation SupervisorAdrian Gauci Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation Supervisor Adrian Gauci Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation Supervisor Adrian Gauci Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation Supervisor Adrian Gauci The Axis Concrete Experience – CE (feeling) ——- Abstract Conceptualization – AC (thinking) Active Experimentation – AE (doing)—– Reflective Observation – RO (watchin g)Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation Supervisor Adrian Gauci Divergers and Assimilators †¢ Diverging (feeling and watching – CE/RO) – These people are able to look at things from different perspectives. They are sensitive. They prefer to watch rather than do, tending to gather information and use imagination to solve problems. They are best at viewing concrete situations several different viewpoints. Kolb called this style ‘Diverging' because these people perform better in situations that require ideas-generation, for example, brainstorming.People with a Diverging learning style have broad cultural interests and like to gather information. They are interested in people, tend to be imaginative and emotional, and tend to be strong in the arts. People with the Diverging style prefer to work in groups, to listen with an open mind and to receive personal feedback. Assimilating (watching and thinking â⠂¬â€œ AC/RO) – The Assimilating learning preference is for a concise, logical approach. Ideas and concepts are more important than people. These people require good clear explanation rather than practical opportunity.They excel at understanding wide-ranging information and organising it a clear logical format. People with an Assimilating learning style are less focused on people and more interested in ideas and abstract concepts. People with this style are more attracted to logically sound theories than approaches based on practical value. These learning style people is important for effectiveness in information and science careers. In formal learning situations, people with this style prefer readings, lectures, exploring analytical models, and having time to think things through.Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation Supervisor †¢ Adrian Gauci Convergers and Accomodators †¢ Converging (doing and thinking â₠¬â€œ AC/AE) – People with a Converging learning style can solve problems and will use their learning to find solutions to practical issues. They prefer technical tasks, and are less concerned with people and interpersonal aspects. People with a Converging learning style are best at finding practical uses for ideas and theories. They can solve problems and make decisions by finding solutions to questions and problems.People with a Converging learning style are more attracted to technical tasks and problems than social or interpersonal issues. A Converging learning style enables specialist and technology abilities. People with a Converging style like to experiment with new ideas, to simulate, and to work with practical applications. Accommodating (doing and feeling – CE/AE) – The Accommodating learning style is ‘hands-on', and relies on intuition rather than logic. These people use other people's analysis, and prefer to take a practical, experiential approac h.They are attracted to new challenges and experiences, and to carrying out plans. They commonly act on ‘gut' instinct rather than logical analysis. People with an Accommodating learning style will tend to rely on others for information than carry out their own analysis. This learning style is prevalent and useful in roles requiring action and initiative. People with an Accommodating learning style prefer to work in teams to complete tasks. They set targets and actively work in the field trying different ways to achieve an objective.Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation Supervisor †¢ Adrian Gauci HONEY ; MUMFORD LEARNING STYLES Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation Supervisor Adrian Gauci HONEY ; MUMFORD`S LEARNING STYLES †¢ ACTIVIST: a dynamic learners without bias †¢ REFLECTOR: an imaginative learner and the person, who observes phenomena, thinks about them and then choose how to act. †¢ THEORIST: Who adapt and apply their observations in the form of logical theories. PRAGMATIST: a commonsense learner who only likes to study if they can see a direct link to practical problems. Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation Supervisor Adrian Gauci HONEY ; MUMFORD`S LEARNING STYLES †¢ 1. Activists who involve themselves fully without bias in new experiences and revel in new challenges. †¢ 2. Reflectors who stand back and observe new experiences from different angles. They collect data, refl ect on them and then come to a conclusion. †¢ 3.Theorists who adapt and apply their observations in the form of logical theories. They tend to be perfectionists. †¢ 4. Pragmatists who are keen to try out new ideas, approaches and concepts to see if they work. Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation Supervisor Ad rian Gauci Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation Supervisor Adrian Gauci Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation SupervisorAdrian Gauci Kolb vs Honey ; Mumford Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation Supervisor Adrian Gauci Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation Supervisor Adrian Gauci INDIVIDUAL BARRIERS TO LEARNING †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ LACK OF INFORMATION TIME MONEY APATHY ANDLACK OF MOTIVATIO CULTURE AGEISM SPECIAL NEEDS SOCIO-ECONOMIC STATUS LACK OF CONFIDENCE Adrian Gauci BA (Hons), MA, Dual MBA (New York) – Business Lecturer and MBA Dissertation Supervisor

Article Summary and Reaction Paper Essay Example | Topics and Well Written Essays - 250 words - 4

Article Summary and Reaction Paper - Essay Example Nevertheless, Parga visited the Karow Chiropractic Center and treated for the injuries (Sacasa, 2014). The treatment cost was settled by Allstate Insurance that amounted to $ 19 386.25. Later, FBI investigators unraveled the fraud. Investigators made arrests and charges on Ricardo Pargas and Alien Moya. They both attested guilty. The FBI (2015) recognizes insurance fraud as among the greatest challenges to insurance companies in the U.S that costs nearly $40 billion, annually. The incidence at West Palm Beach, Florida involved violation of the Florida Insurance Fraud Statute (Penal Code, Title XLVI, Chapter 817) (The Florida Legislature, 2015). The law outlines circumstances that involve insurance fraud. The insurance fraud greatly affected the insurance company, Allstate Insurance, which had to pay $ 19 386.25 as compensation for fraudulent claims. The articles describe the impact of staged accidents to the insurance company. Under the law, insurance fraud is punishable as provided in subsection (11) when rendered the accused is guilty of either having an intent to cause injury, knowingly engages in the defraud or has motives to deceive the insurer. Charges are also applicable when there is evidence that the accused is proven to knowingly disguise critical information when filing the claim. Sacasa, A. (2014, September 25). West Palm man jailed in staged auto crash ring. Sun Sentinel. Retrieved May 2, 2015 from, http://articles.sun-sentinel.com/2014-09-25/local/fl-west-palm-staged-crash-fraud-20140925_1_staged-crashes-minor-crash-alien-moya The Florida Legislature. (2015). The 2014 Florida Statutes: Florida Insurance Fraud Statute (Penal Code, Title XLVI, Chapter 817). Retrieved May 2, 2015 from,

Competitive Balance Policy Essay Example | Topics and Well Written Essays - 1500 words

Competitive Balance Policy - Essay Example The essay "Competitive Balance Policy" presents a critical evaluation of the approaches and policies to achieve competitive balance in North American sports and European sports. One of the most used principles of football is "the good of the game and the interest of the fans, is enhanced when all clubs have a reasonable opportunity to compete for championships at least periodically†¦ the game is not enhanced when controlled by a few wealthy clubs". The above statement suggests that there has to be a fair ground for all clubs to compete in football, with the experience of football to the fans enhanced when there lack a few clubs that dominate the game over others. In case the chasm between the rich and the poor clubs becomes greater, there would be a negative effect on sporting competition, which would affect the quality balance making football a preserve of a few clubs. To prevent such unfair balance, clubs in European football, as well as North African, have undertaken to imple ment a number of policies. European football leagues employ collective selling of broadcasting rights to media houses to ensure quality balance among all the clubs. Today, the value of broadcasting rights has increased tremendously in European football league. For instance, in the 2011-2012 league sessions, the European premier league received more than 1.1 billion pounds as revenues from the sale of rights to media houses to broadcast matches from the European clubs, one of the most successful collective bargain systems

The Biggest Challenges in Woman's Shoes Essay Example | Topics and Well Written Essays - 250 words

The Biggest Challenges in Woman's Shoes - Essay Example   I think although there could be similarities in terms of viewing an unconventional physical feature, this woman’s plight is different from that of Frankenstein’s scenario in terms of the technological advancement that has been applied and duly possible in contemporary times. The public who could come across this woman and   who are not aware of her plight could initially have some reservations or anxieties in comfortably seeing her, the most important issue is that the life of this woman is ultimately saved from the partial facial transplant procedure. It was a medical necessity and it is instrumental to help the woman survive. All other things (public’s opinion or irresponsible comments) are just secondary and insubstantial given the paramount importance of saving her life. She should therefore focus on the benefits that this procedure has accorded her more than what other people would say.

The changing scenarios of the oil market in the Azerbaijan Republic Essay

The changing scenarios of the oil market in the Azerbaijan Republic - Essay Example I also give thanks to Mr. Aydin M. Gashimov, Stakeholder Investment and Reporting Manager in BP Exploration (Caspian Sea) Limited, who answered all my questions without hesitation. Mr. Iohan Heiberg, Vice-president of Statoil Azerbaijan, and Mr. Redjeb Akhsulu, General Manager of Shell Azerbaijan Exploration and Production B.V. who also contributed with his very useful comments. The recent growing demand for oil around the globe has seen oil prices remain quite unpredictable. Most of the world economies are dependent on oil; hence, any fluctuations in its price have a direct impact on the cost of essential goods and services. Nevertheless, energy prices have been skyrocketing, presenting fresh day-to-day challenges to organizations and compelling them to adjust their strategies accordingly in order to minimize the adverse consequences. The following chapter reviews past works of research conducted by other researchers in order to support the secondary research methodology used in this dissertation. The literature review is divided into four areas of research. The PESTEL [Political, Economic, Sociological, Technological, Environmental and Legal (factors)] model of analysis will be employed in order improve the structure of investigation and highlight pertinent issues. PESTEL is a strategic planning tool that helps a company to view the scope of the market beyond its limits. The analysis is an important reminder to an organization in situations where the organization is focused only on internal matters at the expense of external forces that directly and indirectly affect it and may have profound consequences on it. Managers of organizations have to visualize the factors that have the highest probability of changing and those that affect them most. These factors vary in different environments. In doing the PESTEL analysis, managers have to decide on the various aspects of the model by considering their relative importance. One

MasterCard Risk Assessment Essay Example | Topics and Well Written Essays - 500 words

MasterCard Risk Assessment - Essay Example BRAM (Business Risk Assessment and Mitigation) program addresses all the illegal and damaging activities that are affiliated to the use of MasterCard. The program offers and delivers appropriate compliance standards required for safeguarding the use of the company’s services. Risk management usually promotes cost cutting in terms of insurance costs and operational costs that any financial organization often deals with when it comes to identifying and curbing fraud within the MasterCard financial systems (King, 2001). The BRAM (Business Risk Assessment and Mitigation) program was developed by the MasterCard Company in order to minimize the industry and economic risk that comes with the use of MasterCard branded and affiliated cards. One of the economic risks posed on the system include the loss of clients who are not satisfied with the system operation, which subsequently leads to revenue loss for the firm. Addressing end user reliability of the MasterCard system is a vital objective for the MasterCard Company. System reliability can be achieved via ensuring there is constant testing and regular monitoring of the network system. The program warrants compliance through mandating and encouraging access control measures for the network system. Implementing and maintaining a strong security policy aids in protecting the clients information by boosting data security through the management of network systems utilized by the company and safeguarding then from unauthorized access (Gibson, 2004). Additionally, the set policies should limit any form of compromise that would arise even within the company itself, for example, selling of insider information. The payment card industry has common industrial risks for all the companies that deal in payment systems using cards, that is, ensuring constant information security and availability of services or resources to subscribes at all times and places. The BRAM

Media Analysis Assignment Essay Example | Topics and Well Written Essays - 1000 words

Media Analysis Assignment - Essay Example This symbolizes the idea that the later generations of the first generation immigrants who made America their home during the early part of the twentieth century, have become an integral part of the culture of this continent. In simple words it means that these later generations have become completely ‘Americanized’ by losing their own cultural identity, thus adding to the cultural pot where all cultures simply melt away to produce a mash called the ‘American culture’. However, a closer look will reveal that it is not so as the myth claims. Indeed, America is more about the co-existence of different cultures that are each vitally alive in their own identities. Here we will review and analyze the movie â€Å"Crash†, and see the different underlying racial discriminations that are often existent in real life America. This movie portrays the co-existence of many cultures from different parts of the world living in America, and tries to show the tensions between them, and how they judge each other and form assumptions. In real sense this movie does a commendable job in bursting the myth of the so called ‘great American cultural melting pot’. There are two very distinct sides to the myth of this ‘cultural melting pot’. One part signifies that all are welcome in this country, irrespective of being rich, poor, black, white or brown. Everyone is welcome to take a part in the grand American dream of prosperity and freedom, and be a part of the single cultural identity that is called ‘Americanism’. The other side is much darker, that which with the help of this myth attempts to extenuate the presence of racial discrimination and bigotry. It simply tries to portray racism and intolerance as a passing phase as the minority immigrants adjust in this new country. This is evident in a magazine article that in 1875 said â€Å"the fusing process goes on as in a blast-furnace;

Personal statement Example | Topics and Well Written Essays - 500 words - 10

Personal Statement Example I have always had a goal of being a public administration officer (Stelzer, 243). My reason for applying for a master degree program in Public Policy and Management is that I deem that the course will help me in my prospect profession. I will be able to achieve my passion of being a Public Administration Officer. I always fancied public administration system and function, since my mentor in life was a public administrator situated in Saudi Arabia. This encouraged me to work and excel in my bachelor program, as I wanted to pursue a master course related to administration. I qualified in my Bachelor Degree in Mathematics highly. Thus, given an opportunity to study in California Lutheran University will be a communal relationship, since I am apprehensively ready to put into practice my readily acquired skills and experience. Furthermore, I am funded on my master degree program by the Saudi Arabian government. This will make my education unproblematic, since I will be prompt in paying my fees. My sponsor has guaranteed any necessary corporation regarding my education process with the university’s management. Though I am Saudi national, I have relocated to live in the USA, and I believe that this will be a rousing factor to enable me pursue my master program with zeal. I did not match the level of the American English, as a result, took an English course in the Cal Poly English language institute, in California, to match my skills with the standardized American language. While studying English at the institution, I was enthusiastic about studying the language and my vivid imagination accelerated the level with which I learnt English. I am now qualified in communicating and writing fluent English, and I believe will give me a humble timing in my studies, in the institution (Stelzer, 245). I am a fun enthusiast, gregarious and devoted person since I often enjoy jokes cracked by friends. The jokes

Evolution of aviation during World War II Essay Example for Free

Evolution of aviation during World War II Essay The year between the two great Wars saw the continuation and expansion of aviation technology. By now, European nations knew the uses of airplanes in war times. Even though disarmament was commanded by the treaty of Versailles, many nations (mostly Europeans) continued to advance their aircraft technology in a lesser or higher degree (Pavelic, 2007, p. 2). Unlike the First World War, there was greater interest in research and advance studies on material science, aerodynamics, engine thermodynamics and fuel technology that favored the extensive use of monoplane and the use of new high powered weapons in fighter planes like cannons and rockets (Mathews, 2001, p. 9). Even though Germany was denied to build an air force by the Treaty of Versailles, nevertheless, they continued to conduct covert aeronautical research for secret rearmament plans during the interwar years. Secretly they also bought aircrafts from other countries. It can be said therefore that in spite of being banned to build military aircrafts, Germany was up-to-date in aircraft development. In fact by the time the Pact of Paris (1926) relaxed their restriction on German aviation development, Germany built some of the most advanced aircraft in the world (Pavelic, 2007, p. 2). Increasing the speed and rising at high altitudes had remained the preoccupation of aircraft development in the interwar and Second World War. Altitude was very important to the military because of their mission to intercept and attack invading bombers (Matthews, 2001, p. 9). For conventional type of airplanes, development was geared toward increasing speed and altitude through engine development, particularly the piston engine and turbo jet engine. Britain had design one of the best liquid-cooled aircraft engines, the Rolls Royce Merlin, used in World War II for two heavy bombers, the Supermarine Spitfire and Hawker Hurricanes (Pavelec, 2007, p. 7). However, the alternative to piston engine, the turbojet engine (engine without propeller) can be considered the greatest achievement in the history of aviation in terms of speed development and solved the problem of jet propulsion during the interwar and the Second World War. It was Germany who led in this development in the person of Dr. Hans von Ohain who completed a flight-worthy turbojet engine for aircraft, commencing the jet age on August 27, 1939. Throughout the war, the race for jet speed was dominated by the Germans and they were the ones who initiated to produce jet aircraft for combat operations. Other countries soon followed suit (although they have their own jet inventions at the same time that the Germans developed it but with less support) in producing turbojet engine. In Britain, it was Frank Whittle who developed a turbojet engine that powered the Gloster Pioneer on May 15, 1941 and the only Allied combat jet aircraft ,Meteor. By the end of the war, airplanes of the Second World War travel in faster speeds than their predecessors, with a record of 606 miles per hour by the British Gloster Meteor IV powered by a turbojet engine (Matthews, 2001, p. 6). Radar was also an innovation in aviation during the Second World War. When the First World War had ended, nations had realized that airplanes, especially those carrying bombs, will pose a threat to their safety. Therefore, radar systems were developed and in the Second World War, they were installed in airplanes to detect enemy aircrafts or ships, or to help in navigation or to accurately locate bombing targets ( Perry, 1988, p. 703). IV. Conclusion It is very obvious that due to the pressing need of the First and Second World War, the history of aviation took a rapid turn. It is at this period that aircrafts changed its role from transport and reconnaissance vehicle to destructive weapons of war when fighter and bomber planes were developed. Airplanes also undergone rapid change in physical appearance from biplanes to monoplanes and from using fabric to full-metal body. During the interwar periods, as aircrafts were already seen as an integral part in war victory, in-depth researches in aerodynamics and thermodynamics and other engineering technology related to flying was undertaken well into the Second World War. Moreover, the quest for greater speed and high altitudes was improved in the Second World War upon the invention of turbo jet engines as an alternative to the piston engines of the First World War.

Advantages and disadvantages of Private labels for Reliance Retail Ltd

Advantages and disadvantages of Private labels for Reliance Retail Ltd Indian retail sector is valued at US$ 353 billion in 2009 2010 and is projected to reach US$ 543.2 billion by 2014. The Indian retail sector is the second-largest employer after agriculture IBEF Retail (2010), and this sector is primarily much unorganized / traditional. Organized retail in India is still in the nascent stage with only 5% penetration, The retailer, Ernst Young, Jan (2009) and this signifies the immense potential this holds for growth. Traditional Kirana stores (small mom-and-pop general stores) are now being replaced by large format stores like Hypermarkets, Supermarkets and other Specialty stores and these shifts is mainly due to the increased consumer expectations increase in the consumer class and will grow nearly from 50 million at present to 583 million by 2025. As discussed earlier Indian retail sector is highly unorganized and the access of modern retail is very negligible (5% penetration). And with the relaxation of Government policies pertaining to retail sector and with more addition of retail space every year will definitely boost the growth of modern / organized retail in India. And even the mindsets of Indian consumers are changing they are now very demanding in terms of value and a shift from low price goods to more focus on convenience and all this with a superior shopping experience, also they are more brand conscious these days. IBEF Retail, (2010) There are only a handful of organized key retailers in the Indian retail sector: Group Store Brands Tata Landmark(books and music), Croma( electronics), World of Titan (watches), Tanishq(jewellery), Titan Eye+ (eye wear),Westside (lifestyle retail store), Star Bazaar (hypermarket), Fashion Yatra (fashion store) Reliance Group Reliance Fresh (neighborhood store), Reliance Super (mini-mart), Reliance Mart (supermarket), Reliance Digital (consumer durables and information technology), Reliance TimeOut (books, music and entertainment), Reliance Trends (apparel and accessories), Reliance Wellness (health, wellness and beauty), iStore (Apple products), Reliance Footprint (footwear), Reliance Jewels, Reliance Living (home ware, furniture) and Reliance AutoZone (automotive products and services) Future Group Central (shopping mall), Big Bazaar (hypermarket), Pantaloons (fashion outlet), Blue Sky (sunglasses), eZone(electronics), KBs Fair Price (essential products), Navaras(jewellery), Planet Store (multi-brand sports and lifestyle speciality retail), aLL(fashion garments), Ethnicity (Indian ethnic wear), Home Town (home needs), Furniture Bazaar (furniture), Electronics Bazaar (electronics), Home Bazaar, Collection I (furniture), Brand Factory (multi-brand readymade apparels), Gen M One Mobile (cell phones), M-Port (electronics), Shoe Factory (footwear) and Depot (books and music) Few more to the list would be players like RPG group, K Raheja group, Landmark group, Bharti group, Mahindra group, Aditya Birla group and Vishal retail. IBEF Retail, (2010) In 2009 Reliance Retail as a part of its growth strategy planned to introduce Private labels in FMCG segment for selling in its retail stores (Livemint.com 2009). In view of the above it is decided to carry out a study to weigh the existing opportunity for Reliance Retail Ltd, acquisitions if any? And to evaluate the benefits of introduction of Private labels in its retail stores. Conceptual underpinnings of the research Retailing amongst the worlds biggest industries. From the marketing standpoint retailers are closer to consumers than the manufacturers (Reynolds 2004b, p.3). Many factors are accountable for the current changes in the modern retail management. Many large retailers have huge turnovers and employee strengths Wal-Mart employs 1.8 million worldwide and Carrefour the largest European retailer (no.2) has more than 12,000 stores across the globe. Joachim Zentes, (2007). ESTABLISHED FORMATS: Kirana stores Departmental stores Evolution of Retail in India: EMERGING FORMATS: Hypermarkets Supermarkets Specialty storesetc CONVENTIONAL FORMATS: Melas Mandis The advantages of Private Label: The key advantage from a retailer perspective could be the Private labels will fill the needs gap that is present in the market place unique product or a differentiated product in the market place. The critical aspect of the private label for the retailer is that it gives the retailer a higher profit margin than what is offered on other brands. Though the Private label introduction may not always be advantageous to the retailer as they may face hostile response from other brand manufacturers and hence the retailer must have a good monetary base Swapna Pradhan,(2008) Mergers Acquisitions: Both these terms are used as though they were identical, but in real sense they are both different. An acquisition occurs when one company takes over the management of another business clearly establishing itself as the new owner of that firm. Merger occurs when two companies agree mutually to work together as a single entity going forward. This can be mergers of two companies of equal size or unequal sizes Edward Gerald, (2005) Companies through Mergers Acquisitions can expect to achieve: Edward Gerald, (2005) Competitive advantage over others Increase its market share / profitability To enter new markets / geographies Access to latest technology / talent Diversification into new businesses Purpose The key focus of this study is to explore: The advantages / disadvantages for Reliance Retail Ltd after introducing Private labels? And also explore if there is any scope for growth by inorganic means. SWOT for Reliance Retail Ltd Research questions What are the advantages / disadvantages for Reliance Retail Ltd with the introduction of Private Label? Is there any opportunity for Reliance for acquisitions in retail space? Scope of the present research project: The current study is carried out at the Reliance Fresh outlets located in Bangalore, India, due to restrictions and limited time available. Such a study can also be carried out at Reliance fresh stores across all the major Indian cities. Section -2: Research methodology 2.1 Research strategy Research methodology is a systematic method of solving a research problem. It includes the set of methods and techniques required to approach a particular research problem. In general marketing research process can be split into the following broad steps: Ranjit Kumar,(2005) Data Collection Research Design Problem Definition Data Analysis Report Presentation 2.2 Sampling Sampling can be defined as a process of drawing conclusions to the whole but by only probing a part of it Ranjan Kumar, (1996). Private Labels has already been introduced by few of retail giants here in India and Mergers Acquisitions in Indian retail space is almost negligible in order to probe further into this Reliance fresh outlets (Store Managers) in Bangalore will be contacted. And Convenience sampling will be used as the sampling technique as this will be more appropriate for such a study. The sample size of 15 Reliance fresh stores has been selected here. 2.3 Data collection Data collection forms an important part of any research project. Data can either be from Primary or Secondary sources. Primary data refers to the data collected by the researcher in context to the research and these are mainly collected through a structured Questionnaire consisting of both open ended and closed ended questions. For the current study primary data forms the core. The questionnaire will be sent to the concerned personnel via email and also based on requirement they may also be contacted on their phones. Secondary data can be from trade associations, journals, news articles and other research information providers like IBEF (Indian brand equity foundation) 2.4 Data analysis Data obtained from the sources will be processed to obtain information using which the researcher will arrive at a conclusion and make his recommendations / give insights (Decision making) to the client. 2.5 Validity and Reliability Validity and Reliability are often associated with each other. Reliability is defined as any test or procedure yielding the same output for a given set of repeated trials. Reliability does not mean Validity. Validity in general refers to the concepts conclusions that correspond to the real world. Edward Richard, (1986) 2.6 Access The research is primarily based on the ease of data accessibility and for this research store managers of Reliance Retail Ltd in Bangalore will be contacted either by sending the questionnaire via email or by contacting them on phones and prior to this we are required to fix a suitable time slot with the Store manager for the interview. And the final output from this study will be shared with all the Store managers who has been interviewed during this study. 2.7 Gantt Chart Task Description Weeks 1 2 3 4 5 6 7 8 9 10 11 12 13 1 Literature Review 1.1 Workshop on user needs 1.2 Draft of methodology 1.3 Evaluation of methodology 2 Specification of Integrated System 2.1 Inventory of resources in selected regions 2.2 Review of existing facilities 2.3 Specify technical developments required 2.4 Impact analysis of different scenarios 2.5 Prepare detailed business plans 3 Feasibility Studies for each region    3.1 Review existing practices    3.2 Review technologies (state of the art)    3.3 Sensitivity analysis of scenarios    3.4 Report on most suitable options 4 Project Management and Coordination Dissemination of information: Workshops Milestones and Deliverables Guideline for methodology Interim Reports Business Plans for four regions Draft Public Workshop on results Final Report

Enlightenment Established by the Community Essay -- Philosophy, Socra

Sophocles’ Oedipus, Plato’s ship owner, and Plato’s prisoner in the cave share a common theme of reluctance to learn from the truth, and show the role that others play in facing self-identity. All three, Oedipus, the ship owner, and the prisoner in the cave illustrate the theme of deliberation manifested by a society. Enlightened by others, Oedipus finally learns that he has committed murder and incest. Similarly, the ship owner is shown his limitations and thus understands that he is not qualified to navigate his vessel when the sailors quarrel over who would be next in command. Furthermore, the prisoner in the cave is dragged out by others (community of enlightened individuals) and given the opportunity to view the real world for the first time. Therefore, with the assistance of others (community), Oedipus, the ship owner, and the prisoner in the cave are able to acknowledge their identities and face the truth about their erroneous behavior. Through Sophocles a nd Plato, civic deliberation comes into these three approaches: (1) with the evidence given to him by the public, Oedipus learns the truth of his identity, and accepts the judgment and punishment he had imposed on the culprit before he knew; (2) through the violent actions of the sailors, the ship owner acknowledges his limitations; and (3) the prisoner is dragged from the cave into the world of sunlight, exposed to the truth and returns to the cave to deliberate with others to come out. Hence, all three cases show the process of civic deliberation is achieved through community. Oedipus at first finds the implications of killing his father and sleeping with his mother difficult to tolerate as a factual manifestation of his past. He disputes the fact that he had caused suc... ...liance with the truth. Socrates states, â€Å"The truth of the matter is that it makes no difference whether you’re rich or poor: if you fell ill, you’re bound to dance attendance on a doctor, and if you need to accept authority, you must dance attendance on someone in authority who is capable of providing it† (Plato 209-210), in order to convey that a individual requires a society or a third party to become enlightened. Oedipus ultimately becomes aware of his errors when the community shows them to him. The ship owner becomes aware of his incapability when the sailors threaten to overthrow him. The prisoner in the cave acknowledges the truth when others force him out of the cave. Thus Socrates serves as a model of civic deliberation when he illustrates their behavior and, questions through dialogue with his interlocutors, the ability to find truth and be enlightened.

Al Capone Biography :: Biography

â€Å"By Instinct Capone Was A Heartless Mindless Killer†   Ã‚  Ã‚  Ã‚  Ã‚  Considered the most notorious gangster in history, Alphonse Capone, otherwise known as Scarface Al, was born in New York, 1899, in a small apartment in the Williamsburg section of Brooklyn. Having many run-ins with the police growing up, he was always around the local street gang led my Johnny Torrio. After beating one of his sixth grade teachers, he quit school, and quickly learned the way of the streets, joining the Torrio gang, call the James Street Gang. James Street also included Lucky Luciano, one of Capone’s best friends, who would later also become a notorious gangster (Internet 1, 1).   Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  As he grew older, Capone was hired by the gang leader, Torrio, to be a bouncer at a bar in Brooklyn, taking his first step up the â€Å"gang ladder†. One night, Capone’s cheek was slashed during a fight at the bar over a girl. It was from then on he was known as Scarface. Later in his life, when asked by reporters where he got this scare, he often lied of serving in the â€Å"Lost Battalion† in WWI, even though he never served in the military (Internet 1, 1).   Ã‚  Ã‚  Ã‚  Ã‚  Soon Enough, Capone was in trouble in again. He had killed a man in an argument and was on the run. After calling his old friend Torrio, he was invited to come to Chicago   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Barfoot 2 and make a fresh start. At the time, Torrio was working for his uncle, the current leader of the Chicago underground, Big Jim Colosimo. With the prohibition came possibilities for large alcohol based profits. Torrio knew that Big Jim could make extremely large amounts of money, but Colosimo could not be persuaded to try his hand. So, in 1920, Torrio had Capone plan and carry out the murder of Big Jim, making Torrio the new boss of Chicago, with Capone as his right hand man, and manager of bootlegging alcohol (Internet 3, 1).   Ã‚  Ã‚  Ã‚  Ã‚  As they started their completer takeover of Chicago, few mobs would put up any resistance. One that did was the Irish North Side gang. Capone soon called in Frankie Yale, one of his old gang mates from Brooklyn, and the same man that had done the Colosimo assassination, to murder Dion O’Banion, the head of the North side gang. His death did little to persuade the gang to back down, and they continued to fight on and off for a few years.

Nissan Motors Essay

Company Introduction : Nissan Motor Company Ltd (Nissan) is Japanese Company engaged in the automotive industry worldwide. The Company, including its associated brands, designs, produces and sells more than 3.7 million passenger cars and commercial vehicles in more than 190 countries. The Company is engaged in manufacture and sale of passenger automobiles, as well as the supply of automobile parts. Major overseas market for Nissan included Europe, North America, Africa, New Zealand and China. The Company’s major production sites are located in Japan, with additional facilities located in the United States, Mexico, the United Kingdom and Spain. In 1999, the Company established an alliance with Renault SA, a French automobile manufacturer. The alliance is designed to achieve profitable and balanced growth for the two partners through the creation of a bi-national group. Nissan (Japan) is amongst the top three car manufacturers in Japan and the top five in the world. As well as its cars, pickups and sports utility vehicles, the company also has an interest in heavier vehicles and equipment such as vans, trucks, buses, components, aerospace, industrial machinery and marine equipment. STP 1) Segment * Nuclear families in the Hatchback segment 2) Target Group * Upper middle class executives 3) Positioning * A simple small car which would make life better for the owner SWOT Analysis * Strength: 1.Nissan Micra/ March available in India, China, Australia, Japan, UK, Canada and other countries 2. Micra known for reliability, excellent build quality, and user friendliness 3.Strong brand name Nissan enhances brand credibility and presence 4.Excellent advertising and branding. * Weakness: 1.Small car has space issues 2.Limited dealership and servicing when compared to competitors. * Opportunity: 1.Fast growing automobile market 2.Increasing purchasing power parity 3.Use the strong global brand presence 4.Need to work on bringing hybrid and eco-friendly models. * Threats: 1.Intense competition 2.Government regulations and increasing fuel prices 3.Improvement in public transport.

Fast Food or Sit down Restaurants Essay

Enjoying your food with warm cooked bread along with sweet butter to spread and an iced cold drink to top it all off, or Rushing to eat your food because you feel as if you have to scarf it down before it gets to cold. Sit down restaurant or fast food what would you prefer? Sitting down talking, ordering refills and desserts is my favorite while at a sit down restaurant but sometimes I am in a bit of a hurry and need to swing bye and get something fast that is easy to eat in a short amount of time. Some people may think fast food compared to sit down restaurants are almost the same but they do have many differences. Comparing two local food businesses such as Taco Bell and Texas Road House, there prices I would like to say are a little low but the other are a little high. Taco Bell is considered a fast food joint, and is a place to go when you may be low on cash or even when you may want something fast and easy after a long day at work to feed your family. Taco Bell always has deals and low prices for those times when you want something good not to expensive but worth your money. Texas Road house on the other hand is the opposite this is the place to go when you just got a really good paycheck and feel as if you and your boyfriend need to be spoiled or maybe just want to have a night and go somewhere that will have fun serving you and also do not mind if you get a little crazy cause that’s what having fun is all about.. Texas Road House is considered a Steak House and it is somewhere to go when you want to enjoy a delicious meal and maybe even some drinks to have just a great night out ye s you will be spending way more then you would if you went to Taco Bell but Texas road house always fulfills my taste buds and its worth the money every time. For some people the environment Is the most important part about eating at a restaurant. Some like it quiet and not to be bothered others like it loud and packed. When picking a place like taco bell it is a very quiet place to go and eat and rarely do you go in and enjoy your meal. Texas Road House on the other hand is very loud and there is always a long waiting list because it’s so packed. Not only is the environment important but also how clean the place is to, taco bell is always on top of cleaning and how nice and clean  there lobby is and also there bathrooms too. Texas Road house is clean besides all the peanuts you bring home on your shoes bathrooms are always kept up and you always leave with a full stomach.. To me having something fun at your restaurant is good it gives the place character and everyone knows where to go when they just feel like a bag of peanuts, or when you need some extra hot sauce packets at home. When it comes to different food items at these two places, they are different but that’s what makes each place unique. Taco bell has burritos, tacos, nachos, Mexican pizza etc. Texas Road House has a variety of things burgers, steaks, salads, baked potatoes, bread rolls, and so much more but each place does have a signature sauce they serve, taco bell has there mild ,medium, hot, and Verde sauce while Texas road house there steak sauce and there butter that everyone loves. Not only do you need the sauces and butters with your meal but you do need drinks as well. Taco bell has a variety of different pops, while Texas road house has pop, tea, lemonade, beer, margaritas, shots, etc. Taco bell compared to Texas Road house are very different in their own ways.

Barilla’s manufacturing Essay

Manufacturing: Barilla has 25 plants, including large flour mills, pasta plants, and fresh bread, as well as plants producing specialty products. Raw materials, in the manufacturing process, were transformed to packaged pasta on fully-automated 120 meter long production lines. The plants were specialized by the type of pasta they would produce, with the primary distinction based on the composition of the pasta, e.g. dry or fresh pasta, pasta with or without eggs and spinach. Also, even within the same family of pasta products, individual products were assigned to plants based on the size and shape of the pasta. The manufacturing process at Barilla was very precise, and required tight heat and humidity specifications in the pasta dry process, so as to keep the changeover cost low and quality high. Distribution: Barilla divided its products into â€Å"dry† and â€Å"fresh† product categories and maintained a different distribution system for the two categories. The dry products category includes dry pasta and longer shelf-life bakery products, whereas, the fresh products category includes fresh pasta products (with 21-day shelf life) and fresh bread (with one-day shelf life). Barilla had two central distribution centers (CDC) to which the products shipped from the plants. The fresh products were then purchased from these CDC’s by independent agents who then channeled the products through 70 regional warehouses located throughout Italy. From the CDC’s approximately 65% of the dry products went to the supermarkets, 70% of these (65% of dry products) went to super market chains, whereas, the remaining 30% went to independent super markets. The remaining 35% of dry products were distributed from the CDC’s to Barilla’s internally owned regional warehouses, which then distributed them to small  independent shops – Signora Maria Shops. Dry products destined for supermarket chains were distributed from the CDC to the chain’s own distribution organization, known as Grande Distribuzione (GD). While those destined for independent supermarkets were distributed from the CDC to a distributor known as Distribuzione Organizzata (DO), which acted as a centralized buying organization for a large number of independent supermarkets. The CDCs held a month’s inventory for dry products, and 3 days for fresh products. The GD, DO and the internally owned regional warehouses (for Signora Maria shops) held a two-week supply for Barilla’s dry products. The following figure (Figure 1) shows an illustration of Barilla’s distribution system for dry products: Figure 1: Barillas Distribution Network for Dry Products What is the problem faced by Barilla? What do you think are the factors causing this problem? Barilla’s pasta supply chain suffers from classic bullwhip-effect problem. It has been experiencing large amounts of variability in demand resulting in operational inefficiency and increased manufacturing, inventory, and distribution costs. The underlying factors of the fluctuating demand include Barilla’s sales strategy relying heavily on the use of promotions in the form of price, transportation and volume discounts; sales representatives being rewarded based on the amount of product sold to distributors, which led to sales representatives trying to push product to the distributors during promotions, decreasing the ability to accurately forecast sales; the distributors having full control over their orders leading to gaming behaviors; and the lack of a computer forecasting system at the distributor level. Describe the solution proposed by Brando Vitali. Why do you think this would help alleviate the problem? Brando Vitali suggested the implementation of a Just-In-Time Distribution  (JITD) strategy, which is essentially the Vendor Management Inventory (VMI) strategy. Barilla will be in charge of the channel between the CDCs and the distributor and decide on the timing and size of shipments to its distributors. Thus, unlike traditional supply chains in which distributors place orders and manufacturers try to satisfy these orders as much as possible, in JITD Barillas own logistics organization would specify the appropriate delivery quantities – those that will more effectively meet the end customer’s needs yet would also more evenly distribute the workload on Barilla’s manufacturing and logistics system. If implemented, Barilla can make better delivery decisions and improve its demand forecasts, be more effective in meeting end-customers needs, and more evenly distribute the workload on its manufacturing and logistics systems. Also, the inventory levels at CDCs will a lso be reduced. What conflicts or barriers internal to Barilla does the JITD program create? What causes these conflicts? How should Giorgio Maggiali deal with these internal conflicts? The main resistance internal to Barilla was from the sales and marketing functions, which Barilla, until now, has relied upon for its success. The sales representatives feared reduction in both their responsibilities and bonuses due to a flatted sales level. The marketing people also feared a reduction in responsibilities as trade promotions would be difficult to run with a JITD strategy. There were also concerns about inability to adjust shipments quickly to stock outs, lack of infrastructure to handle JITD, vague cost benefits, and increased competitor shelf space at distributors. I think Maggiali should demonstrate that JITD benefits not just Barilla, but also the distributors. He should run experiments at one or more distributor sites and prove his case. Also, Maggiali should encourage the marketing and sales people to look at the overall benefit to the supply chain. By getting the top management involved, by effectively advocating the benefits for the entire supply chain, and by removing the obstacles of sales incentives and reduced responsibility, Maggiali can effectively deal with this problem and get JITD implemented. How do you think a typical Barilla customer would respond to JITD? Why? How would you convince the customer that the JITD program was worth trying? If you are not able to sway the customer, what alternatives would you suggest to combat some of the difficulties that Barilla’s operating system faces? I think a typical Barilla customer, if explained to properly, should be able to comprehend the benefits associated with JITD for the entire supply chain. I would convince the customer by mentioning the benefits of the JITD in removing the bullwhip effect. I would point out the fact that they would actually be reducing their costs significantly because Barilla would be responsible for monitoring and replenishing their inventories when levels are low. Moreover, the reduced inventory levels would also save them the cost for both inventories and space. If however, I am not able to convince the customers, I will try other modes, in my capability, to effectively respond to the fluctuating demand. For this purposes, I would either reduce the varieties of products being offered which will reduce the need to have so many different inventories and SKU for both customers and Barilla. I could also try implementing the Just-In-Time (lean production) approach for Barillas manufacturing processes – processes which are internal and Barilla has full control over.