Flowers in the Attic

Flowers in the Attic, Virginia Andrews The Dollanger family was a very happy and firm family. Father, mother, one daughter (Cathy), one son (Chris) and a twins (Carry and Cory). That evening father has become 36, everybody was dressed very chiquely and everyone waits with anguish for the moment of father’s arrival, but he doesn’t come. Two policemen come to the Dollanger’s house to tell that Mr. Dollanger is perished in a car accident. All the hearts of the family are broken. They had to move, because the bills can’t be paid anymore.

They want to move in with the parents of Mrs. Dollanger, extremely rich people. Mrs. Dollanger wants to re-win the affection of her father, which she has lost, because of something that happened in the past and he disinherited her of the thing that happened. Her father was going to die, so if she re-wins his affection and he makes her heiress again, they’ll soon be very rich. She writes a letter and after a lot of letters her parents agree with it. The children don’t want to move. After a long trip by train and by foot, they finally arrive at the house where Mrs.

Dollanger’s mother brings the children to a room they aren’t allowed to leave. They aren’t allowed to make noise and nobody must know that they (the four children) were in the house, especially grandfather, because he would send them straight away. When grandmother comes over to bring food the next morning, the children get a list of all the house rules and they have to learn them inside out. Grandmother isn’t nice. Cathy, Christopher, Carry and Cory go to the attic, the room where they discover the strange things. They also discover that there have been locked up more children in the attic.

After a while they want fresh air from outside, especially Carrie and Cory. In the evening their mother visits them and she looks very bad. Mother asks them how they have spent the day and the twins start complaining and yelling that they want to leave the room. They yell so hard that it drives grandmother crazy and she hits Cory and pulls Carrie up on her hair. Then the children find out how it is possible that mother looks so badly. She has been hitten with a whip and grandmother tells them she does the same with them if they don’t listen to the rules.

Mother tells them why her parents are so strict. (In the past she has always been the most valuable possession of her father and when she married her half-uncle, they saw this as a great sin). Mother will follow a secretary-course so that they can move out of the house very quickly. The children pass the very long and boring days with all sorts of games, then their mother tells them that grandfather has written under the letter, she had sent before they went to this house, that the only thing good about her marriage with her half-uncle has been that they didn’t have children.

That means that they aren’t allowed to leave the room until grandfather has died, because he may absolutely not know that they are in the house. To make the twins feel more comfortable in the scary attic, they start to make a garden of paper. After a while the twins get used to the idea that the garden of paper is, the only garden where they can go to, that they can’t go outside anymore. Cathy was sometimes troubled with crying-fits. In the meantime they are already two months in the attic. The holidays almost start.

At thanksgiving their mother brings them in secret a spread feast-meal and at Christmas she gives so much presents there isn’t a place in the room that’s free, but the nicest present she brings them is that her father makes her heiress again. The children have to win grandmother’s affection, they made a present for her, but she doesn’t take it. Cathy and Chris hide in a secret place their mother has showed them. Now they can look at the party what in honour of Christmas is given in the house.

They see their mother with a man the whole evening and they wonder what kind of relation they’ve got with each other. Chris takes the chance to look through the whole house. When Chris returns, his mother is in the room and she gives him a smash in the face so mad she is on the fact that Chris has left the room. She regrets it immediately but Chris and Cathy think she has changed. Chris tells Cathy that the man their mother was with the whole evening has kissed her. They now are a year in the attic. Cathy and Chris slowly begin to come into puberty.

They start growing up. Grandmother has catches Cathy (naked) and Chris (who is staring at Cathy) in the bathroom. She thinks it’s terrible and she wants to punish the children for this. They don’t get food until Cathy has cut off her hair. Ca-thy doesn’t want this and the next morning has grandmother Cathy’s (when she was sleeping) doused in tar. With difficulty they got it out. For two weeks they don’t get food. They were almost starved to death, they even have in mind to eat mice and Chris let the twins drink of his own blood.

Just when they want to escape out of the house, grandmother brings them a basket with food. Their mother doesn’t come to them anymore. Cathy and Chris go out of the house by an id of cheats, so they can go swimming in a lake. When they return they feel a lot better. In the meantime their mother hasn’t visit them for a month. On a rainy afternoon Chris stares sadly out of the window when grandmother comes in (they aren’t allowed to look out of the window). She orders him to go away by the window but instead of obey her he starts to abrise her.

Grandmother gets so furious that Cathy and Chris are thrashed by the whip. One morning there’s a mouse stocked in a mouse-trap, with one paw. Cory wants him as a pet, so there is a new mate, Mickey. After 2 months mother visits them again. But instead of embrace her, they read her a lecture. Cathy doesn’t believe her anymore and she is depressive she wants to commit suicide. Their mother will not visit them until they treat her with respect and love. After ten days mother comes again. She tells them she is married again and that she is very happy.

The children don’t like this of course. Cathy and Chris want to escape and they want to take the twins with them. Chris forges the key of the room and he steals money from his mother every day, so that they soon have enough money to live with. (At least for a while). When Chris is ill one day, Cathy goes out to steal. When she wants to enter the bedroom of her mother she sees her stepfather sleeping in a chair. She feels very attracted to him and kisses him while he is sleeping. When Chris goes out stealing, suddenly his mother and stepfather come in. He just can escape.

Chris and Cathy’s longing for passion grows. One evening they have sex with each other. Their mother has discovered that she misses money, but thinks the servant girls have done it. Cory gets ill. He has to be treated in a hospital. Grandmother and mother take him there, where he dies of pneumonia. (That is what mother and grandmother say). Now Chris Cathy and Carrie want to escape as quick as possible. When Chris the evening before they are leaving wants to steal the jewellery of his mother, everything in her bedroom has gone. Mother and stepfather have gone also.

He wants to steal from his grandmother but she is still awake, then he decides to steal from grandfather. (He sleeps in another room). He discovers the most horrible thing: Grandfather ha died a year ago and their mother didn’t tell them. They find out, Cory didn’t die a natural death, but he was poisoned by the castor powder that always was on the donuts grandmother gave them. They also find out that their mother would lose everything if it appeared that she has children. (This was in the testament). They escape out of the house after three years and five months. They finally can start a new life.

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Bioterrorism & Impacts

A DOCUMENTORY REPORT AND PRESENTATION ON Bioterrorism and Its Impacts Seminar on Contemporary Issues in Management Module: – 3 Submitted to INDUKAKA IPCOWALA INSTITUTE OF MANAGEMENT (I2IM) M. B. A PROGRAMME Constituent of Charotar University of Science and Technology Presented by SWETANG PANCHAL ROLL. NO. 09/ MBA/22 DECLARATION I, SWETANG R PANCHAL hereby declare that the DOCUMENTARY REPORT OF ‘SEMINAR ON CONTEMPORY ISSUES IN MANAGEMENT’ titled “BIOTERRORISM” is a result of my own work and my indebtedness to other work publications, if any, have been duly acknowledged. Place: CHANGA

Date: 09-12-2009SWETANG PANCHAL INTRODUCTION Bioterrorism refers to the intentional release of toxic biological agents to harm and terrorize civilians, in the name of a political or other cause. A bioterrorism attack is the deliberate release of viruses, bacteria, or other germs (agents) used to cause illness or death in people, animals, or plants. These agents are typically found in nature, but it is possible that they could be changed to increase their ability to cause disease, make them resistant to current medicines, or to increase their ability to be spread into the environment.

Biological agents can be spread through the air, through water, or in food. HISTORY The history of bioterrorism goes back as far as human warfare, in which there have always been efforts to use germs and disease as weapons. In the late 20th century, violent non-state actors began seeking to acquire or develop biological agents to use in attacks on civilians. Bioterrorism can be spread or disbursed by mainly three components, and those are Viruses, Bacteria, and Toxic chemical. MEDIUMS OF BIOLOGICAL ATTACK There are mainly three agents which can cause bioterrorism or through which bioterrorism can be out.

Agent A, Agent B, Agent C. Out of all of them Agent A are likely to do most of the damages to the human being as well as animals and natural resources. Category A Biological Diseases are those most likely to do the most damage. Below are the components of Agent A Some of the well known Viruses and Bacteria Viruses <> <> <> <> <> <> Bacteria <> <> <> <> <> <> living cells can make their own food and multiply separate and different from human cells easy to develop a drug that kills only bacteria (antibiotic) <> ot a cell need to invade a living cell to multiply lives inside human cells –parasitic ,hard to make a drug that kills viruses and not human cells CAPACITY OF DISTRUCTION , [pic] According to this pyramid, this pyramid shows the destruction power of the biological attack. The biological weapon has the most destruction capacity in it comparing to toxic chemical, radioactive chemical, atom bomb, and last but not the least nuclear attack. Biological weapon can carry out mass killing people as well as destructing animals, and harming to natural resource.

In 1993, a study by the Office of Technology Assessment concluded that “a single airplane delivering 100 kilograms of anthrax spores by aerosol on a clear, calm night over Washington D. C. , could kill up to 1 to 3 million people in a three hundred square mile area surrounding Washington D. C. ” FACTS NEEDS Creating biological weapon need not much investment. All you need is just some biotechnologist scientists, Samples of some viruses, bacteria, some biological toxins. EFFECTS OF BIOTERRORISM ? Mission Impossible 2. Etc TECHNOLOGICAL ADVANCEMENT STEPS FOR PREVENTION BIBLOGRAPHY <> <>

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Corporate Social Irresponsibility of City Limouzine India Ltd

A DOCUMENTARY REPORT AND PRESENTATION IN CORPORATE SOCIAL IRRESPONSIBILTY & ACTIVISM OF [pic] CITY LIMOUZINE INDIA PVT. LTD. Submitted to INDUKAKA IPKOWALA INSTITUTE OF MANAGEMENT M. B. A PROGRAMME Constituent of Charotar University of Science and Technology. (CHARUSAT) Presented by Swetang Panchal M. B. A Semester-1 09/MBA/22 DECEMBER 2009 DECLARATION I, Swetang Panchal, hereby declare that the SEMINAR ON CONTEMPORARY ISSUES IN MANAGEMENT titled “CORPORATE SOCIAL IRRESPONSIBILTY & ACTIVISM” is a result of my own work and my indebtedness to other work publication, if any, have been duly acknowledged.

Place: Changa Date: 5/12/2009Swetang Panchal CORPORATE SOCIAL RESPONSIBILITY Corporate Social Responsibility is the process by which managers within an organization thinks about and discuss relationships with stakeholders as well as their roles in relation to the common good, along with their behavioral disposition with respect to the fulfillment and achievement of these roles and relationships.

Corporate social responsibility (CSR), also known as corporate responsibility, corporate citizenship, responsible business, sustainable responsible business (SRB), or corporate social performance, is a form of corporate self-regulation integrated into a business model Ideally, CSR policy would function as a built-in, self-regulating mechanism whereby business would monitor and ensure its adherence to law, ethical standards, and international norms Business would embrace responsibility for the impact of their activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere Furthermore, business would proactively promote the public interest by encouraging community growth and development, and voluntarily eliminating practices that harm the public sphere, regardless of legality.

Essentially, CSR is the deliberate inclusion of public interest into corporate decision-making and the honoring of a triple bottom line: People, Planet, and Profit. The practice of CSR is subject to much debate and criticism. Proponents argue that there is a strong business case for CSR, in that corporations benefit in multiple ways by operating with a perspective broader and longer than their own immediate, short-term profits. Critics argue that CSR distracts from the fundamental economic role of businesses; others argue that it is nothing more than superficial window-dressing others yet argue that it is an attempt to pre-empt the role of governments as a watchdog over powerful Multinational Corporation ACTIVISM

Activism can be described as involvement in action to bring about change, be it social, political, environmental, or other. Activism means carrying out different series of events by mean of harming the people monetarily, physically, socially, and environmentally Corporate Social Responsibility consists of four types of responsibility which is also known as CSR model [pic] And CSR can be carried out by four ways which is mentioned below •Workplace •Marketplace •Environment •Social welfare CSR model for the company 1. Workplace • Is what company do for their Employees • Providing a safe and healthy work environment • Adopting fair labour policies 2. Market place Is how company is responsible to the market, Stake holders, and share holders etc • Being truthful in advertising • Avoiding price discrimination 3. Environment • Company’s responsibility towards the environment, what company doing for welfare or protect of environment 4. Welfare • Is what company contributes for welfare of the society • Donating to charity CORPORATE SOCIAL IRRESPONSIBILITY & ACTIVISM OF CITY LIMOUZINE LTD VISION To provide world-class solutions and services to our clients with innovative and creative ideas, comprehending the emerging technology and trends MISSION To share business issues with our clients by providing proactive, quality rofessional services in vehicle leasing and fleet management so that their precious time is spent on profit-generating activities and not in looking for solutions.. ORGANIZATIONAL DETAILS FACTS & MILESTONES investors were first passed successfully during the month of august of current year so company gained a tremendous trust of investors. OTHER SUBSIDIARY COMPANIES The company is not single company but it is a whole group of companies which includes: • City Hospitalities Ltd • City Limousines India Ltd • City Real COM Ltd • City Communication Ltd • City Trading LLC • City Airlines Pvt. Ltd. • City Co-Op Credit Soc Ltd • City Foundation • City Resorts • City Money Ltd ISSUES/ PROBLEMS AREAS The main problem are those whatever investors/customers are investing in the different schemes of the company was not paying back the returns to the customers after one or two times of returns. • Initially the City Limouzine company had advertised or marketised very interesting and higher return paying schemes in the market • But after a while when the customers invested in the different subsidiaries led by the company, the company stopped the payment to the customers as according to the agreement done with the customers • So those who have invested lacks of their money as an investment in the company got stucked and never been paid return • The company was only interested in making the money by introducing the different types of companies and different types of schemes there in All the subsidiary companies led by the City Limouzine India Ltd were fictitious company and they have no physical existence in context of corporate office address or anything else • There are thousands of legal complaints filed against the companies due to the fraud carried out by the company • There are thousands of legal enquiries conducted to search actually what was going on in the companies led by the City group • The Owner and other officials of the companies were of fraud minded, initially they started first big banner company with the name of City Limouzine India Ltd, and as the investors invested their money in the company, to gain their trust and of others of the market company also started another company for widen their operation and recruited the same kind of officials to carry forward the operation The Company was not at all concluding CSR, whatever it concude is only and only activism and corporate social irresposibilty • The activism industry is composed of organizations and individuals who make a living from activism, involvement in action to bring about change. The number of organizations who employ people to perform this work is sufficiently large that Activism is now a job classification Movements across the political spectrum can be described as activist in nature. COMPARISON OF ORGANIZATION The company was not having or even exercised CSR from very beginning or did not tried to or attempt to qualify for CSR activities, whatever the company done is activism and corporate social irresponsibility for the customers. FUTURE OUTLOOKS

The company was laterally dissolved as the owners and company officials of the company being placed behind the bars because of carrying out such unethical acts, so far as future is concerned the company has lost his opportunity to take ahead their company and to give the company a wonderful future. The company is nowhere today. SOURCES http://www. citylimouzines. com/group. html, Date: 4/12/09 www. consumercomplaints. in/… /city-limouzines-india-ltd-c253425. html, Date: 4/12/09 http://www. news-relay. com/latest-news/city-limouzines-india-limited-closed-after-financial-fraud/ Date: 4/12/09 ———————– Economic Responsibility Legal Responsibility Social Responsibility Ethical Responsibility CSR Model

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Global Warming & Impacts on Glaciers

GLOBAL WARMING AND IT’S EFFECTS ON GLACIERS Global Warming The average global temperature has raised more than expected in the past few decades. Many prefer to use the milder term ‘climate change’ instead of the harsher ‘global warming’ to describe this change in average global temperature. The main cause of global warming is thought to be the ‘greenhouse effect’ that is mainly caused by us humans.

With an increase in temperature glaciers worldwide are melting faster than the time taken for new ice layers to form, sea water is getting hotter and expanding causing sea levels to rise, rivers overflow due to melting glaciers causing floods, forest fires are on the rise, and innumerable undesired effects are taking place due to global warming. The Greenhouse Effect The ‘greenhouse effect’ takes place when certain gases in the atmosphere of the earth trap heat. The term ‘greenhouse’ is used because light is allowed to reach the earth, but most of the heat generated is not allowed to escape, just as in a greenhouse.

The more the greenhouse gases in the atmosphere, the more heat will be trapped within the earth’s atmosphere, causing average earth temperatures to rise. The greenhouse effect was first described by Joseph Fourier way back in 1824. The earth’s temperature has increased by half a degree Celsius over the past century due to an increase in greenhouse gases. This slight increase may seem negligible, but the earth’s ecosystem is very fragile, and even such small changes can prove disastrous.

Greenhouse gases are a natural part of the atmosphere and the main sources of these greenhouse gases are carbon dioxide, methane, nitrous oxide, and fluorocarbons. Increased greenhouse gases in the past century can be attributed to human activity such as burning of fossil fuels such as coal, oil, and natural gas, reduced forest cover due to deforestation, increase in atmospheric methane gas due to mass rearing of cattle (in the process of digestion cattle and sheep produce and release methane into the atmosphere). Glaciers

Glaciers are formed by snow that gets compressed and forms a thick ice mass over time. This ice begins melting when the temperature rises, and is again replaced by a fresh layer of snow. This process goes on and the glacier keeps getting bigger over time. The problem with any glacier begins when the ice melts at a faster rate than the snow that replaces it. The glacier will keep receding over time and will finally vanish. Melting Glaciers The melting of glaciers is a natural process. Many communities worldwide depend on the fresh water from these melting glaciers for their domestic use.

Some countries depend on the melting water from glaciers for their production of electricity. Agriculture in many nations depends primarily on melting glacier water that flows in their rivers. All this melting water is constantly replaced by fresh snow that compresses into ice over time and will subsequently melt into water. This cycle goes on and on maintaining a perfect balance in the generation of fresh water and size of the glacier. Glaciers Worldwide are Melting Fast The last century has been a problem for glaciers across the globe. They are melting, but at an alarming rate.

Fresh snow that replaces the melting ice is not able to maintain the size of almost any glacier worldwide. One of the main causes for this is thought to be ‘global warming’. As the average global temperature keeps on increasing, ice from glaciers keep melting faster. The effects of ice glaciers melting more than required can cause catastrophes of unimaginable proportions. If global warming is causing ice glaciers to melt faster, the reduced ice cover over earth in turn is causing temperatures to rise further. Ice glaciers deflect almost 80% of the heat from the sun and absorb about 20% of the heat.

When an ice glacier vanishes and exposes the earth below, 80% of the heat from the sun is absorbed by the earth, and only about 20% of this heat is deflected back. This increases the temperature of the earth, which increases the temperature of sea water. Sea water expands with an increase in water temperature and causes sea levels to rise. Melting water from glaciers will finally empty into the sea, causing a further increase in sea levels. All low lying areas near the sea will go under water and humans living here will be displaced.

At the rate at which sea levels are rising, it is estimated that many South American and Asian countries will be the first to suffer from this effect. There are many more effects that rapidly melting glaciers cause. While some areas will witness unprecedented floods, other areas will witness severe draught. Whether witnessing floods or draught, agriculture will be severely hit, causing scarcity of foodgrains. Nations depending on hydroelectricity will have to switch over to other sources to generate their electricity, in effect further polluting the atmosphere.

Forest fires will happen more frequently (they already are in Australia and the US) causing great stress to humans living in the vicinity. The bad effects of rapidly melting ice glaciers are limitless. Glaciers – What Are They? Glaciers are snow that have been compressed over the years by more snow, finally forming into huge masses of solid ice. Glaciers – How Are They Formed? Glaciers are formed when the snow that has fallen remains long enough to get compressed by fresh snow and turn into solid ice. Almost throughout the year new layers of snow will fall and compress the layers below.

For a glacier to form it is very important that the amount of snow that falls in a given year must by more than the amount of glacier ice / fresh snow that has melted. It is only in this way that any glacier can increase in size. If the amount of fresh snow is less than the amount of melting ice / snow then the glacier will diminish in size and gradually vanish. This is exactly what is happening with almost all glaciers worldwide today. Glaciers that have taken centuries to form are melting at an alarming rate. Some well known glaciers have diminished in size and some have become extinct; all in the space of just the past 100 years.

Glaciers – Do They Melt Normally? The melting of glaciers is a perfectly normal process. All glaciers worldwide melt to some extent during warmer climates. Certain glaciers melt constantly, but are replenished with the falling of more snow. Many communities worldwide depend on these melting glaciers for all their freshwater needs. Pure and fresh drinking water and water for farming is supplied by these glaciers, without which these communities would have to move and settle down where other sources of fresh water are available.

Some nations depend on this constant flow of water from melting glaciers to produce hydroelectricity that is cheap to produce and extremely eco-friendly. This process of glaciers melting is perfectly normal as long as the amount of ice that is melting is replaced by the same or more amount of fresh snow. A serious problem occurs when things go the other way — the ice melts too fast and the fresh falling snow is not able to replace it. When this happens, the glacier will gradually begin diminishing in size and will in time vanish completely. Glaciers – What If They Melt Totally?

Many glaciers across the world are diminishing in size each year. Some well known glaciers of the past have just melted away, never to return. The speed at which glaciers are melting today is getting greater and greater with each passing year. Almost everyone today agree to one major cause for this — ‘Global Warming’. Many persons / communities that depend totally on melting glacier water for drinking and irrigation purposes have already felt the horrible effects that fast melting glaciers bring with them. Fast melting glaciers are very bad not just for us humans, but even for animals, birds, fish, and marine plants.

What if all the glaciers present today melted? It would have far reaching negative impacts on everything present on earth. Glacier Water Formed Lakes Could Burst Glaciers that are melting faster than normal create lakes on the mountainsides as they flow. The size of these lakes keep on increasing with time. The walls that hold these lakes can bear pressures only upto certain limits. Once the water in these lakes increase to levels where these water holding limits are crossed, there is just one thing that can happen. The lake will burst. Since these lakes are huge in size, the sudden amount of water released by the bursting will be tremendous.

The force of this water will destroy anything that comes in its way; including entire villages settled on the bottom of such mountains. This is not something that we think will happen; such lake bursts are a current reality and have already happened (Nepal in Asia) causing tremendous loss to the villagers who were affected by it. Many places in Nepal and Bhutan in Asia still face grave dangers from many lakes that are increasing in size and could burst anytime. Floods When the amount of ice / snow melting on mountains increases above normal, it will cause a lot of water to be released into streams and finally the rivers it feeds.

This will cause flooding all along the river banks. All those living in low lying areas in close proximity of the rivers will be affected. The amount of havoc that floods can create is very well known worldwide. People affected will have to relocate to safer regions. Floods bring with them tremendous misery. Water borne disease will be widespread and very difficult to curtail. There will be water everywhere, but pure drinking water will not be available. Irrigated farmlands will drown and crops will be destroyed. Living in such areas will not be humanly possible. Draught

If floods can be caused by fast melting glaciers, how can draught too be a part of it. Yes, draught will be a reality in places with fast melting glaciers. Once these glaciers have completely melted the streams and rivers they feed will run dry. People depending on these sources for all their fresh water needs will not have any source of freshwater (unless fresh groundwater is available). Entire villages will have to resettle elsewhere. Places that are abundant in the production of crops for their needs and also the needs of others will face famine. Food grains will be in short supply.

Sea Level Rise We are already witness to a sea level rise in the past century. This rise is of minor proportions, but if the sea continues to rise further it could have devastating effects. Persons living in low-lying areas on the seashore will be the first to be affected. Entire areas around the seashore will be flooded, making it compulsory for persons in close vicinity to relocate. All fresh groundwater in the surrounding areas will get contaminated with sea water which will be unfit for human consumption and for agriculture. Global Temperatures Will Rise Further

Glaciers absorb approximately 20% heat from the sun, reflecting the remaining 80% back into space. When these glaciers melt and expose the earth below, exactly the opposite will take place. Earth will absorb 80% of heat and reflect back just 20% into space. This in turn will cause global temperatures to rise further. This increase in global temperature will help in melting the remaining glaciers faster. This is a very vicious circle that will continue. Animals, Birds, and Fish Will Be Affected Many species of animals, birds, and fish that depend on the fresh melting waters of glaciers that empty into the sea will be affected.

Many fish in such areas depend for their food on the coral reefs that are in abundance. These coral reefs depend on sunlight for maintaining their health. When sea levels rise, the sunlight that these corals receive will diminish. These coral reefs may deteriorate or even vanish. This will affect the fish that feed on it. Birds and animals that depend on these fish for survival will be affected due to a shortage of fish. Humans in such areas depending on these animals, birds, and fish for food will be affected. Who is Responsible for Vanishing Glaciers? We are. All of us are responsible for vanishing glaciers.

Almost everyone today believes that the prime cause of fast vanishing glaciers is global warming. The industrial revolution of the past century started it all, and it has just got worse with every passing year. Greenhouse gas emissions are at an all time high. We all contribute in some way to global warming. Only we can save the situation from getting any worse. We may not be able to reverse the situation, but by living in a responsible manner we may be able to drastically slow down the process of global warming. This may not help us much today, but it will surely have a positive effect on the generations to come.

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Arun Ice Cream Case Report

A DOCUMENTARY REPORT AND CASE ANALYSIS OF ARUN ICE CREAM Submitted to INDUKAKA IPKOWALA INSTITUTE OF MANAGEMENT M. B. A PROGRAMME Constituent of Charotar University of Science and Technology. (CHARUSAT) Presented by Swetang Panchal M. B. A Semester-1 09/MBA/22 DECEMBER 2009 DECLARATION I, Swetang Panchal, hereby declare that the DOCUMENTARY REPORT AND CASE ANALYSIS titled “ARUN ICE CREAM” is a result of my own work and my indebtedness to other work publication, if any, have been duly acknowledged.

Place:Changa Date:13/11/2009 Swetang Panchal Facts of the company Extracts Arun Ice cream was an Ice cream maker & distributor company established by the person named R Chandramogan, son of vegetable wholesaler from the south Indian state Tamilnadu. He was completely inexperienced person and did not complete his college studies as he discontinued at very pre university stage, but he had a strong urge to run the business and to succeed as a businessman.

Initially he did not know what the business to go for but after the suggestion given by his uncle he went for the ice cream business. He started with a small premise in busy locality of Madras with which he got succeeded and moved to three fold expansion in just second year of its commencement which was turned out and again resumes to previous old premise! He continuously improved the quality of his product to meet the needs of customers thus he captured the market of the hotels. Chandramogan was applying trial & error method in his business!

As Chandramogan was searching for niche market for his business he captured the rest 5 % market of educational institution and shipyard chandlers about 95 % about 1975. Talking about this 5 % market the rest 95 % market was occupied by other big banner competitor! He also approached the district market of Tamilnadu completely ignored by competitor and captured the market with the sound strategies! As his market for product grew up his sales were also taking place in high proportion and became enough financially sound to payback the debts and to earn enough.

Chandramogan identified Pondicherry, Madurai, Kumbakonam, and Sivakasi as the potential market and began advertising in such market to create brand awareness and to establish Arun as a strong brand, thus he also captured these market because these markets were also ignored by the competitor. Initially he started selling Ice cream in such area on ad hoc basis but then he gained the market and also the offer from franchisee agent who was keen to invest in the Arun’s franchisee, this lead to birth of franchisee market of Arun Ice cream which was grown very teadily that even other agents were also began to invest in Arun ice cream in their own freezers. In 1991 Chandramogan also established another high capacity plant in Salem close to Kerala and Karnataka and in the milk belt which facilitated procurement of milk. Through regular advertisements and marketing his product Chandramogan established chain of franchisee parlours of Arun ice cream. Arun emerged as the largest ice cream manufacturer in Tamilnadu with turnover raised to 28 million from 150000 in 1970 and 425000 in 1981.

Chandramogan established ‘seat and eat’ themed parlour in Madras suburbs and outskirts, By the year 1999 Arun emerged as owner of the 60 % market share of Tamilnadu and 36 % of four south Indian states. Arun began to introduce 7 to 10 new flavours every year and thus Arun’s product folio consist of 30 to 35 flavours at any given time! Arun also acquired a fully automatic plant in Red Hill area with capacity of 15000 litres of ice cream mix every day. And began operated in 1995. Because of the investment restriction The Madras plant was setup under a separate firm named Hatsun milk Products though it was fully established by R Chandramogan.

Because of the continuous advertising and promotioning of the brand Arun began to earn tremendous attention of the customers and also began to be supported by the large numbers of the franchisee agents which played a crucial role in emerging as a big banner production and distributor of ice-cream company! VISION ? To expand the company and make the company as owner of largest portion of markets share through continuous expansion and by increasingly satisfying the new and sustained customers! MISSION ? To provide best quality of ice-cream to continuously expanding customers.

Company’s different ventures ? Established first ice-cream manufacturing plant in Madras under the firm name Hutsan Milk Products ? Established another completely new plant in Salem nearby Kerala and Karnataka in 1991 ? Established another new fully automatic manufacturing plant in five acre land on Red Hill area on the outskirts of Madras city. ? Established a Depot in Madurai in 1995 for handling distribution over franchisees located in Tamilnadu, with adequate cold storage facility ?

Established 700 franchisees outlets in Tamilnadu, Karnataka, Kerala and Andhra Pradesh for continuous meeting the needs of increasing customers by the year 1991 Core Competencies ? Chandramogan had a strong urge to become successful as businessman ? He continued business with strong advertising and promotioning activities to establish and more grab more numbers of market share ? 3 major ice-cream manufacturing plant in Madras, Kerala and Karnataka ? Excellent management over distribution handling over depot ? 700 franchised outlets Having 60 % ownership of market share of Tamilnadu and 36 % of four south Indian states ? Continuous striving for new market and trying to satisfy as much as new customers with best services and products ? Good personal level of relationship with all franchisee owner agents ? Established milk collection centres in major milk producing villages close to ice cream plant ? Warm relationship with all milk producers and dairy farmers ? Maximum satisfaction to dairy farmers in pick season of milk ? Rich product folio of 30 to 35 products available at any given point of time Advanced sales promotion activities in which participant can take part and have the product at very negligible price for making customers aware about different types of products ? Excellent promotional campaigns for overall marketing plan ? High margin proportion for franchisee handling agents at 20 to 25 %, comparing to major competitor at 12 to 15 % STRATEGIES & PLANNING ? He focuses the key selling point like addressed to outside the locality and focus on 5% market which are general stores, hotel, restaurant, college canteen and social events like wedding parties. He met to agents who procured and supplied to various ship line and understood special requirement regarding packing and delivering to capture the market. ? Where fresh ice-cream was not got, he had plan to supplied ice cream on ad hoc basis through agent within 4-5 days of the booking. ? Because of imbalance in seasonal demand, milk which is the key input was procured from the farmer by collection center and he offered guaranteed procurement of certain quantity of milk based on his lean season and peak season, pay higher price. ? He sourced other input and ingredients such as sugar, fruits, packing material, etc. rom leading wholesaler/ manufacturer. ? He transported his supply by railway or by refrigerated vehicles and also planed to set up new plant in 250-300km. radius area to provide effective service with average 7 to 10 flavors ice cream with the product port folio of 30 t0 35 products. SWOT ANALYSIS STRENGTH ? He was risk taker and very enthusiastic person with strong thinking of “doing something “ ? Provide vast variety of product with 30 to 35 different favor ice cream ? There was a strong symbiotic relationship between the company and its franchises. He recruited well skilled and experienced manager in head of division. ? There were 700 outlets and 120 franchises and market share around 36% in south India. WEAKNESS ? He uses single tier distribution strategy, directly supplying to the retail customer sales. ? He did not have the excellent capabilities of anticipating the future demand ? He gave his franchises to relatives and uneducated people ? Vast advertisement without proper assessment of financial position ? He sold his product to such area where transportation services took more expensive. Don’t match demand when there is a pick season because of shortage of milk and other material. OPPORTUNITY ? There is a huge network of franchises and it will expand ? There is good chance to stand in competitive environment after emerging in Hatsun Milk Food Ltd. ? There were lot of variety in product for demand and growth of business ? It has cover 60% market so good sign to future growth through set up new plants. ? Advertising & promotioning of brand made his company strong in terms of market share & brand recognition

THREATS ? There are various competitors which are giving their best in grabbing the market share ? Chandramogan was not having specialized knowledge in managing the business ? Distribution channel was not so wide to cover all the marker share PROBLEM IDENTIFYING FACTS ? He did not believe in delegation of authority, he used to take the decision on his own! ? He was applying ‘trial & error’ method in business ? Initially he stepped in market with vastly improved service and deliveries they were unaccustomed to He had restricted big banner ,elderly, & highly potential franchisees agents to join him as franchisee agent ? Initially the problem arose because of the seasonal demand-supply imbalance in respect of the product and its extremely short shelf life ? Even despite the financial crisis, he continued to increase the numbers of franchisees on one hand and in the variety of ice-cream flavours on the other hand. ESTABLISHING PROBLEM ? Because of the centralization of the authority & no delegation of responsibility over the wide franchised network, nobody is able to take key decision in meantime Chandramogan was applying ‘trial & error’ method in business which sometimes became worst nightmare for him ? Chandramogan was very enthusiastic about the expansion and approaching the different beneficiary projects, this led the company to financial imbalancement of the company during the expansion and establishing the plants ? He was making more expenditure on advertising and promotioning the brand and products of the company which also played significant role in financial imbalancement GENERATE ALTERNATIVE Minimizing expenses over advertising and promotioning the brand can lead to effective utilization of the resources towards a better management of company ? He should improve his decision making skill and he should learn some of the strategies about the business marketing-promotioning & expansion of the business ? He should invite the suggestions from the all its franchisee agents because there are the franchisee agents who are directly dealing with the customers so they can better understand the customers He should appoint high educational people who help him to lead business in good position. ? The remote area where no transportation facilities available in that case they have to supplies in fixed period so that cost can be minimized ? He should have the capabilities of forecasting the future and to act according to the customers trends ? He should establish such a small various numbers of the distribution channels area wise which can distribute its products effectively to the customers in meantime EVALUATE THE ALTERNATIVES ? Chandramogan improving his skills and appointing some experts person ould lead his business at good position. ? Inviting the suggestions from the all over its franchisee agents can lead the company towards a better understanding the needs of the demand of the customers. ? Suggestion from agents, franchisees members and customers will help to fill defects in production, marketing and distribution areas. ? Learning from past events and anticipating the future events can lead the company towards excellent grabbing the market share and establishing the increasing numbers of customers in very lean time Establishing excellent system of distribution channels can lead the company to reach every customers and satisfy them, thus maintaining the good relationship between the supplier and consumer BEST ALTERNATIVE Recruitment of highly trained and technically experienced people lead the company in better way in context of reaching the customers and taking the decisions related to minimizing the cost expenditure taking place on advertising and promotioning the brand and steps related to expansion and diversification of the business.

CONTIGENCY PLAN The company should most importantly recruit best personnel for the technical and distribution task of the company for better management of the company. The company should establish such a distribution channel which can efficiently reach every franchisee agents thus reaching every customer. The Company should control their expenditure on advertising & promotioning the brands so that available resources can be used for different development purpose.

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1. Introduction. Tesco a leading food retailing company founded in 1924 by Sir Jack Cohen who used gratuity from his Army service to start selling groceries in London’s East End markets. The food and drink retail sector r?pr?s?nts the largest industry in the UK, providing ?mploym?nt for over thr?? million people in primary production, manufacturing and retailing. In 2003 retail accounted for 9% of gross domestic product (Data monitor, 2003).

In recent years UK supermarkets have come under increased scrutiny over their treatment of suppliers, particularly of own-label products, yet the d?v?lopm?nt of strategic supply networks has b??n an integral part of most supermarket strategies for the past decade. The report below provides an insight into the supermarket company, Tesco, with emphasis on its ?xt?rnal ?nvironm?nt analysis and company’s analysis of resources, comp?t?nc? and culture. Two future strategic options are suggested in regards to the resources based strategies.

Tesco is one of the largest food retailers in the world, operating around 2,318 stores and employing over 326,000 people. It provides online services through its subsidiary, T?sco. com. The UK is the company’s largest market, where it operates under four banners of Extra, Superstore, Metro and ?xpr?ss. The company sells almost 40,000 food products, including clothing and other non-food lines. The company’s own-label products (50 p?rc?nt of sal?s) ar? at thr?? l?v?ls, valu?, normal and fin?st. As w?ll as conv?ni?nc? produce, many stor?s hav? gas stations, b?coming on? of Britain’s larg?st ind?p?nd?nt p?trol r?tail?rs.

Oth?r r?tailing s?rvic?s off?r?d includ? T?sco P?rsonal Financ?. 2. 0 Vision. “Our core purpose is to create value for customers to earn their lifetime loyalty. We do this through our values and code of conduct, the way we choose to work at Tesco. Our values are summed up in two phrases – ‘no-one tries harder for customers’ and ‘treat people how we like to be treated’. ” Tesco customer values are their commitment to understanding customers better than anyone, and using Their strengths to deliver unbeatable value for Tesco customers. They do this through Every Little Helps, three little words that basically sum up what Tesco is all about.

But what does it stand for? Well, they used to be a business that was doing things very well. But they decided they wanted to do more for our customers than that. So we did quite a remarkable thing. They asked costomers what they wanted from Tesco. Costomers reminded tesco of one important fact. Nobody loves doing the shopping. The “oh, we’ve run out of sugar – and we need some more loo roll” kind of shopping. So, Tesco figured that they needed to do something to make shopping more bearable. So Every Little Helps was born. And it covered a whole range of initiatives. To help mums, Tesco put nappy changing facilities in stores.

To speed up queues, they started packing customers’ bags. And if someone wanted a fatter melon, Tesco let them swap. It’s summed up in two phrases – ‘no-one tries harder for customers’ and treat people how we like to be treated’. And as part of Every Little Helps, Tesco developed a list of customer promises: • I can get what I want • The aisles are clear • The prices are good • I don’t have to queue • The staff are great Sounds simple, doesn’t it? But the funny thing is, it works. And it helps everybody at Tesco to understand why we’re here and what Tesco aiming to achieve.

Obviously, at the end of the day, Tesco is a commercial business. And naturally, they aim to be a highly successful one. But Every Little Helps is part of that too. Because by looking after Tesco customers and giving them something that makes their lives a little bit easier, Tesco will grown and grown. And, as you’ll see in our working enviroment section, Every Little Helps applies just as much to Tesco’s own people. Tesco made similar promises to them. About being respected. About being helped at work. About having the chance to get on. And about doing something interesting that allows them to use their initiative and be creative.

Because if Tesco not looking after them, then Tesco not looking after their customers. So with Every Little Helps everybody wins really. 3. 0 Mission. “Creating value for customers, to earn their lifetime loyalty. ” Business Objectives Company Mission Statement is a qualitative statement of an organization’s aims. It uses language intended to motivate employees and those within the firm and convince customers and suppliers and those outside the firm of its sincerity and commitment. Tesco has a Company Mission Statement, which is also represented as an image. This statement is at the centre of all, which Tesco do. “Creating value for customers, to earn their lifetime loyalty. ” Tesco have two values that force the way they do business, which are: No one tries harder for customers: * Understand customers better than anyone * Be energetic, be innovative and be first for customers * Use our strengths to deliver unbeatable value to our customers * Look after our people so they can look after our customers treat people how we like to be treated: * All retailers, there’s one team… The Tesco Team * Trust and respect each other 4. 0 Tesco Business Objectives A Company Mission Statement is a qualitative statement of an organization’s aims.

It uses language intended to motivate employees and those within the firm and convince customers and suppliers and those outside the firm of its sincerity and commitment. An objectives or goal ssis a target that must be achieved in order to realise the stated aim. It tends to be a medium to long term and set in order to coordinate business activity, guides the actions. Tesco have resent objectives which they are working on to achieve such as: * To become a satisfying place to work by giving their staff the opportunity to be themselves, actively encouraging their health and well being and support their work/life balance needs. Tesco’s target is to expand their sale of organic produce to 1 billion pounds over the next five years. * Tesco now have a 5% market share in Non-food business. Their goal is to be as strong in non-food as in food. Tesco have many objectives in the past, which included: * Tesco’s target is to expand their sale of organic produce to 1 billion pounds over the next five years. This could be done by supplying more organic products, which therefore will increase the number of customers for organic products, and leading to an increase in sales. Last year, Tesco set a target to build 80% of their new stores and extensions on brown field sites. Which they managed to exceed, achieving 90%! I no this because they have built many new stores over the world such as china, hungry etc. these new stores will attract many customers in the area which will help the firm expand. P?st?l Analysis. Political Factors Operating in a globalized ?nvironm?nt with stores around the globe (Tesco now operates in six countries in Europe in addition to the UK; the Republic of Ireland, Hungary, Czech Republic, Slovakia, Turkey and Poland.

It also operates in Asia: in South Korea, Thailand, Malaysia, Japan and Taiwan), Tesco’s performance is highly influenced by the political and legislative conditions of these countries, including the ?urop?an Union For ?mploym?nt legislations, the government ?ncourag?s retailers to provide a mix of job opportunities from flexible, lower-paid and locally-based jobs to highly-skilled, higher-paid and c?ntrally-locat?d jobs (Balchin, 1994). Also to m??t the demand from population categories such as students, working parents and senior citizens. Tesco understands that retailing has a gr?at mpact on jobs and people factors (new store d?v?lopm?nts are often s??n as destroying other jobs in the retail sector as traditional stores go out of business or are forced to cut costs to compete), being an inherently local and labour-int?nsiv? sector. Tesco employs large numbers of; student, disabled and ?ld?rly workers, often paying them lower rates. In an industry with a typically high staff turnover, these workers offer a higher level of loyalty and there fore r?pr?s?nt desirable ?mploy??s. Economical Factors Economic factors ar? of conc?rn to T?sco, b?caus? they ar? likely to influence demand, costs, prices and profits.

On? of th? most influential factors on th? economy is high unemployment levels, which d?cr?as?s th? ?ff?ctiv? demand for many goods, adversely aff?cting th? demand r?quir?d to produc? such goods. These economic factors ar? largely outside th? control of Th? Company, but th?ir ?ff?cts on p?rformanc? and th? mark?ting mix can b? profound. Although int?rnational busin?ss is still growing, and is ?xp?ct?d to contribut? gr?at?r amounts to Tesco’s profits ov?r th? n?xt f?w y?ars, th? company is still highly d?p?nd?nt on th? UK mark?t.

H?nc?, T?sco would b? badly aff?ct?d by any slowdown in th? UK food mark?t and ar? ?xpos?d to mark?t conc?ntration risks. Social/Cultural Factors Curr?nt tr?nds indicat? that British custom?rs hav? mov?d towards ‘on?-stop’ and ‘bulk’ shopping, which is du? to a vari?ty of social chang?s. T?sco hav?, th?r?for?, incr?as?d th? amount of non-food it?ms availabl? for sal?. D?mographic chang?s such as th? aging population, an increase in female work?rs and a d?clin? in home m?al pr?paration m?an that UK r?tail?rs ar? also focusing on add?d-valu? products and s?rvic?s.

In addition, th? focus is now towards; th? own-lab?l shar? of th? busin?ss mix, th? supply chain and oth?r op?rational improv?m?nts, which can driv? costs out of th? busin?ss. National r?tail?rs ar? incr?asingly r?tic?nt to tak? on n?w suppli?rs. Th? typ? of goods and s?rvic?s d?mand?d by consum?rs is a function of th?ir social conditioning and th?ir cons?qu?nt attitud?s and b?li?fs. Consum?rs ar? b?coming mor? and mor? awar? of h?alth issu?s, and th?ir attitud?s towards food ar? constantly changing. On? ?xampl? of T?sco adapting its product mix is to accommodat? an incr?as?d d?mand for organic products.

Th? Company was also th? first to allow custom?rs to pay in ch?qu?s and cash at th? ch?ckout. T?chnological Factors T?chnology is a major macro-?nvironm?ntal variabl? which has influ?nc?d th? d?v?lopm?nt of many of th? T?sco products. Th? n?w t?chnologi?s b?n?fit both custom?rs and th? company: custom?r satisfaction ris?s b?caus? goods ar? r?adily availabl?, s?rvic?s can b?com? mor? p?rsonalis?d and shopping mor? conv?ni?nt. Th? launch of th? ?ffici?nt Consum?r R?spons? initiativ? provid?d th? shift that is now appar?nt in th? manag?m?nt of food supply chains (Datamonitor R?port, 2003).

T?sco stor?s utilis? th? following t?chnologi?s: • Wir?l?ss d?vic?s • Int?llig?nt scal? • ?l?ctronic sh?lf lab?lling • S?lf ch?ck-out machin? • Radio Fr?qu?ncy Id?ntification (RFID). Th? adoption of ?l?ctronic Point of Sal? ?l?ctronic Funds Transf?r Syst?ms and ?l?ctronic scann?rs hav? gr?atly improv?d th? ?ffici?ncy of distribution and stocking activiti?s, with n??ds b?ing communicat?d almost in r?al tim? to th? suppli?r. ?nvironm?ntal Factors In 2003, th?r? has b??n incr?as?d pr?ssur? on many compani?s and manag?rs to acknowl?dg? th?ir r?sponsibility to soci?ty, and act in a way which b?n?fits soci?ty ov?rall.

Th? major soci?tal issu? thr?at?ning food r?tail?rs has b??n ?nvironm?ntal issu?s, a k?y ar?a for compani?s to act in a socially r?sponsibl? way. H?nc?, by r?cognizing this tr?nd within th? broad ?thical stanc?, Tesco’s corporat? social r?sponsibility is conc?rn?d with th? ways in which an organization ?xc??ds th? minimum obligations to stak?hold?rs sp?cifi?d through r?gulation and corporat? gov?rnanc?. Grais?r and Scott 49 stat? that in 2003 th? gov?rnm?nt has int?nd?d to launch a n?w strat?gy for sustainabl? consumption and production to cut wast?, r?duc? consumption of r?sourc?s and minimis? ?nvironm?ntal damag?.

Th? lat?st l?gislation cr?at?d a n?w tax on adv?rtising highly proc?ss?d and fatty foods. Th? so-call?d ‘fat tax’ dir?ctly aff?ct?d th? T?sco product rang?s that hav? subs?qu?ntly b??n adapt?d, aff?cting r?lationships with both suppli?rs and custom?rs L?gislativ? Factors Various gov?rnm?nt legislations and policies hav? a direct impact on th? p?rformanc? of T?sco. For instance, th? Food Retailing Commission suggested an ?nforc?abl? Code of Practice should b? set up banning many of th? currant practices, such as demanding payments from suppli?rs and changing agr??d prices r?trosp?ctiv?ly or without notice.

Th? pr?s?nc? of powerful competitors with ?stablish?d brands crates a threat of intense price wars and strong r?quir?m?nts for product differentiation. Th? government’s policies for monopoly controls and reduction of buyers’’ power can limit entry to this sector with such controls as license r?quir?m?nts and limits on access to raw materials In order to implement politically correct pricing policies, Tesco offers consumers a price reduction on fuel purchases based on the amount spent on groceries at its stores.

While prices are lowered on promoted goods, prices ?ls?wh?r? in the store are raised to compensate. SWOT Analysis Tesco is the top grocer and leading retailer in its home market of the UK. Pitched at the broad middle mass-market, it has maintained its position through a clear focus, well targeted product offer and ?xc?ll?nt record both in product and format innovation. Tesco also leads the world in online grocery retailing. In the UK the company concentrates on running grocery superstores, c-stores and an online service. ?ls?wh?r? the focus is usually on hypermarkets.

In 2003, the group’s trading record around Europe and UK has b??n outstanding. Strengths Increasing market share Tesco holds a 13% share of the UK retail market. Its multi-format capability means that it will continue to grow share in food, while increasing space contribution from hypermarkets will allow it to drive a higher share in non-food. Tesco’s general growth and ROI show no sign of abating In the UK, Tesco’s late 2002 investment into West-midlands based convenience store group T&S was billed as the most aggressive move into the neighborhood market by a big-name retailer so far.

The deal has turned Tesco into the country’s second biggest convenience store chain after the Co-operative Group, and the company also plans to open up 59 new stores in the UK this year. Tesco has grown its non-food division to the extent that its revenues now total 23% of total group earnings. Tesco’s international business segment is growing steadily, and is predicted to contribute nearly a quarter of group profits over the next five years. If geographical spread continues to grow, this will ensure Tesco’s continued regional strength. Insurance

In fiscal 2003 Tesco Personal Finance reached the milestone of one million motor insurance policies, making it the fastest growing motor insurance provider ever. The group’s instant travel insurance allows Club card holders to buy their holiday insurance conveniently at the checkout. Pet insurance now has over 330,000 cats and dogs covered, while the life insurance policy followed on from the success of last year, when it was voted The Most Competitive Life Insurance Provider in the Money Facts Awards 2003. Tesco online Tesco. com is the world’s biggest online supermarket and this year the group had sales of over ? 77 million, an increase of 29% on last year. Tesco online now operates in over 270 stores around the country, covering 96% of the UK. With over a million households nationwide having used the company’s online services, the company has a strong platform to further develop this revenue stream. Brand value Profits for Tesco’s operations in Europe, Asia and Ireland increased by 78% during the last fiscal year. The company has a strong brand image, and is associated with good quality, trustworthy goods that represent excellent value.

Tesco’s innovative ways of improving the customer shopping experience, as well as its efforts to branch out into finance and insurance have also capitalized on this. UK market leadership reinforced Since acquiring number one ranking in 1996, Tesco has developed a successful multiform at strategy that has accelerated its advantage. Its UK sales are now 71% larger than Sainsbury’s. Also the Competition Commission’s report makes it very difficult for a competitor to challenge its scale and has effectively scuppered Wal-Mart’s chances of stealing UK leadership. Therefore, Tesco is in an enormously strong position in its domestic market.

Weaknesses Reliance upon the UK market Although international business is still growing, and is expected to contribute greater amounts to Tesco’s profits over the next few years, the company is still highly dependent on the UK market (73. 8% of 2003 revenues). While this isn’t a major weakness in the short term, any changes in the UK supermarket industry over the next year for example, like the Morrison’s group successfully purchasing the Safeway chain could alter the balance of UK supermarket power, and affect share. Debt reduction Tesco is not expected to reduce its debt until at least 2006.

Tesco has a large capital expenditure program mainly due to its huge investment in space for new stores. Since its expansion is so aggressive, Tesco has little free cash for any other operations. Signs point to serial acquisitions With an enterprise value of ? 23 billion, Tesco clearly has enormous firepower. Also, its product range is vast and almost any acquisition can be justified, particularly in the UK. While ‘fill the gap’ strategy would be useful to the company, as has been the case with the UK convenience market, there is the danger of Tesco becoming a serial acquirer, as this tends to reduce earnings visibility and quality.

Opportunities Non-food retail The growth in Tesco’s hypermarket format in the UK means that there are expectations of seeing its 13% share of retail sales climb sharply over the next few years. It can use its footfall and low cost structure together with improved merchandising skills to add another leg to growth. Equally, its growth overseas will further increase earnings and scale, taking Tesco onto the virtuous circle of growth. It is estimated that Tesco’s non-food sales will double over the next four years. Worldwide it has sales of ? 7 billion in non-food, some 23% of the total.

Its aim to be ‘as strong in non-food as we are in food’, no longer sounds like the consultancy-speak that it once did, and they are getting there using the basic tenets of value, choice and convenience that have been so successful in food. Around half of new space opened in the UK last year was for non-food and the result has been to increase its market share from 5% to 6% and its overall share of UK retail sales has increased by 100 basis points to 12. 8%. The company’s telecoms venture is the latest stage in its strategy to develop popular retail services.

It has repeated its approach in banking, by capitalizing on its brand. Health and beauty Tesco’s UK health and beauty ranges continue to grow, and it is currently the fastest growing skincare retailer in the market. The company has a volume market-leading position in both toiletries and healthcare and is number one retailer in the baby goods markets. Across all health and beauty ranges Tesco continues to invest in price to deliver the value customers have come to expect and this year invested ? 27 million on health and beauty pricing alone.

The company now has 19 stores with opticians and nearly 200 stores with pharmacies. Further international growth Tesco now operates in six countries in Europe in addition to the UK; the Republic of Ireland, Hungary, Czech Republic, Slovakia, Turkey and Poland. It also operates in Asia: in South Korea, Thailand, Malaysia, Japan and Taiwan. Seven years ago, its International sales were ? 770 million. Now, they are nearly 10 times larger, at almost ? 7 billion, with profits of ? 306 million. In the current year, Tesco will add 2. 5 million square feet to sales area and could well enter another major market.

Growing internationally has forced Tesco to become serious about hypermarkets and this has had seriously positive implications for growth in the UK. Tesco has formed a strategic relationship with US supermarket, Safeway Inc, to take the tesco. com home shopping model to the US. Telecoms are the latest stage in its strategy to develop popular retail services. It has repeated its approach in banking, by capitalizing on its brand. In 2004 the company plans to enter the Chinese market, as China is one of the largest economies in the world with tremendous forecast growth and will present many opportunities for Tesco. Threats

UK structural change could spark a price war The price followers in the UK market are about to become aggressive investors in price, Safeway because of new ownership and Sainsbury because of new management. Morrison is reducing Safeway’s prices by up to 6% and Sainsbury is bound to see lower prices as one of the basic changes necessary to drive its recovery. With both Asda and Tesco committed to price leadership, this could result in a step down in industry profitability. Overseas returns could fall The buy case for Tesco is predicated around investment overseas driving higher group returns as each country moves past critical mass.

This might not happen, either because of economic conditions, competitor action, or failure in Tesco’s business model. It also could come as a consequence of an aggressive move into a larger market, such as China or Japan. Wal-Mart/Asda challenge Since the US shopping giant Wal-mart purchased Asda, Tesco’s rank as the top UK supermarket has been threatened. Asda can now compete extremely well on price and range of goods. For the moment, Asda is the third largest supermarket in the UK, just behind Sainsbury’s and then Tesco.

However, Asda closed the gap on Sainsbury’s in 2003, leaving the company to directly challenge Tesco’s dominance. Tesco is well aware of this, and has so far been quick to keep up with price cuts or special offers at Asda. Wal-mart may also decide to wield its buying power more heavily in the UK, and this could spell the end of Tesco’s brand dominance in the future. HOW Tesco using classical Management principles theory. Scientific management (also called Taylorism or the Taylor system) is a theory of management that analyzes and synthesizes workflows, with the objective of improving labor productivity.

The core ideas of the theory were developed by Frederick Winslow Taylor in the 1880s and 1890s, and were first published in his monographs, Shop Management (1905) and The Principles of Scientific Management (1911). He began trying to discover a way for workers to increase their efficiency when he was the foreperson at the Midvale Steele Company in 1875. Taylor believed that decisions based upon tradition and rules of thumb should be replaced by precise procedures developed after careful study of an individual at work.

Its application is contingent on a high level of managerial control over employee work practices. Taylorism is a variation on the theme of efficiency; it is a late 19th and early 20th century instance of the larger recurring theme in human life of increasing efficiency, decreasing waste, and using empirical to decide what matters, rather than uncritically accepting pre-existing ideas of what matters. Thus it is a chapter in the larger narrative that also includes, for example, the folk wisdom of thrift, time and motion study, Fordism, and lean manufacturing.

It overlapped considerably with the Efficiency Movement, which was the broader cultural echo of scientific management’s impact on business managers specifically. In management literature today, the greatest use of the concept of Taylorism is as a contrast to a new, improved way of doing business. In political and sociological terms, Taylorism can be seen as the division of labor pushed to its logical extreme, with a consequent de-skilling of the worker and dehumanization of the workplace Marketing of Tesco Marketing Objective

Tesco could have the following objectives: •    Profitability, in terms of operating margin (a 10% target) •    Swedish Market share (a 20% target) •    Customer advocacy (the number of customers who recommend Tesco branded clothing, repeat business) •    Respected company (the number of community stakeholders who respect Tesco) •    Employee motivation (the number of employees who feel motivated to deliver Tesco’s goals) Tesco must ensure that it sets ‘SMART’ marketing objectives that are measurable, time limited, attainable and relevant. Marketing Strategy

Tesco’ strategy is clear, with growth being pursued from four areas – the core UK grocery business, non-food, international expansion and retailing services such as financial services, the dotcom business and telecommunication packages. Basically, Tesco is using its strong stable core to keep the business ticking over while it forges new riskier areas of growth. Pushing further into non-food in the next phase (Johnson, G. , Scholes, K. , Whittington, R. , (2005)). Lidl is currently “destroying” the market by selling the products below cost price.

Therefore, Tesco’s generic strategy will have to be cost leadership, unless we can successfully differentiate our line of clothing so that we can charge a premium price. A marketing strategy will involve analyzing the markets, and which products to offer. The strategy is implemented through marketing tactics, which involve detailed decisions about factors such as the price and the way the product is distributed. So Tesco must decide on its model of entry in terms of, own stores, Internet selling or joint venture with an existing national retailer . 0 Industry Analysis: Porter’s Five Forces Rivalry among the Competitors The grocery ?nvironm?nt has s??n a very significant growth in the size and market dominance of the larger players, with grater store size, increased retailer concentration and the utilization of a range of formats, which are now prominent characteristics of the sector. As it was mentioned above, the purchasing power of the food-retailing industry is concentrated in the hands of a relatively small number of retail buyers.

Operating in a mature, flat market where growth is difficult (a driver of the diversification into non-food areas), and consumers are increasingly demanding and sophisticated, large chains as Tosco are accruing large amounts of consumer information that can be used to communicate with the consumer (Ritz 2005 Pp. 113 This highly competitive market has fostered an acc?l?rat?d level of d?v?lopm?nt, resulting in a situation in which UK grocery retailers have had to be innovative to maintain and build market share. Such innovation can be s??n in the d?v?lopm?nt of a range of trading formats, in response to changes in consumer behavior.

The dominant market leaders have responded by refocusing on price and value, whilst reinforcing th? added value ?l?m?nts of their s?rvic?. Threat of New Entrants The UK grocery market is primary dominated by fowl competitors, including four major brands of Tesco, Asda, Sainsbury’s and Safeway that possess a market share of 70% and small chains of Somerfield, Waitrose and Budg?ns with a further 10%. Over the last 30 years, according to (Ritz 2005 Pp. 57), the grocery market has b??n transformed into th? sup?rmark?t-dominat?d business.

Majority of large chains have built their power due to operating ?ffici?ncy, one-stop shopping and major mark?ting-mix ?xp?nditur?. This powerful force had a great impact on th? small traditional shops, such as butchers, bakers and ?tc. Hence, nowadays it possesses a strong barrier for new companies who desire to ?nt?r th? grocery market. For instance, it becomes rather difficult for new entrants to raise sufficient capital because of large fixed costs and highly d?v?lop?d supply chains. This is also ?vid?nt in huge investments done by large chains, such as

Tesco, in advanced technology for checkouts and stock control systems that impact new entrants and th? existing ones. Other barriers include ?conomi?s of scale and differentiation (in th? provision of products or services with a higher p?rc?iv?d value than th? competition) achieved by Tesco and Asda s??n in th?ir aggressive op?rational tactics in product d?v?lopm?nt, promotional activity and better distribution. Suppliers Power This force r?pr?s?nts th? power of suppliers’ that can be influenced by major grocery chains and that fear of losing their business to th? large supermarkets.

Th?r?for?, this consolidates further leading positions of stores like Tesco and Asda in negotiating better promotional prices from suppliers those small individual chains are unable to match (Ritz Pp. 59 2005). In return, UK based suppliers are also thr?at?n?d by th? growing ability of large retailers to source their products from abroad at cheaper deals. Th? relationship with sellers can have similar ?ff?cts in constraining th? strategic fr??dom of Th? Company and in influencing its margins. Th? forces of competitive rivalry have reduced th? profit margins for supermarket chains and suppliers.

Customers Power Porter theorized that th? more products that become standardized or undiff?r?ntiat?d, th? lower th? switching cost, and hence, more power is yielded to buyers (Porter M. Pp. 162 1980) Tesco’s famous loyalty card – Club card remains th? most successful customer retention strategy that significantly increases th? profitability of Tesco’s business. In m??ting customer n??ds, customizing service, ensure low prices, better choices, and constant flow of in-store promotions ?nabl?s brands like Tesco to control and retain their customer base.

In recent years a crucial change in food retailing has occurred due to a large demand of consumers doing th? majority of their shopping in supermarkets that shows a greater n??d for supermarkets to sell non-food items. It has also provided supermarkets with a new strategic expansion into new markets of banking, pharmacies, ?tc. Consumers also have become more aware of th? issues surrounding fairer trade and th? influence of western consumers on th? ?xp?ctations and aspirations of Third World producers. Ecologically benign and ethically sound production of onsumer produce such as tea, coff?? and cocoa is viable, and such products are now widely available at th? majority of large chains. Threat of Substitutes General substitution is able to reduce demand for a particular product, as there is a threat of consumers switching to th? alternatives Porter M. 1980 Pp. 162 In th? grocery industry this can be s??n in th? form of product-for-product or th? substitute of n??d and is further w?ak?n?d by new trends, such as th? way small chains of conv?ni?nc? stores are ?m?rging in th? industry.

In this case Tesco, Asda and Sainsbury’s are trying to acquire existing small-scal? op?rations and op?ning M?tro and ?xpr?ss stor?s in local towns and city c?ntr?s (Ritz Pp. 112 2005). Finance Prior to the formation of TPF, Tesco had a banking joint venture with NatWest which ended in February 1997. Tesco Personal Finance was formed in July 1997 following the successful launch of Sainsbury’s Bank by its main UK competitor, J Sainsbury plc Sainsbury’s. The bank was launched as a joint venture with the Royal Bank of Scotland, which processed all its financial transactions.

Subsidiary companies of the Royal Bank, such as Direct Line, UKI and Lombard Direct helped Tesco Personal Finance provide insurance products. Tesco Personal Finance has been a great success for both Tesco and the Royal Bank of Scotland, returning profits of ? 65 million for Tesco for the financial year to February 2007. Tesco is able to use its large customer base to cross sell financial services products, and allows customers to accumulate Tesco Club card points when they purchase finance products.

This strategy is highly effective because it can be combined with in store offers which results in customers spending higher amounts of money, often on non-food items in order to increase sales across all product lines thus causing sustainable yet competitive growth which allows them to deal with control for market control with ASDA. The company is currently trialing a finance centre in the Glasgow Silver burn Extra store providing free financial advice and quotes for insurance and loans, this service is staffed by trained Royal Bank of Scotland staff.

The centre also has a Euro cash machine providing commission free Euros and a Bureau de change run by Travelex. If successful this trial will roll out to a number of other key and flagship stores. Financial performance Tesco is listed on the London Stock Exchange under the symbol TSCO. It also has a secondary listing on the Irish Stock Exchange with the name TESCO PLC. All figures below are for the Tesco’s financial years, which run for 52 or 53 week periods to late February. Up to the 27 February 2007 period end the numbers include non-UK and Ireland results for the year ended on 31 December 2006 in the accounting year.

The figures in the table below include 52 weeks/12 months of turnover for both sides of the business as this provides the best comparative. |52/3 weeks ended |Turnover (? m) | | |2006 |2005 | |Net Profit Margin |[(2235 + 241)/ 39454] * 100 = 6. 28 % |[(1894 + 235)/ 33866] * 100 = 6. 9 % | |Gross Profit Margin |[3028/ 39454] * 100 = 7. 67 % |[2635/ 33866] * 100 = 7. 78 % | |Return on Assets |[1576/(18644+3919)] * 100 = 6. 98 % |[1347/(16931+3224)] * 100 = 6. 68 % | As we can see in the table the Net profit margin in 2006 decreased from 2005, and the Gross Profit Margin decreased in 2006 from 2005, but the return on assets is increased in 2006 than 2005 which means that they had less sales but in another hand they had decreased the cost of sales.

And from the number there is kind of stability. Liquidity ratios for 2005: – Current Ratio = Total Current Assets / Total current Liabilities [3224/5680] = 0. 57 For 2006: – Current Ratio = Total Current Assets / Total current Liabilities [3919/7518] = 0. 52 RATIO 2006 2005 Current Ratio =[ 3919/7518] = 0. 52 =[ 3224/5680] = 0. 57 As we could see in the table 2006 had less liquidity than 2005 which means that Tesco had more investments and that is clear by comparing the Op Cash Flows to maturing obligation in the two years.

And here we have relatively low ratio as it will hold only fast- moving stocks of finished goods and will generate mostly cash sales. (Atrill and Mclaney p. 157). Efficiency ratios for 2005: Sales to Capital employed Ratio = – Sales / (Total long term liabilities + Shareholders’ fund) [33866/ (8654 + 5821)] = 2. 34 times – Sales per employees ratio = Sales / Number of employees 33866 / 389. 258 = ? 87. 00 Efficiency ratios for 2006: Sales to Capital employed Ratio = – Sales / (Total long term liabilities + Shareholders’ fund) [39454/ (9444 + 5601)] = 2. 62 times

Sales per employees ratio = Sales / Number of employees- 39454 / 389. 258 = ? 101. 36 |Efficiency Ratios | | |2006 |2005 | |Sales to Capital Employed | | | | |=[ 39454/(9444 + 5601)] |=[ 33866/(8654 + 5821)] | | |= 2. 62 times |= 2. 4 times | |Sales per Employee | | | | |= 39454 / 389. 258 |= 33866 / 389. 258 | | |=? 101. 36 |= ? 87. 00 | As we can see from the table that the sales to capital employed in 2006 is increased than 2005 and also the sales per employee increased in 2006 than 2005 which means that the assets are being used more productively in the generation of revenue.

And it gives a measure of the productivity of the Workface. According to the financial statements for the Tesco company and the calculations of the ratios for the three dimensions the profitability and the liquidity and the efficiency and there results that I mentioned in my calculations we can see Tesco is not preformed well in the net profit margin and the gross profit margin but Tesco is has better performance in the return on assets in the profitability ratios, and for the liquidity ratio in the current assets ratio and the efficiency ratios Tesco has performed well.

For the overall view the Tesco had well efficient performance according to its efficiency in productivity and the ability for reducing the cost of sale which can make high profit for the company. And I think the liquidity policy for the Tesco is more efficient because they have more investment in the food industry and have high productivity per capital and per employee. Human-Resource Tesco’s profits have soared 20% in the last year, taking them to a record 2 billion and setting a new milestone for UK business.

The company takes almost one of every three pounds spent in a supermarket, and more than one of every eight pounds spent on the High Street. The supermarket chain is Britain’s biggest private employer with nearly 260,000 staff The human-resource strategy at Tesco’s revolves around work simplification, challenging unwritten rules, rolling out core skills to all head-office employees and performance management linked to achieving steering-wheel targets. This highlights the way in which Tesco’s business measures are closely linked to performance management

Tesco ensures that each and every employee has the opportunity to understand his or her individual role in contributing to the Tesco core purpose and values. This requires an innovative induction programmed that caters for different cultures, styles of learning and varying commitments to the job. The frontline employees are considered the ultimate reflection of Tesco to its customers, but all employees have a very important role to play in turning core values and customer commitment into reality on a daily basis

A major Tesco challenge is to ensure that all of its employees, wherever they work, are aware of the role they play and that they can clearly see how their actions affect the “big picture” of the overall business. The training creates a graphical journey through the history of Tesco, its core purpose, values, business goals, financial aims, operations and marketing strategy and its commitment to customers. All employees are receiving more training than before A human-resource-led business strategy has helped Tesco to take the lead over its rivals in the fiercely-competitive UK supermarket sector.

The strategic policy (Future) started in the company’s supermarkets, where its aim was to free up stores employees so they could do more and improve customer service 7. 0 Conclusion Th? success of th? T?sco shows how far th? branding and ?ff?ctiv? service delivery can come in moving beyond splashing one’s logo on a billboard. It had fostered powerful identities by making th?ir retiling concept into a virus and spending it out into th? culture via a vari?ty of channels: cultural sponsorship, political controversy, and consumer ?xp?ri?nc? and brand ?xt?nsions.

In a rapidly changing busin?ss ?nvironm?nt with a high competitors’’ pr?ssur? T?sco hav? to adopt n?w expansion strategies or diversified th? existing in order to sustain its leading mark?t position in an already ?stablish?d retailing mark?t. Th? Company must constantly adapt to th? fast changing circumstances. Strat?gy formulation should th?r?for? b? regarded as a process of continuous learning, which includes learning about th? goals, th? ?ff?ct of possible actions towards these goals and how to implement and ?x?cut? these actions.

Th? quality of a formulated strat?gy and th? sp??d of its implementation will th?r?for? dir?ctly depend on th? quality of Tesco’s cognitive and behavioral learning proc?ss?s. In large organizations as T?sco strat?gy should b? analyzed and impl?m?nt?d at various levels within th? hi?rarchy. These different levels of strat?gy should b? related and mutually supporting. Tesco’s strat?gy at a corporat? l?v?l d?fin?s th? busin?ss?s in which T?sco will comp?t?, in a way that focus?s r?sourc?s to conv?rt distinctiv? comp?t?nc? into comp?titiv? advantag?. 8. References o Acur N. and Bititci U. (2004) A balanced approach to strategy process, International Journal of Operations & Production Management, Vol. 24 issue 4, pp. 388-408; o Anon (2004) Case study IV: Tesco implements the business engine network to gain full control of its IT project portfolio, Journal of Database Marketing & Customer Strategy Management, Vol. 12 Issue 1, pp. 66-73; o Balchin A. 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(2005) Sale the 7 Cs: teaching/training aid for the (e-)retail mix, International Journal of Retail & Distribution Management, Vol. 33 Issue 3, pp. 179-193; o Desjardins D. (2005) Tesco strategies turn up competitive heat in UK, DSN Retailing Today, 2/28/2005, Vol. 44 Issue 4, pp. 4-6; o Drejer A. 2000) Organisational learning and competence development, The Learning Organization: An International Journal, Vol. 7 Issue 4, pp. 206-220; o Finch P. (2004) Supply chain risk management, Supply Chain Management: An International Journal, Vol. 9 Issue 2, pp. 183-196; o Flavian C. , Haberberg A. and Polo Y. (2002) Food retailing strategies in the European Union. A comparative analysis in the UK and Spain, Journal of Retailing & Consumer Services, Vol. 9 Issue 3, pp. 125-138; o Graiser A. and Scott T. (2004) Understanding the Dynamics of the Supermarket Sector, The Secured Lender, Vol. 0 Issue 6, November/December, pp. 10-14; o Guy C. 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(2003) The impact of food safety and animal welfare policies on supply chain management: The case of the Tesco meat supply chain, British Food Journal, Vol. 05 Issue 6, pp. 328-349; o MarketWatch (2004) Company Spotlight: Tesco, Datamonitor, September; o Martinell E. and Sparks L. (2003) Food retailers and financial services in the UK: a co-opetitive perspective, British Food Journal, Vol. 105 Issue 9, pp. 577-590; o Mintel Report (2004) Food Retailing –UK, Retail Intelligence, November; o Myers H. (2004) Trends in the food retail sector across Europe, European Retail Digest, Spring, Issue 41, pp. 1-3; o Ogbonna E. and Whipp R. 1999) Strategy, culture and HRM: evidence from the UK food retailing sector, Human Resource Management Journal, Vol. 9 Issue 4, pp. 75-80; o Okumus F. (2003) A framework to implement strategies in organizations, Journal of Management Decision, Vol. 41 Issue 9, pp. 871-882; o Palmer M. (2004) International retail restructuring and divestment: the experience of Tesco, Journal of Marketing Management, November, Vol. 20 Issue 9/10, pp. 1075-1101; o Palmer M. (2005) Retail multinational learning: a case study of Tesco, International Journal of Retail & Distribution Management, Vol. 3 Issue 1, pp. 23-48; o Porter M. (1980) How competitive forces shape strategy, The McKinsey Quartely, Spring 1980, pp. 34-50; o Ritz (2005) Store wars, Business Review, Vol. 11, April, pp. 22-23; o Rowley J. (2003) Beds, insurance and coffee – a complete retail experience from Tesco online, British Food Journal, Vol. 105 Issue 4, pp. 274-278; o Rowley J. (2005) Building brand webs: Customer relationship management through the Tesco Clubcard loyalty scheme, International Journal of Retail & Distribution Management, Vol. 33 Issue 3, pp. 194-206; o Thomsen S. 2004) Corporate Values and Corporate Governance, Journal of Corporate Governance: International Journal of Business in Society, Vol. 4 issue 4, pp. 29-46; o Veliyath R. and Fitzgerald E. (2000) Firm Capabilities, Business Strategies, Customer Preferences, and Hypercompetitive Arenas: The Sustainability of Competitive Advantages with Implications for Firm Competitiveness, Competitiveness Review, Vol. 10 Issue 1, pp. 56-82; o Walters D. (1994) The Impact of the Recession on Retailing Management Decisions and Performance, International Journal of Retail & Distribution Management, Vol. 2 Issue 4, pp. 20-31; o Warnaby G. and Woodruffe H. 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Strategic Management – Virgin Case Study

1) What are Virgin Group’s distinctive resources/capabilities? The Virgin BrandFirstly, the Virgin brand is valuable in the form of brand equity, where ‘Virgin’ is one of the most recognised brand names in the UK, and is also well-known in other important markets including Europe and the U. S. A. Based on 1990s research, the Virgin brand was recognised by 96% of UK consumers (Case, p. 685). Secondly, it is rare for a brand to have such positive consumer perceptions; which include value-for-money, fun, innovation, success, and trust across a range of Virgin businesses (Case, p. 685).

Thirdly, Virgin has built up their excellent reputation over time, and is therefore path dependent and difficult for competitors to imitate. Lastly, competitors cannot substitute resources that serve the same functions as brand equity and corporate reputation. Richard BransonThe personal reputation and image of Richard Branson is outstanding. He is well respected for his unconventional approach to business, is often cited as a role model, nominated for enterprises, voted the most-popular businessman and named in London polls as the preferred choice for mayor despite never putting his name forward (Case, p. 97). Branson possesses distinctive capabilities, including his ability to effectively use the media to raise public awareness of Virgin, his superior negotiation skills and his excellent charisma. Furthermore, as an ‘international celebrity’, he is easily able to acquire access to the right people and obtain partnerships or alliances when necessary. Therefore, Branson’s reputation, and the rare tacit knowledge that he possess, creates value for Virgin Group and is imitable and non-substitutable by competitors.

Innovation, company structure and cultureVirgin Group’s innovative environment creates value for the organisation as innovation promotes employee motivation and can lead to more efficient/effective processes, thereby improving performance. Additionally, Virgin’s organisational structure involves little hierarchy, the company view hierarchies as obstructive, and “impede rapid decision-making” (Case, p. 688). This lack of hierarchy, along with their promotion-from-within policy generates opportunities for employees that “their gender, lack of experience, or training would have precluded in more conventional companies” (Case, p. 94). Indeed, Virgin’s structure and positive culture attracts and retains quality staff that fit into the ‘Virgin People’ category, whose loyalty and talent have contributed immensely to the organisation’s success. Moreover, Virgin has created an effective culture that emphasises “praise rather than blame, and family rather than alienation”, and informality and ‘fun’ are also encouraged (Case, p. 688). 2) In what ways are Virgin Group trying to create synergies across their various businesses?

Virgin harnessed the profits from a range of existing businesses towards Virgin record label byinvesting in “new bands and to continue financing existing artists whom [Virgin] believed wouldeventually be profitable” (Case, p. 682). Furthermore, Virgin engages in portfolio planning by balancing growth with maturity, cash flow with investment demands such as funding new ventures through divestments. E. g. Virgin Music Group was sold in 1992 to allow Branson to expand the airline business (Case, p. 684).

Later, Virgin also sold the UK and Irish cinemas in 1999 to repay the loans taken out to buy back Virgin Our Price (Case, p. 700). ParentingVirgin creates synergies through applying general management capabilities across their businesses. Virgin has developed effective HR practices, corporate structure and culture that can be applied to all Virgin businesses. ‘The Virgin way’ and ‘building Virgin people’ is consistently applied, i. e. “human resource tools such as assessment centres, personality profiling, and employee development are commonly used” (Case, p. 685).

Synergies are created for new businesses because instead from starting form scratch, they can adopt the Virgin framework to improve effectiveness and efficiency. Economies of ScopeVirgin’s diversification has also created synergies across their related businesses by the added value that some businesses create for others, and therefore increasing the possibility of achieving competitive advantages. E. g. in the travel industry, Virgin Holidays ‘grew on the back’ of Virgin Atlantic by sharing operational resources such as promotion to reduce unit costs (Case, p. 689).

Some Virgin businesses are also related in terms of being “ideally suited to e-commerce and in which growth is expected to occur – travel, financial services, publishing, music, entertainment” (Case, p. 687). Virgin exploited this potential to create synergies by sharing activities across these businesses to reduce unit costs. i. e. the distribution of various products from different businesses can be shared by using “technology to give all Virgin customers a small mobile device form which they could purchase any Virgin product from a rail or cinema ticket to a CD… and streamline online service with a single Virgin web address: Virgin. om” (Case, p. 687). Furthermore, Virgin tries to create differentiation by bundling services together so that consumers derive more value from the bundled service than each service individually. E. g. Virgin retail stores and Virgin Cinemas in the entertainment industry were bundled together to create ‘Megaplexes’, which also included extras; taking coats, serving drinks and extra legroom (Case, p. 689). Synergy is created through sharing customers across businesses, and the increased consumer willingness to pay for a combined service. ) In light of your answer to Q2, what threats do you see to Virgin Group’s corporate strategy? I. e. what could undermine the success of the group as a whole? The Virgin corporate strategy is centred on the brand and the company has diversified into many unrelated areas to leverage the brand, at the same time achieving brand synergies across their various businesses. However one danger of this is that the underperformance of one Virgin business can undermine the perceived quality and/or value of other businesses. For example, the failure of the Virgin rail company has encouraged negative press (Case, p. 98), and therefore the negative perceptions can also escalate to other Virgin products. Additionally, investors are questioning the notion of financial synergies and portfolio planning due to the external capital market becoming more efficient and sophisticated over time. Investors will likely have all relevant information, and Virgin’s superior access to internal information is diminishing. Therefore investors may prefer to diversify themselves than invest in an already diversified company. Furthermore, Virgin’s strategy of utilising Richard Branson as part of the company’s identity has additional implications.

Firstly, compromise costs are involved, Branson’s core competencies are compromised as he needs to divide his attention between many businesses, and the effectiveness of his management may suffer as a result. Secondly, there are questions surrounding the long-term performance of Virgin Group without Branson, as “his persona is so closely associated in the eyes of the public and investors with Virgin and its ethos…If Branson goes, would the company lose the impetus for innovation and the ‘can-do’ culture that has for so long been its hallmark?… would it] create a crisis of confidence so severe as to endanger the very survival of Virgin? ” (Case, p. 699, 701)ReferencesDess. (2007). Strategic Management: Creating competitive advantages (3rd Ed. ), The McGraw-Hill Companies. Case:De Vries, D. R. K. & de Vitry d’Avaucourt, R. (2004) “The house that Branson built: Virgin’s entry into the new millennium” In: B. De Wit & R. Meyer Strategy: Process, Content, Context, Thomson: London, pp. 680-701.

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Definition of Freedom

Definition What is freedom? Freedom is the right that everyone is granted, in most countries, the day they are born The constitution of the United States of America gives us the right to freedom because we are United States citizens. Freedom is the right to express oneself in any way they choose. Freedom is defined as having liberty of action or thought, independent, self-governed, or not controlled by an outside party. Freedom has a different meaning to each individual thus making it hard to find a clear concise definition.

Liberty, Independence, sovereignty, autonomy, privilege, immunity, and indulgence are all words often associated with freedom. Everyone has the right to life, liberty, and justice. Independence is granted by freedom in the sense that an outside party does not control you. To gratify ones desires by whichever ways they choose is freedom through indulgence. Privileges are granted through freedom. In some countries the dictator or ruler makes choices for their people on regards to what profession they will have or to what religion they will worship.

In the United States we have special privileges that let the people of the country decide on their own religion and professions. Freedom has limitations just as it has privileges. Everyone is allowed freedom of speech, but if an individual were to yell fire in a public building they would be thrown in jail. This implies that freedom of speech has limitations. The government does in some sense have the right to place limitations on a person’s freedom of speech, but cannot take it away from them. The government can however reprimand a person for misuse of their right to freedom of speech.

Freedom of expression is also granted by the constitution and that is why there are laws prohibiting indecent exposure. This law places limits on the freedom of expression. The government has decided that people are allowed to express themselves however they see fit within the guidelines the laws have set for the citizens. If a person chooses to express themselves outside the set boundaries they will have to pay the consequences. In conclusion, freedom really begins with a persons right to have many choices, and in the United States a person has many choices.

In everyday life people choose to go to school, to eat breakfast, and to get married. People also make bad choices like shoplifting, committing murder, running red lights. When people make decisions they have to take liability or responsibility for their actions and choices. If a person decides to kill someone then they have to take responsibility for her actions, which would probably mean going to jail. A student makes the choice to go to college, so they take the responsibility of going to class, doing their assignments, and paying their tuition. Freedom is a Privilege that is grated to United States citizens by the constitution.

No one can take away a person’s freedom. Limitations and restrictions can be placed upon an individual’s freedom but their freedom cannot be taken away. In order to have freedom, everyone must make choices. After they make choices they then have to take responsibility for those choices they have made. Everyone must deal accordingly with the consequences of their choices they have taken responsibility for, whether it is good or bad. If people did not have freedom they would have nothing, but it is really up to any person to be free and take advantage of that freedom.

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Hrm in a Dynamic Environment


STRATEGIES FOR HR TRANSFORMATION15 HR – Support to Strategic advantage15 It’s your data working for you: Analytics for global HR decisions17 References18 INTRODUCTION The world of work is rapidly changing. Even as little as a decade ago, the times were calmer than they are today. But that doesn’t mean that ten years ago one didn’t experience change. One the contrary, we were then, as we are today, in a slate of flux. It’s just- that today the changes appear to be happening more rapidly. As part of an organization then, HRM must be prepared to deal with the effects of the changing world of work.

For them, this means understanding the implications of globalization, work-force diversity, changing skill requirements, corporate downsizing, total quality management, reengineering, the contingent work force, decentralized work sites and employee involvement. Let’s look at how these changes are affecting HRM goals and practices. THE IMPORTANCE OF HUMAN RESOURCES MANAGEMENT IN MODERN DYNAMIC ORGANIZATIONS Researchers feel that successful organizations do not owe their success solely to market realities and sustainable competitive advantages.

Actually, there is a lot more. Successful companies are those that consider their human capital as their most important asset. Facts and figures are the quantitative elements of successful management, yet the qualitative, i. e. the cognitive aspects, are those that actually make or break an organization. Human Resources Management (HRM) is the strategic management of the employees, who individually and collectively contribute to the achievement of the strategic objectives of the organization.

Assuming that the employees of an organization are individuals with own mental maps and perceptions, own goals and own personalities and as such they cannot be perceived as a whole, HRM holds that the organization should be able to employ both individual and group psychology in order to commit employees to the achievement of organizational goals. Aiming to enable the organization to achieve its strategic goals by attracting, retaining and developing employees, HRM functions as the link between the organization and the employees.

A company should first become aware of the needs of its employees, and at a later stage, understand and evaluate these needs in order to make its employees perceive their job as a part of their personal life, and not as a routine obligation. To that end, HRM is very crucial for the whole function of an organization because it assists the organization to create loyal employees, who are ready to offer their best. The HRM activities in modern organizations are typically performed in communication with the General Management in an effort to provide a variety of views when a decision must be taken.

In that way, decision making is not subject to the individual perceptions of the HR or the General Manager, but it becomes the outcome of strategic consensus. The main responsibilities of HRM are: • Retaining low employee turnover rate by inspiring people to work for the company. • Attracting new employees. • Contributing to employee development. To achieve these goals, Human Resources Management trains and motivates the employees by communicating ethical policies and socially responsible behaviour to them.

In doing so, it plays a significant role in clarifying the organization’s problems and providing solutions, while making employees working more efficiently. On the other hand, challenges do not cease for the HRM. Modern organizations can survive in the dynamic, competitive environment of today only if they capitalize on the full potential of each employee. Unfortunately, many companies have not understood the importance of the human capital in successful operations. The recruitment and selection of the best employees is a very difficult obligation.

Even companies that are voted in the top-ten places to work at, often endure long periods of hard work to realize that human element is all an organization should care about. New challenges arise even now for the organization, and it is certain that new challenges will never cease to emerge. Therefore, the use of proper Human Resources techniques is a really powerful way for organizations to overcome these challenges, and to improve not only their quantitative goals but also their organizational culture, and their qualitative, cognitive aspects. EVOLUTION OF THE HR FUNCTION – FROM A BUSINESS FUNCTION TO A STRATEGY PARTNER

We would like to quote Mr Narayan Murthy. He says, “A few years back during a client interaction, while being quizzed on our capabilities, we were surprised by a question on security practices in our company. The reason cited was that the customer measured the maturity of their vendor on the basis of the security practices prevalent in the vendor’s premises. After all they wanted to entrust their data with us! Around 5 years later, we were asked a similar question where another customer evaluated our HR practices at a significant level of detail to gauge our competence.

In subsequent discussions, we have found that the question on HR maturity is being asked frequently by potential customers, investors and even prospective employees. The answers indicate maturity, stability, long term sustainability and delivery capabilities of your organization and hence are very important. ” HR Function Growth Path As the organizations mature, HR practices also mature. The HR function is at three different states in its evolution cycle where it starts as a Business Function, becomes a Business Partner and then a Strategic Partner.

In each of these cases the role and impact of the HR department becomes progressively more strategic in nature. At higher levels of maturity, the HR function can add tremendous value to the leadership potential, top-line, bottom line and long-term sustainability of the organization. At each stage the attributes & value add by the Human Resources function change and the tools required vary significantly. HR as a Business Function At the very least, when an HR function is available in an organization, it is responsible for managing employee data, takes care of payroll, time and attendance and the setting of company policies.

The role is largely that of Personnel Administration focused on Compliance both internal & external, and on Management of employee records. The tools that the HR requires are related to management of employee data and include a rudimentary HRMS, Payroll processing software, Time and Attendance systems (could include time-card readers, swipe systems and associated devices). It is found that in many cases organizations even use spreadsheets and shared directories to manage their employee data, policy documents and employee leave applications, contracts etc.

In most cases, paper based employee files are the only source of employee data which are managed by the Personnel Administration department of the organization. HR as a Business Partner As a Business Partner, the role of HR is to meet the “existing business needs” of the organization so that the organization could grow at a measurable rate. At this stage of evolution, the focus of the HR shifts to competency based Recruitment, Total Compensation, Employee Development, Communication and Organization Design. The HR function helps in formalizing the organization structure (who does what and reports to whom).

Once that is complete, the next role is that of identifying the skills necessary for different job roles. HR further helps in defining appropriate training programs that are necessary for developing these skills, recruitment techniques to evaluate the skill levels and benchmarking the skill database against industry standards and competitors. Total compensation (payroll and benefits) also becomes a focus area where the HR helps the organization attract and retain skilled employees by becoming a leader in compensation management.

Using the skill database and the organization structure, the HR function iteratively evolves compensation practices, improves the training function and makes the recruitment function more attuned to the skills needed by the organization. To facilitate the above functionality, HR uses tools such as Applicant Tracking software for recruitment, Employee Portal for communication, Self Services for employees’ empowerment, Learning Management Systems for training & development and an Employee Database for capturing employee skills & competency profiles.

Organizations even have well defined Job Descriptions with details of qualifications, experience, special skills required for the job and job roles & deliverable for each job position. It is found that at this stage most organizations prefer some degree of automation and are using tools either built internally or procured from vendors. Another characteristic of organizations at this level of maturity is the break-up of the HR function into sub-functions such as Training, Personnel Administration, Recruitment and Compensation & Benefits, each being partly dependent on the other.

HR as a Strategic Partner Organizations that view their HR as a strategic business partner believes in full maturity of their HR function. Such organizations are focused on attaining leadership positions rather than a year-on-year growth. Bottom-line and top-line growths are expected to be achieved automatically. At this level, HR becomes responsible for identifying core competencies necessary for their organization to attain leadership position. Further HR facilitates in • Aligning employees to a common set of objectives derived from the mission and value statements. Mitigation of risk by devising appropriate Succession Planning Strategies, Identification of top-performers and non-performers. • Continuous measurement of the effectiveness of leadership and employee satisfaction. • Increasing employee engagement through appropriate measures. • Aligning compensation to performance. • Adjustment of recruitment and training to competency gaps. • Specifying well-defined Job Descriptions, which map to the organization structure . These become the basis of Recruitment, Goal Setting, Training, Performance Evaluation and Career Development.

As a strategic partner HR uses a variety of automation tools for Learning Management, Employee Performance Management, Compensation Planning, Recruitment and On-boarding, Succession Planning, Alignment and Employee feedback. The largest benefits accrue when employees are encouraged to use these tools as a routine practice at their work place. An integrated view of employee’s life cycle in the organization is visible through appropriate dashboards which are available to the decision makers at all levels in the organization.

EFFECTS OF TECHNOLOGICAL CHANGES ON HRM AND INTRODUCTION OF HRIS With the changing world and constant new technology that is available, managers need to be aware of the technology that will increase effectiveness in their company. Human resource information systems (HRIS) have increasingly transformed since it was first introduced at General Electric in the 1950s. HRIS has gone from a basic process to convert manual information keeping systems into computerized systems, to the HRIS systems that are used today.

Human resource professionals began to see the possibility of new applications for the computer. The idea was to integrate many of the different human resource functions. The result was the third generation of the computerized HRIS, a feature-rich, broad-based, self-contained HRIS. The third generation took systems far beyond being mere data repositories and created tools with which human resource professionals could do much more (People Soft and Oracle HR are some examples). The efficiency of HRIS, the systems are able to produce more effective and faster outcomes than can be done on paper.

Some of the many applications of HRIS are: Clerical applications, applicant search expenditures, risk management, training management, training experiences, financial planning, turnover analysis, succession planning, flexible-benefits administration, compliance with government regulations, attendance reporting and analysis, human resource planning, accident reporting and prevention and strategic planning. With the many different applications of HRIS, it is difficult to understand how the programs benefit companies without looking at companies that have already benefited from such programs.

Following are the challenges that technology throws at HR professionals to which HRIS could be a solution: 1. New Skill requirement: with new technologies being developed and implemented, there is an urgent need to upgrade the skills and knowledge of the existing employees for the organizations who want to survive this highly competitive environment. Additionally there is surging demand of individuals with sophisticated training and skills especially in sectors like telecom, IT, banking, retail and bio technology. 2. Downsizing or Rightsizing: New technologies have decimated many lower end jobs with frustrating regularity.

Increased automation has led to reduction in employee head count and the pressure to reduce costs has pushed many companies to go lean, cutting down the extra managerial flab. M&A is certainly one of the latest buzz activities that has led to downsizing. Managing the expectations of the employees seems to the major pain area for HR managers these days. 3. Collaborative work: With the advent of technology the hierarchies have lost their importance and more collaborative teamwork where managers and workers work together is formed. 4. Telecommuting: The rapid advances in technology have led to the relocation of work from office to home.

Employees use their phones and internet to communicate and can work from home. 5. Internet and intranet revolution: Internet and information technology have enabled companies to become more competitive by cutting costs. Almost all the industries and sectors have successfully harnessed the computer technology to their advantage to reduce costs and deliver services to their customer at amazing speed. A RETENTION FACTOR IN TODAY’S DYNAMIC BUSINESS WORLD – TRAINING AND DEVELOPMENT Look around in today’s business world. It is no secret that it is becoming more difficult to recruit and retain skilled employees.

In fact, one could say that businesses and industries are desperate or becoming desperate to find people with the needed skills and attitudes. The successful businesses today have a formalized employee retention program and willingness to work as part of their business strategy. They take a proactive approach to prevent unnecessary employee turnover. Generally, it is observed that the employers or businessmen are not willing to train their employees they just want to hire professionals or readymade employee from the market and expect high productivity quickly out of them, which is not possible.

In the last two decades, there have been frequent switching and turnout of employees in the banking sectors due boom in economy, technology, less harmony amongst the employees and senior management due to which the organizations faced lot of problems in retaining good employees with them. There should be some strategic thinking to develop a successful employee retention strategy. Lot of factors have been identified so far to improve the retention rate. These factors are: compensation, fringe benefits, hi-tech work environment, and behaviour of senior management, utilization of talent, training and development.

It has become an open secret that people who move from one organization to another is not only for good compensation while there is a high involvement of other variables such as behaviour, adjustment with the environment, flexi timings, benefits other than salary etc. Human Resource Management (HRM) is the function within an organization that focuses on recruitment, management, and providing direction for the people who work in the organization. HRM Role in the organization is very much important and cannot be ignored as it happened in the earlier era.

It comprises recruiting, hiring, training, compensating, appraising and developing employees. Training and development is one of the main functions of HR. Employees involved in ongoing training feel that their employer is interested in them doing a better job, and the employer cares enough about them to make an investment in their development. Training can also be the means for positive change in any organization; however, it is not enough to create lasting change without a vital link that will help your employees transfer what they learned into real-life application.

That vital link is a strong coaching program Businesses today want to get more and more involved with training their employees, but may not actually be thinking about the training that is really needed. We just want to draw an attention towards the aspect that if training efforts are going to produce positive outcomes then there cannot be a lack of assessment. It also needs to analyze that who should be trained and which type of training can be given to employees which will help them in doing better job and can increase productivity.

It is not only the employer’s responsibility to train their employees but also employees should be keen devoted to work and have flair to learn something daily because change does not come in a day. Samuel Johnson 1709- 84 said beautifully about continuous learning that: “A person who graduated yesterday and stops studying today is uneducated tomorrow” (Samuel Johnson 1709- 84). TQM – THE 3 MAGIC LETTERS TO SUCCESS Total quality management (TQM) is a management philosophy that seeks to integrate all organizational functions (marketing, finance, design, engineering, and production, customer service, etc. to focus on meeting customer needs and organizational objectives. TQM empowers the Total organization, from the employee to the CEO, with the responsibility of ensuring Quality in their respective products and services, and Management of their processes through the appropriate process improvement channels. All types of organizations have deployed TQM, from small businesses to government agencies like NASA, from schools to construction firms, from manufacturing centres to call centres, and from dance sequence to hospitals. TQM is not specific to one type of enterprise, it is a philosophy applied anywhere quality is required.

To be successful implementing TQM, an organization must concentrate on the eight key elements: 1. Ethics 2. Integrity 3. Trust 4. Training 5. Teamwork 6. Leadership 7. Recognition 8. Communication In the subsequent text we will try to explain TQM and its implementation. Key Elements: TQM has been coined to describe a philosophy that makes quality the driving force behind leadership, design, planning, and improvement initiatives. For this, TQM requires the help of those eight key elements. These elements can be divided into four groups according to their function. The groups are: I. Foundation – It includes: Ethics, Integrity and Trust.

II. Building Bricks – It includes: Training, Teamwork and Leadership. III. Binding Mortar – It includes: Communication. IV. Roof – It includes: Recognition. I. Foundation TQM is built on a foundation of ethics, integrity and trust. It fosters openness, fairness and sincerity and allows involvement by everyone. This is the key to unlocking the ultimate potential of TQM. These three elements move together, however, each element offers something different to the TQM concept. 1. Ethics – Ethics is the discipline concerned with good and bad in any situation. It is a two-faceted subject represented by organizational and individual ethics.

Organizational ethics establish a business code of ethics that outlines guidelines that all employees are to adhere to in the performance of their work. Individual ethics include personal rights or wrongs. 2. Integrity – Integrity implies honesty, morals, values, fairness, and adherence to the facts and sincerity. The characteristic is what customers (internal or external) expect and deserve to receive. People see the opposite of integrity as duplicity. TQM will not work in an atmosphere of duplicity. 3. Trust – Trust is a by-product of integrity and ethical conduct. Without trust, the framework of TQM cannot be built.

Trust fosters full participation of all members. It allows empowerment that encourages pride ownership and it encourages commitment. It allows decision making at appropriate levels in the organization, fosters individual risk-taking for continuous improvement and helps to ensure that measurements focus on improvement of process and are not used to contend people. Trust is essential to ensure customer satisfaction. So, trust builds the cooperative environment essential for TQM. II. Bricks Basing on the strong foundation of trust, ethics and integrity, bricks are placed to reach the roof of recognition.

It includes: 4. Training – Training is very important for employees to be highly productive. Supervisors are solely responsible for implementing TQM within their departments, and teaching their employees the philosophies of TQM. Training that employees require are interpersonal skills, the ability to function within teams, problem solving, decision making, job management performance analysis and improvement, business economics and technical skills. During the creation and formation of TQM, employees are trained so that they can become effective employees for the company. 5.

Teamwork – To become successful in business, teamwork is also a key element of TQM. With the use of teams, the business will receive quicker and better solutions to problems. Teams also provide more permanent improvements in processes and operations. In teams, people feel more comfortable bringing up problems that may occur, and can get help from other workers to find a solution and put into place. There are mainly three types of teams that TQM organizations adopt: A. Quality Improvement Teams or Excellence Teams (QITS) – These are temporary teams with the purpose of dealing with specific problems that often re-occur.

These teams are set up for period of three to twelve months. B. Problem Solving Teams (PSTs) – These are temporary teams to solve certain problems and also to identify and overcome causes of problems. They generally last from one week to three months. C. Natural Work Teams (NWTs) – These teams consist of small groups of skilled workers who share tasks and responsibilities. These teams use concepts such as employee involvement teams, self-managing teams and quality circles. These teams generally work for one to two hours a week. 6. Leadership – It is possibly the most important element in TQM.

It appears everywhere in organization. Leadership in TQM requires the manager to provide an inspiring vision, make strategic directions that are understood by all and to instil values that guide subordinates. For TQM to be successful in the business, the supervisor must be committed in leading his employees. A supervisor must understand TQM, believe in it and then demonstrate their belief and commitment through their daily practices of TQM. The supervisor makes sure that strategies, philosophies, values and goals are transmitted down throughout7 the organization to provide focus, clarity and direction.

A key point is that TQM has to be introduced and led by top management. Commitment and personal involvement is required from top management in creating and deploying clear quality values and goals consistent with the objectives of the company and in creating and deploying well defined systems, methods and performance measures for achieving those goals. III. Binding Mortar 7. Communication – It binds everything together. Starting from foundation to roof of the TQM house, everything is bound by strong mortar of communication. It acts as a vital link between all elements of TQM.

Communication means a common understanding of ideas between the sender and the receiver. The success of TQM demands communication with and among all the organization members, suppliers and customers. Supervisors must keep open airways where employees can send and receive information about the TQM process. Communication coupled with the sharing of correct information is vital. For communication to be credible the message must be clear and receiver must interpret in the way the sender intended. There are different ways of communication such as: A. Downward communication – This is the dominant form of communication in an organization.

Presentations and discussions basically do it. By this the supervisors are able to make the employees clear about TQM. B. Upward communication – By this the lower level of employees are able to provide suggestions to upper management of the affects of TQM. As employees provide insight and constructive criticism, supervisors must listen effectively to correct the situation that comes about through the use of TQM. This forms a level of trust between supervisors and employees. This is also similar to empowering communication, where supervisors keep open ears and listen to others.

C. Sideways communication – This type of communication is important because it breaks down barriers between departments. It also allows dealing with customers and suppliers in a more professional manner. IV. Roof 8. Recognition – Recognition is the last and final element in the entire system. It should be provided for both suggestions and achievements for teams as well as individuals. Employees strive to receive recognition for themselves and their teams. Detecting and recognizing contributors is the most important job of a supervisor.

As people are recognized, there can be huge changes in self-esteem, productivity, quality and the amount of effort exhorted to the task at hand. Recognition comes in its best form when it is immediately following an action that an employee has performed. Recognition comes in different ways, places and time such as, • Ways – It can be by way of personal letter from top management. Also by award banquets, plaques, trophies etc. • Places – Good performers can be recognized in front of departments, on performance boards and also in front of top management. Time – Recognition can give at any time like in staff meeting, annual award banquets, etc. We can conclude that these eight elements are key in ensuring the success of TQM in an organization and that the supervisor is a huge part in developing these elements in the work place. Without these elements, the business entities cannot be successful TQM implementers. It is very clear from the above discussion that TQM without involving integrity, ethics and trust would be a great remiss, and in fact it would be incomplete. Training is the key by which the organization creates a TQM environment.

Leadership and teamwork go hand in hand. Lack of communication between departments, supervisors and employees create a burden on the whole TQM process. Last but not the least; recognition should be given to people who contributed to the overall completed task. Hence, lead by example, train employees to provide a quality product, create an environment where there is no fear to share knowledge, and give credit where credit is due is the motto of a successful TQM organization. TOTAL QUALITY HUMAN RESOURCES MANAGEMENT Introduction

Total quality human resources management (TQHRM) is “an approach to human resources management that involves many of the concepts of quality management. ” The primary goal of TQHRM is employee empowerment. Several differences exist between the traditional human resources approach and TQHRM. Thomas Foster developed a table that was adapted from an article by Cardy and Dobbins. The table lists the major differences between traditional HRM and TQHRM. The TQHRM approach focuses on providing employee empowerment through alignment, authority, capability, and commitment.

As Juran states: “The full potential of employee empowerment is realized in the empowered organization, when employees: align their goals with appropriate higher organization purpose; have the authority and opportunity to maximize their contribution; are capable of taking appropriate action; are committed to the organization’s purpose; and have the means to achieve it. ” Companies are beginning to realize that employee involvement is critical to product and service quality, and thus essential to the total quality management strategy.

How to implement TQHRM The primary goal of TQHRM is to provide an atmosphere that promotes employee empowerment. Empowerment requires the alignment, authority, capability, and commitment of employees. In order to achieve these goals, Juran has identified several steps that must be taken to achieve each goal. Alignment: Alignment can be realized if employees: • Know the needs of customers and stakeholders • Know, concur in, and be prepared to contribute effort to organization strategies, goals, objectives, and plans

Authority: In order for employees to the have the authority and opportunity to contribute to the organization, the following steps are required: • Individual authority, responsibility, and capability are consistent • Barriers to successful exercise of authority have been removed • The necessary tools and support are in place Capability: Employee capability can be developed through: • Organizational training initiatives • Educational development Commitment: An organization must earn the commitment of employees through: • Reinforcement • Recognition • Rewards TQHRM in Action

Eastman Chemical Company is an excellent example of TQHRM in action. Eastman Chemical designed an “employee development system” for employee development and coaching to replace its traditional performance appraisal system. Table 2 shows the new process. In addition to the employee development system, Eastman Chemical was successful in implementing an empowered management system to aid in the successful management of employees in an empowered environment. Eastman Chemical identified the specific changes that needed to be made to its traditional human resources management style in order to implement TQHRM.

They then set up guidelines and training programs to ensure that these changes were made. HR’S ROLE IN REENGINEERING Organisational change is a regular feature of life. For HR professionals, dealing with reorganisations is now a regular part of the job. But there is substantial evidence that organisations are not very good at organising. They don’t have the capability for successful repeated reorganisation and they don’t fully use the expertise of HR professionals. The subsequent text focuses on the practical skills and capabilities required by HR and line managers to effectively undertake reorganisations.

It focuses on reorganisations involving changes in organisational structure and on changes in softer features, such as culture. The three central themes are: • The positive role HR professionals can play in reorganisations as shapers of change • The challenge of accumulating learning about change at the organisational level, rather than relying on the personal knowledge of a few key individuals  • The potential relevance of a core set of generic skills and capabilities across a wide range of organisations and sectors. Reorganisations are an endemic part of managers’ roles and the pace of change is increasing.

Today’s relentless pace of reorganising requires a shift of mindset – from looking for the perfect organisation designs to building the skills and capabilities needed for rapidly and repeatedly designing more fluid forms of organisation structure. Drawing information from surveys and case-study reviews, the report identifies many skills and capabilities. It focuses on what are called the ‘seven steps to successful organising’. These are based on the statistical analysis of performance outcomes. These ‘seven steps’ highlight the importance of: sustaining top management support, especially personal commitment and political support • avoiding piecemeal, uncoordinated change initiatives by making a strategic business case that anticipates implications across the entire organisation • achieving substantive, rather than tokenistic, employee involvement in the change process, moving beyond communication to active engagement • investing in communications with external stakeholders, including customers, suppliers and financial stakeholders • involving HR professionals closely, right from the start – involving HR has been proved to positively impact on a range of performance outcomes • maintaining effective project management disciplines that are embedded in the organisation • building skilled change management teams, with the right mix of experiences and abilities, that can work together. HR professionals need to rise to the challenge of shaping change, rather than simply sweeping up afterwards.

They will need a diverse range of skills and capabilities. Prime among these will be the ability to make a strategic business case, to situate any change initiative within the overall functioning of the organisation, and to employ sound project management abilities. The skills and capabilities required for a shaping role in reorganisations can be acquired through training and development within the HR functional career track. But, from the examples of successful change leaders and project teams in the case studies, the message comes through that HR professionals need to combine the knowledge and experience on their project teams from across organisations, sectors and functions.

Taking a more people-orientated approach, led by HR professionals, would improve performance as well as people’s experiences of reorganising. STRATEGIES FOR HR TRANSFORMATION Some of benefits that are achievable when adopting global best practices in HR management include: • Superior efficiencies through HR BPO • Globally consolidated HRMS and Payroll • Global rules – local compliance • Enterprise Learning Management – Learning across the enterprise in line with corporate strategic objectives • Portal Implementation & Integration • Power of HR Analytics- transforming operational data into powerful and actionable information HR – Support to Strategic advantage

In the past year HR organizations worldwide have graduated to becoming savvy technology users- evolving from a largely service delivery organization to one that focuses on strategic HR programs. HR staff is freed from repetitive and mundane administrative tasks to concentrate on human resource development programs that emphasize employee productivity, performance and retention. Companies are today maximizing the value of their most important asset –employees — aligning their skills, activities, and incentives with business objectives and strategies. Over the last 15 years the HR function in corporations has been investing a great deal into technology without realizing a significant ROI. Frequently, HR technology projects don’t deliver the expected results.

A key factor in this is a failure to define functional requirements clearly. By not basing these requirements in a solid HR strategy, organizations spend too much money on ad hoc software purchases or, even worse, under-use multi-million dollar HR software suites by not implementing modules that could be of significant value. The modules most likely to be left on the shelf are those considered key to operational human capital management, including competency and career development, recruitment, performance management and succession planning. Along with the right software, clean data and tight integration are critical success factors which are often overlooked.

Key stakeholders must have access to accurate, consistent, integrated data which cannot happen unless HR and IT objectives are fully aligned. This successful alignment requires an understanding that changing technology alone will achieve little. Change starts to deliver its value only when supported by and integrated with other elements of the infrastructure, which are part of an explicit HR strategy. Operate Global act Local For the global corporation, a unified data model provides a single, accurate view of HCM parameters. For example, such a model for payroll would support worldwide payroll processing with BPO, maintenance, global deployment and management across borders.

Choosing the right service provider with requisite domain knowledge will allow installation and operation of payroll that fully complies with local requirements on a worldwide basis. Portals are the key Through the use of intuitive web interfaces companies can use portals to communicate HR information to employees across the company-not just knowledge workers but mobile workers, maintenance, field and ground staff. Lack of standard conventions, standardization and compliance for content and graphics has been the primary challenge of corporate portals. However, increasingly, portals require integration with packaged or custom applications, such as an ERP, recruiting software, expense management or travel software, etc.

As integration with these solutions becomes more seamless, the line where portal standards begin and end will become less clear. Self help is the best help By using personalized self services- web based transactional tools employees can self manage their HR information for updating their payrolls and benefits selection and skill profiles. HR professionals can now move from being transaction processors to consultative partners. A new trend in Self Service systems include MSS or Manager Self Service Systems in which managers can carry out administrative tasks surrounding employee payroll changes, job transfers and scheduling of training. In school yet on the job: e-learning makes headway

There is a direct correlation between an organization’s investment in training and its performance in the marketplace. Companies are using enterprise learning Management initiatives to turn learning into a business advantage. Through the selection and deployment of effective tools, companies can couple effective knowledge transfer and efficient learning techniques with corporate strategy and business objectives. E-Learning will serve as the only effective way of training a widely dispersed staff in a consistent manner. Combined with personalization, e-learning will become targeted, just-in-time help that is available 24 x 7. Corporate guidelines and standards will have to evolve to handle e-learning and other types of online, multimedia tools.

In Hexaware’s experience the following corporate requirements need to be met in order to implement an effective Elearning solution. • The solution must be very responsive to changing business needs • The solution must be ubiquitous and easy to use • The delivered training should match the quality of one-on-one training • The solution developed must be open, flexible and expandable • It must be designed to support both backward and forward compatibility with existing and future systems and standards • The deployed solution must be designed to communicate with other enterprise systems It’s your data working for you: Analytics for global HR decisions Questions like, how far in advance of hiring should you begin recruiting for new hires?

How can you reduce hiring lag times? With HR Analytics, you can analyze your hiring cycle to ensure you have the people you need, when you need them. HR Analytics provides the tools for policy development and decision-making. Design, implement, and monitor corporate strategies, analyze workforce data, and continuously evaluate how various scenarios affect business goals. Typically HR Analytics will help gain visibility by providing best-practice methodologies in hiring, training, benefits, and performance analysis, KPI (key performance indicator) benchmarks, metrics and analysis techniques. These provide the power and path to root-cause analysis across the Enterprise. Answers to hundreds of key business questions providing a complete view of employee resources and costs across all areas of your organization. Deploying such systems involves bringing disparate data sources together and feed them back to answer your business questions. No longer confined to a limited, silo view of your data, HR analytics integrates data with other views transforming operational data into powerful and actionable information designed for the agile corporation. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | References | | |http://www. hexaware. com | | |http://EzineArticles. com | | 1. http://www. isixsigma. com 2. www. suite101. com 3. Baldrige National Quality Program, 2002. “Criteria for Performance Excellence. ” 4. Cardy, R. and Dobbins, G. H. “Human Resources Management in a Total Quality Environment: Shifting from a Traditional to a TQHRM Approach. ” Journal of Quality Management 1, no. 1 (1996) 5. Foster, S. Thomas. Managing Quality: An Integrative Approach. Prentice-Hall, New Jersey; 2001. 6. Juran, Joseph M. “Human Resources and Quality. Exerpted from: Juran’s Quality Handbook, 5e. McGraw-Hill, 1999. 7. WHITTINGTON, R. and MOLLOY, E. (2005). HR’s role in organising: shaping change. Research report. London: CIPD. 8. Human Resource Management by V S P Rao, Second Edition. 9. Human Resource Management by Deepak Kumar Bhattacharya, Second Edition 10. Human Resource Management International Digest, Volume 10, MCB UP ltd, ISSN0967-0734 11. Armstrong, M (ed. ) 192a) Strategies for Human Resource Management: A Total Business Approach. London:Kogan Page 12. Beer, M and Spector,B (eds) (1985) Readings in Human Resource Management. New York: Free Press Topics handled by Team Members: 1.

Saurabh Mishra : INTRODUCTION, THE IMPORTANCE OF HUMAN RESOURCES MANAGEMENT IN MODERN DYNAMIC ORGANIZATIONS, EFFECTS OF TECHNOLOGICAL CHANGES ON HRM AND INTRODUCTION OF HRIS, DESIGN OF THE DOCUMENT 2. Swati Arora : A RETENTION FACTOR IN TODAY’S DYNAMIC BUSINESS WORLD – TRAINING AND DEVELOPMENT , TQHRM IN ACTION, INTERNET RESEARCH 3. Divyan Kavdia : EVOLUTION OF THE HR FUNCTION – FROM A BUSINESS FUNCTION TO A STRATEGY PARTNER, ITS YOUR DATA WORKING FOR YOU, DESIGN OF THE DOCUMENT 4. Kumar Priyadarshi : STRATEGIES FOR HR TRANSFORMATION, INTERNET RESEARCH, DOCUMENT DESIGN AND FORMATTING 5. Vivek Sharma : HR’S ROLE IN REENGINEERING, INTERNET RESEARCH, DOCUMENT DESIGN AND FORMATTING 6. Vishnu Komma : TQM – THE 3 MAGIC LETTERS TO SUCCESS, TOTAL QUALITY HUMAN RESOURCES MANAGEMENT ———————– pic] Document Development Plan Assess Employee Performance Agree on Job Expectations Feedback Coaching Improved Employee Contribution Ongoing Development Mgmt. Process for Successful Execution Personal Development Activities Assignments projects Unplanned Development Needs Done every 6 months Feedback Done on an ongoing basis GROUP 9 1. Divyan Kavdia 09BM8017 2. Swati Arora 09BM8032 3. Saurabh Mishra 09BM8045 4. Vivek Sharma09BM8062 5. Kumar Priyadarshi 09BM8069 6. Vishnu Komma06MI3815 Vinod Gupta School of Management, IIT Kharagpur HR in a dynamic Environment

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Jollibee Foods Corporation

JOLLIBEE FOODS CORPORATION (A): INTERNATIONAL EXPANSION PROBLEM: What possible management and marketing strategies can Noli Tingzon create to be able to cater both the international and local markets of Jollibee Foods? AREAS OF CONSIDERATION: COMPETITION/ COMPETITORS: 1. Tough competition between existing establishments such as McDonald’s, Kentucky Fried Chicken, Pizza Hut and Wendy’s as to the quality of food, service time and menu variations at a low price. 2. McDonald’s is known for its best locations/ sites. . McDonald’s succeeded everywhere (globally) because they are very good at selecting the right partners. PERSONALITIES: 1. Tony Tan Caktiong, President and CEO of the company, wants to further expand his company to other countries and cater the needs of his customers globally. 2. Tony Kitchner, a native of Australia who spent 14 years in Pizza Huts Asia-Pacific regional office, was hired to become the head of the International division created to build the expansion of Jollibee Foods in other countries.

He managed to be successful in some aspects of the expansion but later encountered difficulties. 3. Noli Tingzon, the new head of the International Division who is tasked to make the necessary changes in the organization which would be favorable to the customers and as well as the company. ORGANIZATION: 1. The International Division created by Tony Kitchner had a superior image, which created a gap between them and the local research and development group. They wanted to do everything differently, so that if their stores did well they can take all the credit. 2.

When the international people tried to recruit people from the Philippines, there was some jealousy on a personal level because the people recruited were immediately promoted and had better compensation. 3. The relationship between the domestic managers and the International vice-president could not compromise on several issues regarding their concerns in their respective departments. 4. Poor relationship and less communication with the management and the staff of both the local and international departments of the organization. ALTERNATIVE COURSES OF ACTION: 1.

Develop a market niche strategy that can cater the needs of both the international and domestic customers. • Jollibee use market niche strategies to beat McDonald’s. Well, in terms of global market Jollibee is a mouse among the elephants but in the Philippines Jollibee control over 80% share of hamburger and 55 % fast food market as a whole. Jollibee can develop products for their customer must also develop message tailored especially for their target customer. 2. Bridge the gap between the International Division and the local Philippine research and development staff. Since there was a gap between the International Division and the local Philippine research and development department because of their superiority complex, there should be good communication between them and try to increase the morale of their employees. With a new head of the International Division, creating a better environment that is favorable to both parties would help the organization to focus more on the tasks given to them and may be able to address directly the needs of each one. With good communication within them, they can work efficiently and further fix the difficulties they face in the company. . Create a better management style that suits the organization. • The management style of Jollibee Foods Corporation is somewhat more dependent on the output that the International Division shows. Management is more concerned of the results that each department establishes and pays less attention to the details that may come in the process. There are two styles of management, which can be suitable to the organization, autocratic and democratic. An autocratic style of management is the type wherein the high-ranking personalities may be able to express fully their authority over the people they are handling.

Though it may somehow have its disadvantages because the people who are not in the authority or don’t have any power over decision making would make them inferior and in turn decrease their moral as employees. They cannot show how they want things to be in their work environment and leave them no choice but to follow what should be done rather than doing what they want. The democratic type of management style is the type wherein there is complete communication between the top management and its subordinates. They can be able to address more the concerns of each and understand each other’s needs.

RECOMMENDATION: * With the three suggested alternative course of action, we recommend using the three alternatives. First, the company should identify the type of management they are to use to develop changes within the company. Having Noli Tingzon as the new head of the International Division, he should know how to create a democratic management style to show that he cares on what his subordinates are concerned about since they are the forefront people of the company. Taking care of the customers is one way of showing that they pay good attention to the needs of their “audience. Second, closing the gap created between the International Division and the other departments can help promote a better working environment so that they can be able to work in ways that they can work together as a group. This way, they can work comfortably without the thought of putting down the hopes of the other. Lastly, with the image that Jollibee has in the market today, they can use it to target more the needs of the customers by creating innovative menu variations that other fast food chains do not offer.

Or if possible, they can bring back classical products that the public may have missed. This can cater both the international and domestic market because the ever-changing needs of the customers should be the primary concern of the organization. They should also develop a good relationship with their franchisees and suppliers so that they can also identify and focus on the places that they should be paying attention to as to their performance, whether it be losing or making profits.

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