Deming Concept

W. Edwards Deming was considered to be way ahead of his time. His philosophical ideas were also considered radical in the United States during the 1950’s, but were quickly adopted by Japan. He developed what later became known as Deming’s 14 points, that would later launch the Total Quality Management Movement in the United States, which were not actually accepted until the 1980’s. One of his philosophies that I found interesting was Point #5: â€Å"Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs. This philosophy was foreign in the 1950’s, where managers’ philosophy was focused more on power and control. Deming’s concept leaned more towards a teacher/student relationship, instead of the power and control focus of his time. Humans are very resistant to change however, and that is why I feel this is an important concept that some companies still strugg le with today. My employer for example, Lowe’s Distribution Center, has some managers that don’t like to change processes because â€Å"it is the way they like it to be done†. Deming’s philosophy involved a new focus, which involved management to constantly be looking for improvements that can be made in both their processes, and technology that would reduce cost. Our computer system that controls every function in our facility is about 22 years old, and is outdated to the point where it has employees repeat steps to convince the computer system the task has been completed. Inefficient methods lead to higher cost. Higher costs in turn seem to add to our society’s need for power and control, resulting in increased pressure on team members to make up for the inefficiencies of the system. At this point, team members than reduce quality to meet increased expectations, resulting in decreased customer satisfaction. The long-term result involves lower profit margin and decreased sales, which all could have been avoided if Deming’s points were followed in the first place, by replacing or updating the equipment. Deming’s philosophy also referred to the service industry. If improvements were made to meet the expectations of customers, than overall costs would be decreased. This is commonly still seen today with new technology being put on the market, only to be recalled later when it is tested and announced to be â€Å"unsafe. For example, the recall of the Toyota model Prius, which was found to have quality issues with the clips that hold the floor mats in place. If the clips came loose, the mats could slide and hold down the accelerator, which risked causing an accident. This recall was estimated to cost Toyota around two billion dollars, as well as a loss o f $100,000 in sales in both the U. S. and Europe. Imagine if Toyota had invested more in the quality side of producing the clips, and the savings that would have came with it. Deming’s philosophies triggered the Total Quality Management movement in the 1980’s. Beforehand, factories focused solely on productions numbers, without even taking quality into consideration. I can see why Deming’s ideas weren’t accepted at first, if you think back to how things probably were in the 1950’s. Not to mention the increased costs that comes with higher quality. For example, a shoe factory probably only had two options for shoes, black or white. Now we have a large selection of brands to choose from, each representing a different level of quality. With the focus now being on quality, businesses can provide a higher level of customer satisfaction, bringing different levels of quality to meet their customer’s budget, as well as expectations. Having strict levels of quality guidelines in the service industry, especially in fast food, customers are more reassured that they are consuming food that is safe, and has met requirements set by health inspectors. Deming’s philosophies have also made our business processes more efficient. Businesses today focus on the future, and predict possible changes they would need to adopt to survive. Technology is constantly changing, and is also bringing a higher level of quality to both manufacturing and service industries. In conclusion, I think Deming’s philosophies are vital today to businesses survival. For a business to get ahead of the competition, they need to not only be efficient, but also possess a certain level of accepted quality by consumers. Quality continues to improve as new technology emerges on the market, and processes are continually evaluated. Any business would benefit by following Deming’s 14 points.

Employment and Apple Store Manager Essay

P1 – Describe the recruitment documentation used in a selected organization. In this criterion I shall be explaining the recruitment documentation used in a selected organization, the organization I have chosen is: Apple Inc. Apple is an American corporation that designs and sells consumer, computer software, and personal computers. The founders, Steve Jobs and Steve Wozniak established Apple computer on April 1st 1976. As of 2011, Apple is currently the largest technology firm in the world with its stock market value reaching $500 billion in March of 2012. Their revenue for the year 2011 was $127.8 billion in sales. Apple is well known worldwide and has 364 retail stores in thirteen countries. Apple store manager – As the Apple store manager you would be responsible for overall running of the store, a department or a specific area such as the checkout. A manager’s main area of work would involve reaching targets and increasing sales, for example; selling 300 iPhones within a month. You will also be involved in dealing with customer service issues such as queries and complaints, plus health and safety and security issues. The Apple store manager would also be involved in staff management, including interviewing and recruiting, supervising departmental managers and organising training. The recruitment documentations used to apply for a store manager: CV – Your CV is the only thing that the employer has in hand that will give him/her an impression about you. A CV would contain; educational qualifications, additional skills, work experience, job specific skills, interests and personal details. Personal Statement – A personal statement is a description about yourself and your qualities such as highly motivated and enjoy a challenge etc. A personal statement would include any past experience of work, hobbies and interests, this would help improve your image. Job description – A job description outlines the day-to-day duties of your role they have been offered. A job description also gives details of the pay, hours and holiday attached to the role. A job description has four main uses: Organisation – it defines where the job is positioned in the organisation structure. Who reports to who. Recruitment – it provides essential information to potential recruits (and the recruiting team) so that they can determine the right kind of person to do the job (see person specification) Legal – the job description forms an important part of the legally-binding contract of employment Appraisal of performance – individual objectives can be set based on the job description Contract of employment – Agreement between the employer and yourself over the details of a job, this would include: length of contract, pay, employee rights etc. All employees have an employment contract with their employer. A contract is an agreement that sets out an employee’s: * employment conditions * rights * responsibilities * duties These are called the ‘terms’ of the contract. Employees and employers must stick to a contract until it ends (e.g. by an employer or employee giving notice or an employee being dismissed) or until the terms are changed (usually by agreement between the employee and employer). Interview – An interview is a meeting between an applicant for employment and a company representative to determine if the candidate is qualified for a job, an internship or a volunteer opportunity. The interview process depends on the company, the position they are hiring for, and the pool of candidates who have applied for the job. Application form – Employers use application forms to assess your motivation and skills (and your spelling, grammar and punctuation). Questions are designed to assess specific attributes, so applicants can be compared systematically.

Life in times of Second World War Essay

I think it’s tougher to live through a war for an ordinary citizen than a soldier. A soldier in the battle field has little else to worry but about the next battle combined with his own fate. What’s more, a soldier always believes that the final outcome of the war can be influenced by his actions. Therefore he has a sense of participation and assurance to the results. However, for a civilian, a person detached from the field of action, there is nothing to do but to wait and hope. Many would say this situation is far better than to risk life in the battlefield; however, my personal experience says that the feeling of inaction and helplessness that comes being a civilian is choking. There is nothing more depressing than listening to war news while being unable to influence its outcome in any significant way. I was suffering from stomach ulcer when the war had started and the military doctors had refused to accept me in the services. It’s true that as a wartime civilian I actively engaged myself in health institutions, where serving the wounded gave a sense of contribution to the war efforts and belongingness to the conflict that had so deeply afflicted the lives of over 10 million people. The first phase of the war Although we had declared war upon Germany in ‘39, there was no feeling of anticipation of war or sense threat anywhere in London. No one really took the announcement any more serious than a brawl between two children (Wilson, 41). I was a teacher in a boy’s school and the shining and exciting faces of children represented as if an exciting cricket match was awaiting then. Then everything suddenly changed. I heard with a growing sense of threat the advancements that belligerent German armies made through continental Europe Wood and Depster, 155). It was incredible how nothing seemed to stand before them. Belgium, Poland, France, each falling like a pack of cards before. And then the first bomb struck London in September ‘40. So far I can recall, there was no panic, but a doomed sense of determination that we all felt, eager to carry out our own duties in the process (Fusell, 29). The local authorities had tutored us well on the use of gas masks and bunkers in times of raids. Blackouts were everyday event. Whenever there was a raid by German warplanes, which was daily, the entire city switched itself off, plunging everything in absolute darkness. It was a unique experience-a sense of thrill combined with dread as our warplanes rose high to combat the German bombers. (Fusell, 15) I took shelter in a large bunker that was built in the back park. Many people, with a garden space in their home, had built Anderson shelter and stayed put there. Many like me, choose the public shelter. I don’t know about others, but just sitting there quietly with so many people around inspired me with comfort and security (Air Ministry, 16). Public shelters were less safe of course, and being of larger dimensions they were easily prone to attack. As it happened, unfortunately some of them were struck by bombs and many innocent lives were lost (Fusell, 15). If anything this further resolved us to face the flying German menaces. Every morning when I left the shelter and moved through streets of London, smoldering buildings, shattered vehicles and running ambulances met the sight. I knew people had died during the German raids and it gave me a guilty feeling, having survived the night when many of fellow citizens could not. The bombing lasted for two full months and every day I followed the same routine of spending the night in the dark, blacked out shelter. After the end of bombing by end of October, I thought perhaps things would return to normalcy. I really wanted that. The scarred face of London, the wreckage of buildings and lives lost filled me with disquiet. But as news came pouring in of German advances and expansion of war in Africa and Asia, I did not see any end to the conflict (Wilson, 65). The daily life had suddenly changed its character. In almost a complete reversal of the situation, the security, comfort and ease of former days were replaced by a continued sense of urgency and parsimony that pervaded the entire London Wood and Depster, 155). Gone were the days of daily parties, weekly sojourns, weekends at country houses, and the luxuriant English life style. I had personally been only occasionally involved in these attractions, but as I used to travel from my school to home in the evening, music and revelry were heard from many of the pretty bungalows and houses-this was in the pre war day. It had all suddenly died out. Most of the men had left for war, and women had stepped out to fill the vacant positions Wood and Depster, 155). England did not produce sufficient quantity of food to meet its own requirements and imported most of the food grains and items for its consumption (Wood and Depster, 155). Wartime conditions had severely restricted the food supply and we saw implementation of rationing system, where food was allocated through family quota (Gorrora, 71). I was never a glutton, but over the years, tea had become one of my daily requirements. With war, rationing and quota, tea vanished from the market. Other items of daily requirements-sugar, beef, and milk also became extremely scarce. No one complained of the scarcity, but everyone felt the pinch of it. After the London bombing I volunteered to join an emergency medical camp, which brought a constant engagement and action in my life. But it was not the type of engagement I could cherish. Meeting severely injured men, women and children, soldiers who had lost their limbs or were dying due to diseases, gangrene and fatal wounds was an unbearable exercise for my will and personal stamina (Wilson, 71). However, despite my personal sense of despair, there was a rising hope within England that it would stand against the Axis powers and this hope in itself was a motivation enough for me to work in the hospital day and night. There were many nights in continuation when I hardly closed my eyes for an hour Our hope and endurance finally paid off when after 5 years of bloodshed, the war finally culminated. We were already prepared by the general tidings for this news, but the immense relief brought by even this known information is indescribable (Wilson, 101). It appeared that after being buried alive for years, I had once again appeared on the surface, free to breath the fresh air, free to see the sun, free to live again. Reference Wilson, E. Dangerous Sky: A Resource Guide to the Battle of Britain. Greenwood Press, 1995. 128 pgs. Wood, D. and Depster, D. D. The Narrow Margin: The Battle of Britain and the Rise of Air Power 1930-40. Hutchinson, 1961. 538 pgs. Air Ministry. The First Great Air Battle in History: The Battle of Britain, an Air Ministry Record of the Great Days from August 8th to October 31st, 1940. Garden City Publishing, 1941. 56 pgs. Fussell, P. Wartime: Understanding and Behavior in the Second World WarBook; Oxford University Press, 1990. 330 pg Burdett, Gorrara, C and Peitch, H. 1999. European Memories of the Second World War. Berghahn Books, 1999. 338 pg

Diabetes Mellitus Research Paper Example | Topics and Well Written Essays - 750 words - 1

Diabetes Mellitus - Research Paper Example Social support is getting support from friends and family who give assistance and comfort. Having the social support can improve the psychological well being of the patient. The relationship that exists among social support life stress, patient’s locus of control and the blood glucose control become evaluated in individuals with diabetes mellitus, using the objectives measures of the psychosocial variables. Fasting Blood Sugar (FBS) and Glycosylated Hemoglobin (Hgb A-1C) control measures become taken at two regions for them to check the problems of the psychosocial variables on the change in diabetes control. A decrease in the social support leads to the worsening of the long-term glycosylated hemoglobin control over time. According to Casey, diabetes is a progressive disease that surfaces as impaired glucose intolerance with a high-level post-meal glucose. These high glucose levels increasingly demand the pancreas to secrete additional insulin leading to a state of hyperinsulinemia. Nevertheless, the body gets resistant to insulin, and it later develops a lack of insulin and high fasting glucose levels. This pattern represents Type 2 diabetes. Th e eventual exhaustion of the islet cells leads to the absolute lack of insulin presenting type 1 diabetes. To patients suffering from diabetes is quite a frightening experience, and the patients require all the physical and emotional support they can receive from their loved ones. The patients suffering from diabetes often complain of anxiety and fear about the future, experience fluctuations in their moods and find it difficult to cope with their daily lives. They also get tired at times. Depression is another common and dangerous complication witnessed by the people suffering from diabetes.

Sociology Essay Example | Topics and Well Written Essays - 250 words - 17

Sociology - Essay Example In addition, research based on self-report is vulnerable to the social factors affecting both the availability of research participants and their willingness to respond to researchers questions (Lee 15). On the other hand, ethnographic field work is a more comprehensive way of conducting qualitative research. In fact, it is a part of a documentary research. Nevertheless, the setting dictates when documentary research is more useful than ethnographic field work. When a researcher studies a contemporary organization, documentary research is a necessity since records such as financial statements, employee records, and other primary written sources play a role in completing the investigation. In conclusion, documentary research complements other research methods and can stand alone only if data is needed. Silverman, D. ( 2004 ). Qualitative Research : Method, Theory and Practice. Retrieved from http://books.google.com.ph/books?id=v6X7SolgXVUC&p g=PA56&lpg=PA56&dq =ethnographic+fieldwork+vs+documentary&source=bl&ots=9hOGQsBwBG&sig=T3I02Apvvdx1VqRKVjHrBOpoqRA&hl=en&ei=-gNlS9S0CI6OkQXon6jUCg&sa=X&oi=book_ result&ct=result&resnum =5&ved =0CBoQ6AEwBA#v=onepage&q=&f=false on Jan 15,

Significance of guitar as a music instrument Essay

Significance of guitar as a music instrument - Essay Example For example, guitarists frequently pull or push strings by their fingertips of their left hand to create notes or to make the note slip downward or upward. By adjusting tuning pegs, guitarists can change the tension of the string in order to produce varied sounds. Guitar provides a rhythmic pulse when combined with singers and other instruments. It is argued that singers are able to maintain the rhythm of a song when accompanied with guitar (National Guitar Workshop, 2003). It helps singers stay on the course and prevent them from going off key as they move from one verse to another. This is arguably true because guitar can produce standard key notes as long as the guitarist is able to maintain the rhythm. In fact, most singers use guitar to trace a forgotten or lost key note in their songs. However, in most cases, guitar is used to support lead instruments and singers’ notes. Some bands use two lead guitars to create interweaving melodies (Miller, 2009). Nevertheless, other bands use one lead guitar to perform instrumental melodies as the second lead guitar provides improvised flourishes. Guitar also provides harmony, especially when a group of notes are played together or in a group. It easily harmonizes other musical instruments in a band (Forman, 1999). In a band with both lead guitar and rhythm guitar, the lead guitarist can produce amazing rhythms when accompanied by rhythm guitar. When solos want to take a break from singing or when translating from one verse to another, guitar helps maintain the rhythm and makes the song more dynamic. It is also argued that guitar also plays the role of a piano if the piano is absent (Miller, 2009). However, it is generally accepted that guitar acts as an instrument that fill out cords and notes that other musical instruments cannot play. In fact, the chords of louder instruments like brasses are covered by guitar. It also

STRATEGIC MANAGEMENT Essay Example | Topics and Well Written Essays - 500 words - 1

STRATEGIC MANAGEMENT - Essay Example This usually happens when the organization is not in a position to manage the human resources or due to the worse business condition or depression in the economy. The termination of the employees from the organization is an emotional event for all the employees who are thrown out of the organization and who are still working in the organization. This is a major problem faced by the people in the economy as due to the worse economic recession. Many reputed firms were forced to put their talent employees due to this reason. This made the employees to lose their trust on the organization and this lead to low productivity in the organization. This also led to the decrease in employee morale. The important measure that has to be taken for this is to make employees aware about the reason for what they are being moved out from the organization. The â€Å"guidelines will help companies handle layoffs in a way that affords dignity to those let go and reassures survivors that the downsizing decision wasnt made arbitrarily† (Robbins, 2009, para.2). This will help in creating a positive attitude among the employees towards the organization. This will create an optimistic approach among the employees and will increase the overall productivity if the employees. Special care has to be given on those employees who still have a fear in their mind that they might lose their job. This fear will decrease the productivity of the employees. It is the responsibility of the organization to remove the fear and make the employees to be productive at his best. Manager should often communicate with the employees regarding the work performance and necessary instructions have to be given for increasing their productivity. â€Å"Discussing and acknowledging the companys position is the first step to keeping people involved — and co mmitted to solving problems they understand† (Robbins, 2009, para.3). When the company realizes that the layoff is important then prior

Why is Distribution so essential to success in terms of revenue How Coursework

Why is Distribution so essential to success in terms of revenue How has online marketing changed the nature of the business Post answer using a specific example while explaining it in detail - Coursework Example A good distribution channel would increase the market share of a business and therefore increase sales. Increased sales would result in increased revenue. It is therefore necessary for any business to go for a distribution channel that has less costs but which would give the business an advantage over competitors. That would usually constitute a channel that has marketing experience, the proximity of the channel to the market as well as the ability for management to control several distribution channels (Dent 107). Online marketing has made marketing more interactive. Businesses are able to have real time chats with their customers and get feedback on their products online. San Chez Bistro in Grand Rapids uses online marketing and the customers can make reservations for seats at the restaurant online. The response is almost instant and that saves time for the patrons who would otherwise have to visit the restaurant to make reservations. With online marketing, the business can reach out to many customers who would engage the business in chats as they make suggestions, corrections or inquiries. It is a convenient way to reach out to customers with the advantage of real time correspondence. San Chez Bistro uses a combination of social media and local marketing to ensure success for its online marketing

Interview with a tourist Essay Example | Topics and Well Written Essays - 500 words

Interview with a tourist - Essay Example She had thought about keeping her Chinese name in the United States, but other students that had studied abroad advised her that she should take on an English name to make life easier. Qiu told me that although she studied English when she was younger, she did not feel comfortable speaking it out loud. The main language that she spoke at home was Mandarin. No one else in her home spoke English, so the only time that she ever heard it was at school a couple of times a week. When I asked Qiu about common gestures in her culture, she told me that Chinese culture has many signs and symbols that may seem strange to an outsider. A lot of communication is nonverbal where hints have to be picked up from the way the other person uses hand signals and facial expressions. Qiu said that she was a little perplexed when she came to the United States because most people talked very loud and did not use many hand gestures. I also asked Qiu about how she felt that the American people had treated her during her stay here. She told me of some incidents in her first few weeks here that made her regret her decision to study abroad. Name calling and insults from people on the street really stressed her out. Since that time, Qiu now believes that most Americans are welcoming of people of other cultures and will go out of their way to make sure that they are okay. The negative incidents that she told me she described as coming from a few bad apples and not representative of the American people at all. One thing that I did not ask her, but that she brought up during general conversation, was the way in which Americans dress. Qiu told me that Chinese people dressed rather conservatively and considered in shameful to be underdressed or show any unnecessary skin. When she came to America, she was shocked to discover that university students could wear such informal dress. In China attending university was considered an honor,

Physiology and Function Essay Example | Topics and Well Written Essays - 250 words - 5

Physiology and Function - Essay Example Ovum is a single celled female egg which carries the feminine genetic material to be passed on to the offspring. For this egg to develop into a zygote, a male seed usually carried by the sperm has to be introduced into it (Rogers, 2011). An ovum physiology is very detailed. Its development is induced at the follicle by a specialized hormone (Follicle Stimulating Hormone) while upon maturity; luteinizing hormone induces its release from the ovary into the mouth of the fallopian tube. An ovum is related to the reproductive system in that without an ovum fusion of gametes cannot take place (Heffner & Schust, 2010). Each ovum is haploid leaving the other half to come from the sperm; this would constitute a diploid molecule, the zygote which grows to become a fetus. Corpus Luteum (CL) is a yellow mass resulting from rapture of the ovarian follicle which produces the ovum. The principal physiological function of CL is inhibition of Gonadotropin-releasing hormone in case implantation occurs. Its characteristic yellow color is because of high content of carotenoids. This component is crucial to the reproductive system in that it supplies high level of progesterone which supports the zygote in the early stages of development (Rogers, 2011). Incase implantation never occurs, corpus Luteum degenerates. Scrotum only functions as a sack to hold the testes, which are the male gamete secreting centers. Scrotum is essential in the reproductive system because it offers a sack cooler than the normal body temperature, which is adept for spermatogenesis. According to Rogers (2011), fallopian tubes function as conveyor tubes connecting the ovaries and the uterus. They have correct balances of ph and fluid as well as supply of Celia to convey the ovum safely to the uterus. They are important in the reproductive system in that they act as fertilization sites before the zygote could implant in the uterus. Ovulation has been

How is leadership different in Asian business from Western business Research Paper

How is leadership different in Asian business from Western business - Research Paper Example Understanding the differences in business leadership among these two continents helps both sides in the common goal of success. The success rate or even the failure rate of any company or organization depends solely on the strategy and management of resources. However, in order to implement the strategy and further to achieve the goals, many other factors have to be taken into account. This implies that the management and the leadership roles, both have a huge part to play in the smooth functioning of the strategy. On one hand, management is responsible to ensure that the resources are being utilized in the best way possible and maximum results are being produced to the advantage of the firm. On the other hand leadership has an even important role to play in envisioning the employees with the objectives of the firm and motivate their team in order to achieve a common goal. If the leaders lead their teams toward the right direction, the task of the management also becomes easier, and with that, the company is destined to reach another level. However, this paper will aim at analyzing the leadership roles in As ian business firms, alongside critically commenting on the leadership trends and shifts in the West to draw a clear contrast, and further to understand the effect of these differences on the global market. Prior to analyzing the leadership trends in Asia and in the west, it is crucial to understand the dynamics of leadership from both Asian as well as Western Perspectives, so that it becomes convenient to lay the foundation over which the comparison can be made. If there is a leader, then there are followers. If people are to follow someone then their leadership must be considered as something personal, a relationship between the leader and follower, with the leader’s credibility providing the foundation. There needs to be trust established

A business proposal on direct marketing in social media Essay Example for Free

A business proposal on direct marketing in social media Essay This paper is a research proposal about direct marketing in the social media. With the involvement with the error of computers, ways of managing marketing have been increased. Each technique comes with its major benefits and constraints. This research proposal targets on evaluating the usefulness of social media in direct marketing. The development of social media as a direct channel is not without its challenges. According to the study, the top two constraints for marketers came down to looking for the most relevant tactics for gauging success and launching business objectives. Being able to measure success is important for any direct marketing work, and that is why it is significant not to disregard this vital step. With the correct trappings, marketers can produce viral social media operations that can be track, restrained, and improved to maximize access and return on investment (Ellsworth Ellsworth, 1994, p. 386). This research paper targets to establish how effective is managing direct marketing in social Medias. (b) Scope of the study             Social media is a treasured new instrument in a direct marketers toolbox, nevertheless it desires to be improved and utilised properly to undertake the tasks. Creating it informal for clients to share newsletter or Web site content over social grids is just the start. Direct marketers ought to improve viral programs that completely exploit the systems true capability. Finally, one needs to identify ways to measure their success, which will allow persons to fine-tune their exertions going onward. Leveraging social media as a direct system also allows fundamental tenure, which is crucial to capitalize on triumph across all sections. Eradicating many owners not only rationalizes the practice, but also accelerates having one unified approach that can house the business goals of multiple departments, such as public relations, customer service, and sales. Clumsy management by numerous sections can lead to varied communications that hinder the companys ability to attract followers, fans, or other influencers. Social media marketers comprehend the value in directing targeted messages and gauging their success, which is why it is not astonishing that many companies are leveraging their email marketing departments to board on social media creativities. 2.0 How to conduct the study (a) Methodology: Research Philosophy, Approach, Strategy and Methods               There are various approaches of obtaining information while conducting research. These methods of obtaining information refer to as research methods. Research methods include personal interviews, literature searches, focus groups, and email surveys, telephone surveys, talking with people and mail surveys. Literature search entails going through already sourced materials to obtain information. Materials that are readily available with information are such as newspapers, magazines, relevant trade publications, company literature, online materials and any other relevant and already published materials. This method of conducting research is one of the cheapest methods for conducting research. Online data is a quick research process that lies under this category of information research methods. It is very fast in obtaining information. Talking with people is another good method of gathering information for a project. It is most relevant at initial stages of conduct ing research for a project. It is mostly preferred when looking for the information that is not publicly available (Cohen Morrison, 2003, p. 179). To obtain adequate information on the effectiveness of directing marketing in social media chose to use various methods for sourcing the information, each strategy of obtaining the information is analysed below and its effectiveness and efficiency on information deliver. The information to be research will be too new again to be got in literature resources, therefore, preferring to look for it from real persons. For example, talking with people will be through seminars, association meetings, customers, suppliers, and all other types of business conversations. A focus group is concerned with a study to explore peoples attitudes and ideas. It will be used to obtain information about something new in the market and effectiveness of social media in promoting its awareness. Group focus method obtains the information from a selected group of the people called the sample. The information acquired could be based on the process of selecting a sample. The most preferred method for sample selection is a random selection; this is preferred because, all the characters stand an equal chance to be select. Email and internet analyses are comparatively original and few is available about the outcome of sampling bias on internet surveys. While it is noticeable that in ternet survey most regards effective and quickest way of dispensing a study, the demographic outline of the internet handler will not represent the general population, although this is changing. Before doing an email or internet study, One shall carefully consider the effect that this bias might have on the results. Social media include such as Facebook, twitter, eBay amongst many others. They are friendly in nature and this reduces the may processes of formalities needed. In social media, personal conduct with a client is ensured; a person can communicate directly to the client and hence reach him or her in a better way to explain him or her about his products. Personal interviews are a technique to get detailed and all-inclusive information. They engage one person interviewing another person for person or comprehensive information. Personal interviews are very costly because of the person-to-person nature of the interview. Normally, as an interviewer, I will ask questions from a documented questionnaire and list the answers word-perfect. Occasionally, a questionnaire is merely a list of topics that the study wants to confer with a business professional. Personal interviews because of their expense are on mostly used only when subjects are not probable to react to other survey techniques. This will allow the researcher to get information about the effectiveness of direct marketing from individuals that I would not have got through any other research method. Telephone surveys are the fastest method of collecting information from a comparatively bulky sample. As an assessor, I will track an organized writing that is fundamentally identical to a written questionnaire. However, different from a mail survey, a telephone survey would permit the chance for sure judgement searching. Telephone surveys usually last fewer than ten minutes. Typical charges are between four and six thousand dollars and they can be accomplished in two to four weeks. Mail surveys are a cost current way of collecting information. They are best for big sample amounts, or when the sample is sourced from a wide geographical area. They charge a little less than telephone interviews, but they take over double as long to complete normally, eight to twelve weeks. Since there is no interviewer, there is no likelihood of interviewer prejudice. The foremost shortcoming is the incapability to review respondents for more complete information. In conducting research on social media marketing, one needs to outline the target group well. The target group shall be outlined clearly, because the mode of advertising will be a framed in a way to suit it. By conducting good research, information that is the most basic for a set form of marketing will be acquired. It is good to note that even time and the way of marketing selected dictates the target group of managing the marketing. Social media marketing offers a wide geographical advertisement. Social Medias is the most necessary forums where a person can meet a very large number of people from different ethnic groups. It is very easy to capture the target group within a very short as opposed to all other channels of advertisement. 3.0 Why is there need to study this topic 3.1 Contribution to the field            While some companies perceive social Medias as mere channels for building knowledge on products, there is evidence that direct marketers are competing to possess huge demand generation potential. The assessment outlines the land grab that is going on in organizations over regulation of social media; with 29 per cent of respondents say social media is being shared by many departments. However, possession by direct marketing acquires the top with 36 per cent of respondents. As the setting of reference, solitary 9 percent of respondents suggest public relations sectors own that social media. That social media is a workable and influential direct channel is vibrant. Nevertheless, the review also exposes social medias strong linking with email promoting. In fact, 66% of salespersons plan to assimilate the two channels in 2009. This move wholly makes logic: Email is a vital part of social media, as it is relied upon to keep members knowledgeable about the up-to-date news and informs. Additionally, assimilating the two networks permits marketers to get a more opinions of the customer, which is necessary for conveying effective and relevant communications (Bird, 2000, p.126). Direct mail is a posted mail that publicizes ones business and its goods and services. There are many different categories of direct mail. For example catalogues, postcards, envelope mailers. Direct mail operations are typically, sent to all delivery customers in a zone or to entirely customers on a marketing list. Telemarketing entails contacting viable customers through the phone to sell products or services. Telemarketing is skilful of generating new customer prospects in huge bulks. Nevertheless, a fruitful campaign involves scheduling and using correct and well-researched customer data to match customer profiles to product profiles. Email marketing is a cost-effective, simple, and measurable method of reaching consumers. It can include e-newsletters and promotional emails to create new leads or deals for existing clients, or ads that can perform in other businesss emails. 3.2 The significance of the study             The study is important, as it would study social media as a forum for conducting direct marketing. Through the study also one gets to know several contributions of different methods in giving information about social media. By researching on direct marketing and social media, one gets to appreciate its effort in increasing the knowledge of different products of a business. The study will allow marketers in choosing the most appropriate method of product promotion in the future. Social media can be used successfully as a marketing tool for business as it gives someone a chance to interact directly with his/her customers and often share significant product or service information. Consider developing a profile for a business firm that permits one to promote your products and services while also cheering customers to deliver feedback by leaving comments; this is the advice from one of the social network owners. It is of very great importance to adopt direct marketing in social media (Sheehan, 2010, p. 45). Taking a lesson from directing marketing, social media marketing is best served only by focusing on activities that result in measurable results. If persons believe that business page gathers fan with greater affinity to the brand, maybe researchers can also believe that we would not be able to measure the effects of that brand loyalty it in a way that is particularly satisfying. It is for more productive to think of social media as a direct marketing system, and create campaigns and track results in a manner that is related to direct marketing. Not all customers are created equal. Some customers fall into what marketers refer to as ‘heavy user category. These customers purchase products or services with the highest profit margin or simply frequent ones business more often than the average. This important group is the most valuable asset and one probably wish you had more like them. A business grows due to trusted customers and well crediting policies. Through direct marketing, it would be very easy to create awareness of the existence of your business establishment. Social media provides an environment to conduct direct marketing that help to improve on sales (Zarrella, 2010, p. 109). In direct marketing, we know that people tend to befriend with others who are similar to themselves; they live in the same neighbourhoods, engage in similar activities, and so on. This tendency makes targeting profitable customers much easier. Most customer databases are transactional in nature. They capture sales, product numbers, and customer names. They do not, however, help to create messages or track results. To make issues tracking efficiently, one will need to attach the national field to your customer records, which makes note of their social media affiliation. As new customers are acquired, it is helpful if coupons or specials that the new customer might use are tracked back to a social media outlet, allowing you to see results over time. In addition, one may be able track results that provide some substance to the real contribution that greater brand loyalty of social media followers provides to your business. This provides a glimpse of how direct marketing in a social medi a, is helpful in tracking customers (Kotler Armstrong, 1991, p. 283). 4.0 Timeline of the study               When the goal is to produce a rapid reaction to a coupon or incentive, traditional direct marketing channels are the best. Coupons perform well online, but conventional media rules up better. Nevertheless, one can use social media to add importance to the customer interaction by lashing target customers to interactive and participative website or any other informational areas. This adds value to the usefulness of direct marketing in the social media, based on previous research proposal (Evans, 2008, p.19). 5.0 Effectiveness of accomplishing the task:                  The research proposal is set comprehensive enough to cater for demands for a marketer in conducting research. The different method employed would ensure every detail concerning directing in social media is realized by the research. This research methodology lacks discrimination of standards or organizations to ensure that it would source for the information from all groups and levels of people in the world. The speed and accuracy of obtaining the information are ensured in the research proposal through employing new technologies and electronic devices such as computers in the research. These electronic devices would ensure safe storage of data for reference reasons. It also provides a quick accessibility of information since the storage is convenient to retrieve quickly. This would assure researchers the confidence of accomplishing the task successfully. Whichever way one approaches it, the usage of business social networks is very likely an aspect in some side of your marketing plan (Sargeant West, 2001, p 113). 6.0 Ethical issues in marketing and social media                   The benefit of business making the product and to their customers through the use of online support forums is evident. The difficulties are solved more often than not by other customers, reducing the overall support expenses. While product inventors do a decent profession of testing and anticipating issues, given the difficulty of real life, they just cannot match a span of application environments that are likely to exist. Unexpected errors occur. Proceeding to online support, the only real solution is a call to customer service. The difficulty is, though, that not only is direct and personal customer support crew is often unable to reproduce the issue for the precise reason it occurred in the first place: they fail to have a particular set up or environment that their products have been deployed in (Hofacker, 2001, p. 831). The extent to which direct marketing is useful to an organization expansion is very vital. The major contribution of social media is that it facilitates to bring awareness of products and services to people. Social media also serve to give a wide geographical coverage in advertising (Tuten, Solomon, 2013, p 78). In the case of research on the business, social Medias also provide readily available information. Direct marketing is cost effective when done in the social media relatively to when conducted by other channels (Zimmerman, 2013, p. 311). Its was free to create an advert in a social media page and the information reaches many individuals within less time. Direct marketing in social media would also help to improve on clearing the existing bias of a product. A bias about a product may amount from false information about a product mostly generated by the competitor. The list on usefulness of direct marketing in social media marketing cannot be depleting. For a successful growth in market size, direct marketing in social Medias is the most appropriate strategy (Raab, 2010, p. 99). References Bird,  D. (2000). Commonsense direct marketing. London: Kogan Page. Cohen,  L., Manion,  L., Morrison,  K. (2003). Research methods in education. London: RoutledgeFalmer. Direct Marketing Design: The Graphics of Direct Mail and Direct Response Marketing. (1985). New York: PBC International Inc. Ellsworth,  J.  H., Ellsworth,  M.  V. (1994). The Internet business book. New York: Wiley. Evans,  D. (2008). Social Media Marketing: An Hour a Day. Indianapolis, Ind: Wiley. Hofacker,  C.  F. (2001). Internet marketing. New York: Wiley. Journal of Direct Marketing. (1987). New York, N.Y.: John Wiley Sons., Inc. Kotler,  P., Armstrong,  G. (1991). Principles of marketing. Englewood Cliffs, N.J: Prentice Hall. Raab,  G. (2010). The psychology of marketing: Cross-cultural perspectives. Burlington, VT: Gower. Sargeant,  A., West,  D.  C. (2001). Direct interactive marketing. Oxford: Oxford Univ. Press. Shaw,  K., Emily H. Davis Art Gallery (1978). Market research. Akron, Ohio: Emily H. Davis Art Gallery. Sheehan,  B. (2010). Online marketing. Lausanne: AVA Academia. Smith,  P. (1995). Direct Marketing. Hampton, Middlesex [England: Key Note Publications. Tuten,  T., Solomon,  M. (2013). Social Media Marketing. Boston: Pearson. Zarrella,  D. (2010). The Social Media Marketing Book. Beijing: OReilly. Zimmerman,  J., Ng,  D. (2013). Social Media Marketing All-in-One for Dummies. Hoboken, NJ: Wiley. Source document

Structuring Supply Chains Based On Product Segmentation Commerce Essay

Structuring Supply Chains Based On Product Segmentation Commerce Essay The world has just gone through one of the worse crisis since the Second World War. In order to reduce the negative impact, companies have tried to reduce cost by any ways, by freezing all expansion, by reducing the number of employees, by launching quick wins project in order to free-up cashà ¢Ã¢â€š ¬Ã‚ ¦to summarize nothing sustainable. In order to catch a sustainable growth that will reduce the impact of any future crisis, to obtain a competitive advantage, companies need to design an optimized supply chain. This optimization will lead to a supply chain that are no more a cost but an competitive advantage, a supply chain that brings value, a supply chain that become strategic. The time and the cash spend to source; to produce and to distribute product and services are so huge that companies cant afford to ignore it. When designing its supply chain, companies need to keep in mind that ONE SIZE DOES NOT FIT ALL, meaning that one supply chain configuration cant fulfil each customers requirements. Indeed, each customer has different needs which cant be fulfil in the same way. One customer may seek for a company able to provide reactive supplies, while another company is seeking for minimum purchasing costà ¢Ã¢â€š ¬Ã‚ ¦ Providing different product/service implies having different supply chain configuration. The objective then is to provide different global services which go far beyond the product itself. Nowadays, companies cant provide a product only. They need to provide a global service meaning that they have to provide quality service which goes with the product. The level of quality that needs to be reached is then determined by the customers requirement and willingness to pay a certain price. Customers may want seek for a good quality/price product, some other may want to have a extremely high quality and innovative product, some other are looking to receive the product at their place the next day they purchased it,à ¢Ã¢â€š ¬Ã‚ ¦ And in order to be able to provide this global service that includes the product, companies need to design their supply chain accordingly. This thesis is focusing on understanding the different choice that a company can make when designing its tailored supply chain. Each product is designed differently, and each product (or service) is meant to be for one specific customer. The time when Ford was making one single car for everyone is over. We will focus on how to design its supply chain based on product segmentation. We will first identify the different type of supply chain configuration a company can choose based on its corporate strategy. We will then try to define the meaning of the segmentation and what are the main criteria to perform it. This will lead us to identify the different models that currently exist, models that will help companies to segment, categorize and design tailored supply chains. Then we will try to apply the models on a real case and try to redesign the company supply chains going from an AS IS statement to a TO BE ideal situation. Product Segmentation and Supply Chain Segmentation Segmentation Definition Segmentation can be defined as: Process of defining and sub-dividing a large homogenous market into clearly identifiable segments having similar needs, wants, or demand characteristics. [http://www.businessdictionary.com/definition/market-segmentation.html]. The main purpose of segmentation is to help to decide what configuration of the business is the most suitable for what customer. The concept of one size does not fit all has for meaning that each customer has a different need and this need cannot be fulfilled in the same way the other customers need are fulfilled. In supply chain the purpose of segmentation is to configure the processes in a way that will lead to a competitive advantage and then to profit. However, we cannot fulfill in a different way each single customer as this will increase the cost so much that the company wont survive. Thus, it is important to build groups that have similar needs and provide one single service for this group. Different type of Supply Chain Functional Product VS Innovative Product The idea of categorizing product in order to identify the most suitable supply chain is not new. In 1997, Fisher introduced a new concept in order to better serve the customers. Fisher said that the first step in devising an effective supply chain strategy is therefore to consider the nature of the demand for the product ones company supplies, [Fisher]. He identified several factors that will influence the design of the most suitable Supply Chain, factors such as Product life cycle, demand predictability, Product variety and market standards for lead times and services. Thus, he started by categorizing product based on theirs characteristics. He identified two types of products: Functional Product and Innovative Product. The main difference of these two types of product influence the type of supply chain needed to optimize the supply of these products. Fisher defines Functional Products are products with long life cycles and with low demand uncertainty. Conversely, innovative product s are products having a short life cycle with high demand uncertainty. Fisher went event further as you can see on the Table 1 below in the distinction between Functional and Innovative Products: Figure 2: Matching supply chains with product characteristics (Source: Fisher, 1997) Hau L. Lee also developed Fishers idea on the distinction between Innovative and Functional Products as you can see on the table below: Table 1: Demand Characteristics  [1]   The impact of this distinction on the Supply Chain type is tremendous. The choose to develop a Lean Supply Chain or an Agile Supply Chain is easier thanks to this new distinction as we will see on the next part. Lean, Agile, Leagile Supply Chain Based on the functional and innovative products concept, we are now able to introduce different supply chain strategy. Each companies objectives are different, thus when designing its supply chain, the aim of this new organization will be different. We are introducing here different strategy when designing its supply chain: The Lean Supply Chain aims to reduce the waste and thus the cost while providing high quality products/services. The Agile supply chains objective is the flexibility to fulfill the customer demand while this ones predictability can be very low. The Leagile strategy is a hybrid solution, combining the Lean and Agile strategy in one. The first time we heard about Lean Manufacturing was in 1988 by John Krafcik in a article he wrote in the Sloan Management Review: Triumph of the Lean Production System  [2]  when he was describing the Japanese production model which is essentially the elimination of waste. Naylor et al provided with a interesting definition: Leanness means developing a value stream to eliminate all waste including time, and to enable a level schedule [Naylor et al.]. Since then, the concept becomes much broader. Indeed, Christopher and Towill highlighted the fact that the Lean Supply Chain works better with a stable demand and where variety is low  [3]  : which correspond to the functional products. From this statement we can already start to have a clearer view on what supply chain for what products; thus, functional products need Lean Supply Chain. The lean supply chain will focus on cost reduction for standardized mass-products [Volker Stich, Jan Christoph Meyer]  [4]  . The origin of agile concept lie partially in flexible manufacturing systems (FMS) [M. Chritopher, D. Towill]. The Agile Supply Chain allows using a highly flexible supply chain in order to better serve the customer. As for the Lean definition, Naylor et al. introduce a definition for agility concept: Agility means using market knowledge and a virtual corporation to exploit profitable opportunities in a volatile marketplace [Naylor et al.]. With an Agile Supply Chain it is much more efficient and effective for product with high volatility in the demand and high variety which correspond to the innovative products. In the table below, Chritopher and Towill went even further in the difference between a Lean and an Agile Supply Chain: Table 3: Comparison of Lean Supply with Agile Supply: The distinguishing Attributes  [5]   Distinguishing Attributes Lean Supply Agile Supply Typical Products Commodities/Functional Fashion Goods/Innovative Marketplace Demand Predictable Volatile Product Variety Low High Product Life Cycle Long Short Customer Drivers Cost Availability Profit Margin Low High Dominant Costs Physical Costs* Marketability Costs** Stockout Penalties Long Term Contractual Immediate and Volatile Purchasing Policy Buy Materials Assign Capacity Information Enrichment Highly Desirable Obligatory Forecasting Mechanism Algorithmic Consultative *Physical Costs: All Production costs, distribution costs and storage costs **Marketability Costs: All obsolescence costs and stockout costs If only, both agile supply chain advantages and Lean Supply Chain advantages could be put together to build a perfect supply chain, it would be the best of both world. Coming from this pursuit of perfection, the concept of Leagile [Naylor et al] supply chain appeared. This concept suggests using lean supply chain for the upstream flows and the agile supply chain for the downstream flows. In practice, this strategy is using what is called The decoupling point or Postponement. This concept principle is to keep sub assembly inventory and to produce finished goods only when the order is know. Chritopher and Towill pointed out one important fact is the information de-coupling point: they argue that the furthest point upstream to which information on real demand flows i.e. information which has not been distorted by inventory policies such as re-order points and re-order quantities contributes to the Agility of a company. Figure 1: The decoupling point  [6]   Stable and Evolving Supply Chain As pointed out Volker Stich and Jan Christoph Meyer, all the approach discussed earlier are focusing on the demand side. Hau L. Lee introduced a new concept called Stable and Evolving supply processes. This concept is focusing on the supply side of the supply chain. Hau L. Lee provided a useful definition as follows: A stable supply process is one where manufacturing process and the underlying technology are mature and the supply base well established. [Hau L. Lee] An evolving supply process is where the manufacturing process and the underlying technology are still under early development and are rapidly changing, and as a result the supply base may be limited in both size and experience. [Hau L. Lee] There is more difference between stable supply processes and evolving supply processes, the figure 2 is summarizing some of these differences. The link should be made with Fishers Functional and Innovative products: Functional products tend to use a more mature and stable supply process but this is not always the true. Hau L. Lee provides several example summarized in the figure 3. Figure 2: Supply Characteristics. (Source: Hau L. Lee) Figure 3: The uncertainty Framework: Examples. (Source: Hau L. Lee) Segmentation Factors Determining the Customers Needs: Order Winner and Market Qualifier The definitions of Order Winner and Order Qualifier found in the APICS dictionary are quite interesting: Order winners are those competitive characteristics that cause a firms customers to choose that firms goods and services over those of its competitors. Order winners can be considered to be competitive advantages for the firm. Order winners usually focus on one rarely more than two) of the following strategic initiatives: price/cost, quality, delivery speed, delivery reliability, product design, flexibility, after-market service, and image. [APICS Dictionary 2008]  [7]   Order qualifiers are those competitive characteristics that a firm must exhibit to be a viable competitor in the marketplace. [APICS Dictionary 2008]  [8]   When Terry Hill invented this new concept of Order Winner and Order Qualifier, he aimed to linked operations objectives with Marketings one. The operations people were then in charge of managing the supply chain in a way that the company will obtain a competitive advantage and win the market. As you can see on the APICS definition, several strategic initiatives have been identified: price/cost, quality, delivery speed, delivery reliability, product design, flexibility, after-market service, and image. Based on that, R. Mason-Jones et al. combined the Fisher concept with Hill concept as you can see on the figure 2. The key information is that companies need to excel and focus on the Market Winners factors while being highly competitive on the Market Qualifiers. The figure 3 shows that the company is focusing on Cost and obtained a competitive advantage on the price. The important point is that this company is not neglected the others key competitive factors and its performance is always above the critical minimum performance which if it would have been below, it would have eliminated the benefice acquired from the competitive advantage. Figure 2: An example of using the classification matrix based on market winners and market qualifiers [Source: R. Mason-Jones et al.] Figure 3: The performance matrix [Source: Nabil Montassir] Another concept that needs to be took into account is the difference with Importance and Performance BLABLABLABLABLABLA Corporate Strategy (Operation Excellence, Customer Intimacy, Innovation Excellence) When designing a new Supply Chain or even redesigning an existing one, it is important to be consistent with the corporate strategy. The supply chain needs to be aligned with the overall company strategy. We can summarize nowadays strategies by three main one: Operation Excellence, Customer Intimacy and Innovation Excellence. The operation excellence meant to provide the best quality/price ratio. The objective is to decrease the cost in order to sell it at the most competitive price without reducing the quality. The market winner is definitely the price. This strategy is likely to suit a Lean Supply Chain which aims to reduce the waste and therefore the cost. The Customer intimacy is focusing on providing the highest service level to its customers. Agility, flexibility, reactivity are suitable adjective to describe the aim of this strategy. The price is no more the market winner but the Service level is. Agile and Leagile Supply Chain is likely to be the best strategy to compete on this market. Innovation Excellence as the name indicates has to be at the cutting edge of innovation. The company wants to provide always the most advance product. The cost is higher than the other product and the company aim to touch the Early Adopters who are willing to pay a higher price to get an advanced product, thus the market winner is Innovation. The forecast for these kinds of products are difficult and the stockout as well as the obsolescence can be very high. Therefore it requires a rapid time-to-market if the product knows a rapid growth. Supply Chain Key Classification Variables From the table 2, A. Lovell, R. Saw and J. Stimson identified key cost drivers of the supply chain. They conclude that all costs apart from manufacturing there is a small set of drivers: throughput level and variability; product size and weight; value and the demand variability/service factor [A. Lovell, R. Saw and J. Stimson]. They even go further by reducing this number to three by combining the value with size and weight to form product value density [A. Lovell, R. Saw and J. Stimson]. Using these three key cost drivers, supply chain segmentation can be done. Each group of products resulting from this segmentation will share common characteristics. Table 2: Principal Cost Drivers in the Supply Chain [Source: A. Lovell, R. Saw and J. Stimson] In the same spirits, J. Aitken, P. Childerhouse, M. Christopher and D. Towill identidfied five key market characteristics that will be use to design Supply Chains. They use the term DWV [Christopher and Towill (2005)]: Duration of life cycle, Time Window for delivery, Volume, Variety and Variability  [9]  . They argue that for Short life cycles products, the end-to-end supply chain lead time needs to be reduced and optimized which will allows a higher flexibility and a faster time-to-market. Volume and Variability are similar to Lovell et al throughput level and demand variability. However, variety has been taken into account in Lovell concept: Higher the variety is lower the average demand by SKUs will be as the demand will be spread across a greater number of SKUs. It will require a higher flexibility to produce the right product at the right moment. A postponement strategy is well adapted to this kind of environment. Before going further, the table below summarized the key factors that will influence supply chain segmentation: Table 2: Factors influencing Supply Chain Segmentation [Source: A. Lovell, R. Saw and J. Stimson] Segmentation Methods and Model: Choose your supply chain strategy From the previous part on the segmentation factors, we have found different criteria: From these different criteria, many people developed different model and matrix to help them in segmenting the supply chain. In this part we will introduce those models, try to explain their advantage and disadvantages. At the end, we will choose the one we think the most complete and use it during the practical part of this thesis. Many of the models we will introduce use the same concept Volkers 4 folds model: The criteria used by Volker are the Demand predictability and the customer needs. The demand is either easy to predict or non-predictable. The customers require low cost or high flexibility. From this matrix, we can obtain 4 different type of Supply Chain: the Accurate SC, the Agile SC, The Cost-Efficient SC and the Responsive SC. The cost-efficiency represent to the Lean Supply Chain we introduced before. A predictable demand which allows high planning accuracy and therefore enables the most efficient design of the involved processes [Volker] combines with the cost as the order WINNER in clearly indicates that a Lean SC (or Cost-efficient SC) as the best fit. At the opposite, when the demand is non-predictable and the order WINNER is the service level (through the high flexibility) the most suitable Supply Chain will be the agile one. When the demand is predictable and the customer requires high flexibility, it requires the highest accuracy in the planning processes, to guarantee th e required availability and flexibility. The last part is the responsive one the Supply Chain needs to be cost effective while the demand is unpredictable which suggest that a Leagile Supply Chain is the most suitable one. Figure 5: Supply Chain segments and Supply Chain phenotypes [Volker] Advantage: The main advantage is its simplicity, easy to understand and to use. It includes the customers needs. Disadvantages: From the table Factors influencing Supply Chain Segmentation, we can see that this model is using only Markets criteria. It doesnt include any product criteria or source criteria. The throughput level is also missing which makes difficult to determine the importance of the product and the manufacturing strategy that we will use. Therefore, this model is missing key decision factors. This model is limited to the strategy level and doesnt go on the operational level which makes difficult to configure the supply chain. Hau L. Lees model: Same type as the Volkers model, Lees model is using one same criterion: the demand predictability (or the demand certainty). The other criterion is the Supply Uncertainty. The segmentation possibilities: Efficient, Risk-hedging, responsive and agile corresponds at the same concept we introduced before. Advantage: Simple and take into account the supply side. Disadvantage: As for Volkers model, it doesnt include any product factors. And it doesnt include the throughput level. This model is limited to the strategy level and doesnt go on the operational level which makes difficult to configure the supply chain. RELs 9Box: This model use two factors: the Throughput level (in value) and the demand variability It divides the products in three major groups and three different supply chain strategies: Green group: The characteristics of this group are a high throughput level and a low variability in the demand. Easily to forecast using statistical methods, the accuracy needs to be very high as the service level should be high. The value of those product are high so the DIO Days of Inventory Outstanding needs to be low in order to avoid to have too much cash tied up in the supply chain. This group is the major group and needs to get the full attention and the priority from the business. Orange group: As for the green group, MTS Make-to-Stock strategy will be privileged with an average or medium customer service level. The priority is given to the green group. The forecasting method used would be a statistical method or a smoothing average. The forecast accuracy needs to be high and the days of inventory target should be put on average: again the priority is given to the green group. This groups demand certainty is in overall lower than green groups and the throughput level is lower as well. Red group: This groups main characteristic is the low demand certainty that make difficult to drive the supply chain. Thus the manufacturing strategy privileged is the MTO Make-to-Order strategy. As it the fluctuation in demand is too high, the forecast become highly challenging and the accuracy target should be Medium/Low and the DIO target near none. Advantages: Much more operational than the other model we have viewed so far. It goes in a much deeper level than the other model. It is as well simple to use and easy to communicate. Disadvantages: It doesnt include product characteristics into account. It doesnt include the supply side factors and doesnt include customers needs. In addition, it gives us information on the supply chain configuration but forget to identify the supply chain strategy: Lean, Agile, Leagileà ¢Ã¢â€š ¬Ã‚ ¦ Product Value Density Model: The main difference of this model with the others is that this one is using three segmentation factors while the other methods were using only two. Indeed, this model is using the Product Value Density, the throughput level and the demand-service factor (variability of the demand). From the table showing the supply chain cost (see chapter Supply Chain Key Classification Variables, table XXX), Lowell identified four major factors that impact cost all along the Supply Chain: the Throughput level, the product size and weight, the product value and the demand variability. These four factors become three by combining product size and weight and the product value forming the Product Value Density (PVD). This model can be representing in a three dimensional graph but for ease of comprehension only two dimensional graph will be used (see Figure XXX). Thus, we will consider: the demand variability-service and the throughput; the PVD (product value density) and the throughput; the PVD and the demand variability-service. When introducing his model, Lowell concentrates on the inventory and the transportation side of the supply chain as you can see o n the figure XXX below. Advantages: Take into account product and market factors. Disadvantages: Mainly focus on operational level and focuses on the inventory and transportation part of the supply chain. DWVs model: This model is the one I chose for the practical part. This model is more a guide than a matrix. By the letters DWV, we always take into account all the main factors when determining the supply chain design and configuration. Duration of life cycle, Time Window for delivery, Volume, Variety and Variability Variety = postponement The chosen model: The model chose for the practical part is the first one we have shown, the Volkers model. But we will change it a little so it can include the throughput level (in value) as well as the variety level. So this new model is using four different factors: The customers need, the demand Uncertainty (or variability), the throughput level and the variety level. The throughput level helps us to prioritize the resources through an ABC analysis of the value per product or family of product (ex; Do we really need to build an agile supply chain for a C class product?). It is important to understand the customer needs but business is business and if one customer is not really profitable then the importance for us decrease as much as the throughput level decrease. The variety level helps us to identify the product that may need a postponement strategy. Key Performance Indicators Before to go forward, it is important to introduce the Key Performance Indicators (KPIs) that we could/should/will use to keep visibility on the supply chains. KPIs are like a speedometer on a car that helps us to know at what speed we are driving. When dealing with an Agile Supply Chain, the performances that we need to keep a close eye on them are: OTIF (On Time In Full): Companies set up Agile strategy to fulfill a specific needs for their customers. They need to get a product when they want, where they want and at the right quantity. And these customers are willing to pay a higher price to get their suppliers that flexible. So any companies setting up an agile supply chain need to make sure that the OTIF performance are extremely high to not disappoint their customers. Forecast Accuracy: If our purpose is to have a Lean strategy, then the forecast accuracy needs to be high. In general, when having a lean supply chain, companies have a make-to-stock production configuration which is equivalent to a forecast-to-stock. Having a bad forecast accuracy will lead to mismatch between demand and supply. Either the company will end up having excess inventory or not lost sales. This KPIs analysis can be done for each of them. Each time we will introduce a new KPI, we will try to explain how important it is for one or another supply chain configuration. Supply Chain Design Practical Example The supply chain design consists on how to structure its supply chain. It involve the configuration of your sourcing (Source) strategy, the production (Make) strategy and the distribution (Deliver) strategy. All these strategy together represent the Supply Chain Configuration or design. Electrolux Make configuration In this part, we have to take different decision, like the production configuration MTS, MTO, ETO, Batch Size, Prioritization, Temporal Physical Postponementà ¢Ã¢â€š ¬Ã‚ ¦) SOURCE Strategy (Suppliers Partnerships, Suppliers Selection, Suppliers Performance Service Levelà ¢Ã¢â€š ¬Ã‚ ¦) DELIVERY Strategy (Delivery Lead Time, Transportation Modes, Service Levelà ¢Ã¢â€š ¬Ã‚ ¦) Inventory Strategy (Safety Stock Level, Inventory Level, Inventory Location, Physical Spatial Postponement) Segmentation Model (Nine Box, Product Value-Density Model, Agile Lean Matrixà ¢Ã¢â€š ¬Ã‚ ¦) Nous effectuerons  : Case study Ce que je pense faire, cest en effet dutiliser les matrices prà ©sentà ©s dans la deuxià ¨me partie et les appliquà ©es a cette entreprises pour restructurer sa supply chain. Les indicateurs de performances seront à ©galement intà ©grer. Ce cas doit à ªtre lillustration des choix faits en fonction de ce que vous avez trouvà © en II ( la fameuse matrice de dà ©cision) SNECMA Presentation Industry Specification SNECMA current strategy SNECMA TO-BE Supply Chain based on product Segmentation Model Case Study Conclusion

Compaq Proposal: Pros and Cons

Compaq Proposal: Pros and Cons (1) Do you support Fiorinas proposal to acquire Compaq? What are the pros and cons? Will you the merger with Compaq bring HP closer to Dell, or IBM? Assuming that the merged new HP can overcome some issues, we would support Fiorinas proposal to acquire Compaq because the following benefits would outweigh the negatives. Pros The merger would create a full-service technology company capable of doing everything from selling PCs and printer to setting up complex networks in entire categories. PCs: The merger would improve the economics and innovation of their PC business to compete with industry leader Dell. Server and Storage: As a result of the acquisition, their combined server and storage product lines would give new HP a significant boost due to fully covered product categories and technologies to compete with IBM. IT service: The combined firm would have 65,000 IT architects operating in 160 countries. The new HP would be leading position in both mission-critical service and multivendor support. Financial Benefit: The merged firm could eliminate redundant product groups and cost in marketing, advertising, and shipping. According to the plan, the merger would generate $2.5bn in annual cost savings by mid-2004. Cons HPs business portfolio will be worse due to increasing exposure to an unprofitable PC business. here are many overlapping units that have no complementary benefit. HPs management has no experience with huge merger. The merged balance sheet would be worse than that of a stand-alone HP. The acquisition would make a firm with total revenue only slightly less than that of IBM. The merged firm would become a stronger competitor for IBM in the server market, and Dell in the PCs business. In conclusion, the new HP would be in a position to compete with IBM and Dell across its entire product line. (2) Why was the board so divided on this issue? What grade would you give HPs board in the way they handle this complicated strategic issue? The main reason that the board was so divided on this issue is the conflicts in the interests between the management and shareholders of HP. For the management team, as mentioned in question 1, CEO Fiorina was hired to execute an e- service strategy which could help HP to meld the independent businesses into a powerful and profitable whole. But the performance of the business turned out to be frustrating. The sales growth kept declining and the share price trailed substantially especially in year 2001 when the states met with big recession and 911 attack. The management team must take some actions to turn the situation around. In this case, merger with Compaq became crucial for HP to reverse the tide. But on the other hand, the shareholders of HP led by Walter Hewlett, the director, oppose to this acquisition. They considered the merger would destroy shareholders benefits. From the date the proposed merger was announced, Hewlett-Packard stockholders have lost $7.0 billion relative to an index of comparable companies.[1] Also, the dramatic reduction in the earnings forecast for Compaq since the announcement means that HP stockholders are getting too little of the merged company relative to HPs contribution to earnings. Furthermore, when compared to a stand-alone HP, the combined firm represents a lower credit rating with greater equity risk and a higher cost of capital. In this case, considering the big conflicts between the board members on this merger, we would grade C to HPs board in the way they handled this complicated strategic issue. (3) Why did Walter Hewlett vote for the deal in the board room, and vote against it as an inventor? Walter Hewlett had not choice and had to do like this. As an investor, he believed that the merger would destroy the share holder value. He believed that 1) the merger would dilute HP shareholders interest in the profitable printing and imaging business and increase their exposure to an unprofitable PC business and therefore the HP business portfolio would be worse; 2) the integration risk was rather substantial; 3) There would be negative and 4) There wont be a significant improve of the company position. He personally opposes this transaction and had voiced his opinion for many times. Despite Walters opposition, the CEO insisted to pursue the deal. Actually, if Walter vote against in the board room, the agreement could not be signed without renegotiation, which might result in HPs having to pay a higher price. Since the merger would be approved even without his vote and he felt that it was his duty to negotiate the lowest possible price. He was forced to vote for the deal in the board room. That is why Walter Hewlett voted for the deal in the board room, and voted against it as an investor (4) What is your assessment of the role played by third parties consultants, investment bankers, analysts, and institutional investors in this deal? The third parties played significant roles in this deal by either advising for or against it. There are the following third parties: Consultants (McKinsey and Accenture) who evaluated strategy and operations due diligence of H-P and Compaq, respectively. Without positive findings from these consultants, the merger process might not have happened. Investment banks (Goldman Sachs and Salomon) who advised merger for H-P and Compaq, respectively. The investment banks provided financial aspects such as exchange ratios. With the financial analyses, both boards were able to approve the merger. Other investment advisors were hired (Laurence Hoagland, FFL, Booz-Allen) to independently evaluated merger for Hewlett Foundations, the Trust, Packard Foundation. The findings from these advisors were used to fight against the mergers. Institution investors in the end played critical roles in determination of the merger. Strongly opposed the merger, Hewlett lined up several important institution investors (the Trust, Foundations, Packard families etc) to fight the merger. By going public to announce his opposition and the analyses from investment banks, he had significantly impacted the investors. Although the merger was approved by 51.4% of votes, the marginal approval votes showed the deeply divided institution investors on the merger. A key third party was ISS without favorable evaluation from ISS, the merger would be highly likely to fail. Analysts opinions also affected investors. Again, analysts were divided on the merger, with some analysts were in favor of the deal, others were not. (5) In Exhibit 6, Goldman Sachs performed a contribution analysis and listed some implied exchange ratios. What are the pros and cons of this approach in determining the exchange ratio in a stock-for-stock deal? What about the historical exchange ratio analysis in Exhibit 7? The approach followed is a standard industry practice where the following are excluded: gains/losses from synergies acquisition accounting such as reconciling GAAP, IFRS standards financing adjustments such as tax or debt servicing benefits Hence, the contribution analysis provides a useful side-by-side comparison of each companys contribution to various line items on the combined business income statement. Also, it helps in obtaining a range of exchange ratios that ultimately help in finalising the appropriate exchange ratio during the actual merger deal offered to the stockholders. However, since the approach doesnt factor the premium paid to the stockholders of the acquired company and misses the expenses accrued due to merger process, there is a danger of mis-valuation. Appropriate adjustments need to be done in the final value to reflect the same. Moreover, forecasted revenues post-merger are subject to the realisation of the assumptions in the valuation model used. Exhibit 7 shows that the historical implied exchange ratio is closest to 0.6325 when 3-month high data is considered. The table also shows that a premium is being paid in the range of 10-18% over and above the fair price as indicated by the implied exchange ratios. (6) Large technology mergers had a history of failure. What are the common risks in large technology deal? Common risks: Frequent changes of the industry The technology industry is highly competitive and marked by frequent product introductions, continuous improvement in product performance characteristics, and fierce competition. The companies should quickly tailor their product and service offerings to satisfy the new taste of customers, so that to operate profitably. However, merger deals often take a very long time to prepare until being finally completed. It would result in inappropriate strategy to beat the target when deals are done. Changes in business portfolio According to the article, most botched tech mergers involved companies trying to buy their way into new business they knew little about. Marketplace is changing, with the increasingly changes in divergent products demand. The large tech mergers would possibly fail to maintain the profitable strength and establish as good brand image as before in new acquired areas. Also, too much time and cost are spent on acquisition would inevitably delay the research for new emerged product, which leaves chances for rivals to compete for customers. Cultural conflicts Differences in culture between two large tech mergers are also responsible for the failure. After the acquisition, each of the two firms may prefer the old way of working style and operating strategies. This would lead to the conflicts and negative effect in implementing plans and actions. Intellectual loss Intellectuals are the biggest assets in technology companies. Product research and innovations are heavily relied on the personnel. High turnover rate of employee, which is resulted from the unsatisfied working environment and unfair payroll, would also be the risk for merger failure. Bibliography Professor Cong Wang (2010), FIN6170A Mergers Acquisitions, The Chinese University of Hong Kong, MBA course material The New York Times, Hewlett-Packard in Deal to Buy Compaq for $25 Billion in Stock (http://www.nytimes.com/2001/09/04/business/hewlett-packard-in-deal-to-buy-compaq-for-25-billion-in-stock.html?pagewanted=1), September 2001 CNET news, HP to buy Compaq for $25 billion (http://news.cnet.com/2100-1001-272519.html), September 2001 E-Commerce Times, Analysts Applaud HP-Compaq Merger (http://www.ecommercetimes.com/story/18917.html), August 2002 Channel Web, Walter Hewlett: The Consequences of the HP-Compaq Merger (http://www.crn.com/it-channel/18827986;jsessionid=0JJA0XBMKGC13QE1GHRSKH4ATMY32JVN), March 2002

Sponsors And Sports :: essays research papers

Sponsors and Sports In the world of sports, everything from the cups the athletes drink from to the stadiums they play in is up for grabs. The four major sports are a playing field for the teams as well as major companies hoping to influence the public. While there are some positives and negatives to sponsors, a line has to be drawn somewhere. The four major sports, Major League Baseball, the National Basketball Association, the National Football League, and the National Hockey League all generate millions of dollars from sponsors each year. Individual athletes themselves command large endorsement contracts that in many cases exceed their own salaries. And although the heads of these sports try to limit the influence of companies, they are still a major part of every game played. One of the more widely known sponsors of sports is Nike. Their rivalry with Reebok and other shoe and apparel companies is seen on television and on the playing field. Advertising their company is the major concern when displaying their logos in sports. Beverages, fast foods, credit cards, automobiles and a wide variety of companies spend their money on sports related ventures. They spend big dollars to name stadiums and arenas after their companies. Television gives these companies even more chances to influence the public with commercials that companies might sometimes pay up to $1 million for. The uniforms that the players wear are now being made my different manufacturers whereas five years ago each league had all their teams wearing the same brand. The equipment being used is also made by different companies. No matter what is being fought for, sponsors create good and bad influences in each sport. Major League Baseball is recognized as the most popular sport. They also play the most games which is a plus to sponsors. Each game is seen as a chance to spread word of their company. But MLB seems to be the least affected team wise by sponsors. This is probably because of the strict rules set forth and also because of recent work stoppages and labor disputes. MLB was once the leader in innovative ideas involving sponsors. Billboards are placed around the stadium in strategic spots that will be noticed by fans and television. Stadiums are now being renamed by companies willing to spend millions to have the stadium named after the company such as 3Com Park in San Francisco. These short term deals can create a problem in the future though. Athletes are not as widely chosen for endorsement contracts as in other sports. This is probably because many players cannot make a huge

The Road Not Taken Analysis :: Free Essays

Line 1 In this line Frost introduces the elements of his primary metaphor, the diverging roads. Back to Poem Lines 2-3 Here the speaker expresses his regret at his human limitations, that he must make a choice. Yet, the choice is not easy, since "long I stood" before coming to a decision. Back to Poem Lines 4-5 He examines the path as best he can, but his vision is limited because the path bends and is covered over. These lines indicate that although the speaker would like to acquire more information, he is prevented from doing so because of the nature of his environment. Back to Poem Lines 6-8 In these lines, the speaker seems to indicate that the second path is a more attractive choice because no one has taken it lately. However, he seems to feel ambivalent, since he also describes the path as "just as fair" as the first rather than more fair. Back to Poem Lines 9-12 Although the poet breaks the stanza after line 10, the central idea continues into the third stanza, creating a structural link between these parts of the poem. Here, the speaker states that the paths are "really about the same." Neither path has been traveled lately. Although he’s searching for a clear logical reason to decide on one path over another, that reason is unavailable. Back to Poem Lines 13-15 The speaker makes his decision, trying to persuade himself that he will eventually satisfy his desire to travel both paths, but simultaneously admitting that such a hope is unrealistic. Notice the exclamation mark after line 13; such a punctuation mark conveys excitement, but that excitement is quickly undercut by his admission in the following lines. Back to Poem Lines 16-20 In this stanza, the tone clearly shifts. This is the only stanza which also begins with a new sentence, indicating a stronger break from the previous ideas.

Ireland and Its Development Essay -- Irish Ireland Economy Essays

Ireland and Its Development 1. Introduction Ireland has faced extremely fast development in many industrial sectors during the last decades. This has not happened by accident and that is what made it for us an interesting case to study in more detail. The Irish government policy towards Foreign Direct Investments (FDI) has affected in large extend to Multinational Organizations’ investment decisions into Ireland. The FDI is one of the main focuses through the paper as we see that they have had a major impact on the development of Ireland during the 80’s and 90’s. In this paper we will focus on three main areas. First area is a view to the historical development of the country from the mainly agricultural driven society in the 50’s to a highly developed industrial country in the 21st century. The second part of this paper will focus more carefully on the reasons why this development has been possible. We will go through some theory about government policy in attracting Foreign Direct Investments. The last part of this paper will focus on the company point of view of FDI. We will go through one company example and discuss this according to an introduced theory of companies doing FDI. With this paper the group wants to give the reader a more specific view to the fast and well-planned development Ireland has been able to reach during the recent decades. We hope that this view encourages the reader to take a closer look to the fascinating Irish culture and we hope that the reader will get some perception what possible tools a government has to attract foreign firms to invest in the host country. 2. Economic History 2.1 Overview Ireland will go down in economic history as the economic miracle in the last decade of the twentieth century. For most of the 20th century although, even well into the late 1980s, Ireland was in economic terms quite unsuccessful. Chronic unemployment led to large emigration flows and dampened entrepreneurial activity. The country’s economic situation eventually reached crisis levels because of the spillover effects of the two oil shocks of the 1970s and the high interest rates resulting from the United States’ anti-inflationary policies of the early 1980s. By 1988, the public debt exceeded 140% of Irelands gross domestic product. But the unemployment situation was also serious, emigration resurged, the economy stag... ...Donnell Kevin D.; â€Å"The economic transformation of Ireland-Underpinnings, Impact and Sustainability of the Rapid Economic Growth†; Norwegian School of Economics and Business Administration, 1998 †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  OECD; â€Å"Knowledge worth the investment†, OECD 2003 (http://www.oecdwash.org/NEWS/LOCAL/oecdwash-jan2003.pdf) †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Somers Michael J; â€Å"The Irish Economy†, National Treasury Management Agency, 2000 (http://www.ntma.ie/Publications/Parismay00.pdf) †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Torkildsen, Erik et al.; â€Å"Ireland in the Global Market for Foreign Direct Investment-A study of Eight Norwegian Companies†; Norwegian School of Economics and Business Administration, 1996 †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  World Bank; "Social Policy and Macroeconomics: The Irish Experience", World Bank, 2001 (http://www.worldbank.org/transitionnewsletter/octnovdec02/pgs20-23.htm) †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  World Bank; â€Å"Ireland: Participation in macroeconomic policymaking and reform†, World Bank 2002 (http://www.worldbank.org/participation/web/webfiles/ireland.htm) Internet sources †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  http://www.ida.ie †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  http://www.oecd.org/htm/M00008000/M00008465.htm †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  http://www.cso.ie †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  www.finance.gov.ie †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  http://www.cia.gov/cia/publications/factbook/geos/ei.html

Ethical Dilemmas Essay

There are three situations presented in the simulation which poses different ethical dilemmas on the part of the decision-maker. The symptoms of the respective dilemmas and their root causes shall be discussed individually because â€Å"analysis would be proper if they are able to locate the root cause of the conflict† (Lee). The Indiscreet Relationship The first situation presented was an indiscreet relationship between a boss and his secretary. The boss took the secretary along with him during business trips at the expense of the company. He even promoted the secretary to junior account executive. This problem created a stir within the company and corridor talks went around saying that the way to make it through the ladder of success in the company was through less than ethical means. This has caused an unrest among the employees of the organization that an ethical stand should be taken. However, the decision-maker had an ethical dilemma in making his decision. The boss, Patrick, is his former friend and colleague who was the one instrumental in landing him his job. Patrick also helped him during his early days with the company in getting hold of the ropes of the business of the company. On the other hand, company morale is going down because the employees think he is an unethical leader for allowing Patrick have his way in maintaining an indiscreet relations with his subordinate and in spending company resources in the process. This is what defines the ethical dilemma here. Sniffdog The second situation presented by the simulation which involved an ethical dilemma is the decision to represent SilverPill and their Sniffdog account. Sniffdog is a computer program which could sneak into the user’s hardware and retrieve many confidential data without the user’s knowledge. The ethical dilemma comes in when taking the account means allowance of the intrusion of privacy while not taking the account will make the company lose a lot of money by losing the account. The fact that compounds these all is that SilverPill informed the company that they will give all their accounts to McKinley should they choose to endorse Sniffdog. The ethics rulebook of McKinley states that the employees will maintain impeachable integrity in all its business dealings. Allowing Sniffdog to push through will not reflect well of this ethical rule. On its face, the business being dealt with here is plainly business and nothing will be objectionable about it. McKinley will just seek to endorse the Sniffdog program. However, when the program has capabilities of sneaking into private information, an ethical issue arises for McKinley will be signing itself to be part of such intrusion. Although SilverPill promised not to use any information that may be gathered for any illegal or extralegal use nor to sell it to a third party, the fact alone that there will be intrusion into the private lives of the users of the program will already present a grave ethical issue. Thus, the root cause of the problem here is whether or not to be a part of a project which can intrude into the private lives of clients by collecting confidential information from them without their knowledge. Think Eddie  And the third situation with an ethical dilemma presented by the simulation is whether or not to reveal certain information about the program Sniffdog to Think Eddie which is a competitor of SilverPill. At this point, SilverPill is no longer associated with McKinley and has moved on to another PR company. Think Eddie has entered the picture and wants McKinley to represent them for a computer program which has the same features as that of SilverPill’s Sniffdog. Think Eddie is a big client. And now it wants information about the Sniffdog program without, however, threats of any sanctions given to McKinley in case of non-compliance. The ethical dilemma here is whether to reveal the requested information to Think Eddie or not. Though Think Eddie did not give any threats for non-disclosure, surely there was an unwritten statement accompanying the request that non-disclosure might strain the relationship between the two companies. On the other hand, the ethics rule book of McKinley prescribes them not to hold conflicting interests. SilverPill, though a former client, still has the right that every information given by it to McKinley be kept confidential by the latter. Because of the mentioned rule, McKinley is duty-bound not to divulge confidential client information, especially in this case where the revelation will be made to a competitor. The root cause of the problem, therefore, is whether or not to reveal information obtained from a former engagement in order to establish a better business relationship with a new engagement even though the two have conflicting interests and the former engagement has already been severed. In all, the ethical dilemmas arise not because of the ethics rule books established by company but mostly because of moral grounds. â€Å"If doing what is right produces something bad, or if doing what is wrong produces something good, the force of moral obligation may seem balanced by the reality of the good end. We can have the satisfaction of being right, regardless of the damage done; or we can aim for what seems to be the best outcome, regardless of what wrongs must be committed† (Ross, 2007). Thus, the root of these dilemmas is simply because there are moral standards to which, companies as well as persons, must adhere.