Effective leadership and change management

In change management, effective leadership is essential as it is through good leadership and decision making that change becomes productive. Many organizations face various challenges because of leadership problems they encounter. This discussion is based on Marius Kloppers from BHP Billiton case study. The argument focus on the four forms of change to examine the scale and scope of change at BHP Billiton. Furthermore, analysis of Kloppers leadership against the four styles of management in relation to the issues that affects or confronts BHP Billiton is done.

Every leader adapts to a different leadership style that one renders appropriate to achieve ones goals and visions. Kloppers is one of the leaders that exhibit leadership styles of his own kind in ensuring that he achieves his goals. From this case study, Kloppers leadership style is projected as multifaceted as will be captured in the discussion.  All the styles of leadership have positive and negative sides.  For instance, dictatorial style of management does not require consultation or collaboration between the management and the subordinates. The leaders are the sole decision makers and are the final authority.  This kind of leadership style has positives such as it ensures that procedures are adhered to the later but also have negatives, as it is likely to lead to resentment and job dissatisfaction (Salih & Doll 2013, p. 32). In this case Kloppers need not to exemplify this leadership style, as those that need high independence would prefer democratic style of leadership. Kloppers even though is a courageous leader; he is a democratic leader as he allows his subordinates to take part in the decision-making. He prefers a rigid framework of authority where there is minimal consultation on issues that he deems more important and dear to achieve success in his leadership.

Leaders must acknowledge the fact that change is a dynamic process implying that when there is change in one dimension it compensates change in others (Schuh, Zhang& Tian 2013, p. 629). The four styles of change management that are dynamic and which often changes and are exemplified by leaders include collaborative, consultative, directive and coercive.  During changes, at least a leader will adopt or exhibit one of these styles of management or a number of them.  These styles of management are appropriate to various scales of change and help to identify the kind of the leader a person is. Tushman et al (1988) states that organizational model consists of periods of converging changes that is punctuated with frame breaking changes. The converging changes in the organization is twofold; fine tuning and incremental. These two types of changes aim at supporting a match between the strategy, structure, systems and process of an organization. According to Tushman et al (1998) the time for major changes in an organization   , incremental adjustment  cannot bring major charges in the  structure, strategy, people and processes  as they might be required to undergo a radical transformation. Frame breaking  changes are the radical changes  of the system which includes core values, reformed mission,  altered status and power,  reorganization   which includes  modification of  structures, procedures and systems , revision of procedures such as coming up with new procedures,  changing  of communication networks and  decision making patterns  and  recruiting of new  executives (Schoemaker, Krupp & Howland 2013, p. 131).

In the scale of change, Dunphy and Stace scale of change types are classified into four categories; type 1 is fine-tuning, type 2 is incremental-adjustment, type 3 is the modular-transformation and type 4 is the corporate transformation. According to Dunphy and Stace (1993), fine turning organizational change involves refining of the methods, policies and procedures, creation of specialized units and linking mechanisms to permit increased volume and giving attention to unit quality and costs.  It  also entails  recruitment an development of  personnel’s that are  able to achieve present strategy,  fostering  commitment of  individual and groups to the mission of the company and the success of a department,   clarification of  established roles and promotion of confidence in the  accepted norms, beliefs and myths (Schoemaker, Krupp & Howland 2013, p. 132).  This scope of change requires that leaders collaborate and consult others when providing leadership. Kloppers is a leader that fits in this category for the various characteristics that he exhibits in the way he manages BHP Billiton.  He is a leader that listens to others when it comes to making decision that pertains to the running of the organization. He is very instrumental too when it comes to spearheading the process of refining of organizational policies and procedures.   He played a key role in the mergers and acquisition process between BHP Billiton and Rio Tinto. The fact that he was appointed to succeed Chip Goodyear as the CEO of this company just to help it achieve its missions of  joint venture demonstrate how he is effective in collaboration and   negotiation at the time of change. The fact that he recognizes the contribution of others and expects them to take responsibility and be accountable is a demonstration of how he embraces others and supports participation in the operation of the organization.

Incremental adjustment involves various activities such as increasing sales territory, improving production process technology, shifting emphasis among products,   modification of statement of mission of employees, adjustment of organizational structure with or across divisional boundaries in order to attain better links in service or product delivery.  Modular transformation  scope of change involves  major  restructuring of  certain  divisions or departments,  reforming of  division or departmental goals,  changes in  managerial and executive appointments in  various arias,  productivity and work studies  that lead to reduction   or increase in workforce numbers,  introduction of new processes  technologies that affect  key department among many others (Sarwar 2013, p. 81). Leaders that fall in this scope of change are charismatic leaders.  Such leader are not authoritative or either democratic but make noble decisions that bring the leadership and the subordinate together. These kinds of leaders embrace communication and collaborate with the subordinates in reaching amicable solutions in an organization.  In the event that there is need to embrace change, the leaders do not make conclusions based on how he or she feels but solicits the views and opinions of the subordinates or other managers (Marx 2013, p. 12).  This kind of a leader therefore, reduces the level of conflicts between the leadership and the subordinates, as there is consensus between the two. Managing or providing leadership becomes easier.

Corporate transformation entails reformed organizational core values and mission, re-organization that involves changes in the systems, structure and products across the entity. It further entails alteration of power and status that affect distribution of powers in an entity, changes in interaction patterns such as changes in the wok flows, new procedures,   decision-making patterns and communication networks in the organization and introduction of new essential executive in the managerial positions.

Transformed organization is more flexible and this makes it to have the capacity to act and to achieve its objectives. Transformation is a developmental process that must take quite some time for it to be realized. One of the ways an organization is transformed is through improvement of its service through mergers. Such initiatives are essential in driving the organization forward and enabling it to record growth and development.

Leadership style is one of the most essential aspects that characterize organization as it concerns the role of leadership as it relates to the organization life and change.  Leadership   entails or concerns influencing other in pursuit to achieving the goals of an entity (Watson, 1983).  There are traits that make a leader suitable and have the capability to perform his or her duties. The two approaches or theories  that  attempts opt provide an answer to this are the  theory that provides  a universal view and looks at the unique characteristic  or traits  and behaviors  thetas  leaders need to have. The traits focus on the personality characteristics and physical characteristics, skills and abilities, social factors such as sociability and socio economic position and interpersonal skills among others (Schoemaker, Krupp & Howland 2013, p. 133).

Another comprehensive framework of the leadership behaviors is categorized under transformational leadership theory. Bass (1990)   describes two behavioral types of leadership including transactional and transformational leaders. These two kinds of leaders have different behavioral traits that are distinct from each other. Transactional leaders provide contingent rewards as well as recognize accomplishments. Leaders that adapt to this style usually manages through exception by watching and searching deviations for the standards and rules and taking corrective action if need arises.

In contrast to transactional leaders, according to Tichy and Ulrich (1984),   transformational leadership entails dramatic organizational changes that include development and implementation of a vision (Du et al 2013, p. 156).  They instrumentally help to realign the norms and values of an entity and even accommodate and promote both internal and external changes. Charismatic leaders on the other end provide the vision and sense of the mission, gains respects, instills pride and gains trust.  Kloppers is also a transformation leader as manifest through his achievements at the BHP Billiton.   Having been appointed to the company, he manages to drive an acquisition and transforms the organization by helping in breaking down barriers and building trust.  This is not an easy task but regardless of the challenges, he is devoted to transforming the facility into a different institution.

Like any other company or organization, BHP Billiton is marred with a number of challenges that requires demonstration of competent and skilled leaders to handle amicably. Some of the issues that faced this company were its quest to acquire Rio Tinto and improve in its performance in terms of profitability.  For these objectives to be achieved, the four styles of management must come into play. These four styles are, collaborative, consultative, directive and coercive.  In his leadership, Kloppers has exhibited some of these styles of management in the quest to achieve his goals and objectives.

A leader that collaborates is the one who solicits other people’s views and opinions in making decisions that pertains to a certain change or aspects in an organization (Bess & Goldman 2001, p. 419). This leader cherishes the views of others and also is convinced that change is something that should be well understood and supported by the entire team for it to succeed. Consultative leaders or managers also take their time to consult on certain aspects before imposing them to the people. They want to find out from other people whether their views are in tandem with others (Ertureten et al 2013, p. 205). Such leaders do not want to make mistakes and this is the reason as to why they will go out of their way to seek more advice and different perspective about their ideas and views about certain aspect. Directive managers are more or less authoritative and they give direction to what should be done. This kind of leaders will not listen to the subordinate but rather will just offer direction of what needs to be done without necessarily allowing others to question (Bschyns et al 2011, p. 397). Coercive managers are dictatorial and authoritative and will not compromise when it come to embracing change. These kinds of leaders will require that all the subordinates and other people abide by what the leaders says and wants to be done. This management style is viewed as dictatorial and is one of the leadership styles many people do not like.

It is evident from this discussion, that an individual or a leader can have different styles of management (Ohman 2000, p. 32). Kloppers has different styles of management as depicted through the way other people view, him and the way he perceives himself as an individual.  Kloppers is a transformation leader as depicted from his courage and aggressiveness to change the organization. He is very courageous as well as intelligent and this enables him to spearhead the acquisition and merger of his company with Rio Tinto. This is an obligation that he is recruited for, an obligation that has taken ten years for the company to accomplish. He is also well equipped with appropriate strategies to run and operate a company.  A company is geared to become competitive if the strategies that are adopted to operate it are appropriate to ensure that the company succeeds (Graetz & Smith 2009, p. 3). One of the strategies that Kloppers uses is to bring people together and to enable them feel satisfied and motivated. He then enhances their trusts in the organization, which helps them to feel part of the entity. He also brings down bureaucracy in the entity, something that has continued to bring down the company. People are therefore, liberated and given the freedom to raise their issues as they perform their duties.

He is also a leader that is authoritative as depicted from his coercive and direct styles of management. Kloppers is attributed to poses different traits and characteristics but one thing that comes out clearly is that he faces situations with bold. He is an individual that enjoys making decisions especially when he feels that it is appropriate for him to do that. The strategy that has enabled him to retain the command and the leadership mantle of the group he is leading (Changing minds 2013, para. 5). His description as an intense, tough volatile, intimidating, authoritarian and aggressive person    makes him fit in the category of a coercive leader. He is a person that has his own views points and he stands in what he deems appropriate. This has been strength and well as a weakness because, he is not sure about which is which. On the same note, Kloppers is also categorized as    gentle man a rational thinker and a methodical person. His gentleness is manifest through how he talks and interacts with the people. He expresses his love of the people and the fact that he creates some time to visits his subordinates and even relates with them without discrimination. Kloppers is also strict person who adheres to the set laws and standards.   When embracing change, it is very important for the leader to be able to sick to the laws to ensure that the changes adopted comply with the law.

Change management is also an important aspect   that leaders must endeavor to factor in when instituting change. There is need to plan well to understand the areas that require change and the costs or the logistics required to ensure that change is achieved.  The most important aspect is to understand the change and to inform the people in advance to prepare them psychologically that the change is going to affect them. In most case, most leaders will first consult amongst themselves and then allow the subordinates to   give their views and opinions. This strategy is effective as it allows the subordinates and the other stakeholders to understand he changes and at the time they are introduced they already know what they entail (Choudhary, Akhtar & Zaheer 2013, p. 433). It is also essential to understand the set up and the capability of the entity to support the changes. There needs to be enough resources and any other things that are essential to ensure success. The change should be sustainable to ensure that it provides positive impact to the organization.  For instance, in the case of Kloppers, he is in charge of the changes and it is his obligation to ensure that the changes implemented are reinforced and remains so.  He also needs to ensure that the changes are working effectively.

Another important aspect that relates to leadership is mentoring.  In an organization set up, employees require mentoring to remain focused and to be reenergized to remain committed to the organization. Mentoring is achieved through various strategies. One of the ways to mentor the subordinates is by allowing them to participate in decision-making and other innovations that they have (Battilana & Casciaro 2013, p. 62). They should also be motivated by outside speakers that speaks to them on various aspects that concern live such as how to live a health live and how they can improve their productivity at their work place among many other. In mentoring, the employees must take part in these mentorship programmes by remaining committed towards achievement of their objectives and goals.  This case of mentorship is also manifest in Kloppers case. He is role model and a mentor as well because of the role he has played. One of the roles that he has played that makes him to be a mentor is helping to build trust and to do away with bureaucracy. He has also managed to establish positive rapport with the children something that is going to remain entrenched in the lives of the subordinates making them productive people in the future. During change it is important to ensure that change is not resisted a lot. The only way that this can be reduced is through education and self-awareness. These initiatives are imperative because it allows the person to be safe. Therefore, as a leader, ensuring that initiatives works better is to put in place mechanism that does not allow such.   It is also important that every person nowadays comes from different cultural backgrounds and this therefore indicates the strategies between these people are different and should be factored.

A leader has also the responsibility to ensure that change is properly managed. In an organization, there are different kinds of changes that require different leadership styles. Some changes are complex while others are not that complex and difficult to accommodate. These variations call for strategic management of these changes to ensure that they are well implemented as expected.  In this case, changes such as changes in the bureaucracy and the way the people interact is a change that will require a lot of attention to ensure that it is enforced and operative. Consequently, close monitoring is expected to ensure that this change is not reversed. As earlier stated, decisions making is important in an organization. The ways decisions are made do vary between one organization to another and it is what helps to determine the style of leadership (Kamisan & Brian 2013, p. 107).  In an organization, decisions are made at different levels such as top management level, middle management levels and subordinate level. At every level, consensus is reached in a better way. However there are circumstances where as leaders, one is expected to make decisions pertaining to a certain phenomena.  A leader consequently needs to have the ability to make independent decisions because he or she is answerable to certain aspect that occurs in the organization.  So far, Kloppers has proven to be an effective decision making person through the way he relates with his subordinates and in his usually working practices.

In conclusion, leadership is one of the most important aspects that matters a lot when it comes to the operation and management of an entity. As depicted from this case study of Kloppers, it is evident that scopes of changes are many and that people exhibit different traits that categorize them in different traits. Likewise, the four styles change management collaborative, consultative, directive and coercive are manifested in many people, Kloppers included.  People may exhibit one of the four styles or any as it also depends with the individual himself.  The parting shot is that, leadership is essential and that it is prudent for leaders to endeavor to perform his or her duties diligently.

 

 

 

Reference list

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Kamisan, P & Brian, E 2013, ‘Transactional and Transformational Leadership: A Comparative      Study of the Difference between Tony Fernandes (Airasia) and Idris Jala (Malaysia        Airlines) Leadership    Styles from 2005-2009,’ International Journal of Business &    Management, Vol. 8 no. 24, pp. 107-116.

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Total quality management

Basing on Standex International Corporation, an organization which I have worked in the past, the purpose of this paper is to critically analyze the quality methodologies or practices that the firm uses or plans to use in order to align performance excellence with its business objectives. This paper also provides a critical analysis of the quality management system that focuses on meeting the needs and practices of the customers so as to help in building a customer-based culture along with techniques to enhance design of work processes, process control as well as process improvement. A critical analysis of techniques and tools which support Six Sigma philosophy is also provided. Finally, this paper also provides suggested improvement actions basing on what I have learned in this course to assist the firm attain performance excellence.

Standex International Corporation (SIC) is the parent company of Nor Lake in Hudson, Wi. It essentially produces various services and products for varied market segments. SIC is based in Salem, NH and is a diversified international manufacturing firm that operates in 5 segments: hydraulics, engineering technologies, food service equipment, electronics and engraving. The corporation has 11 operating units which are organized into the 5 segment gropus: Hydraulics Group; Engineering Technologies Group; Food Service Equipment Group; Electronics Group; and Engraving Group (Standex International Corporation, 2013). Through the strategy of the firm, the Company leverages the collective strengths of its businesses to better infiltrate existing markets and penetrate new vertical as well as geographic markets. The Company would also keep on acquiring businesses which are synergistic with its existing operating groups, and which could rapidly make contribution to profitability. Standex has about 3,810 employees across the United States and in many foreign locations such as Singapore, Europe, Australia, Mexico, Brazil, Turkey, South Africa, China, India and Canada. SIC was founded in 1955 and since then, it has become recognized for its capability of acquiring and effectively managing superior business organizations within varied markets. The Company’s diversification throughout several lines of business has allowed it to realize profits consistently across economic as well as market cycles (Standex International Corporation, 2013).

Critical Analysis: Quality Methodologies or Practices used by SIC

Quality is broadly recognized as an essential discipline or competitive priority for the development of the organization. Standex is well-known for lean production practices, product quality, on-time delivery and customer satisfaction. The key quality practices used by the company include the following: lean thinking; cycle time reduction; supply management; design for manufacturability and quality control. (i) Lean thinking: Essentially, SIC customers often demand services and products that are cheaper, better and of superior quality. This calls for harmony between the design of the product and the processes utilized in producing the product. At SIC, processes always accommodate the various products needed by the clients easily and in a cost effective manner (George, 2008). Lean thinking is employed to make sure that value is added in all steps of the process. Very high quality is usually put in place to avoid the wasted effort as well as time of reworking. Cycle time is reduced in order to achieve requirements of delivery and reduce inventory. With the concept of lean thinking at Standex, production management concentrates on the optimization of resource usage, that is, equipment and personnel.

Lean thinking at Standex entails first, organization, wherein orders flow through production in a manner that is as efficient as possible. Orders flow in a continuous manner and queues between work stations are maintained to be as small as possible. Second is pull system, whereby instead of being pushed, work is pulled throughout production, and the final operation is scheduled to achieve the delivery requirements of the customer. Third is waste elimination, whereby all steps in production add value. Autonomous defect control is employed to discontinue production whenever a defect is detected so that the problem could be fixed before more effort and materials are wasted (Price, 2004). (ii) Cycle time reduction: At Standex, fast cycle times allow the orders of customers to be shipped quickly, and less amount of finance has to be invested in inventory and in the warehouse. With low inventory, there is generally less opportunity for the company products becoming obsolete prior to their shipment. (iii) Supply management: Standex has obtained significant cost savings by out-sourcing. Just-in-time delivery of supplies is employed and suppliers are involved in developing new products resulting in cost savings as well as greater quality improvements. (iv) Design for manufacturability (DFM): product design and the processes utilized in producing are analyzed concurrently so as to optimize in-process inventory; process cycle times, reliability and quality, as well as usage of equipment and materials (Summers, 2009).

Critical Analysis: Quality Management System that focuses on meeting customers’ needs and practices

Standex uses a quality management system (QMS) that is based on the International Organization for Standardization (ISO) 9001 standard, or 1SO 9001 standard. It focuses on meeting the needs and practices of the customers. It is noteworthy that a QMS which is based on the ISO 9001 standard is not just an incidental focus on attaining requirements of the client; rather, it is a structured and deliberate approach used to exceed the requirements of the customers. It specifies the vital requirements for a successful and effective QMS, which essentially, is a system used to maximize opportunity and minimize risk. Without satisfied clientele, and without meeting their practices and needs, Standex International will basically be in peril (Standex International Corporation, 2013). The ISO 9001 standard of QMS used by Standex International offers an effective framework for undertaking a systematic approach to managing the processes of the Company so that they constantly turn out products that satisfy the expectations of clients.

The QMS used by Standex comprises 8 principles of quality management: (i) customer focus: this starts with a top-level management commitment of meeting and exceeding the customers’ requirements and acknowledging that customer is king. (ii) Leadership: this entails creating unity of purpose as well as providing a vision for the company, such that every employee strives in similar direction. (iii) Involvement of People: people are a key competency of Standex International, and involving them as well as their capabilities at every level to benefit the Company. The Company involves people in decision making and this serves to inspire creativity and innovation. (iv) Process approach: Managing resources as well as activities as a process offers lucid hints of what each input and output is, and therefore offers a clearer idea of how to attain the desired results (Summers, 2009). (v) System Approach to Management: The efficiency and effectiveness of Standex International relies on its capacity to recognize, understand and manage interconnected process as a system. At the company, understanding interdependencies is crucial. (vi) Continual Improvement: this entails the Company constantly improving its systems and processes and therefore improving the organizational general performance needs to a lasting goal of the Company. (vii) Factual Approach to Decision Making: Decisions have to be founded on the analysis of correct and dependable information and data. Intuition and experience mixed with analysis is a potent tool for decision making. (viii) Mutually Beneficial Supplier Relationships: the improvement of the capability of creating value relies on the relationships with suppliers. It is imperative to have a balance between long-term considerations and short-term gains which then leads to enhanced flexibility as well as optimization of both resources and costs (Standex International Corporation, 2013; Saxena, 2005).

Critical Analysis: Tools and Techniques that support the Six Sigma Philosophy

The main tools and techniques that support six sigma philosophy include the following: brainstorming; fishbone diagram; affinity diagram; benchmarking; and box plot. Brainstorming: this refers to a technique used in generating ideas in a systematic manner typically to manage a difficult situation, from a grouping of individuals by fostering free thinking. Many such opportunities exist in organizations, for instance increasing sales, defining new processes, enhancing productivity, launching new products or finding new areas for business development. Whereas there might be other processes or techniques for handling these situations, brainstorming is a vital activity in each of these processes (Saxena, 2005).

Fishbone diagram: this simply refers to a graphical method used to find the origin cause of an effect. It is of note that the effect could be positive, for instance a preferred process outcome; or a negative one, for instance an unnecessary process variation or a process flaw. The first step entails identifying the process effect for analysis. The effect is written inside a box on the right hand side and a horizontal arrow is drawn. The 2^nd step entails identifying the major groups of causes that result in the effect being considered. Finally, the 3^rd step involves identifying as many causes under each of the groups and then adding them to the corresponding group. Every cause is detailed further in a recursive way up to the lowest possible level (George, 2008). Affinity diagram: a collection of ideas that have been created following a brainstorming session, has to be prioritized and analyzed prior to executing them. A smaller pool of ideas are can be sifted through easily and evaluated devoid of employing any formal technique. Affinity diagramming is a vital technique for handling many ideas and is often utilized when: there is group participation and agreement; complexity because of varied opinions and viewpoints; and when large a big data set has to be traversed (Price, 2004). Benchmarking: this refers to a standard by which something could be judged or gauged. Within a business setting, benchmarking entails comparing the business with others so that one can make an objective evaluation of his/her business. Benchmarking helps (i) in identifying areas for breakthrough improvements; (ii) in establishing greater targets; and (iii) in establishing new priorities. The 3 types of benchmarking include: internal benchmarking, which compared products or processes throughout the company on vital critical-to-quality parameters like turn-around-time. Functional benchmarking compares the same processes or functions with leaders in the industry; and competitive benchmarking concentrates on direct business rivals in terms of their clients, services, products as well as processes (Saxena, 2005).

Chart 1: The flowchart below illustrates in summary the processes used in benchmarking (Saxena, 2005)

Common areas for benchmarking include value addition per worker, critical-to-business processes, profitability, customer satisfaction and products (Saxena, 2005).

Pareto Chart: this illustrates the frequency with which particular events take place. It is essentially a bar graph wherein every frequency is depicted in a descending order of data importance, and usually from right to left. It is based on the Pareto Principle, also referred to a the rule or vital few or the 80-20 rule. Pareto Chart is helpful in identifying and focusing on vital few in order to maximize the returns on investments (ROIs) on resources (Summers, 2009).

Suggestion on improvement steps/actions to help SIC attain performance excellence

To help Standex International Corporation attain performance excellence, some actions are essential. The managers of the company have to take the following action: (i) getting the processes optimized: Standex can enhance its capacity to attain its target costs ithrough optimizing 4 major areas; operations, supply, research and development efficiency and overheads. (ii) Getting the channels working: as the Company continues to grow in a globalized environment, it is imperative that supply chains get adapted accordingly. It is notable that supply chains could also open-up new channels in areas such as mass customization. (iii) Getting liquidity fixed: In order to flourish in uncertain periods, the Company has to maintain healthy liquidity and optimize asset utilization as well working capital (Summers, 2009).

(iv) People management: this entails releasing the full potential of individuals in order to constantly improve business as well as service. (v) Resources: they should be deployed in an effective manner in order to support strategy and policy. (vi) Processes: all processes should be identified, reviewed and revised in order to ensure improvement of the Company. (vii) Customer satisfaction: all external customers have to be satisfied. (viii) People satisfaction: every worker should be satisfied. (ix) Leadership: inspiring and driving Total Quality as the Company’s basic process for constant improvement. (x) Business results: attaining the planned goals and performance together with meeting the requirements and anticipations of everyone with an interest in the Company (Price, 2004).

Conclusion

In conclusion, Standex International Corporation (SIC) produces various services and products for varied market segments. The Company’s diversification throughout several lines of business has allowed it to realize profits consistently across economic as well as market cycles. The main quality practices used by the company include lean thinking; cycle time reduction; supply management; design for manufacturability and quality control. Standex uses a quality management system (QMS) that is based on the International Organization for Standardization (ISO) 9001 standard, or 1SO 9001 standard. It focuses on meeting the needs and practices of the customers. It is noteworthy that a QMS which is based on the ISO 9001 standard is not just an incidental focus on attaining requirements of the client; rather, it is a structured and deliberate approach used to exceed the requirements of the customers. The QMS used by Standex comprises 8 principles of quality management. The major tools and techniques that support six sigma philosophy include brainstorming; fishbone diagram; affinity diagram; benchmarking; Pareto chart and box plot. To help Standex International Corporation attain performance excellence, the following actions are necessary: people management, customer satisfaction, people satisfaction, efficient use of resources and getting the processes optimized.

 

 

 

 

References

George, M. L. (2008). What is Lean Sigma. Columbus, OH: AMACOM

Price, M. (2004). The Lean Sigma Pocket Toolbook. Boston, MA: Prentice Hall.

Saxena, S. K. (2005). Discover 6 Sigma: The Science Behind Breakthrough Improvements. Crescent City, CA: Springer Publishers.

Standex International Corporation. (2013). Standex International Corporation (NYSE:SXI), based in Salem, NH, Manufactures a Variety of Products and Services for Diverse Market Segments. http://www.standex.com/about/our-company

Summers, D. (2009). Total Quality Management. Austin, TX: Penguin Publishers.

 

Bribery and corruption in the public sector, is endemic and unavoidable in all societies

Bribery and corruption

Bribery and corruption in the public sector is one of the major challenges that many governments face across the world. Corruption is engaging in activities such as looting of public funds through falsification of documents. Corruption is a crime in many countries and any people caught or corporate involved in it are required to face persecution (Campante, Chor & Do 2009, p. 42). Bribery on the other hand involves taking money or doing something to get favors. Both bribery and corruption are a threat to the economy and are a manifestation that something is in a mess. This paper delineates on the aspects of bribery and corruption and investigates whether it is endemic and unavoidable in all the societies.

Even though seem bribery and corruption endemic and unavoidable, some public entities and corporations have managed to reduce the prevalence. This therefore, indicates that if appropriate strategies are adopted then this is a problem that can be easily managed and avoided. According to the Transparency International Bribe Payers index, 2002 reported high rates of bribery practices in industries such as public works, oil and gas and arms and defense. This is because once bribery becomes a norm in a specific industry, is when it is perpetrated (Dhami & Al-Nowaihi 2007, p. 727).  Good corporate governance is a prerequisite to reduction of corruption is the problem of coordination and principal agent problem are addressed. Principles of good corporate governance such as accountability and transparency are vital not only in addressing the operative performance of an entity but also in reducing the level of corruption.  Accountability imposes constraints on the corrupt official and the corruptors and in the long run stem out the malpractice. Public officials require to be accountable and to remain transparent by allowing external auditors to audit their financial books (Hess 2009, p. 781). The public officials should also be people with high level of integrity to ensure that they are not easily persuaded to engage in bribes and corruption. They need to perform their duties with diligent and honesty.

Corruption will be lower in countries that have accountable corporate boards. When the corporate boards are accountable to the shareholders incidences of bribery is deemed to reduce.  Consequently, these members should be competent and need to represent the interest of the shareholders. The boards need to be stronger to make it credible for the managers to commit to a ‘no bribe’ policy when handling or dealing with public officials that demand a bribe (Maiden 2013, p. 4). This strong board also helps to deter extortion demands from corrupt officials by increasing the risks that they should face. This is because the chance of whistle blowing from the insiders will have increased.

Putting in place higher standards for accounting information reporting is essential among the public sector to curb or to reduce the level of corruption. This will increase the probability of    detecting instances or bribery acts. When there are better accounting practices in place, they help to monitor the information and the activities of the principals and agents effectively. With high accounting, standards public or corporate officials engaged in corruption will find it had to hide bribe payments and will have to face the wrath of the law. The rules and regulations regarding accounting information reporting and disclosure should be strengthened to help in fortifying the internal control and monitoring system in the firm or public entity (Wu 2005, p. 159).

The strengthening and reforming of corporate governance in many countries is a reality that indeed corruption is rife in various countries. US and Britain are not an exemption regardless of the fact that they are powerful economies in the world. Some of the corporate in US that have faced corruption scandals include, Enron, Tyco, Worldcom and many others. The major reason of high rate of escalation of corruption is the poor management.  Public entities and corporations are governed by corrupt individuals and misuse the public office instead of using the opportunity to serve the people.

According to Owen (2013) the increasing and creeping levels of corruption in Britain has increased the rate of bribery among the public officials. Among 20 people, one paid a bribe in order to access public services such as education, health services and even justice (Owen 2013, para. 2).    Two thirds of the British people stated that in the last two years, the level of corruption has increased. These findings are from transparency international that carried out its survey across the world involving 114,000 individuals in 107 countries. Going by this statistics it reminiscent that indeed, bribery and corruption is endemic and is something that requires efforts to eradicate it.

Because it is the public sector that is essential in providing services to the people. Different countries in UK and US included have put in place different measures to help curb the menace.  One of the strategies that these countries have put in place to set up strict laws that   requires that those public officials that  are  caught stealing or engaging in any instances of bribes and corruption are persecuted. Such officials are required to resign from their offices and taken to the court of laws to answer to the charges. Some of the consequences or penalties are severe such as facing a life jail in prison.  These laws have been passed and are part of the constitution. This is one way of ensuring that the public officials remain honest as they continue to serve the members of the public.  Furthermore, those, appointed to such offices are people who have a high level of integrity and their record of accomplishment is void of any corruption allegation. This is achieved by investigating the individuals thoroughly. They have also put in place systems in place to ensure that instances of corruption reduce. The government has also helped to a greater degree in sealing any loopholes that would allow people to engage in corruption (Brasoveanu et al. 2013, p. 167). The governments have ensured that the levels of people that are out of employment is low and this ensures that people are satisfied with what they have and therefore, it becomes hard to engage in corruption. The members of the public are also aware that corruption and giving bribes is wrong and must then shun away from these practices.

There are also improved accounting standards in place that every public sector is required to comply with. All public expenses and incomes must be accounted for. External auditors need to audit the financial books or records, authenticate any likelihood of misappropriation of public funds. This strategy has helped to greater level in reducing the prevalence of corruption in high offices. With the development of technology, most of the governments are embracing e-government whereby they offer services to the members of the public through the internet (Ionescu 2013, p. 210). This is a stride towards reduction of corruption in the public sector. Even though this may not stamp out corruption entirely, it has helped to greater heights in reducing the levels. When public services are provided through the internet it reduce the interaction between the client and a public official hence eliminates the aspects of asking for bribes (Xhafo 2013, p. 84).   The other advantages of adopting e-government in servicing the public in public sector are that it facilitates preventive checks and ongoing investigation of corrupt acts.  Therefore, the mechanism behind using e-government in fighting corruption is reduction in uncertainty. Whistle blowing is also a common strategy used to fight corruption in these countries and others across the world.  People are required to pass information to relevant authorities established about incidences of corruption and bribery for an action to be taken.

Efforts have been made to raise awareness and to stamp out bribery and corruption in both public and private sector but there are still many cases of corruption.  Initiatives to raise awareness and encouragement to enforce criminal laws against corruption have been done.  This however seems not to have triggered positive change as many company officials still complain that they loss contracts because of bribery and paying of bribes by their competitors. Such surveys demonstrate intractable nature of corruption that has made many people to hold to the view that corruption is universally disapproved but universally prevalent. This is consistent with the fact that corruption has remained endemic and unavoidable in the society. Even with this state of corruption, not all is lost, there is still hope that corruption can be stamped out. This however will need tripartite attacks that involve the private sector, public sector and the civil society.

 

Reference list

Basheka, B 2011, ‘Economic and political determinants of public procurement corruption in         developing countries: an empirical study from Uganda,’ Journal of Public Procurement,          Vol. 11 no. 1, pp. 33-60.

Brasoveanu, I et al. 2013, ‘Public sector influences in the development of underground economy and corruption in Romania, in EU context,’ Economic Computation & Economic       Cybernetics Studies & Research, Vol. 47 no. 1, pp. 167-184.

Campante, F, Chor, D & Do, Q 2009, ‘Instability and the incentives for corruption,’ Economics   & Politics, Vol. 21 no. 1, pp. 42-92.

Dhami, S, & Al-Nowaihi, A 2007, ‘Corruption and the Provision of Public Output in a      Hierarchical Asymmetric Information Relationship,’ Journal of Public Economic Theory,       Vol. 9 no.  4, pp. 727-755.

Hess, D 2009, ‘Catalyzing Corporate Commitment to Combating Corruption,’ Journal of Business Ethics, Vol. 88, pp. 781-790.

Ionescu,  L 2013, ‘The impact that e-government can have on reducing corruption and enhancing             transparency,’ Economics, Management & Financial Markets, Vol. 8 no. 2, pp. 210-215.

Maiden, B 2013, ‘Fighting Corruption: Yes We Can?’ Compliance Reporter. 7/26/2013, p. 4

Xhafo, J 2013, ‘Some issues on anticorruption legal reform in public administration,’         International Journal of Management Case, Vol. 15 no. 3, pp. 84-97.

Owen, J 2013, ‘Britain’s bribery boom: One in 20 has bribed a public official as corruption rises.   Retrieved from: http://www.independent.co.uk/news/uk/home-news/britains-bribery-           boom-one-in-20-has-bribed-a-public-official-as-corruption-rises-8696181.html

Wu, X 2005, ‘Corporate Governance and Corruption: A Cross-Country Analysis,’ Governance,    Vol. 18 no. 2, pp. 151-170.

 

 

Terri Schiavo case

Terri Schiavo case is one of the end-of-life cases that saw an extended legal struggle among various stakeholders. The case lasted for 15 years from 1990 to 2005. The reason for the case was whether to carry out the decision of husband of Teresa Marie to terminate life-supporting machine from her. This discussion delineates on the laws and the stakeholders characterized the case.

End of life laws manifested in this case include presentation of evidence that Terri had indicated or shown interest that her life supporting machine be terminated when in a persistent vegetative state. The law requires enough evidence from the person affected to grant permission to end of life through the living will (Destro, 2009). The living will must be proved beyond any doubt that indeed it is the wish of the person. This is proved by presentation of a will signed by the person with family members as witnesses.

Various stakeholders were involved in the case. One of the stakeholders was Terri’s husband.  He supported the termination of life supporting machines to allow his wife to die because he believed that she was not going to recuperate.  The parents of Terri Robert and Mary Schindler were other stakeholders that were opposed to the termination of the supporting machines arguing that Terri was conscious (Alter, 2014).  The Supreme Court was another stakeholder that provided a ruling on the case. The government was also a stakeholder in the case especially when President Bush intervened in the case by signing a legislation that was to keep Terri alive. The medical practitioners that provided care to Terri were also one of the stakeholders. The disability rights and pro-life movement groups were also stakeholders that opposed the decision to terminate the life-supporting machine from Terri.

 

References

Alter, C. (2014). Terri Schiavo’s Family Urges Life Support Fr Brain Dead Teen, Time.com.          1/2/2014, p1-1

Destro, R. (2009). Learning neuroscience the hard way: the Terri Schiavo case and the ethics of    effective representation, Mississippi Law Journal, 78: 880-833.

 

Spiritual Assessment

Abstract

Spiritual assessment tools are approaches to improve medical care through incorporation of patient’s spirituality and belief systems. HOPE questions focus on basic spiritual resources, significance of spirituality, specific aspects of personal spirituality practices, and effects of spirituality beliefs on health care and death-related issues. FICA questions focus on faith or beliefs, information and influence, community, and address aspects to determine and incorporate spirituality resources in medical care. Open-ended language, non-bias, and trust used and created by these two spiritual assessment tools make them valid and reliable tools for acquiring spirituality information from patients. In health care assessment they are significant in prevention, treatment and adjuvant care of patients.

Introduction

Over the years, studies done show that the relation between spirituality and medicine is positively correlating with patient spirituality or religious beliefs having a positive impact on health outcomes. Spiritual assessment tool is an approach used by physicians to inquire on a patient’s spirituality and belief systems so as to incorporate them in medical care practice for better health results.

Spiritual assessment tools require that aspect of spirituality instead of religion be focused on to ensure that meaningful conversations are held as well as promote trust. Spirituality is multidimensional and complex with experiential and behavioral aspects of human life. Experiential and emotional concepts comprise feelings of connection, inner peace, love, hope, support and comfort which reflect to an individual’s inner resources. Cognitive concepts focus on search for meaning, purpose, and truth in life. Topic of spirituality is diverse with some people finding spirituality through religion, connection to nature, music, arts, value systems, principles or quest for scientific truth.

Analysis of HOPE Questions

The questions were developed as a teaching aid to medical students and practicing medics to enable them incorporate spiritual assessment into medical interviews. They cover fundamental areas of health inquiry under formal assessments.

H pertains to the basic spiritual resources of a patient like hope. These questions do not directly focus on spirituality or religion hence enables useful and wide range of conversations between patients and medics. They minimize bias since whether patients believe in a particular traditional religion or not they get the opportunity to express themselves.

O and P questions focus on the significance of organized spirituality and religion to a patient and the actual aspects of personal spiritual practices that mostly benefit him or her. These questions are used to determine what aspects of spirituality an individual practices and whether they strengthen, comfort or even given them hope to face life.

E deals with the effects of individual spirituality beliefs on health care and death issues. Health officers are able to acquire information on common spiritual concerns and resources like fear or conflicts between patient’s beliefs and medical situation at present. This kind of information is necessary since it enables physicians align their medical care approaches to the belief systems of patients for better health outcomes (Puchalski, 2006). Understanding the effect of spirituality on death issues enables medical practitioners help patients deal with issues like fear of death or pacification with their ending life. Their themes hence ensure that best care and attention is accorded to dying patients by their physicians.

 

Analysis of FICA

FICA model, a popular acronym tool, has letters F representing faith or beliefs, I for importance and influence, C for Community and A for Address.

Faith based questions include questions like: “What are your spiritual beliefs? Do you consider yourself spiritual? What things do you believe in that give meaning to your life?” These questions are aimed at inquiring what spiritual and belief systems that an individual has. This will enable a medic to incorporate them in practice for better health results (Puchalski & Romer, 2000).

Importance and influence comprise asking questions such as: “Is faith or spirituality important to you? How has your illness affected your personal practices?” These questions require inquiring how patients regard spirituality so as to be able to determine if physicians should apply those spiritual concepts in health care. If patients love nature walks or quiet time then medics should ensure that they are incorporated in medical care.

Community questions inquire on the role of the community and society towards building and strengthening spirituality and value systems of patients. This enable find out if there any members of the community who support the patient and whether it is necessary to include them in medical care of a patient for better and fast recovery (Puchalski & Romer, 2000). They include questions like: “Are you connected to a faith center in the community? Does it provide support for you during times of stress? Is there a person who supports you in your spirituality?”

Address questions enable physicians know how to support patient’s spiritual practices through medical care. Here a direct relation is established between spirituality and medicine to enable better health outcomes. Questions like: “What can I do for you? What support can health care do to support your spiritual practices?” are asked (Puchalski, 2006).

Validity and reliability

HOPE questions are not validated by research but all relatively reliable in ensuring better health results. This approach allows for open-ended exploration of patient’s general spiritual beliefs, resources, and concerns. Its non-biased nature shown through the diversification and generalization proves its reliability in acquiring relevant patient information to apply the best spiritual resources for better health outcomes. This approach is also used as a natural follow-up to discussing other spiritual support systems (Puchalski & Romer, 2000). The language it uses which does not immediately focus on words like spirituality or religion minimizes language barriers ensuring comprehensive information is gathered for reliable implementation.

According to research FICA questions are valid as spiritual assessment tools. Their open-endedness when inquiring on spirituality minimizes bias and enables collection of diversified information. Aspects of open-language and non-bias make them reliable in collecting relevant information to ensure better and fast health outcomes. They also establish rapport and promote trust between patient and physician hence enabling better health care provision (Mauk & Schmidt, 2004).

Use in health assessment

There are situations where medical practitioners have little or nothing to offer patients through medical solutions, care or pain relief. Therefore, therapeutic interventions offered through their presence, understanding, acceptance, love, kindness, tolerance and compassion are the only ways they can contribute to the health betterment of their patients. Spiritual concerns and questions in a way significantly affect the quality and recovery of patients since they promote relaxation curbing any pessimism.

Inclusion of spirituality in adjuvant care is vital when coupled with standard medical treatment. Medics help patients identify and choose spiritually based measures like saying prayers while taking medication, reading scriptures or listening to music prior or after surgery. These approaches will enable patient recovery quickly since their mind, body, and soul have a common desire and positive similar thoughts (Puchalski, 2006).

Spirituality can be incorporated into preventive health care whereby patients are assisted in identifying and mobilizing their spiritual resources such as prayer, meditation, yoga, country walks, and music among others to prevent some health conditions like depression, cardiac arrest, and stress among others (Taylor, 2002).

Spiritual assessment also enables necessary modifications of treatment plans in diverse patients. Understanding a patient’s spiritual needs and believes ensures that health officers incorporate those beliefs in their medication to ensure that patients recover fast and easily. Measures like meditation techniques, nature walks, and religious resources among others should be included as part of a patient’s medication to ensure full recovery.

 

 

References

Taylor, E. J. (2002). Spiritual Care: Nursing Theory, Research, and Practice. Upper Saddle River, NJ: Prentice Hall.

Mauk, K., & Schmidt, N. (2004). Spiritual Care in Nursing Practice. Philadelphia: Lippincott Williams & Wilkins.

Puchalski, C., & Romer, A. L. (2000). Taking a spiritual history allows clinicians to understand patients more fully. J Palliative Med., 3:129–37.

Puchalski, C. (2006). Spiritual Assessment in Clinical Practice. Psychiatric Annals, 36, 3; Psychology Module pg. 152 (Ehman)

 

 

 

 

SWOT Analysis mechanism Harrington Collection Case Study

This essay attempts to showcase how Harrington collection can use the Strength, Weakness, Opportunities and Threats (SWOT) analysis to determine the firm current position. The central objective to be achieved is determining preeminent brands for women who prefer elegant clothing. The SWOT analysis will provide a differentiation mechanism to ensure that Harrington can exploit this information to edge out competitors.

To achieve this, Harrington collection will use internal analysis (Strength) in the strategic internal communication mechanism, to audit the firm microeconomic position. This will be geared on traditional strengths; for instance, in house product development facility. On the Opportunities side, the goal is to make high quality clothing and brand them elegantly, as well as, ensuring distribution channels are well streamlined. This can be bailed out by Harrington Collection strategy of buying out executive retail centers; for example, Christina Cole, Sopra and Vigor brands. Inversely, strengths pillar provide an upper hand for opportunities pillar on the overall SWOT mechanism analysis.

The threats posed on the overall strategy are the presence of competitors; for instance, Macy’s Bloomingdale and discounter TJ Maxx, Marshalls and Mass Merchandisers. Their strengths lays on the overall ability buy products at significant discounted prices. Also, it is good to note that these firms have been using consolidation strategies, a close example being Bloomingdale acquiring several departmental stores.

To respond to these threats, Harrington Collection will use the Strengths analysis to determine the quality and agility of Harrington mainstays. Unlike the above named firms, Harrington has traditionally maintained in-house production. This is essential since the firm can be able to provide customized products for its customers.

However, Harrington collections is constrained by a challenging raw material procurement strategy; hence, proving a potential weakness. Primarily, the firm central objective is specifically grounded in providing elegant products. To make these products, the sources and quality of raw material is an important factor. Apparently, traditional raw-material sources Asia is having a hard-time to balance rising wages and the firm profitability, which in this case, are inversely rounded back to the cost of the product, therefore, making the product expensive.

References

No reference requested.

 

Group Theory and Group Work

 

The Importance of Group Work

Group work is essential in building teamwork an integral prerequisite required in modern organizations. The oriental merit behind group theories, or group work is the ability of team members to discuss or communicate with other individuals, therefore, grounding the advantage of sharing different information. A group equips students to be able to divide the workload, increase productivity, and promote specialization, share ideas as well as skills. In class, there are two theoretical groups courtesy of Heterogeneous and Homogenous. The heterogeneous grouping enables students to presents their abilities differently altogether. Conversely, the homogenous grouping enables students with similar abilities to work in one group.

The Concerns in Group Work

Although group work and group generated theories are a great learning option, it is essential to acknowledge that there are associated concerns that constrain the overall learning objectives. Primarily, groups are comprised of diverse people, and in this revelation, it is difficult to get a group started. To respond to this concern, it is imperative that let all members get engaged morally and psychology by assigning individual tasks to each member. Secondly, groups are hard to complete tasks. To respond to this challenge, it is essential for group members to establish timelines that are suitable to all members. The group controller should endeavor to request progress from all members. Other trivial concerns include; some members not contributing, ineffective communication, conflict between team members, dominating personalities, and inability to focus on the tasks.

Experience with group work

The experience generated in working with groups is the ability of members to exchange vital information; this is a result of improved team working skills and experience. Secondly, group experience enables students having difficulty in public interaction to shed off their fear. The group will be integral in letting the student develop habitual communication skills. Secondly, in developing group theories and work, group members learn to appreciate the natural abilities that each personality has. Also, group members should also exchange contacts. Develop and agenda and timeline, and let members speak out suggestion.

References

No references requested.

Men are naturally violent and protective

Whether the subject is masculinity, patriarchy, or violence one will not fail to notice the occurrence of chauvinism on several categories when portraying the subject of men. This critique attempts to reflect on an article posted on CBC news, British Columbia article. It is apparent that Alexander does not publicly encourage or agitate for violence; however, the movement seeks for response when it is pushed to the wall. The freeman agitation is based on response to the state imposition of a given norms or set of disciplines or what the movement defines as on overbearing government. For instance, Alexander does not require a license to drive or pay income tax (CBC, 2013).

According to the extract,  the concept of violence cannot be used to judge men wholly. Primarily, violence is a vehicle to let views get known to the people, whether legitimate or illegitimate. This promotes the assumption that men will apply violence if they feel their views are being neglected. According to the extract FBI and B.C,  still considered the movement a source of domestic terror, an assumption that Freemen strongly distance themselves with.

When it comes to the concept of governance, it is apparent to note Man chauvinism is the most important observation. The central goal here is the importance of two integral laws, statute law and common law. One will notice from the extract that the movement seeks to agitate for equality, on all accounts this is promoting the presence of common law. This propels two crucial situations, the fight against capitalism and individual personality decorum. According to freemen, decorum is essential, and, in fact, the group argues that the statutory law is primarily responsible for destroying the society.

The greater war is not physical confrontation directed by Freeman-Movement, but whether man can uninstall the statutory law imposed to him by the government. Chiefly, one will notice that Freemen’s chauvinistic perception is centered on the assumption that statutory law imposed to people, with or without their consent, and this forms the nucleus of social conflicts (call it violence). For instance, the law convicts innocent people to Jail using the statutory law, jailing them together with people who have broken common law. According to the extract, Freemen’s movement argues that the statutory law is a contract, and each party can live it at will.

Freemen view the judiciary as a bunch of brutal people who are naturally violent. A further example to Freemen’s philosophy is the Daren Wayne McCormick, who was convicted by a court in Nova Scotia for uttering threatening words to officers. Freemen viewed that the Judge used his personality (call it humane violence) to pass judgment to an innocent person. The initial conviction of Mr. McCormick was essentially based a criminal court and federal gun laws, in any case, McCormick was originally viewed a danger to the society but not to official members of the judiciary. However, the judgment that sent McCormick to prison was based on danger to official members of the judiciary proving that men are violent by their own character.

Reference

CBCNews. (September 2^nd, 2013).Freemen movement concerns Canadian legal communities.

Retrieved January 16^th, 2013 from http://www.cbc.ca/news/canada/british-columbia/freemen-movement-concerns-canadian-legal-communities-1.1345486

 

 

Healthcare; Zane Case Study

Introduction

Any organization operates in an environment dividend into an internal and an external environment. The internal environment refers to that environment the organization has control over. This relates to the company itself, its policies, its processes, strategies, employees, the management team, and organizational structure. This environment is easy for the organization to control. On the other hand, an organization has an external environment, which is an environment outside the organization, and beyond the control of the organization. The external environment dictates what happens in the organization. A healthcare facility is an organization that aims at providing medical care to the community in which it exists.

Healthcare external environment

Various variables create the healthcare external environment. These variables include, firstly, the economic variable. This force focuses majorly on economic elements, such as, interest rates, employment rates and competitive forces in the healthcare industry. Secondly, the healthcare external environment comprise the technological variable, which relates to advancement in Information Technology, infrastructure in the hospitals and new products in the market in relation to types of services a hospital offers. Thirdly, the political variable relates to issues involving the Government of the land.. The fourth healthcare external environment variable is the legal variable. This relates to the regulator forces, price ceilings, laws, and regulations governing healthcare delivery. Finally, the social-cultural factor also falls in the healthcare external environment. This variable relates to the economic power and changing lifestyles of people, culture, norms, social beliefs and values of the community around the healthcare facility (Muller, Bezuidenhout & Jooste, 2006).

The healthcare external environment plays a prime role in the success of a healthcare facility. Therefore, it is essential to carry out an environmental analysis to identify the strengths, weaknesses, opportunities and threats facing the facility. The information gathered during an environmental analysis aids the healthcare facility in improving its strategic management, and translates into a possibility for the facility to meet its business goals. In addition, getting the real situation of the healthcare environment aids the management team to develop clear strategies, which guide the facility to attain the business goals. The commonly utilized tools of environmental analysis include the 5 Cs analysis, the SWOT analysis, and the PEST analysis. Generally, scholars refer to the environmental analysis as a situational analysis, which covers all these tools. According to Ginter, Duncan & Swayne (2013), a situation analysis is the analysis of the internal and external environments of the organization, and relates to the past, present and future aspects.

The 5 Cs analysis tool limits its analysis on the company, customers, competitors, collaborators and the general climate. The company relates to the internal situation of the healthcare facility whereas the rest relate to the external situation. Secondly, the SWOT analysis is an environmental analysis tool that aims at identifying the strengths, weaknesses, opportunities and threats of the products offerings of the healthcare facility. That is, the listing the most relevant problems and opportunities and assess the capability level of the healthcare facility to deal with them. The strengths and weaknesses relate to the internal environment, while the opportunities and threats relate to the external environment (Muller, Bezuidenhout & Jooste, 2006). Finally, the PEST analysis is a tool for environmental analysis that analyzes the healthcare external environment variables. It analyzes the macro-environmental political, economic, societal and technological factors. This analysis tool covers the climate part of the 5 Cs analysis.

Zane Case Study

The healthcare environment in Massachusetts as Ellen Zane assumed leadership was deteriorating. Many of the healthcare hospitals were performing poorly and making huge losses. In addition, the services offered were of poor quality. There was underfunding by the Federal and State Governments, which led to surging medical costs, Medicare, and Medicaid payments lagged behind. Bad debts from patients led to significant debt that threatened the healthcare. This further led to market consolidations, such as, mergers, closures and conversions, which aimed at salvaging the healthcare industry. A good example was the merger between Tufts-NEMC and Lifespan in 1997. In addition, the hospitals were financially unstable as insurance companies payment depended on the volume of patients. Thus the healthcare industry preferred quantity over quality. Consequently, there was a migration of customers, nurses and doctors to more expensive AMCs in search of quality care. This resulted in a deregulation of hospitals by Massachusetts in 1991 to move them towards cost effective management processes. In this period, the technology was advancing, in both information technology and medical equipment.

In the early 1990s, Tufts-NEMC had strong programs in cancer treatment, transplants and neurosurgery. In the mid-1990s, Tufts-NEMC merged with Lifespan Corporation. It added a maternity service in 1992, which made it the first full-service private teaching hospital in Boston. It even posted gains, however, due to a write-down in assets. In 1995, Harvard Pilgrim Healthcare discounted Tufts-NEMC from coverage, citing high costs. It then like other AMCs became slow to react to market pressures, and was ineffective in improving processes and cash flow. Thus, it was losing physicians, the market share and hospital acquisitions, such as, Faulkner and Tufts Medical School teaching site to Partners and CareGroup. By 1996, its debt had risen to $240 million from $130 million in 1990. However, in 1997, Tufts-NEMC opened The Neely House, an unique bed and breakfast style home for cancer patients and their families. This facility was within the hospital, an outstanding investment.

By 2002- 2003, Tufts-NEMC was facing various problems. All these problems developed after a merger with Lifespan Corporation in the mid-1990s. Firstly, the hospital was recording huge losses despite high revenues. In 2002, it recorded a loss of $12.3 million on a revenue of $476 million. The losses increased in 2003 to $38.5 million on revenue of $582 million. Secondly, the hospital had distorted administrative departments. This is following a brain drain when Lifespan took the administrative and support functions from Tufts-NEMC and centralized them in Rhodes Islands after the merger. Therefore, Ed Schottland the newly recruited COO set out to restructure them.

Ellen Zane moved to Tufts-NEMC in July 2003 after 10 years with Partners, a well performing hospital and a competitor of Tufts-NEMC in Boston. Tufts University’s President convinced her to take up the CEO position as he felt that she had the right mix of skills to build and implement a successful strategy for the hospital. She was the first non-physician and female permanent CEO in Tufts-NEMC’s history. In the first 6 months in Tufts-NEMC, Zane developed a consulting group called BDC Advisors, which carried out an environmental analysis to identify why the hospital was making a loss of $6 million in a month. Secondly, she conducted a “rapid diagnostic” to determine how to stern the losses. Thirdly, she reviewed the managed care contracts, and found out that Tufts-NEMC was underpaid. Finally, she realized that it was crucial to maintain the hospital as an AMC despite the difficulty of managing a major medical center without the volume of cases or endowments that competitors, such as, Partners enjoyed.

By mid-2006, Zane had accomplished various goals. Firstly, she had made staff changes by replacing half of the incompetent management team with more competent one. For example, she replaced the senior vice president of strategy with Deborah Joelson, a network-building expert from Partners. Secondly, she improved communication and outreach among the staff of the hospital. She accomplished this feat by the introduction of staff meetings and email addresses, where she encouraged sharing of ideas and communication of grievances. Thirdly, she introduced the Agenda for Change, a restructuring plan that improved Tufts-NEMC’s processes. Fourthly, she reduced the Length of Stay at the hospital, a cost-saving initiative that saved costs for the hospital. Fifthly, she re-opened contract negotiations, which improved Tufts-NEMC’s reimbursements by $20-25 million. The sixth accomplishment Zane made was bringing back the affiliations and networks that the hospital had lost over the years. Finally, she developed a working relationship with the Tufts University, which built joint initiatives in research and fundraising.

If I were Zane, my strategic plan for the next 6 months would to increase the number of bed space. More bed space with short length of stay will translate into more revenues and a higher profit. For the next 12 months, my strategic plan would be to make Tufts-NEMC a lower cost alternative and move the care to community hospitals.

 

 

 

 

References

Ginter, P. M., Duncan, W. J., & Swayne, L. E. (2013). Strategic management of health care organizations. San Francisco, CA: Jossey-Bass.

Muller, M., Bezuidenhout, M., & Jooste, K. (2006). Health care service management. Cape Town: Juta.

 

Consumer Market Analysis Report

Executive Summary

Consumer behavior theory has been applied by various organizations to develop appropriate marketing plans and promotion strategy that can help them to gain competitive advantage in the market. Many of the global marketers consider market research and identification of consumer behaviors as an important step towards developing effective marketing strategies for their organizations. Information that provides consumer behaviors can be used to get useful insights about consumer purchasing decisions and patterns. This can be used to develop appropriate products and marketing strategies that conform to certain consumer behaviors. This report provides analysis of consumer market with regards to smart phone industry. The report considers two smart phone companies that include Samsung and Apple. It then provides the consumer behavior theory applied by each company and analyze the effects of the identified theory on the products of the companies. The report then ends by giving recommendation on the appropriate marketing strategies that can be used by the two companies.

 

 

 

 

 

 

Table of Contents

1. Organizations Overview.. 4

1.1. Samsung. 4

1.2. Apple. 4

2. Relevant Consumer Behaviours Theories. 4

2.1. Application of Internal Influence Theory in Samsung. 4

2.1.1. Attitudes. 5

2.1.2. Needs and Motives. 7

2.2. Application of External Influence Theory in Apple. 9

2.2.1. Reference Group. 9

2.2.2. Culture. 11

2.2.3. Technology. 12

3. Similarities of the Effects of the Influences on the Marketing of the Products. 13
4. Differences on the Effects of the Influences on the Marketing of the Products. 13
5. Recommendation. 14

Reference Lists. 15

 

 

 

 

 

1.      Organizations Overview

The two organizations considered for the study are Samsung and Apple. The marketing strategies used for smart phones of the two companies are analyzed in details based on the behaviors of consumers.

1.1. Samsung

Samsung is a South Korean multinational company that is headquartered in Samsung Town, Seoul in South Korea (Samsung.Com, 2014).  The company has a number of affiliates and subsidiary businesses with majority of them trading under the Samsung brand.  The company is one of the leading manufacturing of smart phones in the global market. Its smart phones are widely recognized by various customers around the world.

1.2. Apple

Apples Inc. is an American multinational company involved in designing, developing and selling of personal computers, computer software and electronics. The company is headquartered in the United States and operates in several countries around the world (Apple.Com, 2013).  The company is one of the leading companies that manufacture smart phones for various customers around the world. Its smart phones are among the expensive smart phones in the market.

2. Relevant Consumer Behaviours Theories

2.1. Application of Internal Influence Theory in Samsung

Internal influence theory is the major emphasis of Samsung towards developing appropriate marketing strategies for its Smart phones. Internal influence theory considers various factors that help determines consumer behaviors hence influence their purchasing decisions. The internal influence theory considers a number of factors that influence consumer behaviors such as needs, attitudes, motivation, personality learning and memory (Goldenberg et al, 2000).  These internal factors are used by companies to promote their brands hence attract sales. Samsung use of the internal influence theory has helped increase its market share in the smart phone market making it to be one of the largest players in smart phone industry.

2.1.1. Attitudes

Consumer attitude is one of the internal factors that can influence the purchasing decision of consumers in a market. Attitudes can be considered to be pertaining to what consumers thinks or feels about a product. This can be reflected in individual’s actions and buying patterns and trends.  Changing of an individual’s attitude about a product is very difficult hence once an organization has been able to develop positive attitudes of customers towards their products; it will become difficult for other rival companies to change the attitudes of such consumers (Gummesson, 2002). This will ensure that the company enjoys significant customers loyalty towards their products hence enhance their competitiveness, sales and profitability. Attitude of consumers can result to either favorable or unfavorable feelings about a product. Consumer’s attitude is important in determining the taste and preference of consumers.  Company’s products and advertisement should be able to coincide with the attitudes of consumers at the current time. This implies that organizations should be able to analyze the attitude of consumers within their targeted market and develop appropriate marketing strategies that are in accordance to their prevailing attitudes. This will ensure that the targeted consumers are attracted to the product hence increase the sales of the organization’s products.

Samsung marketing strategies are based on the attitudes of the consumers within its target market. The company advertisements are in accordance to the attitudes of consumers.  The advertisement messages provide information that are of interest to consumers. Although it is difficult and expensive for organization to determine the prevailing attitudes of consumers, the company normally conducts surveys on a regular basis to help determine the behaviors of consumers in its targeted market (Baker et al, 1996). Some elements that have been consistently used to depict attitudes of consumers by Samsung include aspects of quality and prices. Most of the consumers of smart phones are interested in the quality of the products. They are therefore interested in purchasing products of high quality that can enable them to get maximum satisfaction from the usage of the products. Samsung therefore develops products of high quality to match the attitudes of their targeted customers regarding quality. Consumers are also interested in products which are affordable and this is considered by Samsung when developing its products. Samsung smart phones are cheap and affordable hence attract majority of customers. This has enabled it to gain significant market share from customers with both high and low incomes.

Attitudes also can also be used my marketers as a source of information about their products as well as how the customers are established in the market place. Samsung marketers can use the information obtained from the identified attitudes of consumers to determine the consumer’s perception about Samsung smart phones.  It is therefore important for Samsung marketers to note that there are various advertisements from different smart phone companies that provide information aimed at attracting consumers.  The information provided in these advertisements can either impact negatively or positively to the sales of the smart phones depending on the attitudes of the consumers. This makes it important for Samsung marketers to develop appropriate marketing strategies that are not in conflict with the attitude of the consumers. Attitude of consumer can be determined by various factors that include personal experiences, influence of friends and family members as well as the influence of the promotional activities. It is therefore important for Samsung to use various avenues so as to influence the attitudes of consumers regarding their products.

2.1.2. Needs and Motives

Another area where Samsung has also applied the use of internal influence theory is in needs and motives concept. Personal needs and motives are the most important internal influence factors that determine the purchasing decisions of consumers. Need is occasioned by the absence of something useful to consumers (Ahmed et al, 2003). Due to advancement in the level of technology, many businesses and individuals are using products that are in accordance to the prevailing level of technology. Samsung uses this concept to attract the attention of consumers to purchase its smart phones.  The marketing strategy of Samsung creates the desire in individuals to purchase its smart phones so as to help satisfy their needs. This is because the smart phones can be used to satisfy various consumer needs such as communication, surfing internet, playing games and listening to music among other various applications. Consumers will therefore purchase the smart phones so as to help satisfy their needs and this forms the basis of the marketing strategy of Samsung.  Motivation can also play a significant role in attracting consumers to purchase a product. Motivation can be achieved through various ways such as making products appear appealing to customers, selling the products at competitive prices and giving various incentives to customers (Sheth & Parvatlyar, 1995). Samsung smart phone are appealing hence help creates a positive impact to the consumers.  The company ensures that customers are motivated to purchase the product through providing favorable conditions that prompts action to satisfy a need. This has been achieved by Samsung through communicating benefits of its smart phones to the customers as well as presenting the right image of the products. The needs of consumers can also motivate consumers to purchase a product. For example, consumers might be in need of a smart phone for communication and browsing hence will be motivated to purchase the smart phone so as to help meet their needs and desire.

Through identification of the needs and motives of consumers, Samsung can easily influence the purchasing decisions of consumers. One of the most important models that have been used by Samsung in motivating its consumers to purchase its smart phones is the Maslow Needs Theory. The Maslow Theory model was developed by Abraham Maslow and categorized the needs of consumers based on five levels that include physiological needs, safety needs, social needs, esteem and self actualization (Ballantyne, 2003). According to this needs theory, consumers will satisfy each need at a time starting with the physiological needs to self actualization. The last need to be satisfied by consumers according to this model is the need for self actualization.  Understanding these needs is very important towards influencing consumers to purchase various products that will help satisfy their needs.  Samsung is able to identify the various needs of consumers that make them consider purchasing its smart phones. Majority of the smart phone users purchase the smart phones so as to satisfy the communication needs. Other individuals may also purchase smart phones so as to satisfy needs such as browsing, to store information and also as an office appliance. Samsung considers all these needs of the consumers and develop appropriate smart phones that can cater for the various consumer needs identified.  Since every consumer has different needs that determine the decision to purchase a product such as psychological needs, it is become important for Samsung to identify the needs of all its targeted customers so as to enable it develop products that will help satisfy the needs of the targeted customers.  This will help Samsung to segments its market and satisfy their needs of its customers appropriately.

2.2. Application of External Influence Theory in Apple

Apple Inc has in most cases used external influence theory in its marketing strategies. Consumers are faced with a number of external influences when making purchasing decisions of products. These external influences differ and may include reference groups, social statues, household structures and culture (Lord & Ranft, 2000).  These factors are associated with external influences since they are determined by forces that are beyond the control of individuals.  In most cases, external influences are occasioned by socio cultural factors as a result of association with certain groups of people in the society or compliance with certain technological advancement. Understanding of the external influence factors is important for organizations towards determining the various behaviors of consumers with regards to making purchasing decisions.  Apple has used the concept of external influence theory to develop various marketing strategies for its products.  Various external influence factors have been determined by the company and used to develop appropriate marketing plans for its smart phone products in the market place. Some of the external cultural influences that the company has considered when developing its marketing strategies for its smart phones include reference group, culture and level of technology.

2.2.1. Reference Group

Reference group can be defined as a group, category or a class of people through which and individual belong (Adcock, 2000).  The presence of reference group creates pressure for the members to have shared values and interest. This makes them to seek similar products that have the same feature and characteristics. Influence of reference group can originate from co workers, hobby clubs, organizations, family or profession among other groups. The influence of reference group is therefore important in determining the purchasing decisions of consumers.

Apple has used a number of references groups in its marketing and promotional strategies. The marketing campaigns that have been developed by the company can be seen to target professionals and business executives. This implies that the company is interested in developing smart phones for specific groups in the society such as professionals and business executives. Most of the pictures and images that appear in Apple’s advertisement portray professionals and business executives.  The advertisement of the Apple products is therefore effective in attracting the attention of business executives and professionals. This is ensured by creating a notion in the minds of consumers that the smart phones from Apple is able to provide the various needs of professionals and business executives. The impact of reference group in the apple’s marketing strategies therefore enables it to attract the attention of the people that belongs to the same reference groups depicted in the advertisements of its smart phones (Knight, 2000). All professionals and business executive will therefore feel that they belong to the group hence for them to match with their colleagues in the group, it is necessary that they purchase the above products.

It can also be argued that consumers can be referred to purchase a product by the members of a given reference group. Hence many of major decisions of consumers towards the purchase of Apple smart phones are based on referral from the reference groups such as business executives and professionals.  The reference groups for Apple smart phones are mainly composed of majority of individuals with high levels of income. Apple can therefore be seen as targeting groups of individuals that are having high income levels as opposed to low income earners. This has enabled the company to maintain high prices hence ensure high profitability. High income earners therefore define another reference group for Apple Company. This is portrayed by the prices of its products which are in most cases higher than its competitor’s prices in the market.

2.2.2. Culture

Culture can be described as an individual’s beliefs, values and opinions that help shapes his or her behavior towards a particular direction (Weiner, 2000). The beliefs, values and opinions of individuals can influence the decisions of individuals towards the purchase of a product. The emotional needs of consumers are also influenced by culture. This makes consumers to behave in a way that will ensure that their culture is preserved. Products of organizations should be developed in such a way that should ensure that they conform to the prevailing culture.  Goods and services that do not conform to a given culture can normally be subjected to rejection by the customers hence negatively affects the sales and performance of the company. Culture therefore plays a pivotal role in developing the needs of consumers as well as enhancing the needs of the consumers (Arnould & Thompson, 2005).

Apple marketing strategies and products considers various cultures of its consumers. Most of the Apple products are however based on the western culture which is characterized with development of new products that are in accordance to the modern technologies. The branding of the company’s products at various regions around the globe is done in accordance to the prevailing culture. This helps the company to enhance the sales of its products in various countries of its operations around the globe. The company contracts various international public relations companies to conduct its various advertisements campaign in foreign markets so as to ensure that it conforms to the given culture within that country.  The company also considers the culture of its targeted customers such as business executives and various professionals. This is because most of the business executives and professionals normally prescribe to the same values, beliefs, opinions and attitudes (Peterson & Merino, 2003).  In this respect the company manufactures smart phones that are offered at premium and esteemed prices. For example, the prices of the smart phones for the company are often expensive as compared to smart phones from other rival companies such as Nokia, Samsung and Google among other smart phone manufacturing companies around the globe. This suggests that Apple is interested in serving customers from a specific culture that is made up of high income earners, business executives and various professionals.

2.2.3. Technology

Technology is another external influence factor that Apple considers in its marketing strategies and campaign. The products that Apple develops and manufactures are often unique and made using the current level of technology. Apple can be seen as the market leader in the smart phone industry due to the introduction of new innovative smart phones in the market. The company smart phones are developed based on the new level of technology.  The features that are included in the smart phones from Apple Company indicate the emphasis that the company places on technological developments. The smart phones of the company are displayed as innovative by the management of the company and various marketing campaigns that they conduct. For example, making smart phones to serve as a computer and at the same time serves the same function as mobile phones is an innovative idea that was invented by Apple.  They have also been able to use technological advancement to develop slim phones that contains various feature as well as able to conduct multiple purposes.

The use of technological advance as a marketing platform by the Apple Company has enabled it gain reputation in the market as the leading manufacturers of innovative products in the global market (Koufaris, 2002). The company has also been able to attract the attention of various customers who values the technological developments and improvements. Again the management of the company also prides of having reputable professionals who are having technical skills and capability. This makes them able to provide various products that are in accordance to the new level of technology. The company is also having a research department that helps it to carry out various researches studies on its products so as to remain being the leader in the manufacturing of innovative and creative products in the market.

3. Similarities of the Effects of the Influences on the Marketing of the Products

There are few similarities between the effects of the external and internal influence on marketing of the Samsung and Apple smart phones. One of the major similarities in effects is that the two influences have enabled the two companies to gain significant market share in the smart phone market. Both Samsung and Apple have been able to increase their market share through the adoption of the influences in their marketing strategies. The influences have also enabled Samsung and Apple to increase their sales, revenues and profitability over the years. This can be attributed to the ability of the companies to develop appropriate strategies based on the behaviors of consumers.

4. Differences on the Effects of the Influences on the Marketing of the Products

The major difference regarding the effects of these two factors is that the internal influence theory applied by Samsung has attracted low sales as compared to the external influence theory applied by Apple. Apple marketing strategies has enabled it to emerge as the leading company in the manufacturing and distribution of smart phones in the global world. The success of Apple can be attributed to the effectiveness of the strategy used by the company to market its products. The other difference on the effects of the influences is that the internal influence used by Samsung attracted customers with different income levels while the effects of the marketing strategy used by Apples only attracted high income earners.

5. Recommendation

Based on the analysis of the two approaches of consumer behaviors in developing appropriate marketing strategies, it should be effective if both Siemens and Apple used the external influence theory to help develop appropriate marketing strategies for their products.  This is because according to the research, it was evident that marketing strategies that are used by Apple were more effective and lead to the growth of the company’s sales and revenues over the years. The two companies should therefore base their marketing strategies on the external influences theory. Various external factors such as culture, level of technology and reference groups among others should therefore be considered when making appropriate marketing strategies for the products of the companies.

 

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