Porters 5 force analysis of Fast food industry Essay

Porters 5 force analysis of Fast food industry Essay.

Porter generic strategies this is a strategy on the dimensions of the strategic scope meaning the market penetration and strategic strength referring to the company. For porter an industry is impacted by five forces. (Porter, 1985)  This study is going to examine the aviation industry, which is amongst the biggest and competitive industry and highly growing

Rivalry

In a convectional economic setup, competition among rival companies reduces profits of the companies to nil. However, competition can not be perfect and companies are so sophisticated to counter competition by gaining competitive advantage over their rivals.

Competition varies depending on the different industries. In the aviation industry the competition is high as there are many companies offering the same services. In pursing the competitive advantage in the industry, the aviation industry can continue to improve its services by introducing new products. At the same time the industry can innovate new ways of services, and improved its general operations. The aviation industry is very competitive and companies in the industry need to merge to reduce competition while gaining competitive advantage.

As it is now several companies has collapsed due to high competition in the industry. (Porter, 1985)

Threat of substitutes

Substitutes in an industry according to Porter (1985) are products from other industries. A threat of a substitute will occur when the demand of the product is affected by changing of price of a substitute product. The price elasticity of a product is directly affected by the availability of substitutes. Since availability of substitutes will make the demand of a product to be more elastic.  In The case of the aviation industry, the industry is getting threats of substitute from the other transportation industry such as road, water and rail transportation networks. Though, aviation industry offers the fastest traveling services, security risks and high air fares have made its customers to opt of these other substitutes. According to Aaker (1984) the industry   can wade off fear of substitutes, by building strong and unique services, having good customer orientation and creating attractive marketing strategies to attract more customers and retain existing ones.

Buyer power

This is the impact that buyers have on a specific industry. Generally if there is a strong buyer power, the relation between the industry and the buyer is termed as “monopsony” such a condition happens when there is one buyer and many suppliers. On the other hand buyers are weak when they are many or different segments   and there is no specific buyer who has particular influence on the price of the product. Aviation industry has a weak buyers, the industry can  have take advantage of this by setting prices of its services  customer friendly and offering a high product-mix on the market to satisfy the demand of various customer segments. (Porter, 1985)

Supplier power

Porter, (1980) states that, each industry needs raw material, components and labor and other provisions. This need creates supplier-buyer relationships between the companies which provide the raw material and the industry. In cases where suppliers are powerful, the can impact the industry through selling of the raw material highly. However, sometimes suppliers are weak, this happens when there are many suppliers for the same product or if the purchasers are many. In the aviation industry, suppliers are many and the industry is not impacted by the suppliers. Aaker (1984) observes that, the industry can use economic of scale to source for better deals to ensure that it gets the best quality of raw material at the best prices.

Barriers to entry

Apart from rivals posing threat to existing companies, new entries in the industry also pose a threat the existing companies and increases competition in the industry. In practice any company should be able to enter and leave the market. Nevertheless, aviation industry has features that protect high profits of the companies in that industry and restrain additional competitors from entering the industry. Aviation industry has many regulations and licenses both national and international which an  new has to adhere to before entering the industry, this has restricted some potential new comers who can not adhere to this requirements. (Porter, 1980)

Conclusion

Industry analysis in important in improving  and ensuring the success of a company, in industry analysis there are several tools that are used to analysis the performance of a an industry. Porter’s five forces is one of the tools that are used in industry analysis, to provide vital information concerning the performance of the industry in relation to the five forces which are Rivalry, Threat of substitutes, Buyer power, Supplier power and Barriers to entry.

Porters 5 force analysis of Fast food industry Essay

Dell’s Supply Chain Management Essay

Dell’s Supply Chain Management Essay.

The term supply chain management (SCM) was initially used in wholesaling and retailing to denote the integration of logistics and physical distribution functions with the goal of reducing delivery lead times. Manufacturers and service providers have used the same term to describe integration and partnership efforts with first- and second- tier suppliers to reduce cost and improve quality and delivery timing. Terms such as integrated purchasing strategy, integrated logistics, supplier integration, value chain management, supply base management, strategic supplier alliances, lean production, Just-In-Time (JIT) logistics, and supply chain synchronization have been used in the literature to address certain elements or stages of this new management philosophy (1998; 1994).

Conceptually, SCM includes all value-adding activities from the extraction of raw materials through the transformation processes and through delivery to the end user. SCM spans organizational boundaries and treats the organizations within the value chain as a unified virtual business entity (1991; 1995). (1995) further expanded SCM to include recycling or reuse activities. In general, SCM seeks improved performance through elimination of waste and better use of internal and external supplier capabilities and technologies (1996).

The retailing industry has focused on different aspects of SCM, namely, location, transportation, and logistics issues. Indeed, the origin of supply chain management can be traced back to efforts to better manage the transportation and logistics functions (1997; 1995; 1994; 1993; 1991; 1987). The wholesaling and retailing industries incorporate a logistics focus within their strategic decisions. In this respect, SCM is synonymous with integrated logistics systems that control the movement of goods from the suppliers to end customers without waste (1991).

Moreover, integrated logistics systems seek to manage inventories through close relationships with suppliers and transportation, distribution, and delivery services. A goal is to replace inventory with frequent communication and sophisticated information systems to provide visibility and coordination. In this way, merchandise can be replenished quickly in small lot size and arrive where and when it is needed (1994; 1993). Firms that use advanced process technology to increase flexibility and involve manufacturing managers in strategic decision making alter the role of logistics in firm success (1998). A supply chain can reduce overall inventory while maximizing customer service by efficiently redistributing stock within the supply chain using effective postponement and speculation strategies (1998; 1993; 1991).

New logistics technology gives businesses a complex way to make things easier for their customers and suppliers. Within logistics industry, Dell’s system is recognized as one that takes advantage of technology to decrease storage and increase efficiency. The computer company’s supply and shipping networks exemplify the latest trend in logistics, that is, visibility. Companies with the money and foresight are making sure their inventories can be traced and tracked throughout their entire logistical operations, even if their systems are entirely outsourced. Executing a supply chain with full visibility gives companies better information to work with and a more agile system.

Dell has a better control of their operation which has reduced safety stocks and has operate faster to get cash-to-cash conversion cycles. By producing custom products at a rapid pace, the computer manufacturer receives payments from customer before it pays suppliers. Companies can do this only if there’s a short window between receiving an order and shipping it.

In addition, Dell’s customers can also keep track of their order status. They can trace their computer as is moves through assembly and testing, and can track its shipment due to the technology of major shipping companies.

The pulse of Dell’s execution effort centers on increasing business velocity and eliminating waste. Dell employees are constantly focused on driving down backlogs, promoting best practices, and creating synergies among adjacent processes as seen in cross-functional initiatives such as the design-for-manufacturability effort between manufacturing and R&D. This initiative successfully promoted product designs that are easier to assemble.

In 1994, Dell was a struggling second-tier PC maker. Like many others, the company ordered its components in advance and manufactured to inventory. Then Dell began to implement a new business model. It converted its operations to a build-to-order process, eliminated its inventories through a just-in-time system, and sold its products directly to consumers.

Dell carefully targeted corporate relationship customers that had predictable, budgeted needs and that wanted a pre-determined set of product models. The company also selected individual customers who were high-end, repeat purchasers with a preference for early technology adoption. Both account segments had the stable, predictable purchase patterns that Dell needed to make its joint build-product-to-order/buy-component-to-plan system work.

In connection with this, Dell developed a set of new operations capabilities in five crucial areas (2005). First, it created the flawless make-to-order system that has been widely noted. Secondly, Dell worked at length to build an effective supplier management function in order to shorten component lead times and maintain the absolute quality standards required by the just-in-time operation. Third, Dell developed the “sell what you have” system that was essential to matching supply and demand. Fourth, it instituted an extraordinarily crisp set of product life cycle management capabilities that yielded great cost reductions and strategic advantage. Fifth, the company worked with its suppliers to shorten their product life cycles, extending the Dell business model to the whole channel. Together these operating capabilities formed a cornerstone for Dell’s business model.

Moreover, to maintain its rapid growth, Dell needs to hone its just-in-time process. Dell believes that the key to JIT is integrating with the suppliers into its operation. It is important for the company to work with the suppliers to figure out how to minimize the supply chain and hold the least amount of inventory in it. Inventory can add costs, damage quality, slow production, and wreak havoc with Dell’s rapid response reputation. To guard against this, Dell has optimized its supply base and developed a tightly run system in which it “pulls” parts from suppliers just as they are needed for production.

Dell has manufacturing facilities in Austin; Limerick, Ireland; and Penang, Malaysia, each of which produces PCs on a JIT basis. In order to ensure the smooth flow of production supplies into these plants, Dell has developed a two-tiered strategy that employs different sourcing arrangements and delivery schedules for custom and commodity parts.

When Dell receives an order for a PC, it faxes or phones its requirements to suppliers who pick the proper parts and pack them in reusable bins with kanban cards attached. Trucks on a continuous loop between suppliers and Dell, known as a “milk run,” deliver the sorted parts to the computer maker’s plant for final assembly. This process frees Dell from having to manage inventories and the costs associated with them. However, Dell has made efforts to ensure that suppliers don’t get stuck with much inventory. The computer maker allows suppliers to participate in a “revolver program,” where they can sell parts stored at the warehouse to other customers.

In comparison with Dell’s supply chain management, Baxter, a hospital supply company, developed a powerful new type of partnership with its hospital customers. Baxter develops a strategy which is the vendor-managed inventory system, then called the Stockless System in managing its customer’s inventories within their hospital facilities (2001). The hospital specifies its stock requirements for each ward; an on-site Baxter employee counts the stock in each ward each day or every few days; the employee enters this information into a hand-held device and transmits it to Baxter’s warehouse, where a replenishment order is derived; at the warehouse, the order is picked into ward-specific containers; that order is delivered the next day or in a few days directly to the ward, and the Baxter employee puts the stock away; finally, Baxter invoices the hospital. Baxter’s Stockless System created a powerful new channel that changed the ground rules for all other hospital supply companies. However, in the long run, the shift to service competition led to significant sales increases as conversions to Baxter products naturally occurred. The company also gained significant first-mover advantage as it tied up key accounts with this new channel.

In the case of Procter and Gamble (P&G), the company first partnered with Wal-Mart to develop a pioneering continuous replenishment system. Through this system, P&G replenishes Wal-Mart’s facilities without purchase orders based on the retailer’s product movement data. Based on this experience, P&G systematically shifted its strategic focus toward supply chain-based service innovation–and in the process transformed both the consumer products and retail industries. P&G also developed a careful account selection plan as part of an innovative product supply model. The company developed operating partnerships with major customers capable of linking electronically, taking full-truckload deliveries, and engaging in joint business process reorganization programs. Smaller accounts were shifted to master distributors, which in turn were selected for their ability to partner effectively with P&G.

P&G, for its part, developed operations capabilities in two key areas ( 2001). First, it created a sweeping new set of industry-change programs such as ECR (efficient consumer response), CRP (customer requirements planning), and streamlined logistics. These programs required a solid new understanding of channel economics and the impact of supply chain innovation. Second, the company developed sophisticated IT ties to coordinate its product flow, enabling it to raise service levels to meet the needs of the new system.

With regards with Dell’s, supply chain competency of the company comprises of four qualities which includes demand management, internal collaboration, leveraging partners, and financial fundamentals (2004).

Dell’s direct model enables the company to excel at demand management. The process of selling directly to customers and building product to order creates opportunities for true real-time collaboration and synchronization between manufacturing and sales. By being in direct contact with the market, Dell can quickly see changes in customer demand. Synchronization allows Dell to respond more quickly to customer demand than its competitors can. Additionally, this true internal collaboration allows for highly accurate forecasts.

Another key aspect of Dell’s success is its ability to collaborate internally. This competency is driven by a culture that values information sharing and empowers all employees. At Dell, “direct” refers not only to how the company sells but also to how team members communicate and attack issues (2004).

Moreover, Dell’s culture and processes not only help the company collaborate internally but also help it leverage its business partners. Dell leverages its partners by linking suppliers’ planning and execution activities with Dell’s systems. The company uses information technology to gather and share a constant stream of data on supply and demand trends. On the supply side, Dell gathers real-time information about the inventory levels of its suppliers at various positions in the supply chain.

Finally, Dell’s entire supply chain is focused on fundamental business performance. Operating margin and not just profits or growth rate is the number that Dell cares about most to ensure long-term profitability.

Dell Inc.’s renowned direct sales model is regularly cited as the key reason for its overall competitive prowess. At Dell, supply chain management is truly viewed as a strategic capability; it drives coordination with, and in many instances it includes, activities such as marketing, sales, finance, and information technology.

Dell’s Supply Chain Management Essay

Managerial Communications Essay

Managerial Communications Essay.

Hynes introduces a calculated approach to managerial communication by dissecting it into three separate, yet mutually dependent functions. Hynes believes that with these approaches, management and employees alike can learn to adapt to one another to create an effective work force. The first layer is based on the idea that an employer and his employees can create a positive work atmosphere with the communication climate they set with one another. If a manager and his employees have an open and trusting relationship, it makes communications much easier for the both of them, regardless of their status.

By allowing employees to contribute their thoughts and opinions without the fear of backlash, managers will see better job performance within their workers. Employers can often create an open communication climate through regular team building meetings and workshops. Communication climate also challenges managers to do their part by listening to their employees’ feedback. In order for effective communication to occur, an employee should feel comfortable in their work atmosphere and fully believe that their manager will take their words into deep consideration.

Founder and President of Pillar Consulting LLC , Joelle K. Jay, PhD states, “On a personal level, people feel acknowledged when others validate their feelings. Managers who ignore feelings can create distance between themselves and their employees, eroding the relationship and ultimately affecting the working environment (Jay, “Communicate Well: Five Strategies To Enhance Your Managerial Communication Skills”). ” From that statement, managers must also learn the boundaries within successful communication.

In Hynes’ text, he also states that, “a positive climate is fragile…after only one or two critical errors, a positive environment can quickly change to one of distrust and closed communication, making future communication more difficult” (28). Managers must also learn to face the challenges of workers who become too comfortable in their environment. For example, Manager A and his Employee B, may have a friendly and casual relationship—one in which they may feel so comfortable that they talk about their personal and/or family business with one another.

This is good in the sense that Employee B learns to trust Manager A and feels he can chat comfortably about his feelings toward his job. Now, if Employee A begins to feel so comfortable that Manager A is finding consistent errors within Employee B’s work, it is only right for Manager A to step in and confront him about the matter. Depending upon the choice of words used by Manager A and how Employee B feels about the situation, it can change the communication climate. One bad meeting can leave Employee B feeling angry with Manager A.

He may no longer wish to have such a friendly demeanor towards him in the future. This can cause a strain on their communication with each other in the future. Another way to open a communication climate is through organizational culture. In an age of such advanced technology, many businesses no longer feel the need to speak to a person directly, either face-to-face or over the phone. The use of email has become a strong tool in business as it allows users to speak to each other without having to schedule a set time for both parties to meet only to say a few words.

From the previous example, Manager A may be in a business that is highly dependent on email to speak to his employees in order to give clear, direct orders. Employee B may have previously come from an organization where meeting face-to-face was the ideal way to speak to anyone—management or employees alike. If Manager A decided it would be easier to email Employee B of the mistakes that he’s been making, Employee B may take that as a sign of disrespect.

Employee B may not understand the tone that Manager A is reflecting in the email, leaving Employee B with the notion that Manager A couldn’t take time out of his schedule to speak with him directly. Their different perspectives of organizational culture could cause their gap in communication to widen tremendously. Organizational culture can help managers to better understand Hynes’ second layer in his approach to strategic communication. As the sender, Manager A’s personal characteristics can greatly affect the way he communicates with his employees.

Before speaking with Employee B about his mistakes, Manager A must first reflect on what he will say to Employee B and how he will say it to him. Efficient communication can be the determining factor for communications in the future. While an employee only has to adjust his communication for his manager, a manager will need to find a way to relay his message to each employee in the most comfortable and appropriate manner they deem fit. The manager must constantly adjust this speech for each person that he meets with to ensure a satisfactory outcome.

Though employees must mainly focus on how to communicate with management, there are various factors they must also take into consideration. How an employee takes in what an authority figure is saying to them greatly depends on their closeness with management, how they feel about the subject, concern for the subject, their current mindset, and their differences in position. As a receiver, an employee can choose how to accept a message being given to them by their employer.

In the previous example between Manager A and Employee B, it was said that Manager A would have to speak with Employee B about the mistakes he’s been making in his work. Since both parties already have a close relationship, Employee B will be more open to hearing what Manager A has to say. Employee B may have had a bad morning and doesn’t want to talk to anyone, let alone hear what Manager A has to say about his errors. By having a platonic relationship with his employee, Manager A is at an advantage because Employee B will respect him for their friendship.

Employee B will be more willing to take Manager A’s words into consideration and change his future actions. Managers must also be mindful of the language they use when speaking with their employees. If they are knowingly using jargon that their employee will not understand, communicating properly will be a difficult task. Not all conversations between employers and employees are ones that criticize their work. Before speaking to their employees, whether in a group setting or a one-on-one conference, a manager must first carefully examine the topic.

He must verify that the subject matter would be something that is beneficial to the work force, or something that is unnecessary to building the work morale. In Hynes’ third layer, it is learned that in order to measure how successful a communication approach is, managers must also consider how to get their message across to their employees. As stated before, Manager A may want to email Employee B on the subject of his work. Before doing so, Manager A must fully analyze the words he will be saying to Employee B and recognize if the matter is something that may be better said in person.

Also, in Employee B’s organizational culture, he may not be acclimated to receiving the critique of his work in writing. By speaking to Employee B personally, Manager A has the chance to show him that he respects him by meeting him face-to-face. To ensure a message is clearly stated to employees, managers must also take the necessary steps to find a comfortable place and time for them to meet. If the place of employment is one that deals with much noise such as a construction site, managers should take his directed employees to a comfortable place away from many outside distractions.

Managers must also consider the amount of time it may take to speak to his workers. On a construction site, more time wasted can also lead to more money wasted. Managers must carefully plan their speech in an amount of time that does not interfere with the actual workload. By using these tactics laid out by Geraldine E. Hynes, managers can begin to set up their own communication strategies to ensure future success. Managers can compare and use these strategies as a baseline to communicating efficiently.

Managerial Communications Essay

Henry Fayol Father of Modern Management Essay

Henry Fayol Father of Modern Management Essay.

Present management practices and theories have evolved from classical management theory created by organisation pioneers, and one such influential pioneer was Henri Fayol. Henri began his career as an engineer in a large French mine and eventually succeeded to become the director, here he realised the lack of resources available to managers for developing management practices.

Fayol’s did not believe in the old ideas of an individual born to rule, he believed that an employee needs to be motivated and among many other things, money is an important variable in motivation.

He also said that managers should keep the morale of his employees high and keep them motivated so they can perform at their best. Fayol believed that by focusing on management practises he would minimise misunderstanding and increase efficiency in organisations and started synthesising his 14 principles of management, which are considered as the foundation and essential references for present management practices and theories.

Fayol’s principles of management are still widely used in organisations by management to perform day to day tasks and other functions.

His 14 principals acknowledged the importance of management hierarchy and key management process in any organisation. These principles are as follows (Study mode, 2013): 1)Specialisation of labour. Specialising encourages continuous improvement in skills and the development of improvements in methods. 2)Authority. The right to give orders and the power to exact obedience. 3)Discipline. No slacking, bending of rules.

4)Unity of command. Each employee has one and only one boss. 5)Unity of direction. A single mind generates a single plan and all play their part in that plan. 6)Subordination of Individual Interests. When at work, only work things should be pursued or thought about. 7)Remuneration. Employees receive fair payment for services, not what the company can get away with. 8)Centralization. Consolidation of management functions. Decisions are made from the top.

9)Scalar Chain (line of authority). Formal chain of command running from top to bottom of the organization. 10)Order. All materials and personnel have a prescribed place, and they must remain there. 11)Equity. Equality of treatment (but not necessarily identical treatment) 12)Personnel Tenure. Limited turnover of personnel. Lifetime employment for good workers. 13)Initiative. Thinking out a plan and do what it takes to make it happen. 14)Esprit de corps. Harmony, cohesion among personnel.

Out of the 14, the most important elements are specialization, unity of command, scalar chain, and, coordination by managers (an amalgam of authority and unity of direction). All of these principles have an influence in today’s management practices but it would seem that three of these play a major role modern management thought and practice. The three being:

1)Authority 2)Unity of direction 3)Remuneration “Authority” in classic management laid the foundation for present day company structures and practices, which helps present day management with hierarchy within organisations ensuring competent day to day operations between general staff and management. “Unity of direction” is practised as one the most important aspect of management and general staff today, where almost every successful business has a vision for future of their organisation and how each employee and their roles contribute towards the success of this vision. In order for any organisation to achieve their goals (vision), managers today ensure that they employ staffs who are most suitable to the available roles, herein comes “remuneration”, where managers offer employees fair payment and benefits for their services.

This ensures that both parties (managers and employees) are satisfied with the outcome of employment. Fayol’s main contribution to present day management thought & practise will have to be the use of his experiences and observations to create a body of knowledge that included his 14 principles as guide to thinking and practise and elements of management as a description of the functions managers perform to this day. Fayol also brought to attention what he believed to be the relative importance of technical and managerial abilities of employees of different levels of authorities.

This demonstrates that employees at worker level need more technical ability but as the move up the “scalar chain” the importance of managerial ability increase as the importance of technical ability decreases. Fayol’s observation paved the path to managerial studies and gave importance to having the properly trained/educated employee at different levels of the organisation. Fayol was also the first person to identify and describe the elements of a manager’s job and he labelled these elements as planning, organising, command, coordination and control.

These elements formed what is known as the “management process”, this management process help determine what is required from managers and what practises shall be observed by managers. These elements are still key factors in present day manager’s role and responsibilities. The classical management theory of administrative approach concentrates on the total organisation where the emphasis is on the development of managerial principles rather than trying to find the best way to get the most done.

This theory evolved mainly from the contributions of Henri Fayol, which were his 14 principles of management. These principles provide modern-day managers with general guidelines on how a supervisor should organize their department and manage their staff. Classical management theory is an approach to organizing that values productivity, the precision and efficiency that result from a division of labour, a hierarchical chain of command, and tight discipline. Fayol’s principle of division of work defines that work should be divided among individuals and groups to ensure that effort and attention are focused on special portions of the task.

Fayol presented work specialization as the best way to use the human resources of the organization, from this definition it can be seen that Henri Fayol has made a major contribution with his principle of division of labour to the foundation and structure of classical management practices and theory. Henri Fayol’s synthesis of the 14 principles of management made very important contributions to classical management theory and practices. His perception of division of work evolved and helped define classical management.

Fayol’s principles are still practised today by organisations, his ideas can be seen in modern day ideology of management through practises such as staff hierarchy (Division of labour), department managers and board members (Authority), company visions and ideas (Unity of directions) and salary packages including benefits and bonuses(Remuneration). It is obvious that Fayol’s ideas and principles are still in practice today and he can truly be called the father of modern management theory.

Henry Fayol Father of Modern Management Essay

Cross-Cultural Management in China Essay

Cross-Cultural Management in China Essay.

The peer reviewed journal I read called “Cross-cultural management in China.” it summarize the major research that has been conducted regarding cross-cultural issues in China; show the current practices on cross-cultural management in Chinese organizations; and then identify future research needs on cross-cultural management in China. Normally, there are two common method to study cross-cultural monument. The first type focuses on foreign managers and employees, center on their adjustment and performance in Chinese culture; and the second type of study examines Chinese who work with these foreigners in the multinational management setting.

Furthermore, in recent years, emphases have been shifted from examining the effects of culture on single variables to examining the relationships among same and different level of variables. The research we reviewed encompasses both international comparative research and intercultural research in multinational organizations.

Nowadays, globalization is changing behavior, team composition and team dynamics in the workplace. Businesses of all sizes are increasingly seeing the entirety of the world as a source of business opportunities and one interconnected economy.

Organizations that remain ‘‘domestic-only’’ are already falling behind their multinational competitor counterparts (Cullen, 2002). With the progressive globalization of the workforce, businesses are more and more finding themselves working more often with culturally diverse employees and business partners, an experience that has proven to be rewarding and yet challenging.

Actually, the impact of cultural diversity on team productivity and organizational culture is not clear and yet doing so is becoming more the norm than it is the exception. Someone suggests that teams characterized by demographic heterogeneity have advantages over teams who are not demographically diverse such as added ideas, approaches, perspectives, however, others suggests that the multicultural aspect of a team creates potential for added conflict. For example, the same silence or increase in personal space in one context or culture may be seen as respectful and constructive, the same might be viewed as non-participatory and disrespectful in another.

When we need to study cross-culture management, we need to know what culture is. To make it simple, Culture acts as an external source of influence on employee behaviors on daily personal lives. It can consequently influence each person’s behavior within the organization, since each person brings another piece into the workplace. Collectively, the impact of culture on each individual creates a change in the culture of the organization itself. Understanding culture is important to multinational companies and managers to be prepared to compete with firms from other countries.

After we know the meaning and effect of culture, we can start to take cross-cultural management. In cross-cultural management in China, there are four domains which are the essence of Chinese culture, effects of individual characteristics on organizational outcomes in a cross-cultural setting, group process issues in cross-cultural management and organizational-level issues on cross-cultural management.

Essences of Chinese culture

In China, a critical issue about culture is that there are competing ideologies including traditional culture from the ancient past, ideologies from the Communist/socialist era of the mid-twentieth century and the new ideology of market socialism. Traditional Chinese culture is highly influenced by the principle of Confucianism, which emphasizes hierarchical interpersonal relationships. The other leading belief is developed by Lao Zi, which emphasizes harmony in which leaders care for followers, respect tradition, exhibit morality and live in harmony. More recently, Chinese culture has been influenced by the political philosophies of socialism and communism. The typical principle of this political philosophy is egalitarianism rather than elitism. Under this culture, followers are expected to follow the decision of leadership strictly, and leadership is more transactional.

Traditional structure of Chinese state-owned companies constrains a single leader’s ability to change the organizational culture and enlarges the scope of cultural change possible. The structure of the Chinese organization consists of two systems: the business system and the Chinese Communist Party system. The business system is similar to the business operating system in Western companies, and the CCP system exists to ensure that work is done according to the central plan and performs a social control function. Current organizational change in China grants more autonomy to organizational leaders of the business system, at the same time, the role of top managers in leadership position is still enacted in a special manner.

Comparative studies on cultural values, Author found that five factors in Chinese trait terms. Chinese are chiefly distinguished from Americans by their low extraversion scores. On agreeableness items, Chinese score high on straightforwardness and compliance, low on altruism. Chinese generally score within the average range on facets of the other domains, whereas in collectivist societies, harmony with in-group members is a more central goal. In comparison to Americans, Chinese have a more external locus of control.

Therefore, we could conclude that among Americans, the more adaptive response to stress may involve actively and effectually accruing and employing support resources. The Chinese, who expect self-discipline from those with high education and high social status, may prescribe more self-directed coping strategies rather than seeking more help. Researchers conducting cross-national generality of the Big Five factors failed to find traits that match those found in China, but additional traits were identified: relatedness. Chinese are also found more particularistic than Americans or other Westerners.

Guanxi is used to refer to a special relationship that develops between members within a team. It is difficult to find an equivalent English word to accurately express the meaning of guanxi. guanxi is ‘‘a network of personally defined reciprocal bonds.’’ Guanxi is a special kind of relationship of both obligation and reciprocity. In China, within a team or an organization, the distinction between the in-group and the out-group is particularly important. In-group members are those with whom one has strong guanxi .

Guanxi links two individuals to enable a social interaction and exchange. For example, when one person offers a favor to another, the recipient must do an even bigger favor for him/her later. In continuing such a relationship, both people will benefit, and if the reciprocal relationship goes on and on, guanxi between them will be developed. Doing business in China is greatly influenced by guanxi since Chinese managers use their personal guanxi more widely to exchange information, negotiate with planning authorities and accelerate decision-making processes than do managers from Western firms.

Effects of individual characteristics on organizational outcomes Numerous cross-cultural studies have been done on the psychological characteristics and processes that link individuals to the organizations and nations, more specifically, organizational commitment (OC), psychological contract, organizational justice and organizational citizenship behavior (OCB). Some researcher compared 116 Chinese managers of SOEs in mainland China with 109 US managers and found that the Chinese were more likely than their US counterparts to define OCB as part of their job. They tested the moderating effects of cultural values on relationships with Chinese samples, and found that power distance had a stronger and more consistent moderating effect on relationships than did Chinese traditionalist.

Group process issues in cross-cultural management.

Studies have indicated that team members in individualistic and collectivistic national cultures react differently to some organizational practices, such as team members’ attitude and behaviors. Earley found that managers from collectivistic cultures worked better in a group, but did not perform any better than managers from individualistic cultures. Some research found that the Chinese who learned that they had performed better than their in-group maintained their positive evaluations of fellow in-group members to protect their group’s image. For example, that Chinese managers shared significantly less knowledge with recipients outside their in-group compared with US managers. Gibson argued that Hong Kong students are more likely to consider group efficacy as being meaningful. Liu and Davis developed a team performance model of Chinese setting by examining the relationships among 11 team process variables.

Organizational-level issues on cross-cultural management

The most important factors that influence international business are cultural environment, strategies of the organization, and economic conditions of the host country and the labor market of the host country. There are four major factors affecting cross-cultural management: cultural difference, interventions concerning future contingencies, communication as well as adjustment on back-cultural shock.

To avoid cross-cultural conflicts, expatriates need to:
• be prepared for a different culture;
• learn the form and conventions of communication in different cultures;
• participate in social activities with people from different cultures;
• be able to learn from others and take risks;

• develop cultural sensitivities;
• recognize cultural complexity;
• consider themselves as culture messenger;
• be patient and understanding;
• have realistic expectations; and
• have the courage to experience culture shock.

Based on cross-cultural research, cross-cultural training should include personal space (whether someone is close of distant from you when talking); terminology/ language differences (and tone of voice); body language/mannerisms/gestures; hierarchy of leadership; physical dress/wardrobe; determination of leadership; personality characteristics; providing positive and negative feedback (how, when, and is it done publicly or privately).

Future cross-culture management research and practices in China should follow several basic principles: be applicable, that is, build unique organizational culture that is embedded in the host country; be practical, since there is no well-developed multinational culture in China, new culture should be concerned with both sides; be systematic, cross culture management practices should have supporting system; be equal, no single culture is better than another; cultural penetration, two different culture have mutual impact; merit-based appointment and promotion, use local personnel, not just talents from the home country. In Chinese settings, the most common cross-cultural management interventions include cross-cultural training, cross-cultural communication system and unified organizational culture. Zhao and Mao argued that the most important strategies of cross-culture management in China are development of cross-cultural management human resources; propaganda of Chinese culture; and cross-cultural communication through exchange.

Finally, it is a fact that cross-cultural management practices will benefit greatly from cross-cultural communication and cross-cultural training. To build effective training system, careful training needs analysis should be done to ensure clear objective and content of training. In addition, the context of cross-cultural interactions, individual difference among trainees and the evaluation of the training should also be taken into consideration.

I am curious when the cross-culture conflict happen inside the company, what method should be a solution. In the article, it does not mention that. Is the local worker right or the foreign worker right? What is the base to decide that? I think it is hard to say, whatever the company chose, there also has a bad side for different culture. I think there should not have a win-win method to solve the cross-cultural conflict. I have some question to ask the worker. First, what will they do when they meet the cultural conflict? What is the foundation of training? What kind of training will they apply?

I interview two working managers and summary their answers, they said they would suggest the company the issue the different culture book to worker to know what is correct to treat their co-workers, or make a small group with different culture people to take about themselves. They also said that no idea for the solution for the culture conflict because it depends on how to view the conflict. When you stand on the local worker side, the local worker is right, otherwise, it is wrong.

Cross-Cultural Management in China Essay

Effect of Globalization in the Management of Apple Inc Essay

Effect of Globalization in the Management of Apple Inc Essay.

Efficient planning is critical for any organization; leadership ought to establish an imaginative path for any organization. The management is tasked with ensuring that the plans are feasible at any given moment. In an environment that is closed, apart from the establishment of vision, this may be a relatively simple process since the variables that affect implementation are predictable and mostly fall into categories that are easy to identify (Tiffany, John, & Tommy, 2011). This process is complicated by globalization. Apple, Inc.

is faced with this challenge when planning to meet the needs of its diverse customer base and environments.

Apple, Inc. has to grapple with the challenge of organizing personnel from different regions who have different cultural backgrounds. In managing the personnel, the company has to attain a balance between the many competing and diverse factors (Ercan, 2012). For instance, there have been complaints about imbalance of salaries for personnel from different regions.

In the management leadership role, motivating the personnel call for good leadership skills.

The management of Apple, Inc. has had to adjust policies and actions in consideration of factors like physical ability, gender, and ethnicity. Globalization has brought about a workforce that adds the factors of culture and language to the dilemma (Ercan, 2012). Coming up with policies which consider all these factors necessitate a high level of sensitivity.

Controlling of the competing factors in different regions has become a major concern for Apple, Inc. The company is finding it a challenge to control the different aspects of production to meet the clients’ needs in terms of producing high quality products (Tiffany, John, & Tommy, 2011). Control of the company’s resources to ensure sustained growth in different regions the company operates in is also a major concern.

Effect of Globalization in the Management of Apple Inc Essay

Celanese Case Analysis Essay

Celanese Case Analysis Essay.

1. Describe the approach to IT service improvement taken at Celanese.

IT initiatives at Celanese were implemented based on their cost-cutting potential. With the recent turndown in the economy only projects that clearly supported the company’s strategic direction and convincingly demonstrated a 1-year payback would be approved. Celanese also had a very decentralized approach to IT overall with each department in each country running their own systems and implementing projects often without communicating. This led to not pursuing IT service improvement in a top-down, process-centric manner, so people like the Global IT Operations Manager bootstrapped and implemented unique – albeit ITIL-informed – solutions that addressed Celanese-specific problems.

2. Describe some of the factors that made Celanese IT’s movement towards ITIL difficult.

• There was a lack of commitment by senior leadership to focus on IT and when there was it leadership only focused on short term results. • Over the past several years they had focused on their customers application and in 2009 they did not have the budget due to the economic downturn.

• The CIO was not onboard in supporting all the initiatives or was supporting them inconsistently as was quoted by the application manager on page 9. • Lack of communication between ITILers, OSM, and the vendors • Misconception on how long something should take vs how long it would actually take to implement. • Diffused IT structure ex. Standardizing the PCs used by the company took 5 years • Culture at Celanese where centralization was the enemy

3. IT operations at Celanese were undisciplined and poorly coordinated. Why did its CIO not support a process improvement initiative?

The CIO was hampered in coordinating and centralizing by several factors. Given the pervasive belief that ‘everything central was evil’, there was considerable resistance to reporting to a single CIO and developing a shared services IT organization. In 2001, the CIO role was thus limited to that of ‘individual contributor CIO. In this environment, the transition to a standardized IT infrastructure and an integrated IT organization was not smooth. The business case for every integration initiative had to be made on a case-by-case basis.

Celanese Case Analysis Essay

Report on Cross Cultural Management of Cuba Essay

Report on Cross Cultural Management of Cuba Essay.

4 Analysis of Silk Trade in Cuba To a great extent, the silk trade can be influenced by the culture. Before entering into the Cuban market, the company needs to understand the culture and take into account the local market situation. Cross cultural management models can be used to analyze the cultural characteristics in Cuba, for example Geert Hofstede Cultural Dimensions, Fons Trompenaars Cultural Dimensions, and Ednlard T. Hall Cultural Dimensions. In the following, cross cultural models will be used to conduct an assessment of Cuban cultural background and analyze the impact of Cuban culture on the silk trade.

Fig 1 Location of Cuba

4.1 Cuban culture under Geert Hofstede Cultural Dimensions Professor Geert Hofstede is an expert in the field of cross cultural management. His study on the cultural dimensions can be used to help define the culture of a country in the world. According to Geert Hofstede Cultural Dimensions, each kind of the culture places different emphasis on five different cultural dimensions, Power Distance (PDI), Individualism versus Collectivism (IDV), Masculinity versus Femininity (MAS), Uncertainty Avoidance (UAI), and Long term orientation (LTO) (Hofstede, 1996).

4.1.1 Power Distance According to the view of Professor Hofstede, power distance deals with the income inequity in a country (Soares et al., 2007). Cuba scores high in the scale of power distance, which means that the members of this country believes that inequities are usual and accepted by all layers of the society, and the leaders of an organization can have a lot of power. The reason can be found in the long history.

4.1.2 Individualism versus Collectivism The dimension individualism is the degree of interdependence a society maintains in its members. In simple words, it deals with whether people’s self-image is defined in terms of I or We. It is known that Cuba is a communist country and it is a collectivist culture. Under such political environment, people work together and share everything. The Cubans believe that all the people are important and cooperation is important in the society. In simple words, collectivism is widely accepted in Cuba.

4.1.3 Masculinity versus Femininity The dimension masculinity deals with what motivates people, wanting to be the best (masculine) or liking what you do (feminine). Under the Cuban culture, people are always more feminine. The dominant values in the society are caring for others and quality of life, rather than the competition, achievement, and success. In addition to this, the Cuban women have played an important role in the society, and women hold nearly 37% of the seats in parliament. The Cuban culture is more feminine.

4.1.4 Uncertainty Avoidance The dimension Uncertainty Avoidance can explain how people deal with the unknown future, some may try to control the future, and some may let it happen (Merkin, 2006). People in the Cuban society belong to the category of high uncertainty avoidance. To a large extent, it is decided by the political environment, the communist society for years can be the reason why Cuban people eliminate unwanted changes in the future.

4.1.5 Long term orientation The long term orientation dimension decides the extent to which the society shows a pragmatic future-oriented view rather than a conventional historical short-term view. In Cuba, people fall more in the conventional short-term view. The society is largely controlled by the government, and people live life day to day with the conventional short-term view, also they have not planned too much for the future.

4.2 Cuban culture under Fons Trompenaars Cultural Dimensions According to the view of Professor Fons, what distinguished people from one culture is where their preferences fall on each of the seven different dimension, including universalism versus particularism, individualism versus communitarianism, specific versus diffuse, neutral versus emotional, achievement versus ascription, sequential time versus synchronous time, and internal direction versus outer direction (Charles and Trompenaars, 1997). The dimension universalism vs. particularism deals with what is more important, rule or relationship. In Cuba, people believe that relationships can be more important, which is largely decided by the political factor. Under the communist society, the whole society is controlled by the leaders of the country, and the society is decided by rule of people, rather than rule of law (Rasha, 2006). Individualism vs. collectivism deals with the degree of interdependence a society maintains in its members. Cuba falls more in a collectivist culture.

In addition, the neutral vs. emotional dimension describes the importance of feelings and relationships. Obviously, Cuba, a neutral culture, and people do not easily display their feelings and emotions. The government controls everything, and people dare not display their real feelings (Kang and Mastin (2008). Specific vs. diffuse dimension answers how the people separate the private and working lives. Cuban culture belongs to the specific-oriented culture, in simple words the Cuban people separate the private and the working lives very clearly. The achievement vs. ascription dimension refers to the question of the status. In Cuban society, people belong to the ascription-oriented culture and the respect for a manager is based on hierarchy. Sequential vs. synchronic dimension defines two different ways of managing time, and the Cuban people belong to the synchronization-oriented dimension. In the end, the Cuban people fall more in the external control dimension.

4.3 Cuban culture under Ednlard T. Hall Cultural Dimensions Ednlard T. Hall is a famous researcher on cross cultural management. Hall’s cultural factors can be used to understand people from different cultural backgrounds, include high-context culture and low-context culture, monochromic action and polychromic action, high territoriality and low territoriality. First of all, Cuba belongs to a kind of high-context culture, similar with Trompenaars’ particularism. There are a lot of local unwritten rules of the culture, and much is taken for granted in the Cuban culture. Secondly, similar with Trompenaars’ time as sequence (monochromic) and time as synchronization (polychromic), most of the Cuban people can be polychromic-based action (Hall, 1966). In simple words, people often do many things at once and put relationship first, in addition to this, things are borrowed and shared often and easily. (Hall, 1983). Cuban people have high territoriality when working with the foreigners, which largely results from the political attitude of the communist society.

5 Impact of culture on leadership and organization behavior in Cuba With the development of the economic globalization, the importance of cross cultural management receives more attention. Culture can be defined as the characteristics of a particular group of people, including history, education, language, social, structure, religion, political, and economic.

5.1 Impact of culture on leadership in Cuba Leadership can be defined as a process of social influence in the accomplishment of a common task, and good leaders are not made born. As described above, cross cultural management models can be used to understand how to do the business in Cuba.

Fig 2 Flag of Cuba

5.1.1 Impact of Cuban history on leadership The history of Cuba began with the arrival of Columbus in 1492, and in a long time it was controlled by the foreign countries, such as United States and Brazil. In the 20th century, Cuba made the alliance with the Soviets. Castro controlled Cuba for decades until the year 2006. In Cuba, the leaders have the concentrated power and members of an institution and organization accept the leadership very easily.

Fig 3 Castro

5.1.2 Impact of Cuban education on leadership Speaking in essence, the Cuban education was strictly controlled by the government, and the school attendance is not very high. In addition to this, education has a strong political and ideological emphasis. In simple words, the Cuban education is not well-developed, and the leaders can easily influence the followers, also people get used to obey the instructions from the leaders.

5.1.3 Impact of Cuban language on leadership Spanish is the official language in Cuba, and most of the Cubans can speak it, because in a long time Cuba was controlled by Spain. In addition to this, Haitian Creole can be the second largest language. Language can play an important role in the leadership process, and it can be inferred that the leaders in Cuba are required to speak Spanish.

5.1.4 Impact of Cuban social structure on leadership Social structure can be identified as the relationship between entities or groups or as enduring and relatively stable patterns of relationship. The Cuban society believes that inequities are usual and a fact of the life. The equality can be accepted by all layers of the society, and the leaders of an organization can have a lot of power.

Fig 4 Cathedral of Saint Christopher in Havana

5.1.5 Impact of Cuban religion on leadership Cuba has been a Communist country since 1959. Catholicism is much modified and influenced, and the most popular religion in Cuba is Santeria. The religion can maximize the cohesion between the members, and the leadership can take advantage of the religion, or else it will be the barriers.

5.1.6 Impact of Cuban politics on leadership Culture of a country can significantly influence the trade business, including the silk trade. People’s Republic of China has built a good relationship with Republic of Cuba for many years, which can be good for the silk trade in Cuba (Benjamin and Collins, 1985). To be more specific, the political attitude can be helpful in leadership.

5.1.7 Impact of Cuban economic on leadership Influenced by the political ideology, Cuba refused the free trade with the foreigners in the world market. Cuba carries out the planned economy for a long time and limits the private economy (Padilla and McElroy, 2007). The production are largely owned and operated by the government. Leaders from foreign countries may not easy in Cuba.

5.2 Impact of culture on organization behavior in Cuba Likewise, the impact of culture on the organization behavior must be also taken into account by the management. Organization behavior is a field of study that investigates the impact of individuals, groups and structures upon behavior within an organization. Organization behavior can be understood better, and the barriers can be eliminated.

5.2.1 Impact of Cuban history on organization behavior In a long history of the communist society, the Cubans get used to obey the rules from the leaders. In simple words, the individuals, groups and structures in Cuba share the same rules. In the process of cross cultural management, members of an institution or organization obey the group norms.

5.2.2 Impact of Cuban education on organization behavior Castro developed a fully state-operated education system, at the same time the private institutions are banned by the government. There is no advanced education system to build the organization behavior. In other words, the organization behavior of the local employees can be rebuilt in the process of cross cultural management.

5.2.3 Impact of Cuban language on organization behavior The official language in Cuba is Spanish, and the organization behaviors are based on the language. More importantly, language is the communication tool, and it can also decide the success of cross cultural management. Only on the basis of understanding the language, the organization behavior can be understood.

5.2.4 Impact of Cuban social structure on organization behavior Likewise, social structure decides many social systems, such as legal system, cultural system, economic system, and political system. Individuals and groups obey the social systems, and organization behavior can be influenced by the social systems.

5.2.5 Impact of Cuban religion on organization behavior To be more specific, the Santeria in Cuba developed from Catholicism by combining the religion of African slaves and some local Americans. Institutions or organizations from foreign countries can take advantage of the religion to bring people together.

5.2.6 Impact of Cuban politics on organization behavior The former leader Castro controlled everything for years and the Cuban people have been under control. Under such political environment, behaviors of individuals and groups are influenced by the external political factors.

5.2.7 Impact of Cuban economic on organization behavior Foreign leaders may find it difficult in leading the local Cuban employees, and some measures should be taken, for example hiring the local managers. The Cuban people have high territoriality when working with the foreigners, which largely results from the political attitude of the communist society in the world (Séror and Arteaga, 2000).

6 Conclusion and Recommendations Due to the different political ideology, Cuba closed the door and operated differently. In conclusion, the characteristics of Cuban culture are different, and cross cultural management in Cuba needs to consider the characteristics. Recommendations will be made in the following to operate the silk trade in an effective and efficient way.

6.1 Leadership styles of cross cultural management in Cuba There are many kinds of leadership styles, which include authoritarian, paternalistic, democratic, laissez-faire, and transactional. Taking the Cuban cultural characteristics into account, the kind of paternalistic leadership style can be put into practices in the Cuban business world. The leaders encourage the employees to compete the tasks, at the same time they take care of the employees as a parent will do, because the local employees are influenced by the external political factor. In order to do the silk trade, the leaders have to deal with the potential barriers in Cuba.

6.2 Communication styles of cross cultural management in Cuba In Cuba, the official language is Spanish. As for the management, the communication styles can be assertive, aggressive, passive, and passive-aggressive. The best style for the management in Cuba can be the assertive communication. To be more specific, the leaders can communicate with the local employees in an assertive way. The language barrier can be solved by hiring the translators, and the institutions and organizations can hire the local employees as the middle management level, for they can carry out the business strategies better and communicate with the local employees easily.

6.3 Negotiation skills of cross cultural management in Cuba Under the different cultural background, some negotiation skills are necessary in the process of cross cultural management. By understanding the Cuban culture, leaders in Cuba can learn how to work with the Cubans and avoid the cultural barriers. It can be recommended that the first one negotiation skill is to learn to flinch. In order to make the silk trade with the Cubans, the businessmen need to respect the local rules and the employees, thus make them feel comfortable in the trade process. The second one is to recognize that customers often ask for more than they expect to get. In the process of silk trade, the Cubans are provided good products and services. After the customers recognize the products and services, the company can build better brand awareness to increase the sales and make profits in Cuba.

6.4 Management styles and requirements of cross cultural management in Cuba The management process is not easy, but it can significantly influence the silk trade in Cuba. During the process of cross cultural management, the management can consider the Cuban cultural factors, as explained in the above cultural dimensions. Especially, when making important decisions, the cultural factors need to be taken into account, as well as the problem-solving process and team management.

6.4.1 Decision-making of cross cultural management in Cuba The process of decision-making is not easy in a different cultural background. In the Cuban culture, the first one is to take the political factor into account. The government interface with free trade can be the biggest barrier in Cuba. The decision-makers need to understand the Cubans, for example, things can be borrowed and shared often and easily. Cuban people have high territoriality when working with the foreigners, so the institutions and organizations can cooperate with the local groups. In the end, results of the potential decisions need to be reasonably predicted under such circumstances.

6.4.2 Problem-solving of cross cultural management in Cuba When facing with the conflicts, the management needs to solve the problems. Unlike the conventional situation, the local cultural may be more complex, for the conflicts in Cuba may involve many parties. At this time, the foreigners need to understand how the local residents deal with the problem. For example, the members of this country believes that inequities are usual and accepted by all layers of the society, and the leaders of an organization can have a lot of power. In simple words, the foreigners can seek for the support of the leaders if they are encountering the barriers in Cuba. More importantly, people in Cuba belong to the category of high uncertainty avoidance, and money can be the effective and efficient to solve the current problems.

6.4.3 Team management of cross cultural management in Cuba As a communist society, the Cuban people are regarded as the group. It is known that Cuba is a collectivist culture. Under such political environment, people work together and share the property. They believe that all the Cubans are important and cooperation is important in the society. In the process of team management, the leaders can learn to motivate the employees and increase the cohesion power among the team members. In addition to this, the dominant values in the society are caring for others and quality of life, rather than the competition, achievement, and success. If team members share the same values, they can come together to complete the common goals. The last but not the least, the leaders have a lot of concentrated power. During the process of cross cultural management, leaders need to develop an understanding of the Cuban culture.

Report on Cross Cultural Management of Cuba Essay

Evaluate the Possible Consequences of Michelin Failing to Meet Its Aims and Objectives Essay

Evaluate the Possible Consequences of Michelin Failing to Meet Its Aims and Objectives Essay.

Objectives – markets and customers, employees, economic performances, environmental policy and product/manufacturing. These provide guidance for management actions. Most organisations have general or overall aims which they can break down into specific objectives and aims. If aims and objectives fail to be successful there is a change the business will no longer work out. Michelin will have many consequences if the business fails to meet aims and objectives. Meeting stakeholder’s needs: Michelin looks to combine high levels of all stakeholder groupings.

The company recognises that its long-term development depends on maintaining a balance between the needs of customers, employees, shareholders and the environment. This involves not only considering the `individual benefit` of a particular stakeholder grouping, but also the `collective benefit` of all the groups. Michelins policy on products and services reflect this approach. Michelin recognises that its long term success and development depends on maintaining a balance between all of its stakeholders needs.

If there is an Impact on the stakeholders – Employees will not have a safe, secure job and may have to take a pay cut or reduce hours they work, this may lead employees to look into finding a different job where they know the business is successful.

They may not get the level of training they have been used to. Customers may no longer be able to buy the same quality of goods and services if they fail to meet their aims and objectives this will be a big downfall in the business, they could lose customers which will make the business very unsuccessful.

Shareholders may not receive the same return on investment that they once did or are looking for. Shareholders want a healthy dividend. Suppliers may not benefit from regular orders and prompt management from Michelin. If Michelin are meeting their objectives they will struggle financially this will cause many problems. Public authorities such as the local business community may no longer give Michelin the support and co-operation it once did this is because the business is not working as it used to.

Communities may be affected by Michelin not meeting its aims and bjectives as it may put local people out of jobs as it has 125,000 employees. Environment may be affected by Michelin not meeting its aims and objectives as their products may become not very environmentally friendly. This will lose the business respect and potentially customers as well. Michelins current policy on products and services reflects this collective approach and will help them to meet targets of the business, without aims and objectives the business will have hardly any chance of being successful in the near future.

Evaluate the Possible Consequences of Michelin Failing to Meet Its Aims and Objectives Essay

Operation & Production Management Exam Essay

Operation & Production Management Exam Essay.

What is operation management? What is the role of the Operation Manager?

Set of activities that create value in the form of goods and services by transforming inputs into outputs.

The role of an operation manager is to design and manage the daily operations and activities in a way that the productivity of the employees raises. It is also their responsibility to ensure that the physical and the human resources of the organization are achieved. He also ensures that the organization produces quality and goods and services are produced on time to meet the client’s time or deadline.

1. What are the 10 critical decisions an operations manager can make?

Design of goods and services
Quality Management
Process Design
Capacity Design
Location Strategy
Layout Design
Supply-Chain Management
Inventory Management
Intermediate and Shot-term scheduling
Maintanance

2. What is the difference between a product and a service?

Products are tangible and services are intangible services are normally produced and consumed at the same time services are often unique services have inconsistent product definition

3. What is a system? Draw a process?
A system can be broadly defined as an integrated set of elements that accomplish a defined objective. It is a dynamic and complex whole, interacting as a structured functional unit.

4. What is productivity? Why is it important for an operations manager to calculate productivity? Productivity is the performance measure relating outputs to inputs: Measurement of units produced, labor hours per unit, number of workers. The cost of labor, the cost of material, machine hours, etc.

It is important for an operation manager to calculate productivity to determine the outputs for time period and to determine the cost of inputs to get determine the productivity rate by dividing the number of outputs by input to ultimately make most of the inputs and maximize output.

5. Create a life cycle for a Product?
I have found 2 answers in relevance to this question I will provide them both please mark the relevant.

1- Concept phase: concept design
ATV All Terrain Vehicle
2- Definition phase: system specification and planning
Dual purpose Sport/Utility ATV with an engine of 750cc
3- Design and development phase: detailed design, prototyping and development testing Modern style exterior with lightweight and strong material covering body parts. 4- Creation and production phase: manufacturing, tooling, testing and accepting Building the atv with quality control and testing for any defaults or malfunctions regarding safety. 5- Operation: Implementing, operation & Maintenance.

Introduction Phase:
The introduction phase is when the public first sees or hears about a product. The product appears in stores for the first time, and people start seeing print and television ads High resolution TV

Growth Phase:

The growth phase is when sales and profits for the new product start rising. A company will usually keep product prices about the same during the growth stage to maximize earnings. Product quality is also maintained. Millions of sales around the world

Maturity Stage:

Success inevitably leads to increased competition. Other companies eventually will start introducing similar products, especially if the initial product is highly successful. Consequently, the demand for the product and its competitors will peak at some point. Many brands start making hdmi tvs

Decline Stage:

Demand for the product will eventually wane as newer technologies are introduced. Hence, companies can either maintain the product, sell it at heavily reduced prices or discontinue the product. New Smart 3d/tv that include hdmi gets introduced and declines hdmi tvs

6. What is quality? What is the role of quality in an organism operation?

Quality has various definitions depending on the point of view it is judged from, it is mostly the customer that has the most say about if the product or service has a excellent, good or bad quality. A producer’s aim is to design for excellence but it is easier said than done. In general quality is the totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs. The features and characteristics include; durability and endurance, design by appearance, value for price, performance etc.

Quality plays a role in an organism operation, only some companies and corporations give it more importance. Successful operation organisms set up a quality management from beginning to end that include the organizational processes such as quality control to ensure meeting standards and processes that determine quality policies, objectives, and responsibilities.

7. Explain the impact of culture on international operations

A challenge of doing operations internationally is to adapt effectively to different cultures. Such adaptation requires an understanding of cultural diversity, perception and values. Culture can have positive impact on expansion or negative impact on international operations if ends don’t meet their respective expectations.

Operation & Production Management Exam Essay