Author: chris

Difference between PhD and DNP

Nurses intending to pursue a doctoral degree can choose between the Doctor of Nursing Practice (DNP) and the Doctor of Philosophy (PhD) degrees. The two are different in that the PhD is aimed at preparing nurse scholars and scientists while the purpose of the DNP is to prepare specialized advanced nursing practice experts. The main difference is that DNP is practice focused while PhD is research focused (Dracup, Cronenwett, Meleis, & Benner, 2005). Moreover, the PhD program mainly focuses on research methodology and scientific content while DNP emphasizes on evidence-based and innovative practice as well as the application of reliable research findings. Another difference is that the educational activities in a PhD program include conducting extensive research studies and reporting them through linked research papers or a dissertation whereas in a DNP program, students produce a scholarly project report based on integrative and intense practice experiences (Loomis, Willard, & Cohen, 2007).  A PhD program also emphasizes on research methodology, theory, statistics and meta-theory while the DNP focuses on evidence-based practice and analytical methods (Dracup et al., 2005).

The PhD program enables students to carry out independent research and come up with new knowledge while the DNP gives students the required skills and tools to assess and evaluate the evidence from nursing research and evaluate how it affects their practice. DNP students translate research into practice and improve care delivery systems (Loomis et al., 2007). If I pursued doctoral education in nursing, I would prefer a DNP over a PhD program. This is because a DNP will provide me with the required expertise for clinical practice. It will give me the appropriate background for evidence-based practice in different roles. A DNP program will give me the skills to participate in policy making in communities as well as contribute positively to the nursing profession (Loomis et al., 2007).

References

Dracup, K., Cronenwett, L., Meleis, A. I., & Benner, P. E. (2005). Reflections on the doctorate of nursing practice. Nursing Outlook, 53(4), 177-182.

Loomis, J. A., Willard, B., & Cohen, J. (2007). Difficult professional choices: deciding between the PhD and the DNP in nursing. Online journal of issues in nursing, 12(1).

 

Nursing Education and Patient Safety Outcomes

Several studies have been conducted to determine the effects of nursing education on patient outcomes. A study by Kutney-Lee, Sloane and Aiken (2013) revealed that nurses with a baccalaureate degree improved patient outcomes. Hospitals that increased their BSN nurses recorded a decrease in the mortality of surgical patients as well as a decline in the failure to rescue. In another study by Blegen, Goode, Park, Vaughn and Spetz (2013) to find out the effects of the level of nursing education on patient outcomes, it was revealed that hospitals with a higher number of BSN nurses had better patient outcomes. In these hospitals, there were reduced cases of mortality from lower congestive heart failure, failures to rescue and pulmonary embolism (Blegen et al., 2013). An Associate Degree in Nursing (ADN) takes two years and students become licensed nurses after completing the program. However, an ADN limits nursing practice abilities and in order to assume more nursing specialties and senior nursing roles, nurses with associate degrees go back to school to get a Bachelor of Science in Nursing (BSN). A BDN takes four years of in-class and clinical training and after completing the program, numerous career options in diverse specialties are available. A Bachelor of Science in Nursing prepares nurses for practice by providing them with skills in leadership, critical thinking, health promotion, case management and they bring value to different practice settings (Kutney-Lee et al., 2013).

The results of these studies suggest that BSN nurses are associated with better patient outcomes. I agree with the research because during my nursing practice, I have realized that BSN nurses are different in their thinking, perception and questioning abilities. They perform their roles more effectively and have a greater understanding of the economic, cultural and social factors affecting patients. Therefore, patient outcomes are better in hospitals with BSN nurses.

 

References

Blegen, M. A., Goode, C. J., Park, S.H.., Vaughn, T., & Spetz, J. (2013). Baccalaureate Education in Nursing and Patient Outcomes. Journal of Nursing Administration, 43(2), 89-94.

Kutney-Lee, A., Sloane, D. M., & Aiken, L. H. (2013). An Increase in the Number of Nurses with Baccalaureate Degrees is linked to Lower Rates of Post surgery Mortality. Health Affairs, 32(3), 579-586.

 

Consumer Behavior

Flagship brand store

In any business retail, symbols are exceptionally important because they determine consumer behavior in deciding on purchasing the goods and services of a particular organization. As the brightest diamond in the crown of a retailer, the flagship store has a significant role to play in the brand strategy of a company. Usually, the most impressive and the largest in the retail chain, it is, nevertheless, not just about being a better looking and a larger store. A flagship brand store is a platform for the brand (Sonnenburg & Baker, 2013). Contrary to other stores in the retail chain, the main purpose of a flagship brand store is not to generate profits. Rather, it has a certain role to play in gaining the attention to the brand, promoting the status of its brand, and setting itself against its competitors in the market or industry. A flagship brand store states clearly that it is bold, beautiful, big, and full of itself. It is what the brand is all about and what it is about.

The shopping is more of shopping for pleasure and leisure and less on shopping for purpose. The flagship brand store offers an opportunity for potential customers to have an experience of the brand in a memorable, innovative, and inventive manner, therefore, increasing the brand awareness on an individual level. In addition, the flagship store is the most flexible in the retail chain (Stevenson, 2013). Besides making a powerful brand declaration, it may be used to experiment the market, for trial new products and services, re-position the brand, act as host venue for a number of public relations activities, or evaluate the concepts of the retail store design.

The flagship brand store that I attended recently creates symbolic meanings. It had all it takes to define what a flagship brand store really is. For instance, it had all the necessary elements that are common in almost all successful flagships across the world. It was the largest in the chain of retail and it was located in an impressive location. The flagship had also stocked the retail chain’s full range of merchandise and was inspirational, experimental and opulent. In addition, it had experimental and visual embodiment of the brand and had attention to detail and world class design execution. The flagship had the best of everything, and this is what it takes in a flagship. Retail store layout and design was luxuriously spacious and the flagship presented the best products on display, some that were unique to the flagship brand store. In flagships, merchandising is usually inventive and innovative with stock kept at optimal levels, perfect lighting, stunning window display, customer service is the priority just like in any other business, and the store is thoroughly tidy and spotlessly clean (Stevenson, 2013). This one was no exception. These attributes ensure that the environment is appealing and are symbols of marketing and promotion.

The choice of the location of the flagship has a symbolic meaning in business. Choosing an appropriate location means that the brand is likely to sell more when compared to an area where a majority of potential customers do not have access to. The choice of the location depends on a number of factors such as whether to open the flagship in affluent and prime catchment area or a location with high football. In particular impressive areas, a whole location may be seen as flagship or a host to various flagship brand stores. One’s decision on the flagship location will eventually be determined by financial considerations, brand strategy objectives, and brand identity. For instance, for a top end international retailer to attain credibility it should have a retail store in one of shopping capitals in the world that deals exclusively with fashion such as Saint Honore, located in Paris and Madison Avenue situated in New York. This shows a brand’s status to the external world and draws the attention of tourists while also providing uncompetitive access to the fashion buyers of the world. In contrast, a high football location and one of tourist hot spots in London, Leicester Square is appropriate for M&M’s fun brand. This matches the vibrancy of the brand’s surrounding with an energetic and colorful retail environment.

The building that one chooses to host a flagship also plays a significant role in business. For instance, if one wants to say something specific about the brand or show a sense of heritage, it is advisable to choose a historic building. A startling retail store layout and design immediately gains the attention of people and it is a vital element of a flagship brand store, although it is in the joined use of both experiential and aesthetic components where most of the successful flagships stand out (Sonnenburg & Baker, 2013).  Offering something distinct or unique, one that allows for the interaction between customers and the brand on all levels creates an emotional reaction and draws attention. The most excellent flagships provide customers with the opportunity to have fun, be inspired, get entertained, free their thoughts and imaginations, be awe-struck, relax, socialize, and get pampered (Dolbec & Chebat, 2013). All these are what create publicity. The summit of success for flagships is to be a national and global tourist destination. This means that publicity can make this take place.

Brands that seek to move into a new location or country for its first time frequently bring the brand by a flagship means. This is because a flagship enhances a grand entry of the brand. It also stimulates interest and evaluates the response of the country (Taylor, 2004). A flagship brand store creates an instant statement on the brand’s status while demonstrating the commitment and confidence of the brand to the country. It also serves as a hub for the creation of relations with suppliers, distributors, customers, franchise partners, landlords, and investors. Flagships attract instant attention of the media. For brands that seek to develop relationships with distributors and wholesalers, the publicity that flagship creates can lead to sealing of contracts, therefore, producing valuable profits and income (Doyle et al., 2008). Following the growth and development in global visitors in the recent years, Moscow and Shanghai have evolved as major locations of flagship stores.

For a majority of the biggest brands in retail, I believe that flagships stores are an important component of their strategy. Whereas flagships may not essentially result in huge financial returns appropriate for an organization’s size and status, the business benefit that flagships provide in relation to marketing position, customer involvement, and brand awareness can offer essential long term worth or value. The assurance in flagship brand stores, therefore, remains powerful (King, 2012). For this reason, because of the growth and development of the business world, brands across the world are resorting to flagship stores to seek new markets and attention of customers from other regions. In the contemporary competitive world, each company wants to show its products and services in the most appealing manner to customers. As impressive new retail markets develop and emerge across the globe, the brand’s interest in flagships will still continue. Guaranteeing the accomplishment of a brand’s flagship store implies reducing potential risks and threats, choosing a venue and a location that matches the brand strategy, and developing a completely practical concept of store design, which optimizes involvement with the brand, and adjusting the brand’s requirements in order to meet a certain market’s expectations. Doing ‘homework’ is essential. Research is important before the implementation of any new flagship brand store. Some of the most successful flagships are known for intensive research and development in the market prior to the implementation of any flagship. This is one way of comprehending how the system entirely works.

As stated, business or retail environments must have symbolic meanings especially for potential customers and investors. In my opinion, the symbolic meanings explained are exceptionally effective in enhancing the entry of a brand in to particular markets (Okonkwo, 2007). Each organization that chooses to promote and advertise its brand using a flagship brand store should ensure that the elements of a flagship are clearly represented in order for customers to understand the symbolic meanings. It is important to note that flagship brand stores may have negative effects of risks. Whereas flagships can have extremely positive effects on an organization’s brand, raising a brand’s profile, and serving as a form of status symbol of the brand, its implementation is not always without some threats (Mikunda, 2008). All about a flagship brand store is more costly, the store layout and design, the daily running and property rental costs. It is noted that flagship stores have higher wear and tear as compared to other stores because of footfall and because they need more frequent refurbishment and re-design in order to remain innovative, inventive, and fresh. Supposing that a majority of flagship brand stores may not be self-supporting, the implications on finances are higher (Messedat, 2007).

Flagship brand stores can lead to confusion especially if the feel and look of the flagship store varies to other people in the chain. This leads to customer alienation, some who may not be able to relate or engage with the new identity of the flagship store. Contrary, customers can have disappointment or frustration feelings towards other stores in the business retail chain when they fail to meet similar standards as the store (Haenlein & Kaplan, 2009). In most cases, flagship stores may not work. While the flagship may be completely impressive, it may fail to be completely functional. For instance, this is evident in poor traffic flow, limited visibility because of architectural or technical blind spots, or customer alienation on doorsteps because of confusion or absence of clarity in the direction of the store. However, the advantages that flagships offer to organizations are tremendous, and firms should ensure that their flagships are outstanding and functional at the same time. This way, they will be able to attain the goals and objectives of the flagship.

 

References

Dolbec, P., & Chebat, J. (2013). The Impact of a Flagship vs. a Brand Store on Brand Attitude, Brand Attachment and Brand Equity. Journal of Retailing, 89(4), 460-466.

Doyle, S. A., Moore, C. M., Doherty, A. M., & Hamilton, M. (2008). Brand context and control: the role of the flagship store in B&B Italia. International Journal of Retail & Distribution Management, 36(7), 551-563.

Haenlein, M., & Kaplan, A. M. (2009). Flagship Brand Stores within Virtual Worlds: The Impact of Virtual Store Exposure on Real-Life Attitude toward the Brand and Purchase Intent. Recherche et Applications en Marketing (English Edition), 24(3), 57-79.

King, B. (2012). Bank 3.0: Why Banking Is No Longer Somewhere You Go But Something You Do. New York: Wiley.

Messedat, J. (2007). Best designed flagship stores: Shops-showrooms-brand centers = Geschäfte-Showrooms-Markenwelten. Ludwigsburg: AV Edition.

Mikunda, C. (2008). Brand lands, hot spots & cool spaces: Welcome to the third place and the total marketing experience. London: Kogan Page.

Okonkwo, U. (2007). Luxury Fashion Branding: Trends, Tactics, Techniques. New York: Palgrave Macmillan.

Sonnenburg, S., & Baker, L. (2013). Branded spaces: Experience enactments and entanglements. Wiesbaden: Springer VS.

Stevenson, D. (2013). The city. Cambridge, UK: Polity.

Taylor, D. (2004). Brand Stretch: Why 1 in 2 Extensions Fail, and How to Beat the Odds. Chichester: John Wiley & Sons.

 

 

 

Human Resource

Abstract

Up to the 1980s, companies in Japan succeeded with individuals oriented in pleasant business settings. However, in the 1990s, in the intense global competition context, Japanese companies modified their human resource management systems to those based on performance. Debatably, the changes were not completely successful. The main purpose of this essay is to explore why the HRM systems or models of Japan are no longer relevant to companies in the contemporary business environment. Specifically, the paper explores why the strategic HRM models are not effective in the face of harsh global competition. Three HRM systems’ conceptual models are analyzed for the suitability between the business environment and the HRM system.

Introduction

The Japanese model of human resource management is no longer relevant to firms in the contemporary business environment (Yasmin, 2008). Most people and organizations recognize that quality human resources and HRM systems are a significant variable for companies to maintain a competitive benefit in the face of harsh global competition. According to classical contingency theory or model, a company should adjust its structure to the setting in which its operations are carried out in order to attain and maintain a competitive benefit. The model emerged and emphasized that a firm should not only adjust its organizational structure to the current current setting, but its management control system and organizational processes, as well (Yamanaka, 2004). An HRM model is not an exemption. As a result, firms are likely to experience challenges in adjusting their HRM models to the business environment in order to attain and maintain a competitive advantage.

Firms in Japan were quite successful for about 3 decades starting from the 1960s up to the 1980s. In this era, the management system of the organizations of was greatly respected and the practitioners and researchers from overseas called it “the Japanese management style (Yasmin, 2008)”. In fact, a majority of researchers emphasized that the lifetime seniority and employment based wage model led to the excellent performance of the Japanese organizations during that time. However, in the beginning of 1990s after the fall of the assets inflated the economy, Japanese firms reported high losses (Pudelko, 2006). In reaction to harsh business competition from new entrants form the global and domestic markets, companies in Japan were forced to reorganize their business operations and reengineer the processes and systems of management. The actions are represented in the immense accomplishments to adjust the HRM models to the latest environmental changes.

The purpose of this essay is to analyze how the companies of Japan adjust their HRM models to varying business surroundings. There is plenty of literature on how Japanese organizations have been changing their HRM models in the new environment of business since the beginning of the 1990s. There is, however, little written on the HRM model transformation trend, as well as, the results of the changes. The essay adds knowledge to this literature gap in a number of ways. It provides a conceptual framework that categorizes HRM models into three major forms. It also gives a brief history of Japanese companies’ HRM system. The paper explains why The Japanese model of human resource management is no longer relevant to firms in the contemporary business environment and finally recommends ways in which Japanese firms might reorganize or restructure and operate HRM models in the contemporary business world that usually features harsh global competition.

Conceptual framework

As a business system, HRM’s leading goal is to control individuals in companies in order for employees to be in a better position to assist in the accomplishment of organizational goals and objectives. The four main sub systems of an HRM system include an employment management system, a working condition management system, a reward management system, and an employee assessment management system (Yasmin, 2008). Employers must ensure appropriate working environments for workers to carry out roles efficiently and effectively. Employees should be rewarded appropriately to increase their motivation. Employees should be assessed on the basis of performance and result. The contribution of employees is the picture of the physical skills, knowledge, and power. These attributes largely depend on employees’ capabilities and motivation. The higher the motivation is, the higher the organizational (Yamanaka, 2004). Concurrently, this intensive commitment and stronger motivation is more likely to increase ability as learning knowledge and skills are related to performance of their functions. Employers, therefore, can improve this commitment or motivation with proper rewards, both monetary (wages, salaries, and bonuses) and non-monetary (promotion and recognition).

History of HRM system of Japanese firms

Manufacturing companies in Japan, particularly automobile producers, electric equipment producers, and electrical appliance manufacturers enjoyed a global competitive edge for three). After the plunge of the country’s asset inflation (known as the ‘economic bubble’) in the beginning of 1990s, however, companies in Japan lost their popularity. In agreement with the fall of the bubble economy of Japan, the style of management of Japan that foreign researchers or managers had respected lost recognition and popularity (Kambayashi, Morita, & Okabe, 2008). As a result, Japanese companies have been struggling to modify their HRM models. Up to the 1980s, companies in Japan succeeded with individuals oriented in pleasant business settings. However, in the 1990s, in the intense global competition context, Japanese companies modified their human resource management systems to those based on performance. Debatably, the changes were not completely successful (Pudelko, 2006).

Irrelevance of the Japanese model of human resource management to the contemporary business world

The change of HRM of Japanese firms from people to performance oriented had considerable consequences. These consequences have made the HRM model of Japanese firms irrelevant to the modern business world. In the recent times, an increased number of organizations have adapted the HRM model based on performance. According to a study carried out by Japan Management Association (JMA) in 2004 many companies that had adapted the performance oriented HRM model did not get the expected pleasant results. In fact, 70 percent of the firms that had introduced the model were evaluating the system to determine why the model did not work as desired (well) (JMA, 2005). There are a number of issues that arose with the change of the HRM model.

The main issue is that the senior management in most of these companies failed to sufficiently describe the aim of implementing the system. The employers openly explained something distinct from what they planned. They said that the system was implemented for organizational or managerial competitiveness, and that a worker who was dedicated must be rewarded accordingly depending on his or her work performance. However, this is not what employers actually planned. Their intention was to alter the cost of personnel from fixed to variable costs. Employers were not clear on the public aim of implementing the new HRM model that was based on performance of employees (Bidgoli, 2010).

In addition, the system of management by objective had systematic issues. At the core of this model is a framework of performance appraisal in which a worker is assessed depending on how much the individual will have attained in terms of the criteria used, which are developed at the start of the time of evaluation, although the attained results do not essentially relate to the degree of value added organization’s achievements (Bebenroth & Kanai, 2010). For instance, employees in an accounting department may perform an excellent work but may fail to earn value added because the added value amount generated is decided by the market where services and goods are traded. The added value’s monetary value earned in the market is the same as the value left after deducting the value of input from the price of services of goods earned in the markets. In this case, the price of services or goods is determined based on the demand and supply balance, and not directly linked to the job excellence accomplished by employees.

Another issue related to the system is that an objective is allocated to each worker. This means that each job has work is determined through looking at the goal of an organization step by step. Breaking the goal of an organization to an employee’s level without weakening the similarity between them is, however, not an easy role. Also, given definite objective, a worker tends to not do extra activities besides those given in the definite objective (Bidgoli, 2010). People seem to be reluctant to assist others as the assessment of a worker largely depends on individual performance. Consequently, these issues in the system lower teamwork morale.

Another problem in the model is in the employee assessment process. The main essential things in the process of evaluation include the consent and fairness of the employees to be assessed. A complete assessment instead of a relative one is crucial to assess workers fairly, gain their consent and keep workers dedicated to the organization. However, the employees were assessed relatively. Employers in Japanese firms normally established four or five levels in assessment and established the value of each rank in advance. Therefore, employers assessed the workers based on predetermined proportions. The reason why workers were evaluated relatively and the predetermined proportions used was because the finances to be given to them were because of the performances of the organizations (Bebenroth & Kanai, 2010). Consequently, some workers could not get acceptable assessments for excellent performance and thus, not adequate pay, and as a result, the employees lost their zeal and dedication and showed lower commitment to organizations. Another issue related to the process of evaluation was that some people in the management were not in capable of evaluating their subordinates as required since they did not have skills and experience of evaluation.

The other issue in the system is the informal opportunities extinguishment for training and education. In the decades that the human resources management systems was successful as it was dependent on a seniority basis, the younger individuals were trained and educated by the elderly workers on organizational work. The elderly persons were not worried about the fact that the younger fellows would take their place (Yasmin, 2008). Because the treatment of individuals in companies started being based on their work performance, a majority of the elderly personnel start seeing the younger ones as rivals since they would have to compete with them in the organizations, and the younger had the energy to work more and get more payments. Such thoughts made the elderly stop educating the young and this meant that the transfer of expertise, knowledge, and technology related to the firm became restricted (Bebenroth & Kanai, 2010).

Conclusion

Japanese companies are forced to compete in international markets. Harsh competition in the international markets implies that organizations are obliged to agree to high risks associated with the growth of market, as well as, the low industry rates of returns. The problem of how to control the human resources during the international competition era is a huge problem  for management in Japan. In the three decades that had been successful for the companies, foreign and domestic market had been constantly expanding. During that period, employers in Japan offered long term job opportunities and workers were paid on a seniority basis that made them work even harder. The problems faced by the companies could be curbed if the above issues are addressed effectively and changed to suit the competitive environment. The system could be effectively operated to achieve positive results. Motivating workers for contemporary managers in Japanese is a major challenge and workers are threatened by the current HRM model due to risks of dismissal. Employers should ensure the security of jobs for employees and this will increase employees’ morale leading to increased productivity and profitability for the organization. The management has an important key to play in the motivation of its employees and ensuring that the HRM model is effective.

References

Bebenroth, R., & Kanai, T. (2010). Challengesof Human Resource Management inJapan. Hoboken: Taylor & Francis.

Bidgoli, H. (2010). The handbook of technology management. Hoboken, N.J: John Wiley & Sons.

Japan Management Association, (2005). News Release. A Survey on performance-oriented HRM. Available http://www.jma.or.jp. [2005, February 22].

Kambayashi, N., Morita, M., & Okabe, Y. (2008). Management education in Japan.

Pudelko, M. (2006). A comparison of HRM systems in the USA, Japan and Germany in their socio-economic context. Human Resource Management Journal, 16(2), 123-153.

Yamanaka, T. (2004). Workers’ Satisfaction concerning Positions in Local Governments in Japan and Measures concerning Human Resources Management. Japanese Journal of Administrative Science, 17(3), 149-157.

Yasmin, R. (2008). A Study on the Effects of Strategic HRM Systems on Performance: The Case of Pakistani Manufacturing Companies.. Japanese Journal of Administrative Science, 21(1), 47-60.

 

Modern Business in Comparative Perspective

Production and operations management are recognized as essential factors in a nation’s economic growth. The process involves the transformation of the production and the operational inputs into outputs, which, when distributed meet the customers’ needs. It also involves the duty of ensuring the efficiency of business operations with regard to using as fewer resources as possible, and effective with regard to meeting the customers’ needs (Barnes 2008).  Moreover, production and operations management focuses on managing the process which converts inputs (materials, labor and energy) into outputs (goods and services). Major economies across the world have generated different approaches to production and operations management due to various reasons. Accordingly, the essay investigates why major economies generate different approaches to production and operations management. The essay also discusses whether these differences have significantly influenced the competitive advantages between countries.

One approach to production and operations management generated by the major economies is the location of the production facilities. Location decisions are based on the long term policy and forecasts, for instance, company’s expansion policy, expected diversification of the products and/or services, the changing markets and the changing raw materials sources, among others (Boyer & Verma 2010). Several factors influencing the location positioning including, but not limited to: location of raw materials, nearness to market, the climate, and culture. Location of production facilities for the operations is a long-run capacity decision that involves a long-term commitment regarding the geographically fixed factors which affect business organizations in a country. It is a vital strategic decision-making for organizations since the selection of location is a key decision that involves large investment in building the plant and machinery. Moreover, an inappropriate location of the facilities may result in waste of the entire investments made in the plant and machinery equipment (Jones & Robinson 2012). Consequently, location of the facilities must be based on a company’s expansion policy and plan, diversification plans for products, changing raw materials sources and other factors. Proper location of the facilities leads to an optimal location which will bring about the maximum comparative advantages to the company. As such, the benefits of locating firms strategically include easy and quick access to the market, raw materials and labor, thereby reducing the operating costs.

Capacity planning refers to the long term strategic decision that determines a company’s ability to supply products and/or services. In other words, capacity planning describes the method of determining the production capacity required by a company to meet the changing demand for its products and/or services. Methods of capacity planning vary by industry or services though a lot of the principles are identical (Espinosa Salazar & Walker 2011).  A long term view can cover months and even years where operations policy is required. The policy should cover the overall organizational capacity, warehouses, machinery, computer up-grades, and investments in new facilities. Medium term perspective schedules the present capacity to best balance or meets the demand. This normally involves the manufacturing and/or requirements planning, staffing rotas machine scheduling and the materials requirement planning. Short term daily adjustments are also present in capacity management and aggregate plans assist in assigning production and service capacity to meet the demand.

The various classes of capacity planning include lead strategy, match strategy, lag strategy and adjustment strategy. Lead strategy refers to increasing capacity in anticipation of an increased demand. Moreover, lead strategy is normally aggressive whose goal is to lure consumers away from the business’s competitors by enhancing service level and cutting the lead time. Lead strategy also aims to reduce stock-out costs. Lag strategy is adding the capacity only after an organization is operating at full capacity or excess as a result of increase in the demand (Netessine & Tang 2009). Lag strategy is a more traditional strategy; it reduces the risks of wastes; however, it can result into customer loss either through low service levels or stock-out. Match strategy refers to adding the capacity in little quantities in response to the changing market demands. Adjustment strategy, on the other hand, is adding or decreasing capacity in little or great amounts as a result of consumers’ demand or as a result of major changes to the product (Netessine & Tang 2009). As such, capacity planning is useful in reducing the inefficiencies that result from the discrepancy between capacity of the organization and demands of customers. This, in turn, reduces production and operational costs leading to an increase in profits for the organizations. Capacity planning provides the ideal scenario for a business is to realize a match between the supply and the demand, thereby reducing wastages and unnecessary costs.

Plant layout and material handling are also an important approach to production and operations management generated by economies. Plant layout refers to a mechanism that involves the knowledge of space requirements for facilities and their proper arrangement in order that steady and continuous flow of the production cycle occurs. Barnes (2008) described a plant layout as the action of planning an optimum facilities arrangement, including the personnel, storage space and operating equipment.  It also includes materials handling tools and all the other supporting services together with design of the finest structure to accommodate the facilities.  Basically, there are two different kinds of plant layout; product layout and process layout. Product layout is common in the assembly line and is inclined towards the products which are being manufactured. Process layout is mainly oriented around processes which are used to manufacture the products. In general, product layout is relevant to high-volume recurring operations, whereas process layout is used for the low-volume specially made goods.

A good plan layout provides comfort to employees and caters to their tastes and likings. Moreover, a good plan layout provides good and better working conditions and also minimizes delays in the production and makes efficient use of the available space (Nicholas 2011). Better plan layout also provides improved control over production cycle by facilitating more flexibility for any changes in the product design. Material handling is the transfer of the materials from store room to machines and from one machine to another during the manufacturing process. It also refers to the science and art of moving, packing and storing products in different forms. It is a specialized practice for modern manufacturing firms, with 50-75% of the production cost (Nicholas 2011). This cost may be decreased by the appropriate section, operation, and maintaining material handling equipment. Material handling equipment increases output, enhances quality, accelerates the deliveries, and reduces the production cost. As such, material handling is a major consideration in designing new or existing plants.

Mass production refers the production of huge amounts of the standardized products, especially on the assembly lines. It involves making numerous copies of the products, very fast, using the assembly line methods to send partly complete products to the workforce who each work on individual steps, instead of having an employee work on an entire product from beginning to finish (Jones & Robinson 2012).  Economies associated with mass production stem from different sources. For one, the primary benefit is the reduction of non-productive efforts of all types. This is because the workers spend little or even no time preparing or retrieving materials and tools. Therefore, the time used to create a product through mass production is less compared to the one used when using the traditional methods. Moreover, the possibility of human variation and error is reduced; this is because tasks are mainly performed by machinery (Jones & Robinson 2012).  As such, the reduction in the labor costs and the increased production rate enables companies in an economy to produce larger quantities of products at lower costs than using the traditional non-linear techniques.

Therefore, mass production enables firms within an economy to achieve higher production rate with shorter cycle time and higher capacity operation as a result of line balancing. Moreover, mass production requires less skilled operators, has low inventory process and low manufacturing cost per unit (Suri 2010). Nevertheless, mass production tends to be inflexible since it is hard to adjust a design or a production process after the production line has been implemented. Moreover, all products manufactured on an individual production line shall be identical, and introducing varieties to satisfy the individual tastes is difficult. However, some varieties may be achieved through applying different decorations and finishes at the end of a production line when necessary.

Companies select various ways of product and service designs, which are: standardization, delayed differentiation, mass customization, robust design and modular design. Deciding the correct method establishes improved productivity and efficiency for the operations. Product Design mixes ergonomics with the product as well as business knowledge to produce concepts and ideas and transform them into usable physical objects and/or services (Starr 2008). Product design covers the whole range of the activities from conception, manufacturing, experimenting to the product launch. Product design conceptualizes and evaluates themes and ideas they find profitable and make them tangible through the products by use of a systematic approach. On the other hand, service design refers to the activity of planning and organizing individuals, communication and the material components so as to improve the service quality. It describes the interactions between a service provider and the customers along with the customers’ experience (Starr 2008). The two most essential issues in the service designs are the level of variation in the needs and the level of the customer contact that determines how  the service can be standardized. A higher degree of customer interactions translates to a higher the possibility of selling the services. In their useful life, a lot of products and services undergo four stages, which include; introduction, growth, maturity, and decline. Since the demand for each of the four stages may vary, different strategies must be applied to attain optimum product and/or service performance in each stage.

Standardization can be great for companies that create common products since there are not a lot of things one may do so as to make them distinctive and keep down their prices. Standardization products contain interchangeable elements, which increases productivity and reduces the production costs. Standardization has numerous important benefits as well as disadvantages (Salameh & Burtonshaw-Gunn 2013). For example, design costs for the standardized products are low. Moreover, scheduling of the work inventory handling, buying, and the accounting activities are habitual. As such, it makes the quality to be more consistent. Nonetheless, standardization is associated to a number of drawbacks like: it decreases variety provided to the consumers resulting in less appealing; second, the high costs related to design changes make it inflexible to improve.

Mass customization refers to a strategy which companies use to integrate customization and at the same time practice standardization. Mass customization keeps the costs low and adds variety to the product. There are two tactics making mass customization feasible; they include the delayed differentiation and the modular design. Companies that consider delayed differentiation choose not to finish a product because of unknown consumer preferences. Modular design describes a type of standardization where the parts are classified into modules to enable easy interchanging or replacement. Product and service designs are essential factors to consumer satisfaction since organizations are supposed to satisfy their consumers constantly for the organizations to gain a competitive advantage in the market (Nicholas 2011). They can do this through improving the current products as well as by designing other new products. The design is made of; research, design, production, life-cycle, safety in using, maintainability, reliability regulatory and legal matters. Organizations too need to consider ‘sustainability’ while designing their products and/or services. The aspects related to sustainability include: life-cycle assessment, value analysis, remanufacturing and recycling.

In conclusion, production and operations management is considered an essential factor in a nation’s economic growth. It generally involves the transformation of the production and the operational inputs into outputs, which, when distributed meet the customers’ needs. Location decisions are based on the long term policy and forecasts, for instance, company’s expansion policy, expected diversification of the products and/or services, the changing markets and the changing raw materials sources. Proper location of the facilities leads to an optimal location which will bring about the maximum comparative advantages to the company. Capacity planning refers to the method of determining production capacity required by a company so as to meet the changing demand for its products and/or services. Capacity planning is valuable in reducing the inefficiencies resulting from discrepancy between capacity of the organization and demands of customers. This, in turn, reduces production and operational costs leading to an increase in profits for organizations and a comparable advantage over the rival companies.

Plant layouts are mechanisms that involve the knowledge of space requirement for facilities and their appropriate arrangements for steady and continuous flow of the production cycle. Ideally, a better plan layout often provides comfort to the employees and caters for their tastes and preferences. Moreover, they provide better working conditions and also minimize delays in the production and makes efficient use of the available space. Better plan layouts also provide improved control over production cycle by facilitating more flexibility for any changes in the product designs. Accordingly, all these approaches to production and operations management significantly influence the competitive advantages between countries, especially through the comparative advantages gained.

 

References

Barnes, D 2008. Operations management: an international perspective, Thomson, London.

Boyer, KK & Verma, R 2010, Operations & supply chain management for the 21st century, South-Western/Cengage Learning, Ohio.

Espinosa Salazar, AM & Walker, J 2011, A complexity approach to sustainability: Theory and application, Imperial College Press, London.

Jones, P & Robinson, P 2012, Operations management, Oxford University Press, Oxford.

Netessine, S & Tang, CS 2009, Consumer-driven demand and operations management models: A systematic study of information-technology-enabled sales mechanisms, Springer, New York.

Nicholas, JM 2011, Lean production for competitive advantage: A comprehensive guide to lean methodologies and management practices, Productivity Press, New York.

Salameh, M & Burtonshaw-Gunn, S 2013, Essential tools for operations management tools, models and approaches for managers and consultants, Wiley, New Jersey.

Starr, MK 2008, Production and operations management, Cengage Learning, Ohio.

Soyka, PA 2012, Creating a sustainable organization: Approaches for enhancing corporate value through sustainability, FT Press, New Jersey.

Suri, R 2010, It’s about time: The competitive advantage of quick response manufacturing, CRC Press, New York.

SUBJECT:Acceptable Use of Email and Text Messaging

Communication in our company has been one of the pillars of good performance for quite a long time. I commend you for utilizing the ICT facilities available at your disposal within the organization and believe it has been of great help to you and me. To improve on our service delivery, team work and social life in our various work places within the organization, some policies have been established as to create a better working environment. However, some issues have also arisen as a result of the overlooking some existing policies hence calling the management to lay some emphasis on the importance of adhering to them.

On security, all employees are reminded to be responsible and accountable for all communication facilities, equipment and materials within their areas of jurisdiction. Each should be responsible for all the information passing through the areas they are controlling. Note that the organization does not permit sharing of any information about the company without a license. Keep your account password secret from anyone, Computers, telephone must be used only which performing duty related tasks and not for personal use failure to do so, people found doing the contrary will the responsibility on any consequence. Also be reminded that communication to the media can only be done by the public relations department and unless otherwise permitted in writing by the management. Otherwise, each one will be responsible in case any issue arise. As much as the company has no intention of affecting the privacy enjoyed by members it is the duty of employers and managers to monitor what passes through the organization’s computer system and what is stored in them. In order to reduce the spread of viruses through the computer, to ensure that the system is not used for criminal or some other improper purposes and to avoid some other situation that may degrade or lead to corruption of operations within the computer systems.

We appreciate all cooperation in advance and if anyone has any questions, there is freedom to get in touch.

Best wishes.

By management.

Challenges in the Global Business Environment

The ongoing challenges in the global business world are mainly attributed to unethical business practices, failure to integrate technology advancements into the business and stiff competition in the marketplace (Gaumnitz & Lere, 2004). An organization’s practices and processes are subject to the code of ethical conduct that a company develops based on regulations and social responsibilities. This paper highlights various challenges that organizations face in the global business environment using case studies of AT&T, Verizon Communications and CenturyLink.

Nature, Structure and Type of Products/Services, Code of Ethics

AT&T is a US based telecommunication multinational with headquartered in Dallas. The company is the leading mobile telephony and fixed telephony provider in the US also offering Broadband services. Founded in 1983, the company’s major products and services are fixed line and mobile telephony, broadband and fixed internet services and digital Television services.

Verizon Communications is a US broadband and telecommunication company based in New York. Founded in October 1983, Verizon products and services include fixed line and mobile telephony, digital television, network services, and broadband and fixed line internet services. With over 178,300 employees, Verizon has over fourteen subsidiaries some of which include Verizon wireless, GTE, Diamond State Telephone and Verizon North.

CenturyLink is also an American-based communications multinational with its headquarters in Louisiana. The company offers communication and data services to businesses, the federal government. Founded in 1968, the company offers services in fixed-line telephony, internet hosting services, digital television, fiber-optic broad band network services, and fixed-line internet services.

AT&T code of ethics is adopted to foster honest and ethical conduct. The three key issues from within the document that I believe are critical for success are honest and ethical conduct, fairness and health work environment, and compliance and reporting (Gaumnitz & Lere, 2004).

Ethics of Conduct, Key Issues in AT&T, Verizon and CenturyLink

Using the three key issues selected as a benchmark, comparison and contrast of the codes of conduct of two similar companies within the telecommunication industry which are Verizon and CenturyLink is as follows:

• Honest and ethical conduct

Each employee, officer or supervisor at AT&T has a duty to the company to exercise integrity by upholding honesty and ethical conduct. Conflicts of interest in personal and professional relationships should be ethically handled. All AT&T employees are required to act with integrity at the same time upholding confidentiality for company information as required in company’s policies (Davis, 2007). Moreover AT&T employees are required to adhere to high standards of business ethics and observe government regulation and desist from disclosing company materials for personal benefit.

Although the Verizon’s code of conduct does not specifically mention honesty and ethical conduct, the provision is provided under the clause for maintaining integrity and fairness in the workplace. The code has guidelines on how to avoid conflict of interest by upholding honesty and fairness. Personal conflicts of interest should not surpass the organizational goals and the conduct of employees outside. Verizon should be in a manner that maintains a positive image for the company.

CenturyLink on the other hand upholds fairness and integrity to reflect the company’s unifying principles that are based on fundamental values upon which the company is built. In all the company’s dealing, they demonstrate integrity and act ethically by doing the right thing even if it is difficult and takes time to accomplish.

• Fair and Healthy Work Environment

AT&T is committed to doing right to its employees and the company strives to maintain a competitive position in the industry as the employer of choice. AT&T maintains an inclusive work environment by maintaining diversity in the workplace to reflect the customer base they serve. The company upholds a culture of securing the workplace to ensure every employee feels secure. Workplace hazards are eliminated and frequently monitored so that the safety and health of employees is sustained (Gaumnitz & Lere, 2004).

CenturyLink advocates for fairness among employees by treating colleagues and stakeholders as they would like to be treated. The company and its employees are also committed to exercise fairness in all dealings with clients, associates and fellow employees. CenturyLink also works to maintain a secure and healthy work environment by following the applicable laws and procedures, eliminating health hazards and suing the prescribed safety equipment and responsive reporting of unsafe conditions and activities. The company does not condone threats that interfere with its commitment and safety and threats must be promptly reported (Gaumnitz & Lere, 2004).

Verizon on the other hand maintains an inclusive, fair and health work environment through promoting diversity and equal opportunity commitment at the same time eradicating all forms of harassment and discrimination. Workplace violence is highly punishable whereas workplace environment and safety are upheld. Substance abuse and consumption of controlled substances is prohibited during work and acts of gambling at company premises are restricted.

• Reporting and accountability

At AT&T, the audit committee maintains the mandate to interpret the code of ethics in any arising situation. Questions on hoe the policies are applied and interpreted are handled by the company’s legal department. Each employees, director or officer is required to report any breach of the ethics conduct. In addition, AT&T maintains procedural guidelines when making investigation regarding breach of the code and reporting potential violations. AT&T follows a predetermined procedure in enforcing and reporting on the code.

Although Verizon does not directly address reporting and accountability, it has provisions for maintaining integrity in the workplace through appropriate business processes and protecting the reputation and assets of the company. Accountability at Verizon should be upheld by employees through preparation, disclosing and maintaining accurate records, to promote transparency and complete disclosure. Company information should be heavily safeguarded and the code has also provisions securing its IT infrastructure and intellectual property (Davis, 2007).

On the other hand, CenturyLink upholds living the unifying principle with the company and its shareholders through accurate accounting and financial reporting for accountability. Every employee has a mandate to safeguard company assets and resolving conflicts of interest so that it does not override accountability requirements.

Extent to which the Selected companies address the Selected Issues and Implications

To a large extent, Verizon and CenturyLink uphold Reporting and accountability, Fair and Healthy Work Environment and Honest and ethical conduct as integral components of their code of conduct.

If each company upholds these key addressed issues, they will not only deliver quality products and services to the target market but also attain competitive advantage to control a remarkable share of the market. Another potential positive outcome for the companies is that they will yield high employee satisfaction, attract talented and innovative employees and attain employee satisfaction (Gaumnitz & Lere, 2004).

If the companies fail to address these key issues in their code of conduct, they are likely to succumb to competition in the industry and the profits will be significantly reduced. Moreover, employees will be dissatisfied and they will record a huge turnover as they lose experienced and innovative employees to competitors

AT&T Techniques to Ensure Code of Conduct Remains Relevant

Business context is rapidly changing and hence companies need to periodically review their code of ethics to ensure it remains relevant with business activities and reflects changes in the marketplace. To ensure code of conduct remains relevant through years of changing economic, political, social, cultural, and technological forces on business and society, the two methods that companies currently adopt to manage environment issues is the review of the existing code of conduct and effectively implementing and continuously evaluating the code following the review (Florini, 2003).

To conduct the review, the agency is assessed whether it possesses a formal code of conduct and whether the code has been in use for the past two years without review. Significant changes in the agency’s roles and responsibilities, practices and activities since the current code was drafted is considered alongside significant changes in workplace profile and changes in the external business environment such as legislation, government strategy and business practices. Issues not currently addressed in the current code and employees’ difficult understanding the code is also considered as basis for the review of the current code.

Once the review is conducted, the next step is to develop a new code of conduct by reviewing the content of the current code in key functional area (Gaumnitz & Lere, 2004). Appropriate language and style and formats are considered in the development of the new code. The amended code is then tested to ensure consistency and reviewed by key stakeholders for approval. The new then undergoes the endorsement stage by securing the commitment of senior management and obtaining approval.

The next stage is the implementation process whereby the code is availed to all stakeholders in various formats. Education and training is then provided for all employees on key functional areas. Building integrity awareness is a key approach of promoting thee code as part of the workplace behavior and providing support systems in the form of reporting systems for compliance (Doig & Wilson, 1998). The evaluation process critiques the process to ensure the review process has been followed through benchmarking the code to agency roles and keeping it up to date.

To manage environmental issues, AT&T aims at connecting billions of users without inhibiting the natural environment’s ability to sustain current and future generations. Despite the challenges, the company is committed to adopting energy efficiency processes in manufacturing and production through minimization of hazardous waste emission (Davis, 2007). To minimize pollution, the company also conducts network equipment recycling and customer products recycling.

Approaches at AT&T; Technological Advancements for Innovation

AT&T embraces technological advancements for innovation to improve its business offerings. The first approach of innovation at AT&T is in their product development process. AT&T is keen to develop cutting-edge mobile devices and networks as a continuous improvement process for already existing brands. Another innovation approach is the use of virtual assistants which incorporate programs that are embedded in computer networks to facilitate daily tasks such as maintaining calendars, facilitating emails or shopping. The innovation approach at AT&T is aimed at creating systems that interact with users over their mobile phones, TV and computers through the use of speech and gestures.

The three technological challenges that AT&T could face include the challenge of implementing new technology amid rapid technological evolution leading to obsolescence, lack of competent expertise within the company to undertake IT innovations and challenges of implementing new technology and innovations that meet consumer preferences (Florini, 2003).

One way of addressing these challenges is through continuous research and development to ensure that innovations meet the current market needs and meet the preferences of consumers by conducting market research.

AT&T lobbying strategy

One AT&T lobbying strategy has used in an effort to influence the national and local government decision in its favor is using the company’s veteran Jim Cicconi, a Washington insider to lobby for the T-Mobile acquisition deal. AT&T wanted to purchase T-Mobile USA in 2011 spending over $11.7 million in lobbying seeking regulator’s approval of the deal. To facilitate the lobbying, AT&T produced letters to regulators who included congress members, produced economic studies to back up the deal viability and pledged to preserve over 5,000 jobs if the deal went through. Moreover, the company supported the federal government by funding them with over $805,500. AT&T also lobbied the Communication Workers Association of America and the International Brotherhood of Teamsters to back the purchase. However, the US Justice Department halted the deal citing unfair competition in the industry.

This lobbying effort was not appropriate because after investing so much in the lobbying, the company lost the deal. The huge expenditure is the lobbying process was unfair spending to coerce legislators to support the company. AT&T overlooked the possibility of the acquisition failure, investing too many resources for the acquisition.

AT&T Global Corporate Citizenship Efforts

The two global corporate citizenship efforts of AT&T investing in education philanthropic program for colleges and career readiness and safeguarding the environment through adopting energy efficient projects and responsible manufacturing processes that reduce emissions and waste reduction (Doig & Wilson, 1998).

To a large extend, the effort are effective in accomplishing the company’s goals because by empowering the community served by the company through, the company will attract more consumers and attain consumer loyalty as customers purchase AT&T products to sustain their charity donations . On the other hand, safeguarding the environment ensures sustainability in production and safeguards the environment for future generations.

 

References

Davis, M. (2007). Eighteen Rules for Writing a Code of Professional Ethics. Science and

Engineering Ethics, 13(2), pp. 171-189.

Doig, A. and Wilson, J. (1998). The Effectiveness of Codes of Conduct. Business Ethics: A

European Review 7(3), pp. 140-149.

Florini, A. (2003). Business and Global Governance: The Growing Role of Corporate Codes of

Conduct. The Brookings Review 21(2), pp. 4-8.

Gaumnitz, B. and Lere, J. (2004). A Classification Scheme for Codes of Business Ethics,

Journal of Business Ethics 49: 329-335.

The New Era in Beauty

Beauty has turn out to be the universal phase for defining individual health and social position. As a result, the Body Care Company has come up with a variety of high quality beauty products.  The company’s products are sold at a friendly price and are available at all leading beauty outlets in the world. After intensive and detailed research on the customers’ demands, the company has introduced new skin products for all types of skins. The popular Body Care Company beauty products include:

• Primer
• Lipstick
• Lip liner
• Face powder
• Rouge
• Bronzer
• Eyeliner
• Eyebrow
• False eyelashes
• Nail polish

The ingredients used in the production of these beauties are useful in protecting the skin from the natural environment. The products can also protect the skin from challenges such as inflammatory problems.  The company’s products have noncomedogenic ingredients useful in protecting the body from sunray (Marrakchi & Maibach, 2006).

Relying on the Body Care Company will be of the essence in improving individual general appearance and intellectual ability. As opposed to products from other companies, the Body Care Company products have passed the test of all relevant global authorities. The existing customers have also confirmed the encouraging impact of the company’s products to their health and general appearance. The products have also proved productive in solving relationship and family problems.

The purchasing of the Body Care Company beauty products will be a brilliant step towards addressing social issues in modern complicated economy. Apart from reducing the cost of maintaining one’s physical appearance, the products also reduce unnecessary health challenges in the society.  Other critical benefits of Body Care Company products include, removal of the dead body cells, elimination of cleanser traces, and hydration of the skin

Reference

Marrakchi S.,&  Maibach H. (2006). Sodium lauryl sulfate-induced irritation in the human            face: regional and age-related differences. Skin Pharmacology  and Physiology 19 (3):            177–80

 

 

 

 The Billings Equipment, Inc DSM Analysis

Summary of the Case

The coordination of a business management unit is important in handling problems and misunderstandings which might occur within the business. Most often, changes in business operation cause rifts between business stakeholders including suppliers and buyers (Jackson, 2001). However, there are business guidelines and principles which should be adhered to when planning to make changes in business operation. The case study offers a good business management entangles involving Billings Equipment, Inc general unit manager, purchasing, and supply chain management (Jackson, 2001). Historically, the construction Company had impeccable business ethics until June 1988 when it started a new plant at Seattle. The increasing cost of operations prompted the company’s unit general manager to initiate a 10% price reduction in supply on July 2000. Consequently, the supplies chain manger, Jeff Martin became concerned about the possible deterioration of the company’s relationship with its suppliers. This was owed to the fact that Jeff had cultivated an active and competitive supply management program at the time the unit was started. Provocatively, the general manager coerced Jeff while collaborating with the purchasing team to serve the company’s suppliers with a price reduction letter thereby breaching the agreement (Jackson, 2001). Fortunately, about 80% of the company’s major material suppliers immediately complied with the demand within 30 days. This further prompted the general manager to demand another 5% reduction during the company’s strategic meeting. In addition, those suppliers who easily complied with the first 10% price reduction were to be penalized (Jackson, 2001). Buyers were directed to make follow ups by contacting up to 30 suppliers to ensure that the newly designed rules were fully implemented. Ultimately, the company’s supplies manager was confronted with many ethical issues to handle.

Handling the Company’s Relationship with Suppliers

Jeff’s situation requires a broader understanding of ethical and legal application of business management rules and regulations. This is because in company’s management hierarchy, every department is expected to mutually liaise with each other for the overall befit of company’s stakeholders (Monczka, 2011). However, the company’s general unit manager out of ignorance or disrespect of law demanded that the changes be imposed without seeking the suppliers’ consent. This is evidenced when the company’s supply manager cited that he was worried the ethical standards could be violated to an extent that it could affected the relationships which they had built for a long time (Turner, 2011). Jeff further alleged of having collaborated with others it carried out cost and benefit analysis thereby approving that the suppliers’ prices did not have any errors. Ideally, ethics is important for any business practice because every player expects to be treated in a just and a fair manner (Ferrell, 2014). Therefore, Billings Equipment Company’s management team ought to have applied strategic supplies management techniques and business ethics. Unfortunately, most leaders engaged in the management often perceived ethics as only applicable in the academic, social, and philosophy. Therefore, leaders have often failed to use simple practical business ethics (Turner, 2011). For instance, Billings Equipment company could have used a number of business ethics. First and foremost, it would have created a diverse and interactive internal and external team of stakeholders. Jeff in collaboration with the company’s general unit manager should have created an inclusive team to discuss the increasing cost of supplies. Such form of collaboration would have positively impacted both suppliers and the company’s wellbeing by offering commonly agreeably solutions. This is because both sides were equally important in the company’s progression agenda (Monczka, 2011). For instance, the suppliers link the company’s production process with buyers and other stakeholders; therefore, their pleas ought to have been considered.

Secondly, they would have identified key behaviors that they needed to adhere to. The company should have recognized ethical behaviors and values which are for organized structural and goal oriented practices (Turner, 2011). Managers should form ethics management committee to ensure that issues which require the company’s urgent attention are addressed on time. For instance, Jeff supplies relationship concerns are urgent and should be handled and solved amicably for the benefit of all stakeholders. Ethics would then be integrated into the day-to-day running of the company. In addition, the company needs to incorporate an ombudsperson to enhance institutionalization of ethical policies (Jackson, 2001). The company’s ethical redress is responsible to enact various values such as trustworthiness which entails loyalty, integrity and honesty. It should respect the autonomy, dignity, and privacy of every stakeholder. Moreover, the company’s transparent and accountable operations would enhance integrity. The third aspect is the need for the company’s civic virtues and patriotic stance of environmental conservation to be upheld (Ferrell, 2014). Overall, the companies’ ethical program implementation helps in establishing integrated, organized, and structured mechanisms of addressing wrong behavioral issues.

Therefore, Billings Equipment Company’s general unit manager flouted ethical process in the quest to change cost of supply chain operations. The manager should have maintained good supplier-company relationships as a core principle to effect his proposed changes (Jackson, 2001). In addition, the strategic public procurement meeting should have been called by the company’s management in liaison with suppliers to forge the way forward. This is because the contract signed between the company and supply agencies did not expire, but was abruptly terminated through a circular letter (Turner, 2011). Moreover, the Billings Equipment Company ought to have served suppliers with a notification requesting them to redress the supply contract terms and conditions. Financial and delivery issues of late payment, losses, and deliveries could be collaboratively solved by the two entities (Monczka, 2011). The companies’ prior exchange of information concerning production management and material supply has been shown to enhance mutual relationships thereby developing more stability. This is certified through mutually revised price supply rates, customer satisfaction, company’s high productivity and profits.

 

 

 

References

Ferrell, O. C., & Hartline, M. D. (2014). Marketing strategy: Text and cases. Mason, OH: South-Western/Cengage Learning.

Jackson, D. R. (2001). Supply management. Don’t shoot the Messenger. 13(1) 17-18.

Monczka, R., Handfield, R. & Giunnipero, J. P. (2011). Purchasing and Supply Chain Management. South-western, Mason: Cengage Learning

Turner, R. W. (2011). Supply management and procurement: From the basics to best-in-class. Fort Lauderdale, FL: J. Ross Pub.

Introduction to International Business; Global Marketing

Wal-Mart Stores, Inc. operates under the brand name Walmart. Wal-Mart Stores, Inc. is a multinational organization based in the United States. Walmart specializes in retail business running diverse warehouse stores and discount department stores. Walmart is second largest organization among the public corporations in the world. Surveys conducted in 2013 by the Fortune Global 500 indicated that Walmart has more than two million members of the workforce, making the firm one of the diversified private employers internationally. Walmart is also the largest retailer internationally, it is a public company with Doug McMillon as the Chief Executive Officer and Robson Walton as the Chairman. Walmart has also invested in China.

Walmart has more than eleven thousand outlets in more than twenty-seven countries in the world. Wal-Mart Stores, Inc. operates under different brand names in different countries. Some of the common brands are Walmart in the Puerto Rico and United States, Seiyu in Japan, Walmart de Mexico y Centroamerica in Mexico, Asda in the United Kingdom and Best Price in India among other brands (Chan, 2011). Investments of Walmart internationally have received mixed reactions. Investments in South America and United Kingdom have been very successful while investments in South Korea and Germany have been a failure. Investments in China are unpredictable with the Chinese government introducing diverse reforms. Products offered by Walmart are cash and carry warehouse club, apparel and footwear specialty, discount store, supercenter, hypermarket, supermarket and superstore (Chan, 2011).

China need expansions of the international companies in the nation, in the sense that international companies create job opportunities for the citizens, Walmart positively contribute to the diversification of the Chinese economy and that Walmart raise the living standards of the Chinese citizens. On the other side, Walmart need the Chinese market as a way of expanding internationally, Walmart will increase its competitive advantage through winning the Chinese market, Walmart will increase profits, diversify to the new Chinese market share, Walmart will create new markets for its products and services, Walmart will locate new products and technologies to be used in the domestic markets, Walmart will find new suppliers in the Chinese market and that Walmart will increase the wealth of the shareholders (Chan, 2011). Walmart has different ways of entering into the Chinese market, Walmart engage independent agents, joint ventures, mergers and acquisitions or a combination of the above.

The social and economic reforms in the Chinese market will impact the operations of local and international organizations within the region (Yao & Blanchard, 2013). The social and economic reforms were characterized with relaxing of the child policy that limits a family to one child only, and also by freeing up markets as a model of stabling the Chinese economy. The changes present doubts and uncertainties on the future of the local and international businesses (Yao & Blanchard, 2013). The changes have the capability of increasing or decreasing the momentum of the economy.

Social and economic reforms in the Chinese economy do not happen on one day, it takes time since the reforms needs diverse consultations from different stakeholders (Yao & Blanchard, 2013). Chinese Communist Party has been concerned with residence registration reforms and on the land reforms. It is expected that the reforms will foster Western style consumption driven economy and services (Chan, 2011). The reforms will mainly benefit the Chinese people living in urban centers.

The Chinese government has been influential in the pricing of electricity and fuels among other critical resources. Management of some resources will be under the market decisions. There has been a need in the liberalization of the financial markets and opening up of capital accounts (Yao & Blanchard, 2013). Comparing the Chinese reforms in the twenty 2010’s and Chinese reforms in the 1990’s, the new reforms are concerned on the international market share; a model that was lacking in the 1990’s.  Reforms started with Deng Xiaoping in 1970’s and 1980’s where the China was opened up to the international business arena (Chan, 2011). The reforms have influenced to China being one of the strongest emerging economy in the world.

Social reforms reflected on unifying the urban and rural social security systems and at the same time doing away with the labor camps there are considered controversial. The 60 point plan focuses at addressing Chinese government and party bureaucracy. China is struggling with social stability, economic stability and letting market forces control the monopoly of the Chinese communist party. Analysts have considered the reforms to offer optimism, it is strongly believed that the reforms will foster a healthy competition for private businesses and state owned organizations (The Nature of International Business, 2010). Chinese leadership values the stability of the nation and the economy. The Chinese government controls monopoly in state owned businesses that are very powerful. The Chinese government has a number of protected sectors, which need reforms to foster healthy competitions.

The Chinese reforms are after successful transitions as it happened in South Korea, Hong Kong and Singapore. Analysts argue that China is heading to the right direction as the world face changes with globalization and socialization (Chan, 2011). Although the process is long, it will benefit both the local and international companies operating in Chinese market.

Walmart stores in China target urban populations (Roberts, 2013); Walmart has faced stiff competition from the local players in the Chinese markets. In overcoming the stiff competition, Walmart is going for the small towns within China by opening up more outlets and also by introducing new products and services. Fresh foods are a new product offered by Walmart to the Chinese population. China has an extensive consumer market that has contributed to growth of the economy over the years. Walmart is an influential player in the Chinese market with more than four hundred stores and more than ninety thousand employees (Roberts, 2013). The reforms are believed to offer more expansion, which will create more opportunities to the target market.

Walmart is facing challenges in China; there are underperforming outlets that need to be closed down and in setting up new stores in strategic locations. It was noted that more than thirty outlets were considered underperforming with the company projecting greater expansions by 2015 (Chan, 2011). The biggest competitor in the Chinese market is Sun Art Retail Group with fourteen percent market share followed by the China Resources Enterprise and Walmart each holding eleven percent of the market share (Roberts, 2013).

The new reforms in the Chinese economy have a capability of positively or negatively influencing the operations of Walmart in the Chinese market. New leaders encourage more urbanization of China. There are high prospects that Walmart will benefit with the new reforms as the target market expands more and more. There are areas being developed in the urban areas which will be occupied by people in the near future. The apartments will hold many people, which is an opportunity for Walmart to expand in the new markets. It is expected that the reforms will support local and international businesses as China face changes with globalization and socialization.

 

References

Chan, A. (2011). Walmart in China . Ithaca, NY: ILR Press.

Roberts, D. (2013, October 24). Walmart’s China Expansion Aims to Tap Urbanization. Retrieved February 16, 2014, from Businessweek.com: http://www.businessweek.com/articles/2013-10-24/walmarts-China-expansion-aims-to-tap-urbanization

The Nature of International Business. (2010). Retrieved February 17, 2013, from Highered.mcgraw-hill.com: http://highered.mcgraw-hill.com/sites/dl/free/0078029376/889427/Chapter01.pdf

Yao, K. & Blanchard, B. (2013, November 15). China unveils boldest reforms in decades, shows Xi in command. Retrieved February 16, 2014, from Reuters.com: http://www.reuters.com/article/2013/11/15/us-China-reform-idUSBRE9AE0BL20131115