Power is a notion that is difficult to define yet it affects everything we do in our everyday lives whether we realise it or not. The understanding and use of various resources and sanctions is present in all our activities and shapes the way we act and react. The knowledge and use of power is especially important in industrial relations and the more we understand about the way power can be used the more successful our industrial relations encounters are likely to be.
There are three main frameworks that can be used to analyse the employment relationship (Kirkbride, 1985) but I believe that it would appear there are varying interests between management and employees and that conflict is an inevitable part of relationship. The way power can be used is demonstrated very clearly in times of industrial disputes when the various players in the employment relationship are negotiating aspects of employment. These different aspects of power and how they can affect negotiations were made very clear by the Metals: Anatomy of a Union video, Final Offer video and both the group and individual negotiation exercises completed in class.
Power is a concept that is greatly misunderstood. As noted by Keeney & Kelly (1998), no one person is powerful on their own, the power only becomes apparent when it is part of a relationship. Of course, once in this kind of social relationship, to possess power a person must have something that the other wants or needs (Martin, 1992). Each conflict is different with different parties having power resources that fluctuate in effectiveness with varying circumstances. This was clearly seen in the activities we completed in class as well as during both videos. In the group negotiation exercise for instance, despite the fact that we were all given the same case study, we all had very different results. I believe that one group came to a resolution whereas the group I was in didn’t even come close to resolving a couple of the larger issues. We needed the employees to keep the egg plant running and they needed wages from us and the management team and I expected that the workers couldn’t afford to strike for very long. Surprisingly, the union held its ground and was determined to strike until we had improved conditions dramatically which meant that our power was seriously lessened. The issue was not resolved apart from a decision to take the case to the Australian Industrial Relations Commission (AIRC) which was not the most productive outcome. I wonder however, if in real life the workers would have been so eager to sacrifice their wages to strike so easily. As discussed in Keeney & Kelly (1998), I went in to the negotiations believing that as management, our power was more legitimate and I think this may have influenced me negatively against the demands of the union. I felt like we were giving them so much and we were getting so little in return which was very frustrating. Each time we agreed to one of the demands it felt like they were asking for something else and the concessions we were making just weren’t good enough for them. Even though we explained the financial repercussions that would occur if we bowed to all their demands they didn’t lessen their expectations. I did feel that both sides were probably being very stubborn and that if we had more of an idea about the actual costs involved for activities such as striking the results may have been different. I think in the real world although it would have been a difficult negotiation, we could have come to some kind of agreement. Although in the end the workers and management probably had similar thoughts on where they would like to see the company end up, I think the way and speed at which the company would get to that point was very different.
The individual negotiation was far more productive than the group one. In my position as a waitress I felt that I had enough power through my fine dining experience and the family like relationship I shared with Stephanie (Julia) to achieve what I wanted. Having less people involved also made the situation feel far less confrontational and I think that Julia and I were able to discuss things more openly. Although I felt that I gained power from the family like feel to the relationship I think this was also a power resource for Julia because I felt that I didn’t want to stretch the company financially or expect anything ridiculous because I wanted to maintain the good relationship. My main power resource was my skill level and the knowledge of both parties that I could easily find a job elsewhere. I think Julia’s main power resource was the working environment which I was unlikely to find at another restaurant. I think in this situation we had relatively similar goals in mind, although there were a few points of conflict, and the power resources were fairly well balanced which is why we were able to resolve the issues though compromise and it didn’t take long to finalise the contract.
The players in the dispute in the Metals: Anatomy of a Union used similar power resources to those used in the group negotiations. Workers at the metal company Wamac were working for very low wages and were owed large sums of money in back pay. The workers at the plant were mainly migrant workers who were probably struggling for money and the management capitalised on this and gained power through the use of fear. However, once the premises was unionised, the power balance shifted greatly. Having someone that understood the law and their rights made the workers more confident and they made the decision to allow the union to conduct enterprise bargaining for them. Bargaining as one collective group with the support of the union gave the workers much more power because it wasn’t so easy for the company to use fear as a resource and the company couldn’t afford to have problems with all the workers. This was also very important for the union because it was at a time where membership was declining and if it continued the union would begin to lose its power resources. Management tried to stop the union coming in but the union relied on its legislative powers through the commission and gained the right to entry. Once management realised that its power was limited, it agreed to bargain in good faith and made a wage increase offer to the workers. After a round of negotiations, management decided to take a caucus and when the next round began they agreed to the altered wage increase but not the bonus structure. Unhappy with the decision, the union and the workers decide to use their collective power and take industrial action in the form of a strike as well as other measures. After assessing the situation, management realised that the workers were in a position of relative power because management could not afford the industrial action and the resultant loss in productivity. To prevent these costly losses, management agreed to the increase and the back pay because they had no more power resources to put into play. In this case, the power that the workers had through the ability to strike was greater than the power of management although in many cases, workers cannot afford to strike for a period long enough to ensure the balance of power remains in their favour.
Similarly, in the Final Offer video, conflict arose during renegotiation of agreements. In this case however, there were more parties involved and the relationships were far more complicated. Again, the workers want more than management are willing to give and despite union pressure, negotiations have reached a deadlock. In this case however, the union was not only in a power struggle with management, but was also experiencing problems from within. The Canadian branch of the union was in a power struggle with the head US branch of the union and this made it difficult for the union to push for the reforms that the workers wanted. General Motors (GM) was aware of this pressure and figured that if they were patient enough the Canadian union will fall under the pressure and they would sign the agreement that the workers are against. Management was offering the workers a profit sharing deal but this was not satisfactory to the workers due to a lack of trust. The head of the Canadian union decided to apply pressure on management in the form of a strike. Both the management and union remained steadfast in their positions, each believing they had enough power for the other side to give in. At this point, GM was relying on the US branch of the union to revoke the ban due to their fear of closures which would minimise the power that the Canadian workers had and force the signing of their proposal. As the strike deadline approached, wildcat strikes were starting to occur across Canada which was disastrous for the union because their power is based on them remaining as a collective force, rather than splintering in to various factions. Eventually, GM folded under the pressure from the collective strike and although the Canadian workers didn’t get exactly what they wanted it was a vast improvement on the original offer. It was interesting to see in this case how the internal politics and divisions of the union impacted on the results of the negotiations. Their power really is one of collectiveness and as the union fought internally their power seemed to diminish. It was only in the end when the union stuck together that they managed to come out on top of GM.
There are many different factors and circumstances that can affect power and it is for this reason that it is difficult to measure and predict power. To ensure that we are successful in the future when it comes to negotiations and maximising our power resources we must understand what factors can impact power and the best way to use the elements to our advantage. Having a thorough understanding of each situation is vital so that each decision made can eventuate in to what is best for the people involved. Negotiations will never be straightforward and neither will the workplace, but the greater the understanding of power and the situation, the more productive it will be for everyone involved. Conflict is inevitable in all workplaces despite management and workers heading in a similar direction, and for this reason power is something that everyone should understand.
Tuesday, March 31, 2009
Personell Barrier
I was born in the Country of Panama, were the native language is Spanish. It is very common to find many Latin American countries trying to implement English language classes in many of their school programs. I had always wanted to learn the English language because of its popularity in all aspects, much seen in television, movies and all American Franchises around the world.
In my elementary school years, I was taught very Basic English that was taught to cover the very basics, which was helpful to get familiarized with the English Language. But unless practiced many of us students eventually forgot sixty percent that was taught. I went through junior high school and high school with some English classes that were very valuable to me for my any future employments. Little did I know that there were so many rules just like in the Spanish Language that applied in its entire context?
I assume that learning a new language is similar to any American that is trying to learn a new language that is not of his native tongue. Before joining the Army I lived in New York City for a couple of months, which is were I first got my experience hands on to put in practice my few English skills. New York City is a largely populated city in the United States but composed of a majority of Non-English speaking people that come from different cultural around the world.
At first, I felt that speaking English was not going to be a problem because everyone in my neighborhood spoke or understood Spanish. There is heavy population of Latin Americans living in New York City. I asked my sister how did she master her English skills, she informed attending the public school system taught her all skills required to both read and write in the English language. I did some research and finally enrolled in some weekend classes of English as a second Language.
It was like high school all over again trying to learn the basic survival phrases and words that would get you started in a simple conversation. It was an amazing how many people still live in the United States and still don’t speak much English. I feel that these classes helped me out some but being surrounded with many Latin Americans it was difficult to shake bad habits such as to continue to speak in my native tongue and pick up a new slang vocabulary like Spanglish, which is a mixture of Spanish, and English words to better communicate among Latinos. This a very bad habit that most Latinos encounter when growing up in largely Hispanic populated suburbs throughout the United States.
However, the way out of the low income jobs is to continue strive to seek for better paying jobs, and that process is not easy without a good education. After numerous applications for better jobs and many hours working in different mediocre type of employment, which paid the minimum wage salaries in some cases below the minimum wage because of lack of experience or other reasons.
After about 10 months, I wanted a change in my life and started to seek for new employment and talked to other successful business people that had decent paying jobs. It was then that after being mentored by family and good friends it was time for change in life. Education was the key element but how was I going to afford a college education without any type of financial backings.
These thoughts probably go through every normal High School Student in America that wants to continue his or her improvement in academic learning. I had to spend some of free time when I was off from work searching for organizations that could help me out in these areas, many of them turned me down for many of reasons but I found one that pretty much could do it in return that I serve a minimum of four years of military service which turned out to be the U.S. Army.
Even though, I had found such organization you still need to meet some prerequisites
before joining the Armed Forces. Some of the prerequisites are simple ones like medical screenings, background checks, and basic education testing to qualify you for assigned duties. I had past all the prerequisites and was on way for training to get my assigned Army Training and required skill to perform my duties. Before all this would start, I would have to attend an English as a Second Language Training School to learn all the basic military terminology that would help me out in Basic Training and Assigned Duties. I spent six weeks in Langley Air Force Base in San Antonio, Texas and learned all the basics that helped me out in my future training sessions.
Shortly, after graduating all my required training and receiving my certificates, I was officially in the U.S. Army. This was still one short step toward my ultimate goal, which was getting a College Degree. In my enlistment contract there were some incentives promised by the Government that were beneficial toward my education such as College Funds and many other Tuition Assistance Programs that help cover my College Education Costs.
The first couple of years it was difficult to find the time to go school because of all of the deployments that were required in my job position. I had to get smart and change jobs and job locations to better position myself to accomplish my educational goals.
Anyone that has served or is serving in the Military can tell you that finding the time to go to school comes with a big price and lots of sacrifices because I also had a family to attend too. I started with Central Texas College and got my two year degree program which got me closer to four year program which I’m currently attending The University Of Phoenix Internet Program.
I feel that I have come a long way since my earlier years in New York City but still need to stick with my game plan of finishing this ultimate goal of fulfilling my degree plan and continue building my resume for my future employment opportunities. I hope that I can complete these goals with little to no problems before the end of next year.
In my elementary school years, I was taught very Basic English that was taught to cover the very basics, which was helpful to get familiarized with the English Language. But unless practiced many of us students eventually forgot sixty percent that was taught. I went through junior high school and high school with some English classes that were very valuable to me for my any future employments. Little did I know that there were so many rules just like in the Spanish Language that applied in its entire context?
I assume that learning a new language is similar to any American that is trying to learn a new language that is not of his native tongue. Before joining the Army I lived in New York City for a couple of months, which is were I first got my experience hands on to put in practice my few English skills. New York City is a largely populated city in the United States but composed of a majority of Non-English speaking people that come from different cultural around the world.
At first, I felt that speaking English was not going to be a problem because everyone in my neighborhood spoke or understood Spanish. There is heavy population of Latin Americans living in New York City. I asked my sister how did she master her English skills, she informed attending the public school system taught her all skills required to both read and write in the English language. I did some research and finally enrolled in some weekend classes of English as a second Language.
It was like high school all over again trying to learn the basic survival phrases and words that would get you started in a simple conversation. It was an amazing how many people still live in the United States and still don’t speak much English. I feel that these classes helped me out some but being surrounded with many Latin Americans it was difficult to shake bad habits such as to continue to speak in my native tongue and pick up a new slang vocabulary like Spanglish, which is a mixture of Spanish, and English words to better communicate among Latinos. This a very bad habit that most Latinos encounter when growing up in largely Hispanic populated suburbs throughout the United States.
However, the way out of the low income jobs is to continue strive to seek for better paying jobs, and that process is not easy without a good education. After numerous applications for better jobs and many hours working in different mediocre type of employment, which paid the minimum wage salaries in some cases below the minimum wage because of lack of experience or other reasons.
After about 10 months, I wanted a change in my life and started to seek for new employment and talked to other successful business people that had decent paying jobs. It was then that after being mentored by family and good friends it was time for change in life. Education was the key element but how was I going to afford a college education without any type of financial backings.
These thoughts probably go through every normal High School Student in America that wants to continue his or her improvement in academic learning. I had to spend some of free time when I was off from work searching for organizations that could help me out in these areas, many of them turned me down for many of reasons but I found one that pretty much could do it in return that I serve a minimum of four years of military service which turned out to be the U.S. Army.
Even though, I had found such organization you still need to meet some prerequisites
before joining the Armed Forces. Some of the prerequisites are simple ones like medical screenings, background checks, and basic education testing to qualify you for assigned duties. I had past all the prerequisites and was on way for training to get my assigned Army Training and required skill to perform my duties. Before all this would start, I would have to attend an English as a Second Language Training School to learn all the basic military terminology that would help me out in Basic Training and Assigned Duties. I spent six weeks in Langley Air Force Base in San Antonio, Texas and learned all the basics that helped me out in my future training sessions.
Shortly, after graduating all my required training and receiving my certificates, I was officially in the U.S. Army. This was still one short step toward my ultimate goal, which was getting a College Degree. In my enlistment contract there were some incentives promised by the Government that were beneficial toward my education such as College Funds and many other Tuition Assistance Programs that help cover my College Education Costs.
The first couple of years it was difficult to find the time to go school because of all of the deployments that were required in my job position. I had to get smart and change jobs and job locations to better position myself to accomplish my educational goals.
Anyone that has served or is serving in the Military can tell you that finding the time to go to school comes with a big price and lots of sacrifices because I also had a family to attend too. I started with Central Texas College and got my two year degree program which got me closer to four year program which I’m currently attending The University Of Phoenix Internet Program.
I feel that I have come a long way since my earlier years in New York City but still need to stick with my game plan of finishing this ultimate goal of fulfilling my degree plan and continue building my resume for my future employment opportunities. I hope that I can complete these goals with little to no problems before the end of next year.
Partnership Sourcing
There are many different types of sourcing that can be looked at when trying to buy a product or service from suppliers. However when an organisation is looking for a long-term involvement with one specific supplier a partnership is often looked to as being a step in the right direction. A partnership can be defined as “A commitment by customers/suppliers, regardless of size, to a long-term relationship based on clear mutually agreed objectives to strive for world-class capability and competitiveness”.
In the case, Alpha Products are looking to set up a partnership with a local company, called O’Connors, to carry out all on-site engineering and maintenance. This report will look at the advantages to both sides of this action and any potential problems or risks.
One of Alpha’s main problems is that they are currently using too many contractors, with a high amount of spend and rising problems with safety and accountability. A partnership with O’Connors would look to solve these problems with the two companies working together. The partnership would look to drive down the cost of ordering, allowing Alpha to make more profit and in turn re-invest in their out-of-date machinery. They are currently processing around 3,000 orders a year, and at Ј60 an order this is a massive strain on their budget. A partnership would allow them to reduce this significantly, possibly allowing them to place monthly or weekly orders and invoices. An idea like this would also make the purchasing process less clerical. This is key if the company wants their Purchasing department to add value to the business, as it would allow them to spend more time on strategic sourcing etc and less time on invoices and order processing. If all of this came into place, it is likely that the company would look at moving some of the 5 buyers that are dealing with all the contractors into different areas, either to working in different functions looking at the purchasing or simply getting rid of them to reduce labour costs.
With the large amount of orders that are currently being placed across a wide range of suppliers, Ruth Turner has already identified that Alpha are not optimising their bargaining power. Working within a partnership however should allow them to do this more effectively, as instead of putting their Ј2 million a year across 50 contractors, it would just be given to one single supplier. This should mean that Alpha would be able to use more leverage buying, and together they and O’Connors would be able to agree lower prices and reduce the total cost of the operation. This action would also hopefully bring any economies of scale that Alpha may be able to achieve to light, also allowing them to drop the cost of this high spend operation.
There are currently problems with the safety and accountability of the contractors that are on site at Alpha, due to the high amount of different people any accidents or incidents are becoming increasing difficult to report and look into. Setting up a partnership with O’Connors would mean that this problem would be virtually eradicated. It would enable them to set up procedures and reports and put them in place, knowing that only O’Connors would be on site. They would probably have a key point of contact to deal with safety issues and would know at any time who exactly was on site. A step further from this would be the possibility of setting up a Total Quality Management (TQM) group with O’Connors involved. This would not only look at the safety issues on site, but also able Alpha to look at improving the processes that are in place in the plants, improving quality and standards right across the plant.
Finally there is the possibility once in a partnership to share ideas or technology between suppliers and customers. This could take the form of ideas such as electronic ordering and invoicing of products or just simply better ways of doing tasks. O’Connors may already have an EDI system in place for their ordering and they could share this with Alpha, allowing them to push the cost of ordering down even further. One of the key ideas within a partnership agreement is that there is more formal and informal communication between the supplier and the organisation, not just contacting them when you need something. Alpha would be able to discuss ideas with O’Connors and get their opinion on matters, hopefully bringing an expert in on matters that Alpha perhaps did not have much knowledge about. O’Connors may also have technology that they use that would be of use to Alpha in their manufacturing lines, and so information could be shared in this way.
If there were to be a partnership between the two companies formed however, Alpha would not be the only ones to possibly benefit from it. O’Connors would also find that there were many advantages to this relationship. Firstly, it would be a guaranteed source of work and most importantly money for the business. At the present moment they are only getting some of the business from Alpha, even though they have been classed as one of the top 3 companies that Alpha spend at. A partnership for O’Connors would mean that they would be able to base their business on the fact that they would be working all the time at the plant; therefore earning the money that would have been agreed without having to wait for any offers. In addition to this, O’Connors would also be able to plan more for the future, as hopefully the partnership would mean that Alpha would communicate to them what their plans were for the coming months. This would mean that O’Connors would have the chance to also plan ahead using the data and information that Alpha gave them as a guideline.
As discussed previously, one of the advantages to both companies is the chance to share information. Not only would O’Connors be able to share information with Alpha, but that could also be returned in the other direction. It is possible that Alpha could pass onto O’Connors some ideas and processes that could better their operation. In that respect, Alpha may also be willing to provide some investment in new equipment, as it would allow O’Connors to work more effectively, thus reducing the total cost of the operation, which would be of benefit to both sides.
However the biggest potential benefit to O’Connors was mentioned when they said that they would look, if a partnership was agreed, to diversify and provide a ‘one-stop shop’ on-site for all of Alpha’s maintenance needs. This would be a massive step for O’Connors and would add, if successful, massive opportunities onto their existing business. They would be taking on new tasks with a company that already knew what needed to be done, therefore there would always be a helping word or advice for them if something wasn’t going quite right. O’Connors would not have to worry about going into unknown waters on their own, as they would have experience and also knowledge behind them every step of the way if the partnership was working correctly. In this respect it is the best time for them to do this, as there is every chance that Alpha would make sure that the diversification was a success, due to not wanting the partnership to fail and things to go back to the way they used to be.
Despite all the advantages that have just been outlined, both sides need to be careful when entering into a partnership for a number of reasons. Each partner needs to be sure that the other is committed to the agreement to the same level that they are. If not, the partnership can become resource consuming and become just another burden upon a budget already under stress.
In the case, the major risks come from either organisation’s reason for wanting to set up a partnership. If Alpha are just using the set up to drive down their costs with leverage buying and economies of scale, then the partnership will not work as they will become non-interested in the other factors that make partnerships successful. From the other side however, there would be a massive problem arising if O’Connors were just looking to gain guaranteed business from the venture. They may just agree that they will look to diversify and offer a ‘one-stop-shop’ for Alpha to gain the contract, but then fall away on that promise and only continue doing the current jobs they are doing. That would leave Alpha having to still get other contractors in but would also leave them in a long term contract with O’Connors, bringing them back to the same situation that they are currently in. Both sides need to make sure that they have clear goal congruence and that they both want to go in the same direction.
Once the partnership is set up, one of the risks for Alpha is that they may find themselves dependant upon O’Connors, especially if they manage to get their ‘one-stop-shop’ set up. Firstly they may find themselves tied by contract, which could mean that they would be unable to look elsewhere and use other contractors if O’Connors were not doing tasks to the desired standard. O’Connors may look at the situation once it is in place and become very aware of the lack of competition. This could lead to complacency, inertia and inefficiency as described by Bailey et all. Also, perhaps after the partnership has come to an end for whatever reason, even if it has just run its course, Alpha may struggle to find another supplier who would be willing to offer the same ‘all-in-one’ service that O’Connors are planning to offer, which may mean reverting back to the old ways of having a number of contractors for the same type of jobs.
A final potential problem of the partnership may arise when both sides try to get the other to adapt to their way of working. Both companies may have set ideas on how they want to work, and if the other does not accept these then both may struggle to agree on terms. O’Connors for example may deal with maintenance issues a certain way and Alpha may have seen them done a better way. This is a key area where communication will help build up a better working relationship and help both sides. However if this does not happen, then the two could become at loggerheads and not agree on anything, causing the partnership to become a failure. On Alpha’s side, there may be a problem with the purchasing commitment venture. The decision to take on O’Connors was Ruth Turners choice and although the senior managers at the site may have a good relationship with them, some of the other purchasing staff may have their own ‘favourite’ and see the choice of O’Connors as a mistake. They may also be worried about their future, as with the contractors being cut down to just one from 52, Ruth may not feel the need to have 5 different buyers working in the department. So Alpha will need to make sure that they have the commitment of all the staff involved as well as the senior management.
From Ruth Turner’s conclusions of the current purchasing issues, we can see that according to Kraljic’s model, the service that Alpha are looking for is stuck between a strategic and leverage area. The total spend on maintenance and engineering is high and it is certainly a critical service for the business, however there are many potential suppliers of this service, as seen in the 52 contractors that Alpha have already been using. Partnerships should happen mostly when there is a high spend from the business and also a high supply risk, of which there is not. Partnerships should only be considered for the right services and personally I do not feel that the area of maintenance and engineering is right for it unless Alpha were to vertically integrate O’Connors work into their own company. O’Connors have never tried some of these services, or indeed their ‘one-stop-shop’ and it is a large risk that Alpha would be taking. They may be better advised to reduce the number of contractors to just a few key ones and develop better working relationships with those, thus gaining some of the benefits of a partnership anyway.
One other mistake that Ruth Turner has made is that she has based the decision of picking O’Connors purely on a price basis. She has just looked at the companies with the biggest spend and taken the cheapest out of those. She really should have done some proper supplier sourcing, as there may be companies that they only spend small amounts with that are far better suited and capable of carrying out the tasks that Alpha need. Although these companies may be more expensive at the moment, the use of leverage buying and the idea that a partnership can bring down total costs of the operation may mean that they would be cheaper and more effective than O’Connors.
On the good side though, O’Connors is obviously a good contender for the partnership. Ruth has seen that they already have a good relationship with many of the senior staff, which is a key issue when trying to get their backing, something that is needed when starting a partnership. They are a local company that seem very willing to grow and make their diversification a bonus not only for them, but also for Alpha.
Ruth Turner’s next actions can be detailed in the approach given by Partnership Sourcing Limited. Once O’Connors have been decided upon, then both sides need to clearly decide what each need from the relationship. Alpha should get agreement from O’Connors that they will look to diversify and it is probably best that this is put in the form of a simple contract, as it is a key reason behind the partnership. They should both look at what cost benefits there are and what improvements in the service can be arranged. This contract should not be too binding however, as this may lead to problems in the future if things do not work out for either side.
After the initial partnership is set up, then constant refinement and development needs to take place. It is likely that the first few projects taken together will act as a learning curve for both sides, and Ruth Turner simply needs to make sure that there are frequent reviews and meetings with O’Connors, alongside the formal and informal communication, to discuss any issues that arise. Over time this should lead to both sides working together without their being major issues as they will have learnt together the best way of doing tasks. This will hopefully lead to a far better engineering service for Alpha, with them being able to re-invest the money saved into better and up-to-date machinery and technology.
In the case, Alpha Products are looking to set up a partnership with a local company, called O’Connors, to carry out all on-site engineering and maintenance. This report will look at the advantages to both sides of this action and any potential problems or risks.
One of Alpha’s main problems is that they are currently using too many contractors, with a high amount of spend and rising problems with safety and accountability. A partnership with O’Connors would look to solve these problems with the two companies working together. The partnership would look to drive down the cost of ordering, allowing Alpha to make more profit and in turn re-invest in their out-of-date machinery. They are currently processing around 3,000 orders a year, and at Ј60 an order this is a massive strain on their budget. A partnership would allow them to reduce this significantly, possibly allowing them to place monthly or weekly orders and invoices. An idea like this would also make the purchasing process less clerical. This is key if the company wants their Purchasing department to add value to the business, as it would allow them to spend more time on strategic sourcing etc and less time on invoices and order processing. If all of this came into place, it is likely that the company would look at moving some of the 5 buyers that are dealing with all the contractors into different areas, either to working in different functions looking at the purchasing or simply getting rid of them to reduce labour costs.
With the large amount of orders that are currently being placed across a wide range of suppliers, Ruth Turner has already identified that Alpha are not optimising their bargaining power. Working within a partnership however should allow them to do this more effectively, as instead of putting their Ј2 million a year across 50 contractors, it would just be given to one single supplier. This should mean that Alpha would be able to use more leverage buying, and together they and O’Connors would be able to agree lower prices and reduce the total cost of the operation. This action would also hopefully bring any economies of scale that Alpha may be able to achieve to light, also allowing them to drop the cost of this high spend operation.
There are currently problems with the safety and accountability of the contractors that are on site at Alpha, due to the high amount of different people any accidents or incidents are becoming increasing difficult to report and look into. Setting up a partnership with O’Connors would mean that this problem would be virtually eradicated. It would enable them to set up procedures and reports and put them in place, knowing that only O’Connors would be on site. They would probably have a key point of contact to deal with safety issues and would know at any time who exactly was on site. A step further from this would be the possibility of setting up a Total Quality Management (TQM) group with O’Connors involved. This would not only look at the safety issues on site, but also able Alpha to look at improving the processes that are in place in the plants, improving quality and standards right across the plant.
Finally there is the possibility once in a partnership to share ideas or technology between suppliers and customers. This could take the form of ideas such as electronic ordering and invoicing of products or just simply better ways of doing tasks. O’Connors may already have an EDI system in place for their ordering and they could share this with Alpha, allowing them to push the cost of ordering down even further. One of the key ideas within a partnership agreement is that there is more formal and informal communication between the supplier and the organisation, not just contacting them when you need something. Alpha would be able to discuss ideas with O’Connors and get their opinion on matters, hopefully bringing an expert in on matters that Alpha perhaps did not have much knowledge about. O’Connors may also have technology that they use that would be of use to Alpha in their manufacturing lines, and so information could be shared in this way.
If there were to be a partnership between the two companies formed however, Alpha would not be the only ones to possibly benefit from it. O’Connors would also find that there were many advantages to this relationship. Firstly, it would be a guaranteed source of work and most importantly money for the business. At the present moment they are only getting some of the business from Alpha, even though they have been classed as one of the top 3 companies that Alpha spend at. A partnership for O’Connors would mean that they would be able to base their business on the fact that they would be working all the time at the plant; therefore earning the money that would have been agreed without having to wait for any offers. In addition to this, O’Connors would also be able to plan more for the future, as hopefully the partnership would mean that Alpha would communicate to them what their plans were for the coming months. This would mean that O’Connors would have the chance to also plan ahead using the data and information that Alpha gave them as a guideline.
As discussed previously, one of the advantages to both companies is the chance to share information. Not only would O’Connors be able to share information with Alpha, but that could also be returned in the other direction. It is possible that Alpha could pass onto O’Connors some ideas and processes that could better their operation. In that respect, Alpha may also be willing to provide some investment in new equipment, as it would allow O’Connors to work more effectively, thus reducing the total cost of the operation, which would be of benefit to both sides.
However the biggest potential benefit to O’Connors was mentioned when they said that they would look, if a partnership was agreed, to diversify and provide a ‘one-stop shop’ on-site for all of Alpha’s maintenance needs. This would be a massive step for O’Connors and would add, if successful, massive opportunities onto their existing business. They would be taking on new tasks with a company that already knew what needed to be done, therefore there would always be a helping word or advice for them if something wasn’t going quite right. O’Connors would not have to worry about going into unknown waters on their own, as they would have experience and also knowledge behind them every step of the way if the partnership was working correctly. In this respect it is the best time for them to do this, as there is every chance that Alpha would make sure that the diversification was a success, due to not wanting the partnership to fail and things to go back to the way they used to be.
Despite all the advantages that have just been outlined, both sides need to be careful when entering into a partnership for a number of reasons. Each partner needs to be sure that the other is committed to the agreement to the same level that they are. If not, the partnership can become resource consuming and become just another burden upon a budget already under stress.
In the case, the major risks come from either organisation’s reason for wanting to set up a partnership. If Alpha are just using the set up to drive down their costs with leverage buying and economies of scale, then the partnership will not work as they will become non-interested in the other factors that make partnerships successful. From the other side however, there would be a massive problem arising if O’Connors were just looking to gain guaranteed business from the venture. They may just agree that they will look to diversify and offer a ‘one-stop-shop’ for Alpha to gain the contract, but then fall away on that promise and only continue doing the current jobs they are doing. That would leave Alpha having to still get other contractors in but would also leave them in a long term contract with O’Connors, bringing them back to the same situation that they are currently in. Both sides need to make sure that they have clear goal congruence and that they both want to go in the same direction.
Once the partnership is set up, one of the risks for Alpha is that they may find themselves dependant upon O’Connors, especially if they manage to get their ‘one-stop-shop’ set up. Firstly they may find themselves tied by contract, which could mean that they would be unable to look elsewhere and use other contractors if O’Connors were not doing tasks to the desired standard. O’Connors may look at the situation once it is in place and become very aware of the lack of competition. This could lead to complacency, inertia and inefficiency as described by Bailey et all. Also, perhaps after the partnership has come to an end for whatever reason, even if it has just run its course, Alpha may struggle to find another supplier who would be willing to offer the same ‘all-in-one’ service that O’Connors are planning to offer, which may mean reverting back to the old ways of having a number of contractors for the same type of jobs.
A final potential problem of the partnership may arise when both sides try to get the other to adapt to their way of working. Both companies may have set ideas on how they want to work, and if the other does not accept these then both may struggle to agree on terms. O’Connors for example may deal with maintenance issues a certain way and Alpha may have seen them done a better way. This is a key area where communication will help build up a better working relationship and help both sides. However if this does not happen, then the two could become at loggerheads and not agree on anything, causing the partnership to become a failure. On Alpha’s side, there may be a problem with the purchasing commitment venture. The decision to take on O’Connors was Ruth Turners choice and although the senior managers at the site may have a good relationship with them, some of the other purchasing staff may have their own ‘favourite’ and see the choice of O’Connors as a mistake. They may also be worried about their future, as with the contractors being cut down to just one from 52, Ruth may not feel the need to have 5 different buyers working in the department. So Alpha will need to make sure that they have the commitment of all the staff involved as well as the senior management.
From Ruth Turner’s conclusions of the current purchasing issues, we can see that according to Kraljic’s model, the service that Alpha are looking for is stuck between a strategic and leverage area. The total spend on maintenance and engineering is high and it is certainly a critical service for the business, however there are many potential suppliers of this service, as seen in the 52 contractors that Alpha have already been using. Partnerships should happen mostly when there is a high spend from the business and also a high supply risk, of which there is not. Partnerships should only be considered for the right services and personally I do not feel that the area of maintenance and engineering is right for it unless Alpha were to vertically integrate O’Connors work into their own company. O’Connors have never tried some of these services, or indeed their ‘one-stop-shop’ and it is a large risk that Alpha would be taking. They may be better advised to reduce the number of contractors to just a few key ones and develop better working relationships with those, thus gaining some of the benefits of a partnership anyway.
One other mistake that Ruth Turner has made is that she has based the decision of picking O’Connors purely on a price basis. She has just looked at the companies with the biggest spend and taken the cheapest out of those. She really should have done some proper supplier sourcing, as there may be companies that they only spend small amounts with that are far better suited and capable of carrying out the tasks that Alpha need. Although these companies may be more expensive at the moment, the use of leverage buying and the idea that a partnership can bring down total costs of the operation may mean that they would be cheaper and more effective than O’Connors.
On the good side though, O’Connors is obviously a good contender for the partnership. Ruth has seen that they already have a good relationship with many of the senior staff, which is a key issue when trying to get their backing, something that is needed when starting a partnership. They are a local company that seem very willing to grow and make their diversification a bonus not only for them, but also for Alpha.
Ruth Turner’s next actions can be detailed in the approach given by Partnership Sourcing Limited. Once O’Connors have been decided upon, then both sides need to clearly decide what each need from the relationship. Alpha should get agreement from O’Connors that they will look to diversify and it is probably best that this is put in the form of a simple contract, as it is a key reason behind the partnership. They should both look at what cost benefits there are and what improvements in the service can be arranged. This contract should not be too binding however, as this may lead to problems in the future if things do not work out for either side.
After the initial partnership is set up, then constant refinement and development needs to take place. It is likely that the first few projects taken together will act as a learning curve for both sides, and Ruth Turner simply needs to make sure that there are frequent reviews and meetings with O’Connors, alongside the formal and informal communication, to discuss any issues that arise. Over time this should lead to both sides working together without their being major issues as they will have learnt together the best way of doing tasks. This will hopefully lead to a far better engineering service for Alpha, with them being able to re-invest the money saved into better and up-to-date machinery and technology.
Tuesday, March 24, 2009
Compensation and Benefits
Compensation and benefits is something each and every employee is concerned with. When going into an interview with a prospective company almost all people have the question of salary in their mind.
According to an article by Chris Howard, of the Canadian Business Magazine, “No one likes performance appraisals. But if you can’t avoid them, there are ways to get by.” By appraisal values he is speaking about what happens when employees are hired and then go through the appraisal for a chance of a rise.
Most companies do not even have annual evaluations, about 45% of workers. If employees are not appraised for their achievements then they will begin to resent the company in which they work. This type of act is being called the “vanishing performance appraisal” which states that either an appraisal gets done, or it does not get done properly.
Companies are also instilling a new type of appraisal which is done not solely from the past like appraisals usually are. This appraisal would be done together and the employee would set goals for the future with their supervisor. This appraisal would also assess observable behavior rather than abstracts.
With the economy in a recession more and more companies are less likely to give their employees any form of appraisal so they will be able to maintain a positive budget. A new way to the appraisal is by having the self-appraisal concept. This concept would make the supervisor’s job much easier. Staff would check with other coworkers to determine how their performance is being ranked. When time for appraisals comes around then the employee want be as shocked if there is something nasty to be said.
A lot of companies do not seem to take appraisals very seriously and base their rewards on other merit factors. Within the organization of Oakton performance appraisals are taken somewhat seriously, but it all depends on who is your supervisor. If you have a manager who is aware of the budget and the incoming amounts then the appraisal and compensation the employee gets may be a little more difficult. Employees usually get compensated nicely for their actions throughout the year. However most supervisors do not know or remember what happened throughout the year leading up to the review.
There is a lot of cynicism surrounding performance appraisals and most of it seems well deserved. Older executives seem to take these appraisals a lot more serious then younger employees. How can this be changed so that all employees are on the same page when it comes to appraisal time? Cleaver writes “it’s no wonder, then, that mangers don’t give the appraisals-or the employees being scored-the care they deserve: a thought to consider, the next time you pen flits down that tidy column of boxes, bouncing randomly between “very good” and “excellent.”
According to an article by Chris Howard, of the Canadian Business Magazine, “No one likes performance appraisals. But if you can’t avoid them, there are ways to get by.” By appraisal values he is speaking about what happens when employees are hired and then go through the appraisal for a chance of a rise.
Most companies do not even have annual evaluations, about 45% of workers. If employees are not appraised for their achievements then they will begin to resent the company in which they work. This type of act is being called the “vanishing performance appraisal” which states that either an appraisal gets done, or it does not get done properly.
Companies are also instilling a new type of appraisal which is done not solely from the past like appraisals usually are. This appraisal would be done together and the employee would set goals for the future with their supervisor. This appraisal would also assess observable behavior rather than abstracts.
With the economy in a recession more and more companies are less likely to give their employees any form of appraisal so they will be able to maintain a positive budget. A new way to the appraisal is by having the self-appraisal concept. This concept would make the supervisor’s job much easier. Staff would check with other coworkers to determine how their performance is being ranked. When time for appraisals comes around then the employee want be as shocked if there is something nasty to be said.
A lot of companies do not seem to take appraisals very seriously and base their rewards on other merit factors. Within the organization of Oakton performance appraisals are taken somewhat seriously, but it all depends on who is your supervisor. If you have a manager who is aware of the budget and the incoming amounts then the appraisal and compensation the employee gets may be a little more difficult. Employees usually get compensated nicely for their actions throughout the year. However most supervisors do not know or remember what happened throughout the year leading up to the review.
There is a lot of cynicism surrounding performance appraisals and most of it seems well deserved. Older executives seem to take these appraisals a lot more serious then younger employees. How can this be changed so that all employees are on the same page when it comes to appraisal time? Cleaver writes “it’s no wonder, then, that mangers don’t give the appraisals-or the employees being scored-the care they deserve: a thought to consider, the next time you pen flits down that tidy column of boxes, bouncing randomly between “very good” and “excellent.”
Behavior & Processes
Learning teams will become high performance teams when an environment exists where team members can be creative, hardworking, dedicated, motivated, knowledgeable, and competent. Our learning team has developed these traits throughout the learning team meetings at University of Phoenix. For instance, one our team members offer her creativity when building the presentation for the group. Another team member is dedicated. After the homework is assigned, she sends an email reiterating what each team member’s tasks are. Each member is knowledgeable, competent, motivated and dedicated to complete the assignments on time. Other members offer their expertise and experiences to the rest of the group. Due to the diversity of our team, we process our assignments in a timely manner, therefore reaching our goals.
As leaders, we are committed to bring out the best in others while keeping them focused on the tasks at hand so they are not distracted causing delays in meeting deadlines. We must facilitate progression and develop stages in order to reach and maintain higher levels of performance. We understand our goal must be to strive to improve each individual team or team member’s performance, as well as the organizational performance.
Teams must prioritize roles and responsibilities when they meet for the first time and subsequently thereafter. By providing role and responsibilities, it makes clear to the other members what is expected and desired by the team. Our learning team determined the first class that we would share in the team responsibilities. Each week a different person completes the Learning Team Log. It provides an opportunity for those wanting to learn to write better a chance to complete the form as well as gives others a way to feel a part of the team. Sometimes, other team members review and comment which helps the individual that wrote it develop their writing skills. Roles are usually determined by volunteering and process of elimination. If you do not volunteer or pick an assignment to process, you are left completing whatever is left over. The role of each team member is to actively participate in group activities.
Along with the roles of each team member come responsibilities. Each team member is responsible to complete assigned tasks on time, cooperate with all team members, provide input on ideas and communicate if problems arise. It is the responsibility of each team member to inform the other members if they will not be able to partake in any of the weekly activities or if assignments can not be completed in a timely manner. In this instance, if someone where to advise me they could not complete the assignment, I would rearrange my scheduled to accommodate the team member who could not complete the task. Responsibilities come in all sizes and require different amounts of attention. It is the responsibility of each team member to decide how much time is required to accomplish such a task and to schedule accordingly.
Team members need to be instrumental in developing programs to improve the effectiveness of the department and overall operation of the organization. In order to manage and maximize effectiveness, teams must demonstrate a systematic approach in order to carry out assignments. By this, I mean, team members must methodically plan each assignment and task and then perform that task in the scheduled time allotted. This process is to administer time management skills.
Team members must be able to demonstrate a strong ability to identify, analyze and solve problems. Each team member needs to obtain and maintain a good standing with the other team members. In order to do this, they must make decision, handle problems, suggest optional solutions, and foresee the consequence of the decisions being made. And finally, the most important point is to communicate these decisions to the entire team. In making conscience decisions, team members must remember to avoid hasty decisions and carefully evaluate the alternative risks. Our team has provided each member with email addresses, phone numbers, cell numbers and our home number so we might be able to help if the need arises.
Team members must provide encouragement and support for each member. Conflicts between members will not provide an environment for teamwork and accomplishment of team goals and tasks. Members will struggle to constantly demonstrate strong interpersonal skills. Employees must focus on demonstrating the ability to relate to issues and ideas, while administering cooperativeness and providing constructive criticism. Each team member on our learning team provides adequate steps to maintain quality workmanship and assumes responsibility for mistakes and shortcomings of subordinates. If a team member does not understand the assignment, other team members explain what is expected. All team members devote appropriate attention to assigned responsibilities and accept new job assignments willingly. This type of team work and participation is the basis for a well-defined productive team.
As leaders, we are committed to bring out the best in others while keeping them focused on the tasks at hand so they are not distracted causing delays in meeting deadlines. We must facilitate progression and develop stages in order to reach and maintain higher levels of performance. We understand our goal must be to strive to improve each individual team or team member’s performance, as well as the organizational performance.
Teams must prioritize roles and responsibilities when they meet for the first time and subsequently thereafter. By providing role and responsibilities, it makes clear to the other members what is expected and desired by the team. Our learning team determined the first class that we would share in the team responsibilities. Each week a different person completes the Learning Team Log. It provides an opportunity for those wanting to learn to write better a chance to complete the form as well as gives others a way to feel a part of the team. Sometimes, other team members review and comment which helps the individual that wrote it develop their writing skills. Roles are usually determined by volunteering and process of elimination. If you do not volunteer or pick an assignment to process, you are left completing whatever is left over. The role of each team member is to actively participate in group activities.
Along with the roles of each team member come responsibilities. Each team member is responsible to complete assigned tasks on time, cooperate with all team members, provide input on ideas and communicate if problems arise. It is the responsibility of each team member to inform the other members if they will not be able to partake in any of the weekly activities or if assignments can not be completed in a timely manner. In this instance, if someone where to advise me they could not complete the assignment, I would rearrange my scheduled to accommodate the team member who could not complete the task. Responsibilities come in all sizes and require different amounts of attention. It is the responsibility of each team member to decide how much time is required to accomplish such a task and to schedule accordingly.
Team members need to be instrumental in developing programs to improve the effectiveness of the department and overall operation of the organization. In order to manage and maximize effectiveness, teams must demonstrate a systematic approach in order to carry out assignments. By this, I mean, team members must methodically plan each assignment and task and then perform that task in the scheduled time allotted. This process is to administer time management skills.
Team members must be able to demonstrate a strong ability to identify, analyze and solve problems. Each team member needs to obtain and maintain a good standing with the other team members. In order to do this, they must make decision, handle problems, suggest optional solutions, and foresee the consequence of the decisions being made. And finally, the most important point is to communicate these decisions to the entire team. In making conscience decisions, team members must remember to avoid hasty decisions and carefully evaluate the alternative risks. Our team has provided each member with email addresses, phone numbers, cell numbers and our home number so we might be able to help if the need arises.
Team members must provide encouragement and support for each member. Conflicts between members will not provide an environment for teamwork and accomplishment of team goals and tasks. Members will struggle to constantly demonstrate strong interpersonal skills. Employees must focus on demonstrating the ability to relate to issues and ideas, while administering cooperativeness and providing constructive criticism. Each team member on our learning team provides adequate steps to maintain quality workmanship and assumes responsibility for mistakes and shortcomings of subordinates. If a team member does not understand the assignment, other team members explain what is expected. All team members devote appropriate attention to assigned responsibilities and accept new job assignments willingly. This type of team work and participation is the basis for a well-defined productive team.
Workplace Diversity
Pharmacia has many different types of organizational cultures. James Quick argued that culture begins with the values and beliefs that people hold. Pharmacia needs organization to keep their operation running smoothly.
Over the years Pharmacia’s organizational culture has changed in many ways. In the year of 1999 Upjohn which then Monsanto and Pharmacia had merged turning the name to Pharmacia bought out Monsanto. Pharmacia had received its name in June of 2000. The reason that Monsanto and Upjohn merged was because Monsanto was in a deep financial crisis. Once the merger took place the company decided to reorganize the company. Many employees were loosing jobs due to the merger.
Since the merger Pharmacia is currently bringing in contract employees for the first ninety days on a trial basis. This can be a good thing or it can be bad. One of the good ways to look at being a contract employee is to see if you really like working for the company. Many employers are doing this to see if the employee will be a good fit for the company. On the other hand Pharmacia has been abusing contract employees because employees start a position with high aspirations and expectations of becoming a permanent. In the past at the company that I work for, employees have been contractors for months at a time without getting a chance of becoming permanent. Currently that rule has changed to when you are a contract employee longer than three months Pharmacia must either decide to keep the employee permanent or end your contract.
This part of this organizational culture is inclusive. I am pretty fortunate for the job I have and the working condition that I work in. Because I am contract the company treats me as a regular employee. Everyone that I work with is friendly and is willing to help you with whatever task that needs to be done. You are able to work without someone breathing over your neck and be willing to work independently as long as you get your job done. No need to worry about getting an earful from your boss. In some cases if your not meeting up to your bosses expectations you have to reason with him or her. Let them hear you side of the story. Then ask what their expectations should be. In my working environment I feel that people interact on a professional level at Pharmacia. But you are still able to have fun at what you do. You can be your self and feel comfortable while you are working and not feel inferior. This is a professional environment and I do not have to worry about your fellow coworkers spreading roomers around the office.
The employee and employer relationship seems to be a pretty relaxed environment. You are able to feel comfortable around upper management. I can say what is on my mind without the fear of losing my job. My bosses are pretty diverse when it comes to new ideas. Any time I make a suggestion they are always up to listen. Sometimes they use my idea and sometimes they do not.
Pharmacia has to be the most enjoyable company to work for. Because when the company holds company functions, the contract employees are able to attend them as well. Contract employees do not have to feel that they are the minority. People that I work with are friendly and you feel uncomfortable. Everyone can be there self’s and work in a relaxed working environment. You are able to make mistakes without getting a prison sentence. I have had many jobs and I have found that this has been the most rewarding job I have ever had. I am able to come to work to do my job without anyone breathing over my neck and snooping in my business.
Every work place has something that is not so pleasant about the working environment. For instance I do not enjoy getting to work late which causes me to not find a parking spot. When I have a million things to do theirs people that I assist that expect me to take care of their needs before anyone else that was first priority? Noticing over the past few months I’ve realized that I had to change my way of thinking because I thought that I could go in their and make the company know my way of things and that wasn’t the case. Organizational culture has not really affected my work. Because by the way Pharmacia’s structure is it’s taught me to be better worker. Everyone has their own way of doing things and it is hard to go into a company and tell them that they need to change some things. People hate change because their comfortable with the way things has been. When one little change would occur the company thinks that it would be a bad idea for the company. In order to have companies be successful they have to have been diverse. More and more companies should listen to their employees about new ideas to make the company a better place to work.
Over the years Pharmacia’s organizational culture has changed in many ways. In the year of 1999 Upjohn which then Monsanto and Pharmacia had merged turning the name to Pharmacia bought out Monsanto. Pharmacia had received its name in June of 2000. The reason that Monsanto and Upjohn merged was because Monsanto was in a deep financial crisis. Once the merger took place the company decided to reorganize the company. Many employees were loosing jobs due to the merger.
Since the merger Pharmacia is currently bringing in contract employees for the first ninety days on a trial basis. This can be a good thing or it can be bad. One of the good ways to look at being a contract employee is to see if you really like working for the company. Many employers are doing this to see if the employee will be a good fit for the company. On the other hand Pharmacia has been abusing contract employees because employees start a position with high aspirations and expectations of becoming a permanent. In the past at the company that I work for, employees have been contractors for months at a time without getting a chance of becoming permanent. Currently that rule has changed to when you are a contract employee longer than three months Pharmacia must either decide to keep the employee permanent or end your contract.
This part of this organizational culture is inclusive. I am pretty fortunate for the job I have and the working condition that I work in. Because I am contract the company treats me as a regular employee. Everyone that I work with is friendly and is willing to help you with whatever task that needs to be done. You are able to work without someone breathing over your neck and be willing to work independently as long as you get your job done. No need to worry about getting an earful from your boss. In some cases if your not meeting up to your bosses expectations you have to reason with him or her. Let them hear you side of the story. Then ask what their expectations should be. In my working environment I feel that people interact on a professional level at Pharmacia. But you are still able to have fun at what you do. You can be your self and feel comfortable while you are working and not feel inferior. This is a professional environment and I do not have to worry about your fellow coworkers spreading roomers around the office.
The employee and employer relationship seems to be a pretty relaxed environment. You are able to feel comfortable around upper management. I can say what is on my mind without the fear of losing my job. My bosses are pretty diverse when it comes to new ideas. Any time I make a suggestion they are always up to listen. Sometimes they use my idea and sometimes they do not.
Pharmacia has to be the most enjoyable company to work for. Because when the company holds company functions, the contract employees are able to attend them as well. Contract employees do not have to feel that they are the minority. People that I work with are friendly and you feel uncomfortable. Everyone can be there self’s and work in a relaxed working environment. You are able to make mistakes without getting a prison sentence. I have had many jobs and I have found that this has been the most rewarding job I have ever had. I am able to come to work to do my job without anyone breathing over my neck and snooping in my business.
Every work place has something that is not so pleasant about the working environment. For instance I do not enjoy getting to work late which causes me to not find a parking spot. When I have a million things to do theirs people that I assist that expect me to take care of their needs before anyone else that was first priority? Noticing over the past few months I’ve realized that I had to change my way of thinking because I thought that I could go in their and make the company know my way of things and that wasn’t the case. Organizational culture has not really affected my work. Because by the way Pharmacia’s structure is it’s taught me to be better worker. Everyone has their own way of doing things and it is hard to go into a company and tell them that they need to change some things. People hate change because their comfortable with the way things has been. When one little change would occur the company thinks that it would be a bad idea for the company. In order to have companies be successful they have to have been diverse. More and more companies should listen to their employees about new ideas to make the company a better place to work.
Workplace Environment
University of Phoenix Online employs in excess of 2000 employees. Without the acknowledgment of four main topics, University of Phoenix Online would not be the front-runner in online education. Communication, Culture, Conflict, and Technology are the backbone. These four topics work hand-in-hand with one another. In the following paper I will be covering how I perceive these in the workplace. I will attempt to identify their positive and negative affects.
Communication is the key to the overall performance of a company. Effective communication lends a helping hand to achieving the goals set forth and to help maintain a positive working atmosphere. At University of Phoenix Online the main component of communication is via email. We are constantly communicating with fellow employees, managers and students via email.
Reports are distributed daily outlining daily call logs, how many students are registered and what the weeks / months goals are. These are then followed up by emails from each team manager to each individual. Included in these emails will be specifics on how to better accomplish the goals set forth or important information such as team meetings, team building projects, or even just friendly gestures to keep each others motivation at a high level.
Culture is another important element within the walls at University of Phoenix Online. Each team consists of people from different races, religions, and ethnic backgrounds. It is important to understand that each employee is different in his / her beliefs. When going through the interview process I remember getting asked numerous questions referring to working with people from different cultures, I now see why the importance on seeing what my opinion was.
Not only have I learned a great deal from each one of my team members, but I have also given them an opportunity to learn from me. We all differ in thinking a problem through and because of this our team has achieved the maximum level of output.
We couldn’t have obtained this level without a certain amount of conflict within the group. As I said before, we all bring a differing opinion to the floor each and every day. While we may not agree completely one a desired course of action, we have the patience and respectfulness of one another to hear and decide with “avenue” to take. We because of this we have constantly maintained at a level above University of Phoenix Online standards.
Without technology, University of Phoenix Online would not be where it is today. Because of our Customer Service Associates and Technical Support Team, we are constantly striving to put forth an advanced and user friendly product. Online learning is a non-traditional way of completing a college degree. But since our CSA’s and Tech Support team are also students, we are better able to identify and solve troubleshooting within our product.
Without these four cogs: Communication, Culture, Conflict, and Technology, University of Phoenix Online would not be the leader in online education. Because we are constantly striving to keep open the lines of communication, employ different types of persons with numerous cultural backgrounds, we openly accept conflict and technology is what turns the wheels, we will continue to become the pioneer and leader.
Communication is the key to the overall performance of a company. Effective communication lends a helping hand to achieving the goals set forth and to help maintain a positive working atmosphere. At University of Phoenix Online the main component of communication is via email. We are constantly communicating with fellow employees, managers and students via email.
Reports are distributed daily outlining daily call logs, how many students are registered and what the weeks / months goals are. These are then followed up by emails from each team manager to each individual. Included in these emails will be specifics on how to better accomplish the goals set forth or important information such as team meetings, team building projects, or even just friendly gestures to keep each others motivation at a high level.
Culture is another important element within the walls at University of Phoenix Online. Each team consists of people from different races, religions, and ethnic backgrounds. It is important to understand that each employee is different in his / her beliefs. When going through the interview process I remember getting asked numerous questions referring to working with people from different cultures, I now see why the importance on seeing what my opinion was.
Not only have I learned a great deal from each one of my team members, but I have also given them an opportunity to learn from me. We all differ in thinking a problem through and because of this our team has achieved the maximum level of output.
We couldn’t have obtained this level without a certain amount of conflict within the group. As I said before, we all bring a differing opinion to the floor each and every day. While we may not agree completely one a desired course of action, we have the patience and respectfulness of one another to hear and decide with “avenue” to take. We because of this we have constantly maintained at a level above University of Phoenix Online standards.
Without technology, University of Phoenix Online would not be where it is today. Because of our Customer Service Associates and Technical Support Team, we are constantly striving to put forth an advanced and user friendly product. Online learning is a non-traditional way of completing a college degree. But since our CSA’s and Tech Support team are also students, we are better able to identify and solve troubleshooting within our product.
Without these four cogs: Communication, Culture, Conflict, and Technology, University of Phoenix Online would not be the leader in online education. Because we are constantly striving to keep open the lines of communication, employ different types of persons with numerous cultural backgrounds, we openly accept conflict and technology is what turns the wheels, we will continue to become the pioneer and leader.
Saturday, March 21, 2009
How important is management development?
Organisational development has become increasingly important as companies face a world of generic uncertaintyт, resulting in new problems and new challenges. Traditionally, firms have relied upon scientific methods to resolve these problems, but these have been criticised for failing to deliver realistic, understandable and timely solutions. As a result, ction Research has emerged; defined as an inquiry into how human beings design and implement action in relation to one another. This program seeks to allow managers the ability to tackle problems which are complex, non-routine and for which no standard solution exists.
One technique which applies this approach is action learning. Developed since the 1920s, its progress is attributed to Revans, who suggests that there is no clear definition of the concept; rather, its form can vary according to the situation at the time. However, the basic principle revolves around real people tackling real problems in real time. Revans, after studying the coal industry and NHS in the 1950s and 1960s, believed that people had the ability to solve their own problems. Action learning seeks to encourage individuals to solve problems (that have no obvious solution) without the need for advice from senior management or external consultants.
The theoretical underpinnings of action learning lie in the work of Kolb and Revans. Revans describes action learning as a social process by which managers and workers come together to form sets. Pedler suggests that these sets represent a collective search where everyone contributes their problems and insights to achieve a shared understanding. In his work, Revans developed the formula: L = P + Q, i.e. learning equals programmed knowledge plus questioning insight. Revans states that a surfeit of P inhibits Q, and that experts, loaded with P, are the greatest menace to adaptation to change by questioning, Q. Beyond that, Revans, was keen to stress that without learning there was no effective action and without action there was no effective learning. This idea was also developed by Kolb, who suggested that learning was a cyclical process involving; concrete experience, observations and reflections, abstract concepts and generalisations, and testing implications of concepts in new situations. His principle premise was that learning through reflection that questions ones own insights and actions assumes that people can gain and create knowledge, as well as their own personal theory for a problem solving task, on the basis of their own concrete experience.
Zuber-Skerritt suggests that action learning can offer a number of advantages for companies. He argues that in action learning there is a high degree of personalisation of problems and solutions and thus participants will have more of an incentive to ensure its success. This approach can be compared to techniques such as the hiring of external consultants or of senior management who impose their own solutions which may not generate such a desire to succeed among participants. Also, in action learning, the participants will both gain and produce knowledge. When compare with the traditional form of learning i.e. knowledge is transmitted and received in the form of information, theories and research findings, the individuals may only absorb limited amounts of information and they may find it difficult to relate this to the work setting. As Zuber-Skerritt states action learners recognizes the possibility for learners to generate knowledge than merely absorbing passively the results of research produced by specialists.
Revans also notes that as a result of the individual personal growth, the organization will also benefit. As De Loo states, an organization will advance, learn something new, or get a competitive edge over its competitors only when its members advance, learn something new, or find out something that members of rival firms do not know. By using action learning, the organization will benefit by creating a competitive advantage not through better technology or economies of scale, but through the development of the individuals within the organisation.
One technique which applies this approach is action learning. Developed since the 1920s, its progress is attributed to Revans, who suggests that there is no clear definition of the concept; rather, its form can vary according to the situation at the time. However, the basic principle revolves around real people tackling real problems in real time. Revans, after studying the coal industry and NHS in the 1950s and 1960s, believed that people had the ability to solve their own problems. Action learning seeks to encourage individuals to solve problems (that have no obvious solution) without the need for advice from senior management or external consultants.
The theoretical underpinnings of action learning lie in the work of Kolb and Revans. Revans describes action learning as a social process by which managers and workers come together to form sets. Pedler suggests that these sets represent a collective search where everyone contributes their problems and insights to achieve a shared understanding. In his work, Revans developed the formula: L = P + Q, i.e. learning equals programmed knowledge plus questioning insight. Revans states that a surfeit of P inhibits Q, and that experts, loaded with P, are the greatest menace to adaptation to change by questioning, Q. Beyond that, Revans, was keen to stress that without learning there was no effective action and without action there was no effective learning. This idea was also developed by Kolb, who suggested that learning was a cyclical process involving; concrete experience, observations and reflections, abstract concepts and generalisations, and testing implications of concepts in new situations. His principle premise was that learning through reflection that questions ones own insights and actions assumes that people can gain and create knowledge, as well as their own personal theory for a problem solving task, on the basis of their own concrete experience.
Zuber-Skerritt suggests that action learning can offer a number of advantages for companies. He argues that in action learning there is a high degree of personalisation of problems and solutions and thus participants will have more of an incentive to ensure its success. This approach can be compared to techniques such as the hiring of external consultants or of senior management who impose their own solutions which may not generate such a desire to succeed among participants. Also, in action learning, the participants will both gain and produce knowledge. When compare with the traditional form of learning i.e. knowledge is transmitted and received in the form of information, theories and research findings, the individuals may only absorb limited amounts of information and they may find it difficult to relate this to the work setting. As Zuber-Skerritt states action learners recognizes the possibility for learners to generate knowledge than merely absorbing passively the results of research produced by specialists.
Revans also notes that as a result of the individual personal growth, the organization will also benefit. As De Loo states, an organization will advance, learn something new, or get a competitive edge over its competitors only when its members advance, learn something new, or find out something that members of rival firms do not know. By using action learning, the organization will benefit by creating a competitive advantage not through better technology or economies of scale, but through the development of the individuals within the organisation.
Electronic Commerce
Emerging technologies today are causing continuous changes in all areas of companies including structure, management control systems, and human resources. Technology presents a tremendous impact on changing business functions, they provides a means to improve there operations. Electronic Commerce is one of the newest emerging technologies, it is a web based interactive application that can manage business services. When an organization is introduced to a new technology, they need to examine the level of impact it will have on the company’s current IT structures. They need to determine the degree of required change and whether it even needs to be changed and why.
I am going to set the scene with me working in an office furniture and supply sales business, and my associate just recently attended a seminar about electronic commerce and was very excited about possibly reengineering a good portion of the company. The company consists of about 40 employees about 20 of them are in direct sales the other 20 are customer service, or administration. They’re sales functions mostly through outsourcing, a catalog, phone order, and walk-in sales. At this point the only type of electronic marketing strategy they have is a Web Page that tells a customer a little bit about the company, and allows them to view there catalog. Electronic commerce would provide another way of marketing and selling there companies products to the world. It would potentially increase sales revenue and attract new customers and give them a more flexible and convenient way to order their products over the web. To implement the new technology the company would have a lot of factors they would need to consider. To begin, a project planning and initiation would need to be assessed, by developing a project scope and feasibility analysis. Feasibility factors include economic, technical, operational, schedule, political, legal and contractual. These six factors validate the reasons for a business to expend their capital of resources on the project. The economic feasibility study identifies the financial benefits and costs that are affiliated with the development of the project. It is important to make a reasonable assessment and identify the potential benefits of the project. A feasibility study can identify both tangible and intangible costs and benefits. It also identifies the one-time costs that refer to the project initiation and development costs, and the recurring costs are the ongoing evolution expenses and use of the system. A break-even analysis needs to be performed to determine the point at which the benefits equal, costs.
The larger projects are riskier than smaller projects but any good project is going to have to have some risk involved in it. A system where the requirements are easily achieved and highly structured will be less risky than one in which the requirements are unstructured. Results of not assessing a projects potential risk could be: Failure to reap anticipated benefits from the project; Incorrect cost estimates; Project duration estimates inaccurate; System performance levels will not reach potential; The inability to integrate the new system with the existing organizational procedures.
For a company this small this project would be probably be a medium size project to participate in. If the company is familiar with the systems development procedures and applications then this helps reduce risk, but unfortunately the organization has no employees that have any knowledge of electronic commerce. They can also manage potential risk on a project by changing the plan, which will avoid risk factors. They could develop teams to be assigned within the company to manage the uncertain project contingencies. The development of a system should employ a standard technology, which is less risky, rather, then a non-standard technology. The organizations should analyze a project portfolio to determine the level of risk involved, which include high, medium and low risk percentages. A high level percentage of risk is going to cause a project to have difficulty, which a company can not sustain to much of. On the other hand a low-percentage is going to cause a company to be more assertive to discover more innovative uses of the system.
Companies can determine the likelihood that the project will reach its preferred objective by performing an operational feasibility study. The operational study determines the degree to which the proposed system will solve the organization problem or objective. They also need to assess schedule feasibility to determine the time frame and completion date for the project to be met and that meeting these dates will be compatible with the needs of the organization. They also need to assess legal and contractual feasibility, to help the company understand the ramification of legalities. Possible consideration could include labor laws, antitrust legislation, financial reporting standards, contractual obligations, etc. They need to perform a political feasibility, to obtain an understanding of how stakeholders view the designed system through an evaluation process.
The project initiation and planning is a very important part of the design strategy. Once the company has determined the system is feasible, the company will need to perform a study of the current operations to provide information for the system requirements, a detailed analysis of the actual information system activity, and recognize possible improvements of the old systems. The organization has to determine the proposed systems effects on the divisions and business functions. If they implement the new system in the company it would most likely directly effect the sales and customer service division of the company. Potential clients instead of calling up a sales representative or customer service for advice or to order a product could get information and details over the web for potential furniture or supplies to purchase. It would effect the amount of incoming calls. If they were to implement the project they will probably have to hire someone to maintain the new system or transfer someone from one of the departments, and get him/her trained to maintain the system.
The results of evaluating the companies processes and procedures provide the necessary information that is pertinent in the steps involved in the conversion of the additional system. All factors need to be considered when implementing a new technology including Data Storage, Data Transportation, and Data Transformation. The company will need to determine if the data will be stored in a centralized, decentralized, or distributed locations. They need to develop a communication plan by determining the type of equipment and standards they are going to use to transport data, and if any can use any from there current system. The company also has to determine what type of application software, development tools and maintenance will be needed to integrate into their system. Electronic commerce has a lot of alternative solutions for companies to use.
Once the company has reached this point they should have all the facts they need to execute the new information system. At this point they need to come up with a set of alternative design strategies. A Company should always have at least three good design strategies to build their new information system. Three alternatives represent the high end of the spectrum, it goes further than just solving the problem but finding the best solution to the problem. They need a baseline project plan in order to implement the design strategy one that leads to the most desirable outcome. The next thing is what method are they going to implement it through outsourcing, sources of software, or off the shelf software? Electronic commerce has a variety of hardware and software technologies available on the market today. The Office Equipment Company would need to seek a professional help to select the type of software and hardware they need to start their electronic commerce sales system. They would need to come up with the three technical solutions that they would want to implement into their system.
In order for the company to reengineer the business processes an understanding of the current business functions is very important. Business Process Reengineering is a fundamental redesign of the business processes, which the information systems are designed to support. Business transformation is an evolutionary process for all growing corporations in the market today if they want to survive. Information technologies have influenced the transformation of many companies and provide a means for a more flexible and manageable way to accomplish their business objectives. IT provides a widespread connectivity for individuals throughout an organization and beyond an organization boundaries. It helps to manage uncertainty, and is one of the key evolutions of company’s continuous process of change.
I am going to set the scene with me working in an office furniture and supply sales business, and my associate just recently attended a seminar about electronic commerce and was very excited about possibly reengineering a good portion of the company. The company consists of about 40 employees about 20 of them are in direct sales the other 20 are customer service, or administration. They’re sales functions mostly through outsourcing, a catalog, phone order, and walk-in sales. At this point the only type of electronic marketing strategy they have is a Web Page that tells a customer a little bit about the company, and allows them to view there catalog. Electronic commerce would provide another way of marketing and selling there companies products to the world. It would potentially increase sales revenue and attract new customers and give them a more flexible and convenient way to order their products over the web. To implement the new technology the company would have a lot of factors they would need to consider. To begin, a project planning and initiation would need to be assessed, by developing a project scope and feasibility analysis. Feasibility factors include economic, technical, operational, schedule, political, legal and contractual. These six factors validate the reasons for a business to expend their capital of resources on the project. The economic feasibility study identifies the financial benefits and costs that are affiliated with the development of the project. It is important to make a reasonable assessment and identify the potential benefits of the project. A feasibility study can identify both tangible and intangible costs and benefits. It also identifies the one-time costs that refer to the project initiation and development costs, and the recurring costs are the ongoing evolution expenses and use of the system. A break-even analysis needs to be performed to determine the point at which the benefits equal, costs.
The larger projects are riskier than smaller projects but any good project is going to have to have some risk involved in it. A system where the requirements are easily achieved and highly structured will be less risky than one in which the requirements are unstructured. Results of not assessing a projects potential risk could be: Failure to reap anticipated benefits from the project; Incorrect cost estimates; Project duration estimates inaccurate; System performance levels will not reach potential; The inability to integrate the new system with the existing organizational procedures.
For a company this small this project would be probably be a medium size project to participate in. If the company is familiar with the systems development procedures and applications then this helps reduce risk, but unfortunately the organization has no employees that have any knowledge of electronic commerce. They can also manage potential risk on a project by changing the plan, which will avoid risk factors. They could develop teams to be assigned within the company to manage the uncertain project contingencies. The development of a system should employ a standard technology, which is less risky, rather, then a non-standard technology. The organizations should analyze a project portfolio to determine the level of risk involved, which include high, medium and low risk percentages. A high level percentage of risk is going to cause a project to have difficulty, which a company can not sustain to much of. On the other hand a low-percentage is going to cause a company to be more assertive to discover more innovative uses of the system.
Companies can determine the likelihood that the project will reach its preferred objective by performing an operational feasibility study. The operational study determines the degree to which the proposed system will solve the organization problem or objective. They also need to assess schedule feasibility to determine the time frame and completion date for the project to be met and that meeting these dates will be compatible with the needs of the organization. They also need to assess legal and contractual feasibility, to help the company understand the ramification of legalities. Possible consideration could include labor laws, antitrust legislation, financial reporting standards, contractual obligations, etc. They need to perform a political feasibility, to obtain an understanding of how stakeholders view the designed system through an evaluation process.
The project initiation and planning is a very important part of the design strategy. Once the company has determined the system is feasible, the company will need to perform a study of the current operations to provide information for the system requirements, a detailed analysis of the actual information system activity, and recognize possible improvements of the old systems. The organization has to determine the proposed systems effects on the divisions and business functions. If they implement the new system in the company it would most likely directly effect the sales and customer service division of the company. Potential clients instead of calling up a sales representative or customer service for advice or to order a product could get information and details over the web for potential furniture or supplies to purchase. It would effect the amount of incoming calls. If they were to implement the project they will probably have to hire someone to maintain the new system or transfer someone from one of the departments, and get him/her trained to maintain the system.
The results of evaluating the companies processes and procedures provide the necessary information that is pertinent in the steps involved in the conversion of the additional system. All factors need to be considered when implementing a new technology including Data Storage, Data Transportation, and Data Transformation. The company will need to determine if the data will be stored in a centralized, decentralized, or distributed locations. They need to develop a communication plan by determining the type of equipment and standards they are going to use to transport data, and if any can use any from there current system. The company also has to determine what type of application software, development tools and maintenance will be needed to integrate into their system. Electronic commerce has a lot of alternative solutions for companies to use.
Once the company has reached this point they should have all the facts they need to execute the new information system. At this point they need to come up with a set of alternative design strategies. A Company should always have at least three good design strategies to build their new information system. Three alternatives represent the high end of the spectrum, it goes further than just solving the problem but finding the best solution to the problem. They need a baseline project plan in order to implement the design strategy one that leads to the most desirable outcome. The next thing is what method are they going to implement it through outsourcing, sources of software, or off the shelf software? Electronic commerce has a variety of hardware and software technologies available on the market today. The Office Equipment Company would need to seek a professional help to select the type of software and hardware they need to start their electronic commerce sales system. They would need to come up with the three technical solutions that they would want to implement into their system.
In order for the company to reengineer the business processes an understanding of the current business functions is very important. Business Process Reengineering is a fundamental redesign of the business processes, which the information systems are designed to support. Business transformation is an evolutionary process for all growing corporations in the market today if they want to survive. Information technologies have influenced the transformation of many companies and provide a means for a more flexible and manageable way to accomplish their business objectives. IT provides a widespread connectivity for individuals throughout an organization and beyond an organization boundaries. It helps to manage uncertainty, and is one of the key evolutions of company’s continuous process of change.
Economics and Engineering
I believe the primary objective for the study of economics is in order for us to find more and more efficient ways to utilize resources. The undeniable fact that man has an almost infinite want, coupled with the finite resources Mother Nature could offer, has led man to resort to ingenious ways to find satisfaction. As this paper aims to highlight the relationship between the study of economics and engineering, much is to be said about solving the problem of limited resources. This would perhaps be the most obvious connection between engineering (specifically, electronics communications engineering) and economics.
As discussed in class, it is technological change that brought about increased in production output in every economy. Graphically, it is marked by a shift in the curve in the production function graph. Practically, it means more output produced by firms for the same amount of input.
Technological change is classified in to two; process innovation and product innovation. With the invention of computers, photocopiers, CD burners, microprocessors, robots and the like, production became faster and cheaper. The workplace has never been this safe; utility of inputs has never reached this level, until now. Efficiency rose all because of technological advancement.
Electronics and communications have also contributed to the improvements of various products such that new levels of satisfaction are reached. Satellite and cable broadcasts gave us more choices of better shows and GSM technology has brought Filipinos their favorite past time (texting). This field of engineering has, indeed, raised the living standards of many.
On top of what has been discussed, engineering has also changed the face of the market. Not very long ago, we had only one picture of a market, a noisy, crowded place in a town where wares and goods are bought and sold. E-bay and Value Vision have been common household names. Now good are showcased over the internet or in television broadcasts. Purchases, too, are made over the phone or the internet. There are, in fact, some firms who no longer have “real” stores and rely solely on their cyberspace stores.
Markets have not only got different but also a lot bigger. Globalization is, in fact, only possible through better communication networks. Satellite communications and fiber optic technology have made transactions to be possible between two people on the opposite sides of the globe. Communication is not only possible but also clearer and more different kinds of information could be exchanged between multiple parties. Teleconferencing, for example, is a big blessing especially for multinational companies. Growth of imports and exports and international mergers owes a lot to good and quality communications. Thus, we have seen local markets closely tied to the rise and fall of the international market.
It is not only the markets that went through a lot of change. The popular mode of exchange also was greatly affected by technological change. We once got tired of exchanging cows for sacks of rice so we had the brilliant idea of minting coins and then later on, paper money. Now, we are beginning to get tired of carrying money. And the solution? Electronics presents to mankind electronic cards with magnetic tapes or microchips that carries information of how much money value it is “loaded” with. ATM cards and credit cards are examples of this. Money flow has reached an all-time high. Purchases and exchange of goods was made easier and safer especially for large transactions. Not only was it bulky to bring along huge sums of money but it was also unsafe, that is why today, electronic cards are as good as cash.
A study of economy without taking into account the latest development in technology would prove to be inadequate. Without the basic understanding of what used to be just technicalities for engineers, one would not be able to completely grasps the workings of the modern economy.
After we have discussed how electronics and communications engineering has affected economics, we have yet to say a bit about the other way around. It is observed that economic growth leads to technological advancement. As firms are driven to find ways to increase profit, they are motivated to stimulate research and development in the field of engineering. With this in mind, the engineering sector should take advantage of the demands in the economy. In other words, the patrons of engineers are firms and thus the knowledge of current market activities will definitely help engineers. For example, the boom in the local telecommunication industry should prompt engineers to produce goods that the market wants. And indeed, we have seen the emergence of cell shops, and products like backlights for cell phones. Therefore, a fundamental understanding of economics, especially consumer demand patterns, would serve as a guide for innovations. After all, what good is innovation when no body is going to use it?
For a soon-to-be engineer like me, the concepts in economics are handy not only for everyday life. Economics and engineering together partake in an interplay towards the betterment of the lives of men. For millennia, we have tried and succeeded (in some degree) to do such. In the end, as what my previous teacher would use to say, it’s all about economics.
As discussed in class, it is technological change that brought about increased in production output in every economy. Graphically, it is marked by a shift in the curve in the production function graph. Practically, it means more output produced by firms for the same amount of input.
Technological change is classified in to two; process innovation and product innovation. With the invention of computers, photocopiers, CD burners, microprocessors, robots and the like, production became faster and cheaper. The workplace has never been this safe; utility of inputs has never reached this level, until now. Efficiency rose all because of technological advancement.
Electronics and communications have also contributed to the improvements of various products such that new levels of satisfaction are reached. Satellite and cable broadcasts gave us more choices of better shows and GSM technology has brought Filipinos their favorite past time (texting). This field of engineering has, indeed, raised the living standards of many.
On top of what has been discussed, engineering has also changed the face of the market. Not very long ago, we had only one picture of a market, a noisy, crowded place in a town where wares and goods are bought and sold. E-bay and Value Vision have been common household names. Now good are showcased over the internet or in television broadcasts. Purchases, too, are made over the phone or the internet. There are, in fact, some firms who no longer have “real” stores and rely solely on their cyberspace stores.
Markets have not only got different but also a lot bigger. Globalization is, in fact, only possible through better communication networks. Satellite communications and fiber optic technology have made transactions to be possible between two people on the opposite sides of the globe. Communication is not only possible but also clearer and more different kinds of information could be exchanged between multiple parties. Teleconferencing, for example, is a big blessing especially for multinational companies. Growth of imports and exports and international mergers owes a lot to good and quality communications. Thus, we have seen local markets closely tied to the rise and fall of the international market.
It is not only the markets that went through a lot of change. The popular mode of exchange also was greatly affected by technological change. We once got tired of exchanging cows for sacks of rice so we had the brilliant idea of minting coins and then later on, paper money. Now, we are beginning to get tired of carrying money. And the solution? Electronics presents to mankind electronic cards with magnetic tapes or microchips that carries information of how much money value it is “loaded” with. ATM cards and credit cards are examples of this. Money flow has reached an all-time high. Purchases and exchange of goods was made easier and safer especially for large transactions. Not only was it bulky to bring along huge sums of money but it was also unsafe, that is why today, electronic cards are as good as cash.
A study of economy without taking into account the latest development in technology would prove to be inadequate. Without the basic understanding of what used to be just technicalities for engineers, one would not be able to completely grasps the workings of the modern economy.
After we have discussed how electronics and communications engineering has affected economics, we have yet to say a bit about the other way around. It is observed that economic growth leads to technological advancement. As firms are driven to find ways to increase profit, they are motivated to stimulate research and development in the field of engineering. With this in mind, the engineering sector should take advantage of the demands in the economy. In other words, the patrons of engineers are firms and thus the knowledge of current market activities will definitely help engineers. For example, the boom in the local telecommunication industry should prompt engineers to produce goods that the market wants. And indeed, we have seen the emergence of cell shops, and products like backlights for cell phones. Therefore, a fundamental understanding of economics, especially consumer demand patterns, would serve as a guide for innovations. After all, what good is innovation when no body is going to use it?
For a soon-to-be engineer like me, the concepts in economics are handy not only for everyday life. Economics and engineering together partake in an interplay towards the betterment of the lives of men. For millennia, we have tried and succeeded (in some degree) to do such. In the end, as what my previous teacher would use to say, it’s all about economics.
Thursday, March 19, 2009
Office Automation
In the fast paced world of today, anything that can make things easier or save someone time is a must have. We have four types of office automation and three group software programs that each have their own advantages and disadvantages.
The first type is unified messaging. We utilize the conveniences of e-mail and voice mail. The main advantage of e-mail is saving money on long distance phone calls. Our company saves thousands of dollars in long distance charges because most of the time an e-mail can get the same message across that phone calls used to. One disadvantage of e-mail is it takes a little bit longer to type a message than to just call someone. Also, messages sent through e-mail may sometimes get misunderstood. Tone of voice and body language can be an indicator to the meaning of a comment, without those, it is sometimes hard to understand the person’s message. When using e-mail we need to remember that the other person cannot see or hear our thoughts.
The second type of office automation we use is facsimile. One advantage to the facsimile is that it is a time saver. Instead of mailing documents and waiting days, we use faxes to send them immediately. The obvious disadvantage is that we can only fax a copy of a document and cannot send the original. We still need mail to send originals. Another disadvantage of faxes is the lack of confidentiality. Faxes can get intercepted on either end and leave a person skeptical about using fax for anything classified.
The third type of office automation is electronic filing. Since we use computers for the majority of our work here, we need a place to save it all. We have numerous drives to save our work in and each employee has their own file to save their work. The advantage of having our own files on the hard drive is space.
There is much more space available than on CDs or floppy disks. The disadvantage of saving our data on the different drives is not being able to access that work from home or on the road. I guess this could be looked at an advantage to some people who don’t want to work from home. We also still have floppy disks to save documents on. They do not get used very much because any computer we log on to we can access the hard drives. The disadvantages to floppy disks are the space. They cannot hold as much data as a hard drive. The advantage of floppy disks is that we can take them anywhere.
The final type of office automation is image processing. Copy machines are probably used more than any other office equipment. When it comes to our aircraft paperwork and logbooks, we do not use electronic. The FAA still requires paper logbooks therefore most paperwork is copied and copied some more. The huge advantage of having copy machines is that a duplicate can be made quickly. Many times we are in a hurry to get an aircraft out the door and do not have time to enter data into our Computerized Maintenance Program so I make copies of all of the paperwork and enter it at a later time. Without copy machines our printers would get much more use than what they were made to handle. The only disadvantages I can see with copy machines are if they are jammed or broken. Sometimes I spend too much time trying to get a machine to work and end up reprinting it. In that way, I guess copy machines can be a headache to people who rely on them in a pinch.
The first of the three group collaborative software programs that we have here is Lotus Notes. Lotus Notes is our e-mail and organization software program. Besides e-mailing others, we also use it to schedule appointments, keep track of “to do” items, and organize addresses and phone numbers.
I rarely write anything down on a paper calendar because it is so much easier to schedule things in Lotus, which will eventually remind me of them. That is one advantage to using Lotus, another is having a central location for everything. I do not use a rolodex or have numbers scattered about, they are all in one place. A disadvantage to Lotus is that it runs on the “L” drive and if it is down so is our e-mail. We can always use our own accounts like Yahoo, etc. but for people that do not have any other e-mail, it can be a pain when it is down. The second group software program is our Intranet. Our Intranet can be accessed from any computer at any site. It gives our company a good way to communicate information across all our sites. A huge advantage of the Intranet is having one place to go to find information about the company. The disadvantage of the Intranet is that it is the only place to find some information so if it is down, we are left out in the cold.
The final group software program we have is our CD-ROM server. I used to work in the library so this one is near and dear to me. The CD-ROM server is a program that lets everyone see the publications we hold on CD-ROM in our library. It runs on a remote desktop so each user that logs in is seeing the same icons and data. The disadvantage to that is anyone can go on and change the settings and believe me they do. The advantage to having our CD-ROMs on a server is that the mechanics can look at the pub they want without having to go to the library and check them out.
Those are the main office automation and software programs we have that I know about and use. I am sure there are others that different departments use that I don’t know about.
The first type is unified messaging. We utilize the conveniences of e-mail and voice mail. The main advantage of e-mail is saving money on long distance phone calls. Our company saves thousands of dollars in long distance charges because most of the time an e-mail can get the same message across that phone calls used to. One disadvantage of e-mail is it takes a little bit longer to type a message than to just call someone. Also, messages sent through e-mail may sometimes get misunderstood. Tone of voice and body language can be an indicator to the meaning of a comment, without those, it is sometimes hard to understand the person’s message. When using e-mail we need to remember that the other person cannot see or hear our thoughts.
The second type of office automation we use is facsimile. One advantage to the facsimile is that it is a time saver. Instead of mailing documents and waiting days, we use faxes to send them immediately. The obvious disadvantage is that we can only fax a copy of a document and cannot send the original. We still need mail to send originals. Another disadvantage of faxes is the lack of confidentiality. Faxes can get intercepted on either end and leave a person skeptical about using fax for anything classified.
The third type of office automation is electronic filing. Since we use computers for the majority of our work here, we need a place to save it all. We have numerous drives to save our work in and each employee has their own file to save their work. The advantage of having our own files on the hard drive is space.
There is much more space available than on CDs or floppy disks. The disadvantage of saving our data on the different drives is not being able to access that work from home or on the road. I guess this could be looked at an advantage to some people who don’t want to work from home. We also still have floppy disks to save documents on. They do not get used very much because any computer we log on to we can access the hard drives. The disadvantages to floppy disks are the space. They cannot hold as much data as a hard drive. The advantage of floppy disks is that we can take them anywhere.
The final type of office automation is image processing. Copy machines are probably used more than any other office equipment. When it comes to our aircraft paperwork and logbooks, we do not use electronic. The FAA still requires paper logbooks therefore most paperwork is copied and copied some more. The huge advantage of having copy machines is that a duplicate can be made quickly. Many times we are in a hurry to get an aircraft out the door and do not have time to enter data into our Computerized Maintenance Program so I make copies of all of the paperwork and enter it at a later time. Without copy machines our printers would get much more use than what they were made to handle. The only disadvantages I can see with copy machines are if they are jammed or broken. Sometimes I spend too much time trying to get a machine to work and end up reprinting it. In that way, I guess copy machines can be a headache to people who rely on them in a pinch.
The first of the three group collaborative software programs that we have here is Lotus Notes. Lotus Notes is our e-mail and organization software program. Besides e-mailing others, we also use it to schedule appointments, keep track of “to do” items, and organize addresses and phone numbers.
I rarely write anything down on a paper calendar because it is so much easier to schedule things in Lotus, which will eventually remind me of them. That is one advantage to using Lotus, another is having a central location for everything. I do not use a rolodex or have numbers scattered about, they are all in one place. A disadvantage to Lotus is that it runs on the “L” drive and if it is down so is our e-mail. We can always use our own accounts like Yahoo, etc. but for people that do not have any other e-mail, it can be a pain when it is down. The second group software program is our Intranet. Our Intranet can be accessed from any computer at any site. It gives our company a good way to communicate information across all our sites. A huge advantage of the Intranet is having one place to go to find information about the company. The disadvantage of the Intranet is that it is the only place to find some information so if it is down, we are left out in the cold.
The final group software program we have is our CD-ROM server. I used to work in the library so this one is near and dear to me. The CD-ROM server is a program that lets everyone see the publications we hold on CD-ROM in our library. It runs on a remote desktop so each user that logs in is seeing the same icons and data. The disadvantage to that is anyone can go on and change the settings and believe me they do. The advantage to having our CD-ROMs on a server is that the mechanics can look at the pub they want without having to go to the library and check them out.
Those are the main office automation and software programs we have that I know about and use. I am sure there are others that different departments use that I don’t know about.
Direct Marketing
A direct marketing promotion that I recently responded to was an e-mail from the company Venus offering me free shipping on my next order if it was placed within a two-week time frame. The key message was that all of their swimwear was on clearance. The graphics in the e-mail included young beautiful models in the swimwear.
I was sent this promotion because I had recently ordered a swimsuit from their online site. I had not returned what I had ordered, so it could be assumed that I was pleased with the product. Due to the fact that I did like what I had ordered from them the first time, along with the clearance prices and free shipping, this offer was very attractive to me. My original order was also the first order I had ever placed with them. Consequently, this offer also prompted me to look at their other clothing lines and order a few other things as well. The company contacted me via e-mail because I had placed my order online and had provided them with my e-mail address to send confirmations and special offers to.
This promotion was good on Venus’ part for two reasons. First of all, they knew I was a new customer and if given the opportunity to have free shipping there was a good chance that I would browse around their website to see what other clothing they were selling. Secondly, I had recently purchased what they were now offering on clearance. They had no reason to believe that I was dissatisfied with my first purchase of this nature and figured that I would be open to ordering another swimsuit because of the clearance prices. The combination of these two characteristics prompted me to take them up on their offer and order another swimsuit along with additional clothing items.
A direct marketing item that I received, but did not respond to at this time was a money card for $15 if I spent over $50 at American Eagle Outfitters. I was given it in the store after making a purchase of over $100. The key message that they were sending was that if I spent over a certain amount I would be rewarded. The picture on the front of it was a snowy atmosphere picturing two people bundled up in their coats, scarves, and hats.
I was given this promotional item because I had spent a decent amount of money (over $100) and had put it on my American Eagle credit card. This shows that I shop their on a regular basis and usually buy several items when I do. It is reasonable for them to assume that I will buy there again and spend at least $50.
American Eagle’s offer was good, but the time peroid they placed on it prevented me from using it. The money card expired the day before Thanksgiving. Up until this date, they were carrying basically the same merchandise that they had for the past two months. Therefore, there was nothing new that I wanted to buy for myself. I would have had to find $50 worth of merchandise to even use the promotion. In addition, I do not usually get around to Christmas shopping until after Thanksgiving when there are big sales or a few days before Christmas when the time crunch is on. Therefore, the time constraint on this particular offer caused me to disregard the offer. In the future, if I receive this same offer from American Eagle during a different time frame and they have newer merchandise that I have not fully exhausted, there is a good chance I will take advantage of it.
A direct marketing promotion that I received and did not even consider responding to was from The Limited. The offer was if I bought a pair of pants I would get the second pair $20 off. The key message was the variety of styles and lengths that they offered in their pant selection. The graphics included a beautiful woman modeling the pants. (See attached card mailing)
The direct marketer sent this to me because I had bought several pairs of pants from them earlier in the fall. I also have The Limited credit card and had accumulated enough style points from my pant purchases to receive a gift certificate. It could be assumed that I did like their pant collection. However, they did not take into account that I may only want so many pairs of pants. This offer would require me to buy an additional two pairs of pants on top of the several pairs I had purchased earlier in the fall. They should have also considered that they have the same basic colors and styles in stock as they did during the previous month and a half.
I did not respond to this offer or even consider it. The marketer could have considered the possibility that I was pretty much content with my pants purchases for the time being. The same offer would have been better had it been for dress shirts instead. Considering the fact that I had already purchased several pairs of pants from them, they could have offered a complimentary item with this promotion instead. I would have responded to an offer such as this.
I was sent this promotion because I had recently ordered a swimsuit from their online site. I had not returned what I had ordered, so it could be assumed that I was pleased with the product. Due to the fact that I did like what I had ordered from them the first time, along with the clearance prices and free shipping, this offer was very attractive to me. My original order was also the first order I had ever placed with them. Consequently, this offer also prompted me to look at their other clothing lines and order a few other things as well. The company contacted me via e-mail because I had placed my order online and had provided them with my e-mail address to send confirmations and special offers to.
This promotion was good on Venus’ part for two reasons. First of all, they knew I was a new customer and if given the opportunity to have free shipping there was a good chance that I would browse around their website to see what other clothing they were selling. Secondly, I had recently purchased what they were now offering on clearance. They had no reason to believe that I was dissatisfied with my first purchase of this nature and figured that I would be open to ordering another swimsuit because of the clearance prices. The combination of these two characteristics prompted me to take them up on their offer and order another swimsuit along with additional clothing items.
A direct marketing item that I received, but did not respond to at this time was a money card for $15 if I spent over $50 at American Eagle Outfitters. I was given it in the store after making a purchase of over $100. The key message that they were sending was that if I spent over a certain amount I would be rewarded. The picture on the front of it was a snowy atmosphere picturing two people bundled up in their coats, scarves, and hats.
I was given this promotional item because I had spent a decent amount of money (over $100) and had put it on my American Eagle credit card. This shows that I shop their on a regular basis and usually buy several items when I do. It is reasonable for them to assume that I will buy there again and spend at least $50.
American Eagle’s offer was good, but the time peroid they placed on it prevented me from using it. The money card expired the day before Thanksgiving. Up until this date, they were carrying basically the same merchandise that they had for the past two months. Therefore, there was nothing new that I wanted to buy for myself. I would have had to find $50 worth of merchandise to even use the promotion. In addition, I do not usually get around to Christmas shopping until after Thanksgiving when there are big sales or a few days before Christmas when the time crunch is on. Therefore, the time constraint on this particular offer caused me to disregard the offer. In the future, if I receive this same offer from American Eagle during a different time frame and they have newer merchandise that I have not fully exhausted, there is a good chance I will take advantage of it.
A direct marketing promotion that I received and did not even consider responding to was from The Limited. The offer was if I bought a pair of pants I would get the second pair $20 off. The key message was the variety of styles and lengths that they offered in their pant selection. The graphics included a beautiful woman modeling the pants. (See attached card mailing)
The direct marketer sent this to me because I had bought several pairs of pants from them earlier in the fall. I also have The Limited credit card and had accumulated enough style points from my pant purchases to receive a gift certificate. It could be assumed that I did like their pant collection. However, they did not take into account that I may only want so many pairs of pants. This offer would require me to buy an additional two pairs of pants on top of the several pairs I had purchased earlier in the fall. They should have also considered that they have the same basic colors and styles in stock as they did during the previous month and a half.
I did not respond to this offer or even consider it. The marketer could have considered the possibility that I was pretty much content with my pants purchases for the time being. The same offer would have been better had it been for dress shirts instead. Considering the fact that I had already purchased several pairs of pants from them, they could have offered a complimentary item with this promotion instead. I would have responded to an offer such as this.
Small Business
In today’s world, small businesses dominate the economy. Out of all the business in the United States, small business accounts for 99% of it all. For a business to be a small business it must have under 500 employees, be locally owned and operated, dependent on the industry, and one or few owners. These owners receive a high amount of respect from all the employees and co-workers. Most of the time the owners have put forth a great amount of time and money in order for the company to be existent. Also, the owner will have more than just his or her money invested. He will have loans from the bank and also some of the family’s money invested into the business. Therefore, most of the owner’s life is spent running the business and making sure it stays on track. Many entrepreneurs start up a business because of a few advantages: they can be their own boss, make a lot of money, they have freedom and flexibility, and do what they love to do. On the flip side, it is a capital risk, long hours, high stress, and fluctuating sales. Therefore, many people start up a business hoping to make a lot of money not knowing all the details it takes to successfully run it. Some factors that cause a business to fail are; poor management, nepotism, taxes, miss-hires, too much overhead, and product to market failure. After taking all of these things into consideration, I went out and interviewed 3 business owners and collected information from all of them. Many of their answers were very similar and some were very different. Throughout the paper I will discuss the owner’s daily practices, the results from their surveys, findings from the internet article, and whether or not the business world has changed since they have been in it and how it affected them.
For my paper I interviewed three business owners or daily managers from three different business fields. First, I interviewed Gary Sims from Sims Insurance Agency. He got involved in the company about 10 years ago when he purchased the company. Next, I interviewed Tom Gallagher from Countrytyme, Inc. He is into real estate where he purchases land and resells it. Last, I interviewed Joshua Garey from Grainger. He is a daily customer service manager. He got started with Grainger through their management trainee program. Throughout the research packets, interviews, and other additional findings certain themes seemed to reappear in many different ways. There were some very significant similarities between the three research surveys. There were two major categories from the first question on the survey that three people I interviewed had very similar answers for their most important. It seemed that money and customers ranked higher than any other aspect on the survey. Specifically, overall growth in revenue seemed to be ranked the highest out of all of them. Next, would be to improve service to their customers. Followed by improve profits margin and increase success in retaining customers. Lastly, improve return on capital rounded up the similarities as most important. With these five answers continually repeating themselves throughout the surveys and answers, then there must be a catch to them. Well it is not to difficult to find the catch between customers and making money. If a company, such as these three, takes to heart what they feel is most important and lives by it then what they want to come true will happen. All three of these businesses are very successful in their own right. Therefore, improving customer service and then increased success in retaining customers, which they feel is very important for their business, helps them meet their financial goals. It is quite obvious why those answers were ranked among the top. If a company improves its customer service and then increases customers the rest will follow, such as growth in revenue, improved profit margin, and improved return on capital.
There also were some similarities between the answers ranking at the bottom of the question on the survey. First, ranking low on the survey was financially viable return on investment in new services and facilities. When I asked them why this was not so important to them as a business, the common answer I received was that their companies were pretty set in what services they offered, therefore they did not view new services as too important. There was an exception to the other part of the question though, investment in new facilities. Tom Gallagher, land buyer, obviously has to reinvest his money into buying new land. Other than that this answer ranked toward the bottom. Also, to go along with the other question, successful introduction of new services and facilities ranked at the bottom. Basically the same idea goes along with this question as it did with the question before. Most of these companies are either limited on what they do or they are satisfied with their services as they are. The next question that ranked at the bottom of the survey was collaboration with other companies in your industry. When I asked them about this they just simply answered that they do not feel any interest in joining or working together with anybody else. Ranking near the bottom of the survey in most of the surveys was improving the relationship with suppliers. Basically, if the relationship between the business and its supplier is manageable and there are no problems then there is no real need to make an effort to improve the relationship between the two of them.
During each of my interviews there were a few specific questions that I asked each business person. These questions were asked to aim at the daily decisions they make, the practices they go by, what problems they encounter, if the business world has changed since they have been involved, and etc. The first question that I asked them, “What is a typical day for you as an owner or daily manager?” Basically I got the response back that I expected to hear. There was nothing to out of the extraordinary just the basic everyday managerial duties one has as an owner or manager. Everyday tasks include such things as paperwork, dealing with customers, working with employees, checking inventory, and making sure the business runs smoothly and efficiently. All of these things must be done everyday for the business to stay on top of everything that is going on and to continue to make money, which is the bottom line. All of this work seems very time consuming and for the most part it is. One thing the owners mentioned is the fact that they are very busy during the day, but to make sure and save some time for yourself. This also goes along with the internet article I found on BusinessWeek. It simply states that people today are so concerned with making themselves available 24/7/365 to their customers that they have no time for themselves.
The next question I asked them, “What type of practices or guidelines do you work by in your business?” Once again there was a universal answer that I received from the people I talked to. A certain word kept coming up during the conversations with the business people and that word was ethics, the sense of right and wrong. When it comes to ethics some people tend to cringe up and not want to talk about them as if they are evil. Luckily the people I interviewed seemed to follow some type of ethical code when dealing with their business practices. Each of the business people I interviewed had a list of business ethics that all the employees had to go by and follow. They were all a little different based on the company, but the general principle was about the same for all the businesses. Also, the organizational ethics is only one of three branches which lead into the ethical dilemma. There are also personal factors that lead to the decision as well as opportunity. With opportunity a lot of times the reward must be a lot higher than the risk in order for a person to make the decision to do it. When I asked the business people what type of things they would or would not do for success in their business, it still lead back to personal and organizational ethics. If the consequence would hurt them as a person or the company as a whole, then the action was not worth taking. In order for a business to survive in today’s world, the business must be ethical, i.e. Enron. The lifeline of a business is repeat business, therefore if you unethically make a decision that makes a customer mad, the chances of getting them back as a customer are not very good. One advantage of carrying positive ethics that I learned is the reputation of your business, which is very important. Once your business is known for doing something illegal or unethical then that type of reputation will stick for a very long time. After news like that gets out the chances of the business staying in operation are not very good.
The next question I asked them, “What are the biggest problems you have to deal with as an owner or manager?” The number one problem that all business people have to deal with is the customers. No matter whom I talked to whether it was the owners, managers, salespeople, or secretaries they all said that dealing with customers is by far the biggest problem. No matter how hard a business tries there will be times when they mess up an order or whatever for a customer. What the customer does not realize is that they did not do it on purpose. These businesses deal with tons and tons of customers and with even more orders, therefore there are going to be times that the order is not right. The customer never understands that and they are so impatient, which they have the right to be to an extent. When I asked the owners how they deal with the customers they simply responded, “The customer is always right.” Even though 99% of the time they actually are not, the business still has to treat the customer as if they are right. Like I said earlier, the lifeline of a business is repeat business, meaning it is easier to get existing customers to buy more than to go out and find new customers, so in order to keep the existing customers you must treat them well.
Finally, I asked, “Has the business world changed since you have been in business, if so, how has it affected your business?” For some of them they have not really been in the business long enough to really notice much of a trend. For the others, the biggest change in the business world has been the economy. They mentioned the difference from when they just started back in the 1970’s and then in the 1990’s was the booming of the economy and all the technology that the business world has today. On the other hand they are starting to see the flip side of the economy. They are starting to get hurt a little bit with the recession and now the war starting. For some of them business is slowing up a little bit, but for others not much has changed. With Tom Gallagher, land buyer/real estate, he can definitely see a change in his business as of lately. Then with Gary Sims, Insurance agent, he has not seen a much of a drop in business. So depending on the type of business one is associated with the business world changes differently for each business.
In conclusion, this research project opened my eyes to a lot of different aspects that a business owner or daily manager has to encounter. A lot of things go into running a small business efficiently. As the owner or manager is it your job to make sure everything gets done the way you want it to. At the end of the day all the responsibilities are left for the owner to handle. No one else is to blame for the lack of revenue generated by a business other than the owner. Therefore, the owner must be able to deal with many different situations that he may have to encounter and solve them.
For my paper I interviewed three business owners or daily managers from three different business fields. First, I interviewed Gary Sims from Sims Insurance Agency. He got involved in the company about 10 years ago when he purchased the company. Next, I interviewed Tom Gallagher from Countrytyme, Inc. He is into real estate where he purchases land and resells it. Last, I interviewed Joshua Garey from Grainger. He is a daily customer service manager. He got started with Grainger through their management trainee program. Throughout the research packets, interviews, and other additional findings certain themes seemed to reappear in many different ways. There were some very significant similarities between the three research surveys. There were two major categories from the first question on the survey that three people I interviewed had very similar answers for their most important. It seemed that money and customers ranked higher than any other aspect on the survey. Specifically, overall growth in revenue seemed to be ranked the highest out of all of them. Next, would be to improve service to their customers. Followed by improve profits margin and increase success in retaining customers. Lastly, improve return on capital rounded up the similarities as most important. With these five answers continually repeating themselves throughout the surveys and answers, then there must be a catch to them. Well it is not to difficult to find the catch between customers and making money. If a company, such as these three, takes to heart what they feel is most important and lives by it then what they want to come true will happen. All three of these businesses are very successful in their own right. Therefore, improving customer service and then increased success in retaining customers, which they feel is very important for their business, helps them meet their financial goals. It is quite obvious why those answers were ranked among the top. If a company improves its customer service and then increases customers the rest will follow, such as growth in revenue, improved profit margin, and improved return on capital.
There also were some similarities between the answers ranking at the bottom of the question on the survey. First, ranking low on the survey was financially viable return on investment in new services and facilities. When I asked them why this was not so important to them as a business, the common answer I received was that their companies were pretty set in what services they offered, therefore they did not view new services as too important. There was an exception to the other part of the question though, investment in new facilities. Tom Gallagher, land buyer, obviously has to reinvest his money into buying new land. Other than that this answer ranked toward the bottom. Also, to go along with the other question, successful introduction of new services and facilities ranked at the bottom. Basically the same idea goes along with this question as it did with the question before. Most of these companies are either limited on what they do or they are satisfied with their services as they are. The next question that ranked at the bottom of the survey was collaboration with other companies in your industry. When I asked them about this they just simply answered that they do not feel any interest in joining or working together with anybody else. Ranking near the bottom of the survey in most of the surveys was improving the relationship with suppliers. Basically, if the relationship between the business and its supplier is manageable and there are no problems then there is no real need to make an effort to improve the relationship between the two of them.
During each of my interviews there were a few specific questions that I asked each business person. These questions were asked to aim at the daily decisions they make, the practices they go by, what problems they encounter, if the business world has changed since they have been involved, and etc. The first question that I asked them, “What is a typical day for you as an owner or daily manager?” Basically I got the response back that I expected to hear. There was nothing to out of the extraordinary just the basic everyday managerial duties one has as an owner or manager. Everyday tasks include such things as paperwork, dealing with customers, working with employees, checking inventory, and making sure the business runs smoothly and efficiently. All of these things must be done everyday for the business to stay on top of everything that is going on and to continue to make money, which is the bottom line. All of this work seems very time consuming and for the most part it is. One thing the owners mentioned is the fact that they are very busy during the day, but to make sure and save some time for yourself. This also goes along with the internet article I found on BusinessWeek. It simply states that people today are so concerned with making themselves available 24/7/365 to their customers that they have no time for themselves.
The next question I asked them, “What type of practices or guidelines do you work by in your business?” Once again there was a universal answer that I received from the people I talked to. A certain word kept coming up during the conversations with the business people and that word was ethics, the sense of right and wrong. When it comes to ethics some people tend to cringe up and not want to talk about them as if they are evil. Luckily the people I interviewed seemed to follow some type of ethical code when dealing with their business practices. Each of the business people I interviewed had a list of business ethics that all the employees had to go by and follow. They were all a little different based on the company, but the general principle was about the same for all the businesses. Also, the organizational ethics is only one of three branches which lead into the ethical dilemma. There are also personal factors that lead to the decision as well as opportunity. With opportunity a lot of times the reward must be a lot higher than the risk in order for a person to make the decision to do it. When I asked the business people what type of things they would or would not do for success in their business, it still lead back to personal and organizational ethics. If the consequence would hurt them as a person or the company as a whole, then the action was not worth taking. In order for a business to survive in today’s world, the business must be ethical, i.e. Enron. The lifeline of a business is repeat business, therefore if you unethically make a decision that makes a customer mad, the chances of getting them back as a customer are not very good. One advantage of carrying positive ethics that I learned is the reputation of your business, which is very important. Once your business is known for doing something illegal or unethical then that type of reputation will stick for a very long time. After news like that gets out the chances of the business staying in operation are not very good.
The next question I asked them, “What are the biggest problems you have to deal with as an owner or manager?” The number one problem that all business people have to deal with is the customers. No matter whom I talked to whether it was the owners, managers, salespeople, or secretaries they all said that dealing with customers is by far the biggest problem. No matter how hard a business tries there will be times when they mess up an order or whatever for a customer. What the customer does not realize is that they did not do it on purpose. These businesses deal with tons and tons of customers and with even more orders, therefore there are going to be times that the order is not right. The customer never understands that and they are so impatient, which they have the right to be to an extent. When I asked the owners how they deal with the customers they simply responded, “The customer is always right.” Even though 99% of the time they actually are not, the business still has to treat the customer as if they are right. Like I said earlier, the lifeline of a business is repeat business, meaning it is easier to get existing customers to buy more than to go out and find new customers, so in order to keep the existing customers you must treat them well.
Finally, I asked, “Has the business world changed since you have been in business, if so, how has it affected your business?” For some of them they have not really been in the business long enough to really notice much of a trend. For the others, the biggest change in the business world has been the economy. They mentioned the difference from when they just started back in the 1970’s and then in the 1990’s was the booming of the economy and all the technology that the business world has today. On the other hand they are starting to see the flip side of the economy. They are starting to get hurt a little bit with the recession and now the war starting. For some of them business is slowing up a little bit, but for others not much has changed. With Tom Gallagher, land buyer/real estate, he can definitely see a change in his business as of lately. Then with Gary Sims, Insurance agent, he has not seen a much of a drop in business. So depending on the type of business one is associated with the business world changes differently for each business.
In conclusion, this research project opened my eyes to a lot of different aspects that a business owner or daily manager has to encounter. A lot of things go into running a small business efficiently. As the owner or manager is it your job to make sure everything gets done the way you want it to. At the end of the day all the responsibilities are left for the owner to handle. No one else is to blame for the lack of revenue generated by a business other than the owner. Therefore, the owner must be able to deal with many different situations that he may have to encounter and solve them.
Leadership
Leadership in my world is the ability to convince a community of people to share in my vision and goals for my classroom and to inspire and motivate them to work together in order to accomplish these goals.
My leadership style uses my ability to demonstrate effective social skills that would maximize the efforts of the people I work with, while delegating responsibilities on an everyday basis in the capacity of supervisor. My ability to work with people from diverse backgrounds, while making them feel comfortable enough to perform the job tasks that they are equipped to do is what makes my leadership style unique. It is giving orders without sounding like a dictator. It sometimes means expressing restraint with one’s tongue, when one prefers to say something.
In my capacity as a teacher, I have three teacher aides from diverse backgrounds that I work with on a daily basis. The task of delegating responsibilities, and dealing with each one on a personal and professional basis can sometimes be a monumental task. It takes a great deal of skill to deal with conflict resolution in order to keep harmony within the classroom. Touchy subjects and different views on things have to be handled very delicately. This necessitates taking the time to listen and answer questions that may arise. I have to show them that they are appreciated, and that their contribution to the daily running of the classroom is important. I try to build trust among us by treating them with respect, because I feel this is a necessary ingredient in creating effective teamwork. In our environment it is necessary to network our activities to maximize the potential of each student. This is the common goal of each one of us in the classroom.
I try to draw on the strength of each individual, to encourage him/her to be as creative as he/she can be with the kids. Sometimes this means being sympathetic, and showing a genuine interest in their concerns or apprehensions. The ultimate goal is to create a learning environment that maximizes on their individual strength, and maintains organization of materials to enhance this learning environment. To achieve this, it is necessary to maximize on each of their efforts.
In using my leadership style, I try to lead by example, listen with understanding, have confidence in the creativity of the people I work with, be open to ideas and communicate openly and honestly with them.
In my opinion, as a leader these are some of the main ingredients that constitute my leadership style. I believe to be a successful leader, it has to be a part of your personality. There will always be challenges when working with different people,but I try to create an environment where every feels as though they are part of a family group. This makes a big difference in the acceptance level of opinions in the classroom, and inspires my assistants to achieve more. You need to have a genuine interest in people and command the utmost respect by being an example yourself, and being open, honest and fair in your leadership decisions. I am always full of enthusiasm in what I do, and I noticed that this enthusiasm inspires and motivates people. I am very satisfied with my leadership style and try always to lead by example. A leader is a person that represents a purposes, and strives ever constantly for success and improvement of that purpose, and can encourage others to believe in that same purpose. I believe that I am that person.
My leadership style uses my ability to demonstrate effective social skills that would maximize the efforts of the people I work with, while delegating responsibilities on an everyday basis in the capacity of supervisor. My ability to work with people from diverse backgrounds, while making them feel comfortable enough to perform the job tasks that they are equipped to do is what makes my leadership style unique. It is giving orders without sounding like a dictator. It sometimes means expressing restraint with one’s tongue, when one prefers to say something.
In my capacity as a teacher, I have three teacher aides from diverse backgrounds that I work with on a daily basis. The task of delegating responsibilities, and dealing with each one on a personal and professional basis can sometimes be a monumental task. It takes a great deal of skill to deal with conflict resolution in order to keep harmony within the classroom. Touchy subjects and different views on things have to be handled very delicately. This necessitates taking the time to listen and answer questions that may arise. I have to show them that they are appreciated, and that their contribution to the daily running of the classroom is important. I try to build trust among us by treating them with respect, because I feel this is a necessary ingredient in creating effective teamwork. In our environment it is necessary to network our activities to maximize the potential of each student. This is the common goal of each one of us in the classroom.
I try to draw on the strength of each individual, to encourage him/her to be as creative as he/she can be with the kids. Sometimes this means being sympathetic, and showing a genuine interest in their concerns or apprehensions. The ultimate goal is to create a learning environment that maximizes on their individual strength, and maintains organization of materials to enhance this learning environment. To achieve this, it is necessary to maximize on each of their efforts.
In using my leadership style, I try to lead by example, listen with understanding, have confidence in the creativity of the people I work with, be open to ideas and communicate openly and honestly with them.
In my opinion, as a leader these are some of the main ingredients that constitute my leadership style. I believe to be a successful leader, it has to be a part of your personality. There will always be challenges when working with different people,but I try to create an environment where every feels as though they are part of a family group. This makes a big difference in the acceptance level of opinions in the classroom, and inspires my assistants to achieve more. You need to have a genuine interest in people and command the utmost respect by being an example yourself, and being open, honest and fair in your leadership decisions. I am always full of enthusiasm in what I do, and I noticed that this enthusiasm inspires and motivates people. I am very satisfied with my leadership style and try always to lead by example. A leader is a person that represents a purposes, and strives ever constantly for success and improvement of that purpose, and can encourage others to believe in that same purpose. I believe that I am that person.
Institutional Theory
The concept of organization serves as a key factor in determining if an organization or company reaches its goals and objective while exemplifying their mission. Nonetheless, there are various theories of organization that can be utilized such as the institutional theory (I.T) of organization. This theory focuses on the environmental factors experienced by an organization such as “external or societal norms, rules, and requirements that an organizations must conform to, in order to receive legitimacy and support”. The institutional theory depends, heavily, on the social constructs to help define the structure and processes of an organization.
The most basic principle and distinct characteristic to the institutional theory is conformity. Conformity is the meter stick that is used to determine the legitimacy of an organization. The concept of conformity establishes “rational myths” in which it is just “rational” that an organization would incorporate certain social norms, rules, and requirements into it mission and goals. In order for an organization to be endorsed as a valid one, it must conform to the “rational myths”. In this example, societal expectations and norms dictate the requirements needed to achieve an MBA degree because if accounting, strategy, and marketing was not taught, the program would be viewed as illegitimate. So, the program in an astute effort to obtain legitimacy the program may conform. As a result of conformity, many organizations began to resemble one another because they are faced with the same social pressures. Isomorphism has proven to be a beneficial component of the institutional theory because it can offer an alliance between organizations with the same focus (i.e. usually seen in public health through the development of a coalition). Within the case, it is pivotal that Dr. Amayo attempted to construct a clear mission statement and concise core values and objectives so that the organization conforms with the norms surrounding a governmental communicable diseases agency and matches the goals of its constitutes. However in a slim market, isomorphism may not be beneficial. It may encourage or create competition among similar organizations who are trying to serve that same population or market, so one’s focus may shift to the competition rather than the service or product.
Despite, the level of conformity presented by the Institutional theory, the theory is quite promising because it bridges the gap between societal views and organization’s actions. Management is more aware of social views and opinions and more willing to incorporate societal norms and expectations, rules, regulations, and requirements in its daily operations of an organization. This concept of unifying these two entities: environment and management has proven to be the ultimate advantage to theory in addition to isomorphism. Nonetheless, there are a few disadvantages associated with the theory. One disadvantage to the institutional theory is that it places a tremendous amount of constraints on management to conform to the norms, rules, or requirements. High level of constraints can prove to be deleterious to the organization because it can inhibit versatility, creativity, and diversity within a particular field. Another disadvantage to the theory is the creation of “cookie-cutter” organizations and the legitimacy of organization that are outcast from the “cookie-cutter” format. One example of this is within the arena of academia. For example, Drexel University- School of Public Health is non-traditional school of public health because it utilizes the Problem-Based Learning (P.B.L) format and non-traditional methodology of learning. In my opinion, the legitimacy of the institution was questioned due to the PBL format and non-traditional methodology of learning and may have hindered its acceptance into the world of Public Health. However, this example, also, shows how the skepticism produced by the institutional theory maybe diluted over time with further understanding and the transformation of societal norms whereas PBL has become a more acceptable learning style. It is this concept of legitimacy that oftentimes makes organizations resistant to change in fear of breaking away from the norm because their legitimacy may be challenged. Also, within this type of environment, management may have a minimal amount of freedom to make decisions which may hinder the structural process with an organization.
The institutional theory places emphasize on the crossroads of the environmental factors and their influence on organizations and corporations. In the case, we are presented with a Management /Organization Paradigm and Management Operation paradigm, both paradigms incorporates external factors in its framework to demonstrate the validity and importance of external factors in contributing the organization, structure, and legitimacy of a corporation or organization. In the Management Operation Paradigm, the external factors-legal, political, and social which sets the stage for the institutional theory in the paradigm because one can see the direct connection that the external factors plays in the framework of an organization as noted by the flow chart of the paradigm. In addition, the paradigms suggests that the relationship between the mission statement, values, vision, and etc. (see Paradigms in case for other component of organization)and external factors are oscillating components that goes back and forth in the development, structure , and strategic management of an organization. This means that the relationship between both is constantly changing so that one can accommodate the other.
The institutional theory can be a rewarding concept to an organization because its stakeholder, as a whole (society), plays a vital role in determining the legitimacy of an organization, directly, and have much more power in the operations of an organization. Many other theories of organization do not extend the same level of power to its stakeholders in which the stakeholders set the standards. It is for this reason that that the institutional theory is a promising theory, despite its disadvantages. Nevertheless, this theory is not advantageous for every organization but can be determined by a “best fit approach”. This approach examines the capability of an organization mission, goals, vision, and strategic plans to the basic principles of a theory in an effort to determine which theory fits best with that particular organization. This approach is important because as explained within this paper, the institutional theory can provide a few downfalls that may hinder productivity.
The most basic principle and distinct characteristic to the institutional theory is conformity. Conformity is the meter stick that is used to determine the legitimacy of an organization. The concept of conformity establishes “rational myths” in which it is just “rational” that an organization would incorporate certain social norms, rules, and requirements into it mission and goals. In order for an organization to be endorsed as a valid one, it must conform to the “rational myths”. In this example, societal expectations and norms dictate the requirements needed to achieve an MBA degree because if accounting, strategy, and marketing was not taught, the program would be viewed as illegitimate. So, the program in an astute effort to obtain legitimacy the program may conform. As a result of conformity, many organizations began to resemble one another because they are faced with the same social pressures. Isomorphism has proven to be a beneficial component of the institutional theory because it can offer an alliance between organizations with the same focus (i.e. usually seen in public health through the development of a coalition). Within the case, it is pivotal that Dr. Amayo attempted to construct a clear mission statement and concise core values and objectives so that the organization conforms with the norms surrounding a governmental communicable diseases agency and matches the goals of its constitutes. However in a slim market, isomorphism may not be beneficial. It may encourage or create competition among similar organizations who are trying to serve that same population or market, so one’s focus may shift to the competition rather than the service or product.
Despite, the level of conformity presented by the Institutional theory, the theory is quite promising because it bridges the gap between societal views and organization’s actions. Management is more aware of social views and opinions and more willing to incorporate societal norms and expectations, rules, regulations, and requirements in its daily operations of an organization. This concept of unifying these two entities: environment and management has proven to be the ultimate advantage to theory in addition to isomorphism. Nonetheless, there are a few disadvantages associated with the theory. One disadvantage to the institutional theory is that it places a tremendous amount of constraints on management to conform to the norms, rules, or requirements. High level of constraints can prove to be deleterious to the organization because it can inhibit versatility, creativity, and diversity within a particular field. Another disadvantage to the theory is the creation of “cookie-cutter” organizations and the legitimacy of organization that are outcast from the “cookie-cutter” format. One example of this is within the arena of academia. For example, Drexel University- School of Public Health is non-traditional school of public health because it utilizes the Problem-Based Learning (P.B.L) format and non-traditional methodology of learning. In my opinion, the legitimacy of the institution was questioned due to the PBL format and non-traditional methodology of learning and may have hindered its acceptance into the world of Public Health. However, this example, also, shows how the skepticism produced by the institutional theory maybe diluted over time with further understanding and the transformation of societal norms whereas PBL has become a more acceptable learning style. It is this concept of legitimacy that oftentimes makes organizations resistant to change in fear of breaking away from the norm because their legitimacy may be challenged. Also, within this type of environment, management may have a minimal amount of freedom to make decisions which may hinder the structural process with an organization.
The institutional theory places emphasize on the crossroads of the environmental factors and their influence on organizations and corporations. In the case, we are presented with a Management /Organization Paradigm and Management Operation paradigm, both paradigms incorporates external factors in its framework to demonstrate the validity and importance of external factors in contributing the organization, structure, and legitimacy of a corporation or organization. In the Management Operation Paradigm, the external factors-legal, political, and social which sets the stage for the institutional theory in the paradigm because one can see the direct connection that the external factors plays in the framework of an organization as noted by the flow chart of the paradigm. In addition, the paradigms suggests that the relationship between the mission statement, values, vision, and etc. (see Paradigms in case for other component of organization)and external factors are oscillating components that goes back and forth in the development, structure , and strategic management of an organization. This means that the relationship between both is constantly changing so that one can accommodate the other.
The institutional theory can be a rewarding concept to an organization because its stakeholder, as a whole (society), plays a vital role in determining the legitimacy of an organization, directly, and have much more power in the operations of an organization. Many other theories of organization do not extend the same level of power to its stakeholders in which the stakeholders set the standards. It is for this reason that that the institutional theory is a promising theory, despite its disadvantages. Nevertheless, this theory is not advantageous for every organization but can be determined by a “best fit approach”. This approach examines the capability of an organization mission, goals, vision, and strategic plans to the basic principles of a theory in an effort to determine which theory fits best with that particular organization. This approach is important because as explained within this paper, the institutional theory can provide a few downfalls that may hinder productivity.
Barnes and Noble Business Strategy
Barnes and Noble’s strategy is simple; capitalize on a customer demand for inexpensive books. This was a cost leadership and a differentiation strategy. Barnes and Noble identified a gap in the publishing industry, which primarily focused on blockbuster types of books and marquee authors that “rocketed to the best seller list” that the publishing industry in turn sold at a premium. These best sellers were not big profit sources for Barnes and Noble, in contrast Barnes and Noble identified, perhaps through its process of data mining and customer focused research, that its customers wanted less expensive books. Barnes and Noble hoped to get a bigger piece of a shrinking pie; research showed that the number of households that purchased hardcover books actually declined and book sales dwindled throughout the industry. Barnes and Noble created a capability and possibly a core competency through its discovery of this demand and the intimate knowledge of its customer’s demands.
The cost leadership strategy consisted of publishing less expensive books that their customers demanded. By publishing these books internally they increase their profits. Differentiation was also prevalent in this strategy. Barnes and Noble focused outside of best seller categories, which account for only 3% of their sales, and thus they didn’t compete with their high profile publishers. This also allowed Barnes and Noble to retain the magnet of best selling books that attracted customers to their stores. The focus of publishing classics, atlases, illustrated coffee table books, and niche publishing markets such as out of print books, allowed Barnes and Noble to reconfigure new value and will eventually affect the share price.
Barnes and Noble’s strategy was sound and with the reallocation of resources should be poised to succeed. The conservative implementation of this strategy doesn’t commit all of Barnes and Noble’s resources at once and the success of the self published illustrated “coffee table” books points toward the success of this deeper venture into publishing. The mistakes made by Tommy Hilfiger Corp and Borders aren’t good comparisons because the venture of Barnes and Noble focuses on a market niche. Hyperion Robert Miller’s comments that “the niches Barnes & Noble is targeting will still leave room for general-interest publishers.” I agree with Mr. Miller’s assessment that Barnes and Noble’s move is savvy "since they don't pay a 50% markup [to a publisher], they can apply that advantage to price and still make more money than publishers selling the same Charles Dickens title." This makes solid business sense and the by not alienating the best selling publishers it stands to loose little.
Barnes and Noble also leveraged its buying power to force changes on the publishing industry. Some of its current supplier publishers are adapting to this demand as Stuart Dolgins aptly described his firm’s changes to accommodate Barnes and Noble’s demand, "we're competing against ourselves, but if I didn't do this, somebody else would.” The publishing industry is ripe for change of this type. Like the music industry and the problems it currently has with the Internet and illegal copying of music, the publishing industry is content to demand high margins despite the cries of its consumers for lower prices. Barnes and Noble identified this customer demand and appropriated the resources to capture this share of the market. If Barnes and Noble succeeds in reconfiguring a new value for itself it will reshape the publishing industry through a reallocation of resources; Barnes and Noble will become the most efficient user of the available resources and thus reconfigure the industry’s supply chain. This will force other publishing companies to follow suit or find other markets and there will be winners and losers. The winners will ultimately be those firms that capture additional profits; the winners will also be the budding authors that are overlooked because of the risk they pose to a quick profit, as well as the consumers who have demanded less expensive books.
Based on this information I am indeed attracted to Barnes and Noble stock at its current price. I believe that the cost leadership and a differentiation strategy is well though out and has been well executed so far. I believe that Barnes and Noble will stand in the winner’s circle; along with budding (if not frustrated) authors like myself and many happy customers.
The cost leadership strategy consisted of publishing less expensive books that their customers demanded. By publishing these books internally they increase their profits. Differentiation was also prevalent in this strategy. Barnes and Noble focused outside of best seller categories, which account for only 3% of their sales, and thus they didn’t compete with their high profile publishers. This also allowed Barnes and Noble to retain the magnet of best selling books that attracted customers to their stores. The focus of publishing classics, atlases, illustrated coffee table books, and niche publishing markets such as out of print books, allowed Barnes and Noble to reconfigure new value and will eventually affect the share price.
Barnes and Noble’s strategy was sound and with the reallocation of resources should be poised to succeed. The conservative implementation of this strategy doesn’t commit all of Barnes and Noble’s resources at once and the success of the self published illustrated “coffee table” books points toward the success of this deeper venture into publishing. The mistakes made by Tommy Hilfiger Corp and Borders aren’t good comparisons because the venture of Barnes and Noble focuses on a market niche. Hyperion Robert Miller’s comments that “the niches Barnes & Noble is targeting will still leave room for general-interest publishers.” I agree with Mr. Miller’s assessment that Barnes and Noble’s move is savvy "since they don't pay a 50% markup [to a publisher], they can apply that advantage to price and still make more money than publishers selling the same Charles Dickens title." This makes solid business sense and the by not alienating the best selling publishers it stands to loose little.
Barnes and Noble also leveraged its buying power to force changes on the publishing industry. Some of its current supplier publishers are adapting to this demand as Stuart Dolgins aptly described his firm’s changes to accommodate Barnes and Noble’s demand, "we're competing against ourselves, but if I didn't do this, somebody else would.” The publishing industry is ripe for change of this type. Like the music industry and the problems it currently has with the Internet and illegal copying of music, the publishing industry is content to demand high margins despite the cries of its consumers for lower prices. Barnes and Noble identified this customer demand and appropriated the resources to capture this share of the market. If Barnes and Noble succeeds in reconfiguring a new value for itself it will reshape the publishing industry through a reallocation of resources; Barnes and Noble will become the most efficient user of the available resources and thus reconfigure the industry’s supply chain. This will force other publishing companies to follow suit or find other markets and there will be winners and losers. The winners will ultimately be those firms that capture additional profits; the winners will also be the budding authors that are overlooked because of the risk they pose to a quick profit, as well as the consumers who have demanded less expensive books.
Based on this information I am indeed attracted to Barnes and Noble stock at its current price. I believe that the cost leadership and a differentiation strategy is well though out and has been well executed so far. I believe that Barnes and Noble will stand in the winner’s circle; along with budding (if not frustrated) authors like myself and many happy customers.
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