Operations Management Zellers Essay Example for Free

Operations Management Zellers Essay What competitive priority is important for a discount store, such as Zellers? Cost is the most important competitive priority for a discount store, such as Zellers. In order to perform competitively as a discount store, the organization must emphasize low operating costs. With this priority, Zellers can produce at low costs in comparison to competitors and offer products at low prices in order to meet consumer needs and become an order winner. 2. Three generic strategies are low cost, niche market, and product differentiation. What one of these strategies was Zellers using before 1998? After 1998? Prior to 1998, Zellers was using a low cost strategy. The company targeted budget-minded consumers with the slogan Where the Lowest Price is the Law. In the face of fierce rivalry from WalMart entering the competitive landscape and various operational shortcomings, Zellers made several strategic decisions and changes. After 1998, Zellers was using a niche market strategy, by adjusting its mission to become a moms store. Zellers focused on offering fair value to consumers, as opposed to the lowest price. The company moved away from the low cost dynamic of its self-service policy by investing in labour, having several customer service assistants on the floor. It also focused on investing in more famous brands and private label products. To the companys detriment, it appears that Zellers made these strategic changes in order to compete more directly with WalMart, as they moved away from discounts towards offering everyday low prices on 95% of its merchandise.

IKEA: The Worlds Largest Furniture Retailer

IKEA: The Worlds Largest Furniture Retailer Introduction According to KeyNote, 2008, IKEA is the worlds largest furniture retailer. IKEA sells a lifestyle to its middle-class global consumers through cheap contemporary flat-packed designs. The Swedish based company has 237 stores around the world and it is the world leader in home furnishings (Mintel, 2006). IKEA is responsible for a global strategy that concentrates on cost management, efficiency and quality. However, there is much more to IKEA than just its cheap stylish furniture. As Eberhard-Harribey (2006) states, regardless of its openly aggressive focus on cutting costs, IKEA is a leading company when it comes to Corporate Social Responsibility (CSR) matters (see more on Appendix 1). IKEA has managed to combine a cost focus strategy with CSR issues as opposed to companies such as Starbucks and The Body Shop, which is considered to be high CSR-oriented but that charge a premium-price for its sustainable products. IKEA has respectable policies on child labour and has strong partnerships with UNICEF, and the WWF. Moreover, IKEA has a transnational strategy. The business maximise its global strategy of product standardisation whilst responding to, consumer local needs. Globalisation, factors like economic growth, deregulation, more disposable income and rising housing market have created many opportunities for growth in which IKEA have continuously taken advantage of in many countries. In spite of its global presence, it is worthy to point out two facts. First fact is that Europe accounts for 82% of IKEAs total revenues and North America accounts for 15% (Datamonitor, 2009). Second fact is that in both Europe and North America regions, as a result of the economic downturn the furniture retail industry is under a lot of competition. In order to reduce the political-economical and social-demographical risks inherent with such regions, IKEA needs to concentrate on diversifying its operations into other markets promptly and efficiently. Moreover, by expanding into other markets, IKEA can also take advantages of opportunities that these new markets offer that current markets no longer do. For example, in the past when China opened-up its policy to FDI, it eventually led to the Chinese economic improvement, the rise in the housing market and subsequently the demand for home furnishings in China. These events have unmistakable allowed IKEA to successfully enter this market. The current strategy mode that IKEA undertakes when entering a new market is International Franchising whereby products, limited rights, operating systems and the use of IKEAs brand name are sold to the foreign franchisee for a sum fee and share in the profits. It seems sensible therefore that IKEA continue on expanding into new markets. Nevertheless, before IKEA chooses another market to enter, IKEA needs to follow some steps: (1) Assess potential markets, (20 Evaluate the respective risks and benefits, (3) Choose the most appropriate market that not only match the Furniture Industry but ultimately complement IKEAs vision and Corporate Social Responsibility. In this work IKEAs plan will be to further its global expansion into the South American Market, having Brazil as a target. Brazil is the largest country in South America and according to Datamonitor (2009), it is characterises the most attractive country for the Furnishing Industry. The following analyses have as an aim to critically determine whether or not IKEA can successfully enter the Brazilian Market and how it should best endeavour such move Industry Overview: Global Home Furnishing Retail The home furnishings retail sector includes furniture, floor coverings and household textiles. Furniture sales dominate the global home furnishing retail sector, with 63.9% of the sectors value. IKEA has the largest share in the global home furnishing market. Its share accounts for 2.3% (MarketLine, 2009). Europe accounts for 43.1% of the retail sectors value and the compound annual growth rate of the sector in the period 2004-2008 was 2.6%. Moreover, according to Datamonitor, 2009, sectors value reached a value of $663.4 billion in 2008 and it is forecasted to grow by 24.9% in 2013 (MarketLine, 2009). Moreover, according to Mintel (2008) the UK is IKEAs most successful market. However is being held back by the difficulty of getting new stores, low consumer confidence due to the economic slowdown. The UK housing market has slowed dramatically and with house prices and the number of transactions forecast to fall this year, this must be bad news for furniture retailers. Already in 2008 there have been a number of casualties, including Sleep Depot and New Heights, and most recently Ilva and ScS. At the same time furniture retailers are facing unprecedented levels of competition from outside of the specialist market from the likes of Tesco, Asda, Woolworths, Argos, Homebase, BQ, and even Next and MS. Is it all doom and gloom for the furniture specialist? more  » The UK housing market has slowed dramatically and with house prices and the number of transactions forecast to fall, furniture retailers are facing exceptional amount of competition from outside of the specialist market from the likes of Asda, Argos, not to mention MS and Next. Five Forces Analysis Retailers of furniture, floor coverings and household textiles are the players of the home furnishing retail sector and the main buyers are taken as end-users, and manufacturers of furniture, floor coverings and household textiles as the key suppliers. (Table bellow adapted from Datamonitor, 2009) IKEA Swot Analysis IKEAs Corporate Social Responsibility According to Maon, Swaen and Lindgreen (2007) IKEA receives pressure from various external stakeholders. This pressure mainly exists because IKEAs business is modeled on cost leadership the majority of its raw materials are originated from developing countries. Since the end of the 1980s, IKEAs policies have been under constant scrutiny, particularly from NGOs. For example, IKEA was under the public eye over child labour in Asia, working conditions in Eastern Europe and Asia, and wood from questionable forests in Indonesia and Russia. Some critics argue that IKEAs sustainable practices took too long to be implemented and others question why the company do not place social and environmental labels on its products, even though the products meet criteria for products made of tropical wood materials. However, for IKEA, the brand itself should be a guarantee of environmental consideration and social responsibility Moreover, as a result of such pressures, the company is more actively involved in its CSR than ever. See next for examples of IKEAs current practices: (Source: IKEA Group, Panda.org, UNICEF and SaveTheChildren.com, 2009). Identification of a New Market Whereas the North American furniture and floor coverings market is currently going through difficult times, South American has kept strong growth in value, a trend that according to Marketline, 2009 is meant to carry on rising. As for 2010 IKEA will enter the South American market. The first IKEA store will be allocated in Santo Domingo, Dominican Republic (Reference?). However, as it is shown bellow there are other countries within South America in which IKEA could be successful. Furniture Floor Coverings in South America Industry Profile The South American furniture floor coverings market generated total revenues of $19,801.3 million in 2008, representing a compound annual growth rate (Datamonitor, 2009) of 7.5% for the period 2004-2008. Market Segmentation Living room furniture sales has proved the most lucrative for the South American furniture floor coverings market in 2008, generating total revenues of $7,420.1 million, equivalent to 37.5% of the markets overall value. Brazil (Marketline, 2009) however, Brazil leads the South American furniture and floor coverings market, accounting for 63.3% of the markets value. Factors Influencing the Likelihood of New Entrants and New Entrants in the Furniture Market in South America As shown above, there is a lack of brand strength in the Latin American furnishing market. This is turn shows that somewhat easy for new businesses to enter the market. Examples of such business however, are those well established diversified retailers, such as supermarkets and department stores entering the market. Advantages for retailers occur within the market on a small scale with either one or several outlets, for which fixed costs and entrance barriers are fairly low. However, the impact of the current global economic recession on the retail environment can discourage the entrance of new furniture businesses into the high-street in the medium term. There is however little government regulation which only concentrates on health and safety of the products. Overall, Datamonitor (2009) sees that the threat of new entrants to the furniture market in South America is considered to be strong. It is therefore important that establishes its presence in the region before other multinational companies decide to enter the South American. By being a entering such region, IKEA can be as successful as Telefonica has been since 1990 (Griffin and Pustay, 2009). It can generate more sources of revenue as well as establishing new customer base before competitors. There are a large number of different retailers of different sizes from small independent retailers to large chain-stores operating within the furniture and floor coverings retail market. Many players within the market are diversified retailers, such as department stores, supermarkets and DIY stores, which are not critically reliant upon furniture sales, which in turn ease rivalry. However, there are many small specialist stores, where the sale of furniture and floor coverings products is critical to success. These companies need to compete intensely with the supermarkets, which is becoming increasingly difficult in terms of price without compromising product quality; as the supermarkets can afford to make smaller margins over a wide range of products. The current economic downturn is adversely affecting retail sales, reducing growth potential and increasing exit barriers, which enhances rivalry. Overall, rivalry with respect to the furniture and floor coverings retail market is moderate. (Please refer to Appendix 2 for further analyses). Brazil The Brazilian economy was not affected by the global financial crisis as the countrys economy is tightly regulated with orthodox macroeconomic policies. The countrys growth rate increased in 2008 to reach 5.9%. Moreover, Brazil is the founder member of Mercosul regional integration which for instance, are responsible for 75% of South Americas GDP and it is the worlds fourth-biggest integrated market. The economic reforms, liberalized foreign investment to most sectors have been considered to be responsible for the current economic. The market of furniture in Brazil has three main segments: home (60%), office (25%) and institutional organisations (15%). Analyses show that (reference) this last segment is on the growth and imports should increase. This change in demand for foreign designs can certainly benefit IKEA in Brazil. The market is also restrained by high interest rates (18.3% per year in 2001) which prevent people from demanding bank loans, and thus maintain their purchasing power at lower levels than if they could borrow money easier. It then has a bad impact on house purchasing and in series, lowers the buying of house furnishings too. However, despite its high profile, Brazil still suffers from corruption. According to Transparency Internationals Corruption Perceptions Index for 2008, Brazil is ranked in the 80th place out of 179 countries. Because corruption is perceived to be very strong in Brazil, the majority of businesses are expected to encounter corruption when proposing contracts to governments. Moreover, deforestation caused by multi-nationals is making serious harms to the Brazilian rainforests. As the demand for environmentally friendly companies in Brazil and around the world continues to rise, companies such as IKEA can certainly expect to have its CSR scrutinised before receiving any license for operation. PESTLE Analysis of IKEA in Brazil Brazil has come out to be of the best market to invest (Griffin and Pustay, 2009) the economic reforms implemented after 2003 led to increases in real per capita income, and an improved income distribution. Real per capita income increased 14% from 2004 to 2007 and the inequality in the distribution of income, measured by the Gini coefficient (which ranges from 0, which reflects equality, to 1, which indicates inequality), diminished from 0.6 in 2000 to 0.5 in 2007. Although the political stability in Brazil does not have the same standard of security as other OECDs, the political stability in Brazil is improving steadily. Brazils president is considered to be more sensible than other South American leftist leaders. And Although Lula obviously seeks to protect national companies, He is also aware that many Brazilian businesses are not very efficient. After being re-elected, Lula has welcomed FDI in Brazil with open arms (Reference) Additionally, as the poverty situation in Brazil is still high, the Brazilian government and its population are in turn very active when it comes to social programs. There are major government programs that aim to tackle the problems of income inequality and access to credit. Programmes such as Zero Hunger (Projeto Fome Zero) provides low-income families conditional cash transfer bases reach nearly one quarter of Brazils population (MDS). Such programs can be seen as an opportunity for IKEA. Since IKEA has such renounced CSR programs in place, it can certainly work with partnership with the Brazilian government. Also, as more people are acquiring houses, the demand for furniture will eventually increase. With emerging markets capturing investors attention, many are turning their focus towards South American markets. Strong exports, high commodity prices and increased investments have been contributing factors to growth within many of the Latin American markets (Fleming, 2007). Amongst its neighbours, Brazil is the country that provides its population the highest average purchasing power (IMF, 2006) Thus, Brazil seem a very attractive market for IKEA, especially since the its furniture imports have experienced a growth of 16.27% during the third quarter of 2006. The imports of furniture in Brazil are controlled by the United States with 39% of the share, followed by Germany with 36% and Italy with 10% (ABIMOVEL, 2008). Because Brazils income gap between the rich people and the poor people is very high, The 10% richest people earn 50% of the totally income and the 10% poorest people only get less than 1% (source?) social status are very meaningful, especial for the middle-classes. As IKEA has been very proficient in selling lifestyles to its customers (KeyNote, 2008) the status importance amongst Brazilians could turn out to be advantageous for IKEA. Nevertheless, credit option is extremely limited among most consumers who are expected to pay for their goods in instalments. Very ofte, consumers opt for a certain product not because if its quality, but because of the payment facilities. Consumers can pay for a TV of the equivalent of  £300 in 10 instalments and without any added interest. IKEA should certainly be aware of consumers buying behaviour in order of to have problems with its liquidity ratios. As the telecommunication penetration rate in Brazil remains low, IKEA would not be able to rely in online sales in Brazil in the middle future and its online advertising should be very efficient . Laws requiring pre-sale disclosure by a franchisor are in place in Brazil Brazil shelters dense forests in northern regions including Amazon Basin that can be use for wooden furniture: half of the country is covered by forests. However, over the past couple of years, the government has been very cautious about global warming caused by MNCs deforestation. So IKEA would need to ensure the Brazilian government that its practices are very sustainable to be able to use Brazils endowments. IKEA in Brazil From the analysed above, it can be deducted that there are several attractive aspects for IKEA to invest in the area of furniture industry in the Brazilian market. First of all, the furniture market in Brazil is attractive due to a big value of imported furniture. Additionally, the labour cost is cheaper compared to Europe and America. Mode of Entry All IKEAs stores in foreign countries are managed under international franchising (IKEA, 2009). Franchising is a special form of licensing where the licensor authorises the licensee to utilize its operating systems, logos, brand names and trademarks in return for a loyalty payment (Griffin and Pustay, 2009). The franchisee needs also to supply capital, personnel, personal involvement and local market knowledge (Jeannet Hennessy, 2004, pp.296). As IKEA has so much experience in setting up franchise contracts, it seems sensible to apply the same when coming to Brazil for the following reasons: However, International Franchising has its drawbacks as well: Although the drawbacks of setting up Franchising in Brazil are not too high and IKEA could still be very successful in such a market. Based on the information gathered in this work, a relatively more complex but even more successful mode of entry can be recommended. Due to Brazils endowment factors and government economic stimulus package to attract new investments, IKEA can greater benefit from entering the market through Foreign Direct Investment via than from International Franchising. Moreover, by using FDI as a Strategy, IKEA can acquire national resources and access other South American markets. According to Dunnings Ecletic Theory (Griffin and Pustay, 2009), FDI will occur when three conditions Ownership, Location and Internalisation are satisfied. By matching IKEAs Swot analysis and all the other information gathered in this work, it is possible to observe that IKEA enjoys all three advantages in competing in Brazil against local firms. 1. Ownership: Whereas most of Brazilian furniture retails hold low brand image and average technology systems, IKEA has unique competitive advantages such as strong brand name globally, advanced technology and the benefits of economies of scale in other markets. 2. Location Advantage: IKEA can enjoy lower labour costs, avoid tariff walls on goods exported from Brazil to other South American countries and save money on product transportation instead of importing products from China, Russia and India, the majority of products can be manufactured in Brazil due to its vast resource endowments. 3. Internalisation Advantage: Because of growing concerns related to management of intellectual property rights, deforestation and corruption in Brazil, IKEA will benefit more from controlling its operations in Brazil than from hiring independent local companies to provide such services. FDI via Greenfield Strategy and Strategic Alliance As Brazilian Furniture Retailers are relatively small, the possibility to acquire an existing company with the intention of obtaining control over employees, technology and stores is very low. Therefore, IKEA would have to start its operations from scratch. According to Griffin and Pustay, 2010, when companies buy or build new facilities, hires in managers and employees to launch its brand new operations, they do so through Greenfield Strategy. Given all the facts that influence FDI in Brazil, the Greenfield Strategy can certainly benefit IKEAs entry to the Brazilian Market for the following reasons: IKEA can the location that best meets its needs It can build up-to-date facilities Brazils local and national government gives economic development incentives to attract companies facilities IKEA would not have to adapt its production systems to any Joint-ventures IKEA would not have to deal with problems associates with Property Rights that could arise from potential Franchisees/Licensees/ or Joint Venture partners. However, the Greenfield Strategy also has its disadvantages: The process of building a new site, hiring new staff and negotiating with government is relatively long and expensive In order to promote certain regions development, Brazilian government might require IKEA to build its site in a determined place that is not IKEAs desired location. Grant to use natural resources might be given under very restrict regulations due to global and national demand for sustainable products Furthermore, by using Brazils endowment resources, particularly in the Forestry sector, IKEAs CSR would be put under further scrutiny. However, as IKEA has so many projects that have been benefiting the forestry and the cotton sector (refer to IKEAs CSR) in so many countries IKEA can combine its current CSR practice and form a strategic alliance with the Brazilian government involving the production aspect of the business. According to Griffin and Pustay 2010, a strategic alliance involving public and private partners can benefit a company if negotiation is handled properly and if the government is relatively stable, by easing market entry, reducing risks, enhancing knowledge and expertise and giving competitive advantage. Appendix 1 Detailed Five Forces Analysis for the Global Retail Furniture Market (Adapted from Datamonitor, 2009). Appendix 2 Continuation of Five Forces Analysis on the South American Retail Furniture (Source: Datamonitor, 2009) Appendix 3

Management Practices in Japanese and US Companies

Management Practices in Japanese and US Companies This Research Paper makes a summary comparison of cross-cultural research conducted in the last ten to fifteen years in the areas of Human Resource Management; Management Style and Negotiation Strategies in Japanese and US companies. The different Research Studies in these three areas analyzed the learning possibilities for Japanese and US companies on two different levels: At headquarters and at subsidiary level. For each one of the three research topics, a Roadmap is drafted with concrete steps and strategies as to how these companies should adapt their management practices in these 3 areas in order to be even more successful. The findings of this paper also cover the very central debates in the international Human Resource Management literature: The Convergence vs. Divergence issue and the Standardization vs. Localization issue. The results clearly show that overall the dominance effect is most important (i.e., subsidiary practices appear to converge to the dominant US practices). Hence the results obtained in this paper lead to the rather surprising conclusion that for what might be considered to be the most localized of functions HRM convergence to a world-wide best practices model is clearly present. From the authors viewpoint his is a logical consequence of globalization in all business sectors. Key Words: Road Map; Human Resource Development; Leadership Style, Negotiation Strategies; USA; Japan; Cross-Cultural Introduction to Human Resource Management Practices in Japan and in the USA From a historic perspective, Human Resource Management (HRM) has been identified as a key ingredient for the success of Japanese companies on world markets during the 1980s. In this decade, suggestions as to how Western managers could learn from Japanese HRM practices were plentiful. Only one decade later, however, Japan went into a recession from which its business model has not yet fully recovered. Oddly enough, these formerly superior HRM practices are now being viewed as the root of the malaise of the underperforming Japanese economy A Research Perspective of HRM Practices in Japanese and US Companies In the early 1980s of the last century, the Japanese management model, and in particular its HRM model, have often been depicted as very different from Western-style management, yet much more competitive (Kono Clegg, 2001). Its deep-rooted and unique cultural and institutional characteristics usually were cited as the key reasons for these differences (Pudelko, 2006). Earlier, Frenkel Peetz (1998) described a rapidly speeding up globalization-induced trend towards increasing convergence resulting from global competitive pressures. In parallel, Katz, Darbishire (2000) noted a clear trend towards convergence in key patterns of HRM practices among industrialized countries. This phenomenon they call converging divergences. In parallel, the research of Frenkel Kuruvilla (2002) concludes that employment relations patterns are being determined by the interplay of what they define as three distinct à ¢Ã¢â€š ¬Ã… ¾logics of actionà ¢Ã¢â€š ¬Ã… ¸: The logic of global competition, resulting in the pursuit of global à ¢Ã¢â€š ¬Ã… ¾best practicesà ¢Ã¢â€š ¬Ã… ¸ and ultimately global convergence does not allow local insular cross-cultural happiness and coziness any longer. One reason that the USA has achieved its dominant status in the 1990s was its superior economic performance. The conclusion from these findings were that if the strengths of a successful economy are concentrated in industries characterized by intense international competition such as IT, computers and electronics the attention and the readiness to learn from it tends to be particularly strong. Such industries are often the pioneers for defining and producing à ¢Ã¢â€š ¬Ã… ¾best practicesà ¢Ã¢â€š ¬Ã… ¸ and the place where such global standards of management practice are set. Taylorism, or à ¢Ã¢â€š ¬Ã… ¾scientific managementà ¢Ã¢â€š ¬Ã… ¸, has been the prime example for a management concept claiming universal validity. Other examples were lean production, kaizen, re-engineering and management by objectives once strong points of the Japanese economy, when they were the best practice leader in doing so. Since the implosion of the Japanese economy and with the advent of globalizatio n, speed of action and instant flexibility to adapt to changing global market conditions were key criteria to succeed. Cultural diversity research carried out in the US and in Japan over the last one and a half decades has been that the American management model is particularly well suited to provide the required speed and flexibility to cope with rapidly changing economic and technological conditions. Consequently, the USA became again the dominant role model (Edwards, Almond, Clark, Colling Ferner, 2005). Summary Comparison of Key HRM Practices in Japanese and US Companies The following diagram shows a comparison between Japanese and US firms HRM practices. Areas discussed are: Recruitment and release of personnel; training and human resource development; employee assessment and promotion; as well as employee incentives. The comparison clearly illustrates the individualistic HRM approach in American firms as compared to the collectivism-oriented HRM orientation in Japanese firms. It is obvious that in the high technology sector especially the team and consensus oriented HRM philosophy of the Japanese is a hindrance to success. It appears that there are several other reasons for the declining importance attached to key attributes of Japanese model (kaizen, kanban, total quality management, quality circles, team work). Just like the Japanese firms have to learn from best practice solutions from other countries, these attributes have already been adopted by American HRM managers in the last 20 years, therefore are less significant in the future as sources for orientation. The changes brought about by globalization in the competitive environment probably also have played a role. For the future, fundamental developments such as globalization require substantial on-going responses from multi-national companies to maintain competitiveness. Figure 1 compares Japanese and US HRM practices and their competitive impact on HRM management in general. Figure 1: Comparison of Japanese US HRM Practices in 4 Key Areas HRM Sector: Japanese HRM Practices: US HRM Practices: 1. Recruitment Release of Personnel: Recruitment of new graduates to a permanent position Selection based on inter-personal skills Life-long employment philosophy low staff turnover rate= high loyalty Managerial positions filled with internal staff only Finding the best candidate internally or externally available Selection based on performance/expertise Job hopping philosophy pouts individual goals above company interests Positions filled with best expert available Competitive Effects of respective HRM Practices: Slowness towards innovation Lack of external expertise Promotes rapid innovation from inside or outside Low loyalty to employer HRM Sector: Japanese HRM Practices: US HRM Practices: 2. Training HRD Development: Broad training towards generalist knowledge Extensive training based on work group approach Employee is trained to fit corporate culture Specific training for specific tasks only Training is limited and focused on the individual only Little effort to mould the employee towards the corporate culture Competitive Effects of respective HRM Practices: Focused on corporate culture building Focused on individualism to promote success HRM Sector: Japanese HRM Practices: US HRM Practices: 3. Employee Assessment Promotion: Emphasis on seniority and not on performance Emphasis on group achievements Qualitative informal evaluation criteria Career path broad based in several Divisions Emphasis on individual success only Emphasis on individual achievements Quantitative measurable criteria and objectives Career path mostly confined to one functional part only HRM Sector: Japanese HRM Practices: US HRM Practices: 4. Employee Incentives: A mix of material and immaterial incentives Pay increases based upon seniority Little difference between top management pay levels and workers: Low with 20:1 Emphasis is on material incentives: Pay + bonus Pay based upon individual performance only Very large differences between top management and workers: High with 100:1 Competitive Effects of respective HRM Practices: Slow promotion for top performers Slow climate of innovation Quick promotion for top talents Innovative staff ensures innovative corporate climate Proposed cross-cultural Roadmap for a strategic HRM Approach Throughout the research reports analyzed for this paper, Globalization demands a broader-based strategic HRM response by Japanese firms on this more than 90 % of the interviewed Japanese Executives agreed. The results from the American respondents showed that they considered it to be a particular strength of the American HR management. Japanese managers agree in turn, that their process based incremental improvements concepts will lose in significance in the future. Furthermore the research data clearly shows that only Japan management has a distinct desire to change its own HRM model in a rather comprehensive way. This definitely can be described as a paradigm shift. The following Figure 2 gives some key thoughts and elements for such a strategic approach to HRM tasks in the future. Figure 2: A cross-cultural Roadmap for a strategic Approach to HRM Tasks in the Future Drivers of Global Changes in HRM: Elements causing Changes: Impacts of Change Elements on HRM: Need to reduce costs Speed of product innovation Quality of service Knowledge of client needs Staff motivation Training in design to cost method Innovative methods in product management Staff motivation and skills training Market knowledge has to be communicated Individual performance alone counts Risks involved: Overall corporate management philosophy has to be benchmarked against industrys best practice Key Changes needed: HRM has to install and accompany a change management process Individual performance evaluation has to abolish consensus-based group performance evaluation concepts Conclusions: HRM has to become the driving integrative force for the implementation of the Corporate Business Plan Resulting Roadmap for HRM Strategy: HRM Parameters that need to improve the Competitiveness of Corporations: HRM Parameter: Expected Benefits from HRM Changes: Strategic HRM Plan has to be part of Business Plan Future staff qualifications are in sync with corporate business plan Business Plan has to contain Change Management Concept HRM develops a long term focus linked to strategic corporate objectives Innovative Career Development Allows quick promotion of top performers Innovation oriented recruiting Speed up innovation cycles Promotion based on merit only Does away with risk minimizing attitude Introduction Best HRM Practice Concept HRM does self-control of its performance against key competitors Strategic HRM Implementation Roadmap: Overall Strategic HRM Objectives: HRM is the binding link of overall corporate business strategy to the employees of the company HRM promotes innovation and change culture in the company Planning Horizon of chosen HRM Strategy: Long term plan over 20 to 30 years Strategic plan over 5 years Operative rolling plans over 2 to 3 years Top Management Support required to implement new HRM Strategy: HRM has be a board level responsibility with staffing and budget to implement HRM Strategy chosen Introduction to cross-cultural Management Styles Globalization has changed the managerial tasks of US and Japanese mangers dramatically: Many have to work now in an international environment, in Japan or in the USA. Reasons for these changes were joint ventures, mergers, acquisitions and cooperation alliances. In the 1980s, Japan taught the work what kaizen; kanban, total quality control, etc meant in terms of competitive advantage. So the US managers had to learn these concepts. Towards the end of the late 1990s, the US had caught up with this cross cultural learning approach. Then the globalization effect came to full speed suddenly the individualistic type of US management proved to be much more flexible and successful then the slow consensus-based Japanese management style. Research findings towards different Business Cultures in Japan and in the US The research for this paper showed that the business cultures in Japan and in the US differ in 5 key categories: 1. Power Structure: National level versus international level; egalitarian approach versus non-egalitarian approach; centralized management forms versus decentralized management practices. In the authority-driven business environment still prevailing in Japanese companies, aspects of power play a critical role. This slows down decision making, as power issues dominate business cultures dominating innovative US companies (Browaeys 2009). 2. People Relationships: Collectivism versus individualism; team orientation versus individual focus. Japanese collectivism is documented in its overemphasis on team issues; where consensus finding warrants longer times until a decision is being taken (Dickson 2003). Management emphasizes group loyalty, relationships in groups prevail over individual tasks. Americans have lesser loyalty to their companies, they see employment as a temporary issue for the mutual benefit of employer and employee. 3.Tolerance for Risk-taking: High avoidance levels versus low avoidance levels; bureaucratic orientation versus non-bureaucratic orientation. The consensus-based Japanese business culture tries to minimize uncertainties through an over-emphasis on planning. As a result, they do not like to change plans once they were approved (Yamazaki 2008).US companies treasure the opportunities offered in risky endeavors a horror for traditional Japanese companies! 4. Masculinity/Femininity: Role differentiation between males and females at society and organizational levels. Japanese managers are expected to be assertive and decisive, with sex roles clearly defined. This means fewer women progress to managerial positions in Japan, whereas in the US women climb to executive posts on a much more regular basis (Jacofsky 1988). Work for Japanese managers is seen as the center of life interests. Edwards 2005) 5. Time Orientation: Long term view versus short term view in business planning and strategy formulation. The time perspective in their business philosophy: Past/present in Japan versus present/future perspective in US companies. American companies are a lot quicker to react to new opportunities what was successful in the past is less important than new opportunities which lay ahead in the near future (Dahl 2004). The retrospective business approach of Japanese companies has them look for long-term relationships. US companies take the present and look quicker and often farther into the future. This speeds up their decision making processes and facilitates the acceptance of risk taking among their executives (Tsui 2007). Research findings towards Key Managerial Skills in Japan and in the US Effective cross-cultural management skills have to fit the prevailing national business culture where they are being applied to on their workplaces. In individualistic business environments as in the US, new employees are being hired on the basis of their personal records. In the collectivistic business culture of Japan, recommendations from elite universities or from family members who already work for the company play a vital role. The following key managerial functions have been analyzed in research paper: Reward allocation and employee motivation; employee participation and managerial communication; executive development. 1. Reward Allocation and Employee Motivation: The proper allocation of rewards is the driving force of the individualistic US business environment: Rewards are expected to be equity based, i.e. based upon an individuals contribution to corporate success. Rewards are supposed to be equal for equal performance: Rewards have to based upon the specific needs of a position (Riley 2007). In the more equality and group oriented Japanese business culture, rewards are being allocated on a group basis. These research findings did prove that the application of inappropriate reward systems caused feelings of de-motivation and injustice (Buttery 2000) 2. Employee Participation and Managerial Communication: To get employees to participate in goal setting in a US company is daily business, as in this way it increases the employees involvement in how his work environment is being shaped. Given the individualistic US business culture team effectiveness rises if team members are personally accountable for their personal contribution, which can be measured i.e. management by objectives (Javidan 2006). In the more socially oriented Japanese Business culture, employee participation is more socially oriented and the employees display lower levels of power distance between organizational levels (Hofstede 1980) 3. Executive Development: In an American business environment, qualified staff is classified into high potential groups for future executive positions at a much earlier stage of their career and at a much younger age as compared to the Japanese business culture. This encompasses a mix of specialist type of work assignments combined with near executive project assignments, to give them an early feeling of how an executive ticks (Yamazaki 2008). Japanese companies tend to focus on generalist type of assignments with intensive functional and geographic job rotation at almost the same hierarchical levels. Promotion is by seniority criteria mostly (Saee 2010). In consequence this implies: Executive development in US companies is based upon the potential benefits seen in a junior executive, whereas the Japanese approach is more oriented towards rewards for the past performance (Raimo 2009). Proposed Roadmap for a strategic cross-cultural Management Style The following Figure 3 gives a strategic roadmap for a cross-culturally based management style which facilities quick and efficient adaptation to cross-culturally different work environment. Figure 3: A cross-cultural Roadmap for a strategic Approach to Drivers of cross-cultural Management Styles:Management Style Development Common Management Skills Deficiencies: Negative Impacts of missing cross-cultural Management Skills: Lack of employee motivation In-adequate communication style De-motivating reward system Slow pace of promotion system Lack of managerial skills training Performance is not recognized/rewarded Work objectives unclear=de-motivating Individual motivation not released Resistance to innovations Necessary changes do not take place Risks involved: Mix of management skills not suited for work environment High potentials are not identified and promoted High staff turnover; slow pace of innovation and change management Key Changes needed: HRD concept oriented towards cross cultural sensitivity Top management involvement in management skills profile development Cross-culturally oriented career development system Conclusions: An innovative HRD approach is needed Designed by managers with local management experience HRD skills Resulting Roadmap towards a cross-cultural oriented Management Style: Managerial Skills that need to be improved: Management Skills requiring Attention: Expected Benefits better Management Styles: Reward systems motivation tools Keep staff and attract talents Career development system for talents Quick promotion for high potentials Innovative pay system Increased motivation to innovate Clear set of managerial objectives Rewards are measurable and objective Internal PR for new management style More credibility for management styles Top managers have to practice this style Extra motivation to manage/risk changes Strategic Management Skills Implementation Roadmap: Overall Strategic Management Skill Development Objectives: Analyze requirements for necessary cross-cultural management skills Incorporate necessary changes into overall management philosophy and corporate mission Document and promote concept at all managerial levels Planning Elements for chosen Management Skill Development Strategy: Assess time and research requirements properly; involve superiors where needed Involve top management team properly and show their support in public statements/info releases Managerial Support required to implement new Management Skill Development Strategy: Develop a strategy paper involving top management and clarify roles and inputs and state resource requirements as compared to potential gains from these improved management skills Introduction to cross-cultural Negotiation Styles Cultural Diversity is one of the most critical issues in international negotiations. A key requirement for successful international negotiation is the extent to which the negotiating parties are capable of understanding the negotiating habits and thoughts of their counterparts who come from another culture (Brett 2000). When entering into an international negotiation process, the full awareness and understanding of the cultural differences, such as cultural background, national character, emotional aspects, rules and regulations of other countries, decision making styles, ways of discussing, meeting and negotiating is of vital importance in order to make the negotiation successful. The difficulty the negotiators are facing have to do with dealing on the basis of different sets of values, attitudes, behaviors and communication styles of the other party participating in the negotiation process. The proper planning and preparation for negotiations, and participating in the negotiation p rocess must take into consideration all these factors. This will avoid setbacks, surprises and shock so often faced in cross-cultural negotiations. A. Basic Research Findings linking Negotiation and Culture A nations culture in itself consists of interrelated patterns or dimensions which come together to form a unique social identity shared by a minimum of two or more people It is the unique character of a social group and the values and norms common to its members that set it apart from other social groups (Brett, 2001;). Consequently for this reason, because of the different values and norms, people from different cultures negotiate differently (Brett, 2001;). Many authors talk of a set of cultural values associated with each cultural group which actually is the determining force for the culture (Tinsley, 2001, Brett, 2001;). The knowledge of these values and norms provides insight into the choices made and influences these very negotiators cognitions, emotions, motivations and strategy. Research shows a clear differentiation: Whilst values refer to what a person considers important (more on cognitive side), norms refer to what is considered appropriate behavior (behavioral aspects) i n a specific culture. Consequently, because of these different values and norms, people from different cultures tend to negotiate differently (Brett 2001). These cultural values and norms shape implicit theories invoked in negotiations (Gelfand and Dyer 2000) and may influence a negotiators response to strategically displayed emotions. In Japanese companies, the emphasis of a group being the core nucleus for negotiations communicates these values to its members and rewards conformity. In this way a members values become thoroughly culturally constituted. Thus, culture creates an overall environment for Japanese companies and their negotiators which in many ways directly or indirectly compels the constituent members to be guided by their cultural value sets while negotiating. B. Research Findings concerning the strategic Framework of cross-cultural Negotiations According to the book The Global Negotiator: Making, Managing, and Mending Deals around the World in the twenty-First Century (Salacuse 2005) there are a total ten particular elements consistently complicating intercultural negotiations. 1) Negotiating goal: Contract or relationship? 2) Negotiating attitude: Win-Lose or Win-Win? 3) Personal style: Informal or formal? 4) Communication: Direct or indirect? 5) Sensitivity to time: High or low? 6) Emotionalism: High or low? 7) Form of agreement: General or specific? 8) Building an agreement: Bottom up or top down? 9) Team organization: One leader or group consensus? 10) Risk taking: High or low? Research shows that for a Japanese manager negotiation is also about being sensitive to the personal/emotional factors and hence may sometimes be indirect, informal, and general with less sensitivity to time whereas. On the other side for a negotiator from USA, any negotiation is to the point, direct, formal, with high consideration for time and less care for personal or emotional factors. B. Research Findings concerning Diversity Factors and Strategies in Cross -Cultural Negotiations In countries such as in the US and much of northern Europe, strong, direct eye contact conveys confidence and sincerity while in Japan, prolonged eye contact is considered rude and is generally avoided. In Japan they always prefer personal space during business dealings. With regard to the Japanese, Salacuse shows that 100 percent of the Japanese respondents claimed that they approached negotiations as a win-win process. Communication itself constitutes a basic component of negotiation framework. Diversity in this communication aspect is also very obvious and pertinent. In a culture that emphasizes directness, such as the American one, you can expect to receive a clear and definite response to the proposals and questions. In SE Asian cultures such as the Japanese reaction to proposals made to them may be gained by interpreting seemingly vague comments, gestures, and other signs. Concerning the cultural sensitivity to time, Salacuse in his study quotes Japanese tend to negotiate slowly, and Americans are quick to make a deal. Contrary to this perception of time, for Americans the objective is a signed contract and as for them time is money, they want to close a deal quickly. Americans therefore try to reduce time invested in formalities to a minimum and get down to business quickly. Japanese and other Asians, whose objective is to create a relationship rather than simply sign a contract, need to invest time in the negotiating process so that the parties can get to know one another well and determine whether they wish to embark on a long-term relationship Another crucial aspect in cross-cultural negotiations is risk taking ability. The Japanese tend to be highly risk averse in negotiations, and this tendency was affirmed by the survey conducted by Salacuse, which found Japanese respondents to be the most risk averse of the twelve cultures. Americans in this survey, by comparison, considered themselves to be risk takers. C. Research Factors concerning the Management of Conflict in cross-cultural Negotiations Research findings with regard to managing conflict in cross culture negotiation show that different cultures focus on different aspects. Tinsley (1998), revealed that when managing conflict American managers preferred to focus on interests, while Japanese managers concentrated on status power. The differences could be explained by the American value for poly- chronicity (or multitasking) and the Japanese occupation with hierarchy (or unequal social structures. It is obvious though, that awareness of emotions is vital to negotiation and it plays a key role when it comes to cross-culture negotiation conflicts. In the Japanese business culture, status and power also play an important role in conflict management where parties try to manage conflict by using differences in authority, status and power. To them it is normal that high status parties try to enforce their ideas for resolution on lower status parties. If this is not possible, Japanese negotiation parties try to enhance their st atus by co-opting people of higher status. D. Research Findings concerning cross-cultural Decision-Making styles during Negotiations Decision-making styles vary a lot between Americans and Japanese. When it comes to team based versus individual way of taking decisions one extreme is the American negotiating team with a supreme leader who has complete authority to decide all matters. The Japanese business culture stresses team negotiation and consensus-based decision making. American managers usually tend to make decisions by themselves, while Japanese managers tend to make decisions by consensus. Furthermore, Americans treasure the value of flexibility, whereas once a Japanese manager has reached a decision, may believe it is shameful to change it. Decisions can be taken either through a deductive process or through an inductive process. In his research, (Salacuse 2005) found that Americans do view deal making as a top down (deductive process); while the Japanese tend to see it as a bottom up (i.e. inductive) process. E. Research Findings concerning the Interests Strategy in cross-cultural Negotiations The process of aligning and integrating the best interests of both parties works as a catalyst for successful negotiation. This interests-based strategy promotes the resolution of dilemmas through cognitive problem solving. Research shows is essential to shift focus from position to interest. Several authors suggest that as both parties want to gain their individual interest therefore they always want to implement the negotiation. From their perspective, individual interests of parties are always more important than collective group interests. A cross-cultural Roadmap for a strategic Approach to Negotiation Styles The following Figure 4 shows a roadmap for the development of efficient cross-cultural negotiation styles. Figure 4: A cross-cultural Roadmap for a strategic Approach to Negotiation Drivers of cross-cultural Negotiations: Common Negotiation Difficulties: Negative Impacts on Negotiations:

Lady Of Shallot by Alfred Lord Tennyson :: essays research papers

Lady Of Shallot   Ã‚  Ã‚  Ã‚  Ã‚  The Lady of Shallot is an interesting poem by Alfred Lord Tennyson. In this poem he tells a story of sadness and disappointment. This story is showing how a person crushed his life somehow. My guess would be he had his heart broken and felt trapped in depression.   Ã‚  Ã‚  Ã‚  Ã‚  In the beginning he talks about the scenery and how beautiful it is but he can’t get out to go where everything is ok in Camelot. He sees people enjoying their lives and longs to join them outside in the freedom of the world. He realizes he is trapped in the castle just like a prisoner. He feels as if nobody can see or hear him.   Ã‚  Ã‚  Ã‚  Ã‚  Later, he sees all the great things Camelot has to offer him but is reminded that if he goes a curse will fall upon him. He watches the whole world pass him by but he is scared by just the threat of the curse so he stays. He realizes just how alone he is wishing he had a lover to be with, someone to keep him company. He sees a new couple deeply in love and he watches wishing someone would come along.   Ã‚  Ã‚  Ã‚  Ã‚  In the next stanzas he meets someone and is completely stunned by her beauty and charm she is perfect in his eyes. Everything she does is right to him the way she walks and talks and presents herself, but she doesn’t even know he is alive. He decides he can’t take not being with her so he leaves the castle to go find his love he knows the curse has got him but he would rather live for just one more day in love and with hope then 100 years of sadness, regret and despair.   Ã‚  Ã‚  Ã‚  Ã‚  He goes out looking for her but can’t find her then the cures begins to take him and he starts to die before he can ever tell her how he feels but he would still prefer to die like this than in the prison of a castle. Lady Of Shallot by Alfred Lord Tennyson :: essays research papers Lady Of Shallot   Ã‚  Ã‚  Ã‚  Ã‚  The Lady of Shallot is an interesting poem by Alfred Lord Tennyson. In this poem he tells a story of sadness and disappointment. This story is showing how a person crushed his life somehow. My guess would be he had his heart broken and felt trapped in depression.   Ã‚  Ã‚  Ã‚  Ã‚  In the beginning he talks about the scenery and how beautiful it is but he can’t get out to go where everything is ok in Camelot. He sees people enjoying their lives and longs to join them outside in the freedom of the world. He realizes he is trapped in the castle just like a prisoner. He feels as if nobody can see or hear him.   Ã‚  Ã‚  Ã‚  Ã‚  Later, he sees all the great things Camelot has to offer him but is reminded that if he goes a curse will fall upon him. He watches the whole world pass him by but he is scared by just the threat of the curse so he stays. He realizes just how alone he is wishing he had a lover to be with, someone to keep him company. He sees a new couple deeply in love and he watches wishing someone would come along.   Ã‚  Ã‚  Ã‚  Ã‚  In the next stanzas he meets someone and is completely stunned by her beauty and charm she is perfect in his eyes. Everything she does is right to him the way she walks and talks and presents herself, but she doesn’t even know he is alive. He decides he can’t take not being with her so he leaves the castle to go find his love he knows the curse has got him but he would rather live for just one more day in love and with hope then 100 years of sadness, regret and despair.   Ã‚  Ã‚  Ã‚  Ã‚  He goes out looking for her but can’t find her then the cures begins to take him and he starts to die before he can ever tell her how he feels but he would still prefer to die like this than in the prison of a castle.

Courage in Pat Barkers Regeneration Essay -- Pat Barker Regeneration

Courage in Pat Barker's Regeneration During the Vietnam War, many Americans decided to choose conscientious objector status and serve the war effort in non-combative ways; others moved to Canada, leaving their families, their communities, and their nation because of strong political convictions. While some said these people were cowards and a disgrace to their families and their nation, others argued that those had just as much courage as the men on the front lines. Although moving to Canada was far less difficult than being sent to Vietnam, these Draft Dodgers proved they had courage to stand up for what they believed in. On pages eight and twenty-two of Pat Barker's Regeneration, two very highly esteemed awards are introduced, the Military Cross (MC) and the Victoria Cross (VC). The protagonist of this novel, Siegfried Sassoon, responds to his military honors by demonstrating two kinds of courage, one lauded by his government and popular opinion and one misunderstood and disdained by his society. Though Barker's novel presents these two types, she ultimately values courage of personal conviction. Not only does Sassoon exert this courage of personal conviction by writing a letter to his commanding officer, but also by throwing away one of the prestigious medals. The Military Cross (MC) Award was instituted December 28, 1915. The award is presented to officers of the rank of Captain or below, for "distinguished and meritorious services in battle" (Brew). Most often meritorious services in battle means crossing enemy lines and running through enemy trenches in order to save men of the officer's battalion. This award is ranked as one of the highest honors possible for an officer to attain, and is "clearly for gallant and dis... ...how they were perceived by different individuals in Regeneration, two different types of courage are seen: one that was applauded by the government and public opinion, and one that was misunderstood by Sassoon's society. It takes personal conviction exhibited through courageous acts to live with yourself in the face of a worldview at odds with your own. Works Cited Barker, Pat. Regeneration. New York: Plume, 1993. Brew, Steve. "Gallantry Medals Awarded to 41 Squadron Pilots." World War One. 2003. Veterans Affairs of Canada. 20 Apr. 2004 <http://brew.clients.ch/Medals41.htm>. Chapman, Mike. "Victoria Cross Facts." British Gallantry Awards. 1981. PE Abbott, JMA Tamplin. 19 Apr. 2004 <http://www.victoriacross.net/medal.asp>. Duffy, Michael. "Military Cross." First World War.Com. 2000-2004. 19 Apr. 2004 <http://www.firstworldwar.com/atoz/mc.htm>.

Benefits of computing gross profit on sales in contrast to contribution margin Essay

The computation of gross profit on sales, which can be derived under the absorption costing approach, is a profitability measure normally conducted under financial analysis.   This accounting ratio outlines the gross profit generated from every $100 of sales.   Such measure is highly useful in financial analysis, because it provides indications on the profitability potential and cost efficiency of the company.  Ã‚   For instance, if there was an increase in sales of 10%, but the gross profit margin declined by 4%. This indicates that the cost efficiency of the organization deteriorated during the period.   Such analysis cannot be conducted under the contribution margin approach, because gross profit is not present.   However, under the contribution margin approach one can calculate the contribution to sales ratio which indicates the contribution determined from every $100 of sales.   This would also provide indications on the control of variable costs once compared over time. Difference in Net Income arising from different approaches. In the example of ABC Company the profit under the two methods is the same.   However, this is not always the case.   Profits under the two methods differ whenever there is movement in inventory.   This is due to the fact that since under the absorption costing technique fixed manufacturing costs are included in the cost of goods sold, a proportion of fixed costs will be included in inventory leading to such a difference. Contribution margin approach not allowable for external reporting. The contribution margin approach, despite being highly useful to provide valuable information for decision making, is not acceptable for external reporting.   This is due to the fact that it does not comply with the Generally Accepted Accounting Principles (GAAP). For example, under the GAAP the income statement layout should clearly outline the gross profit made by the company.   Under the contribution margin method this is not highlighted.   Another important reason why the absorption approach is allowable for external reporting and not the contribution approach is due to the way in which the income statement is classified. The GAAP state that the income statement is classified by function, like under the absorption method.   In the contribution approach it is classified by cost behavior.   Indeed separation between fixed and variable costs is made under such method. This conflicts with another requirement of the GAAP. Reference: Drury C. (1996). Management and Cost Accounting. Fourth Edition. New York: International Thomson Business Press.   

Philosophy, Deductive Arguments

Philosophy Homework 15/09/2011 Deductive Arguments: A deductive argument isn’t necessarily valid, it could be invalid. It also isn’t necessarily sound – it could be unsound. If the argument is valid and the premises are true then overall the argument is sound. You will always gain knowledge with a deductive argument. The first premise will link with the second premise in order to make a conclusion. Deductive arguments aren’t based on assumptions.Inductive Arguments: The premises are all true so therefore the conclusion is likely to be true; however it isn’t definite that the conclusion will be true. It is usually probable that the conclusion will be true, but there is a chance it’s false. For example: Katherine is a girl (premise) A lot of girls paint their nails (premise) Katherine paints her nails (conclusion) -Katherine might not like wearing nail varnish, it’s just an assumption that she does because she is a girl. Necessary truths : Something that will always be true no matter what the circumstances or situation is.An example would be that ‘I am a female’. Contingent truths: A truth that in some cases may be true, however it could also have been false. If there is anyway in which this truth could be false, it is contingent. An example of this would be ‘Dogs have 4 legs’; some dogs have to have legs amputated, therefore isn’t true in every case. A Priori: Knowledge that has not been supported by an experience or an actual fact. A Posteriori: Knowledge that is backed up by experience/observation or an actual fact.