To promote their products or services, companies may choose between push and pull strategies. A push strategy concentrates promotional activities on distribution channels and encourages customers to buy products or services using incentives, such as discounts (Vieira et al., 2018). In a push strategy, the company first produces products and then attempts to sell them to customers through promotional activities (Vieira et al., 2018). An example of a product that uses a push strategy is medications. According to Said et al. (2019), pharmaceutical companies use a push strategy to motivate pharmacists to promote their products to customers. This promotion strategy includes free samples of promoted drugs, discounts, discount accumulative programs, and gifts to pharmacists when they reach the required sales volume (Said et al., 2019). Price-related incentives seem to be the most effective in increasing customers purchasing intentions.
A pull strategy aims at raising customer brand awareness and encouraging customers to make purchase decisions. In a pull strategy, firms first identify customers needs and then design products or services to satisfy those needs (Vieira et al., 2018). In this case, promotional activities are focused on advertising and use such means as social networking, word of mouth, media coverage, email marketing, and market positioning (Thakuri, 2020). An example of a service using a pull strategy is food and drink service. For example, Thakuri (2020) reports that Feel Good Café actively uses email marketing as part of its pull strategy. It sends emails to its customers, in which it congratulates them on their birthdays and other important events and makes special offerings.
According to Daou (2020), todays marketing prefers to pull strategies over push strategies because it does not intervene with customers lives. A pull strategy allows companies to build customer relationships and engagement (Daou, 2020). However, Thakuri (2020) points out that the disadvantage of a pull strategy is that it does not work effectively if brand loyalty is low. Vieira et al. (2018) argue that push strategy is effective in motivating customers to make a purchase, while a pull strategy is necessary to increase the firms performance by improving customer retention and buying behavior. Thus, it may be concluded that a pull strategy is more successful for brands, but a push strategy may be helpful to win over new customers.
References
Daou, L. (2020). Social media vs traditional marketing. In N. Azoury & L. Daou (Eds.), Business and social media in the Middle East strategies, best practices and perspectives (pp. 3-16). Palgrave Macmillan.
Said, Y. B., Bragazzi, N. L., & Pyatigorskaya, N. V. (2019). Influence of sales promotion techniques on consumers purchasing decisions at community pharmacies. Pharmacy, 7(4), 1-12.
Thakuri, B. H. (2020). How a small firm survived loss of main customers: In the reflection of pull strategy. Journal of Marketing Vistas, 10(1), 48-58.
Vieira, V. A., Costa, M., Almeida, M. I. S., Costa, M. P., & Coelho, R. L. (2018). When and how pull and push promotion strategies pay off: Shopper experience using social media and mobile applications. CLAV 2018, 1-16.
The use of steel shipping containers in the manufacture of housing is becoming increasingly widespread due to the functionality of such buildings and their valuable technical characteristics. In the example of the Australian market, the positioning of this product will be considered due to the appropriate analysis of the consumer profile and the features of the implementation process. The principles of promoting steel shipping containers as housing objects require assessing relevant incentives.
Market Features
The popularization of containers in question is due to a range of advantages of these structures over other types of buildings. In particular, as Tanyer, Tavukcuoglu, and Bekboliev (2018) note, steel shipping containers are widely used in Europe and Australia, and as an example, the authors cite the Amsterdam market where, in 2006, the number of such architectural objects amounted to 1,034. Since then, the total share of these buildings has grown substantially, and, according to the current data, the structural steel market was valued at $285 billion in 2019 and is projected to surpass $500 billion by 2026 (Structural steel market, 2020, para. 1). One of the trends in the construction of buildings of various shapes and purposes with a distinctive design and functionality. According to Islam et al. (2016), the life cycle of these containers may reach 100 years, which is a valuable feature in regions with unstable climatic conditions. These factors are the reasons to promote such products in large volumes.
Competitive Analysis
Due to the trend in residential buildings under consideration, a large number of both Western and Eastern manufacturers are involved in the production of new and processing old shipping containers. As an example of direct competitors, such companies may be noted as ArcelorMittal S.A., Nippon Steel & Sumitomo Metal Corporation, POSCO, VISA Steel , and some other manufacturers (Structural steel market, 2020, para. 5). The size of many companies is impressive, which their activity proves. For instance, as an optimization initiative, in 2018, British Steel invested ¬50 million to expand supplies to Europe and Asia (Structural steel market, 2020, para. 6). Various advertising campaigns and demonstrations are the most effective ways of positioning such products globally.
Target Market Segmentation
To promote steel shipping containers as the basis for housing, the target market can be segmented in accordance with specific factors. In particular, due to the functional and technical characteristics of the products in question, one can distinguish among geographical, demographic, and behavioral segments. When taking into account the purpose of buildings made of steel shipping containers, they are of particular benefit as sustainable structures that can withstand numerous natural disasters. Therefore, the Australian market is a potentially profitable segment for the promotion of this product due to periodic disasters in this region, and the geographical factor is fundamental. According to Islam et al. (2016, p. 678), since container housing can be built by using about 75% of recycled materials, the Australian market is a favorable region for implementation. Residents of the country in which the predominant number of cities are located along the coastline need to be sure of the reliability of their housing. Therefore, the consumer profile of the target audience involves people of all ages who are ready to use environmentally-friendly buildings with non-standard design solutions.
The nature and geographical features of Australia are the key factors determining the value of a given region in the context of promoting the product in question. The consumer profile is based on the need for protection and minimizing the cost of maintaining the functionality of buildings made of shipping containers. As a result, the Australian market is a potentially profitable segment for manufacturers and innovative for consumers.
Decision-Making Process
The implementation of steel building containers in the Australian market is driven by the current needs. According to Anwar, Rasul, and Khan (2020, p. 50), today, Australia is one of the largest polluters on a per capita basis . Since container buildings are environmentally friendly, these products are useful for residents. This housing can help improve the environment and provide people with protection from natural disasters, such as earthquakes and tsunamis. To avoid risks and attract as many consumers as possible, all available product information should be freely available to provide potential buyers with the possibility of a prepurchase search. Specifications of this housing are to be presented in comparison with traditional buildings to influence the buyers decision-making process. Internal and external searches, in turn, can help determine the role of competitors and assess potential threats and growth opportunities.
As the criterion for the evaluation of alternatives, individual factors need to be considered. As Wong, Tan, and Ling (2018) state, many modern steel containers are corrosion resistant. This means that the technical value can be one of the keys, along with such evaluation factors as durability and ease of use. These buildings can be categorized according to their size, quality of steel, and other production features, and consumers will be able to choose the best samples to suit individual needs. Outlets should be located in busy areas, particularly in coastal areas due to the characteristics of the Australian population density. According to the consumer-based theory, buyers decision-making process may depend on the feedback of those who have already purchased a specific product. Therefore, initially, discount programs and bonus offers should be provided to ensure stable demand and overcome the competitive barrier.
Conclusion
Relevant incentives to promote steel shipping containers as housing are considered, and the consumer-based approach is applied to evaluate the principle of product implementation into the Australian market. Overcoming the competitive barrier, satisfying customer needs, and real bonus offers are objective criteria for successful marketing. The geographical factor is one of the most important when planning the promotion program and analyzing potential risks and opportunities.
Reference List
Anwar, M., Rasul, M. G. and Khan, M. M. K. (2020) Performance analysis of rooftop greenery systems in Australian subtropical climate, Energy Reports, 6, pp. 50-56.
Islam, H. et al. (2016) Life cycle assessment of shipping container home: a sustainable construction, Energy and Buildings, 128, pp. 673-685.
Tanyer, A. M., Tavukcuoglu, A. and Bekboliev, M. (2018) Assessing the airtightness performance of container houses in relation to its effect on energy efficiency, Building and Environment, 134, pp. 59-73.
Wong, E. K. H., Tan, C. S. and Ling, P. C. H. (2018) Feasibility of using ISO shipping container to build low cost house in Malaysia, International Journal of Engineering & Technology, 7(2.29), pp. 933-939.
In most modern businesses, ownership and control are two distinct entities. This is because under certain circumstances, shareholders may be widely dispersed to an extent that it becomes hard for them to exert control over the management (Anechioco & Jacobs 1996). In order to ensure that the business is run in an efficient manner, it becomes important that the owners delegate authority to managers. Although there are a number of benefits that accrue from delegation of control to managers (Brickley & Van Horn 2002), on the other hand, conflicts of interest could also arise between the various stakeholders. A firm may be viewed at as a network of contracts among the various stakeholders including shareholders, employees, the society, and bondholders. The different stakeholders in a firm have different claims to the pay-off structure of the company. In addition, the alignment to the interests of the major stakeholders varies. As a result, potential conflicts arise. These incentive conflicts are collectively referred to as agency problems (Fama & Jensen 1983, p. 328; Pottier & Sommer 1997). Agency problems tend to disrupt the smooth operations of a company (Fama 1980). The paper explores the conflicts of interest that could arise among the various stakeholders at the Walt Disney Company. In addition, the paper also endeavors to examine potential solutions to the identified conflicts of interest.
Potential conflicts of interests at the Walt Disney Company
One of the potential conflicts of interest would be managerialism. This is a term used in reference to the self serving behavior that managers demonstrate. Modern corporations are widely diffused and the Walt Disney Company is not an exception. Consequently, numerous shareholders have a stake at the company. However, because ownership and control at the Walt Disney Company are two distinct entities, managers at the company are involved in the actual operations of the company. However, their stock ownership positions are minimal. This is a potential area for conflict of interest between the owners of the Walt Disney Company and the managers. The arising conflict could manifest itself in one or more dimensions. The conflict between the stockholders and the management may result in managerial propensity for empire building as a means of extending their span of control (Fama & Jensen 1983, p. 302). Of course, this comes at the expense of the owners. The conflict may lead to overly conservative investments as a way of seeking an inferior but safe project that would sustain the safety of not just their tenure, but their wage compensations as well.
Another form of conflict that could arise among the stakeholders at the Walt Disney Company is the debt agency. In this case, managers could be allowed to make sub-optimal financial and investment decisions on behalf of the equity holders because this is a stipulation of the debt contract. However, this is quite a departure from the value maximization principle. Such a scenario could occur if creditors and equity holders to the firm constitutes a disjointed group of investors (He & Sommer 2006). In such a case, maximizing equity value becomes the primary concern.
Another possible conflict of interest at the Walt Disney Company is one between the employees and the managers. Employees may be seeking better terms of employment, in the form of increased wages. On the other hand, the management could be on a mission to drastically reduce the operating costs of the company in an effort to boost the profit margins (He & Sommer 2006). As a result, a conflict of interest is bound to arise between the employees and the management. While employees may feel that they deserve higher wages in order to cushion for the rise in cost of living, on the other hand, the management is first and foremost answerable to the equity holders (owners) of the company who would want to realize a return for their investments. As such, the management may resist the urge to increase employees wages because it would eat into the profit margins of the company.
As with other firms, the shareholder-manager conflict can also affect the Walt Disney Company. This conflict also tends to take various shapes because the management and shareholders are likely to disagree over a lot of things. For example, managers could wish that they had the power to hold more cash, they may wish for their workload to reduce, they may wish to increase the job security of their employees by reducing the risk that the firm faces, and if they had the powers and means, managers would wish to increase employees wages (Pairote 2003). In addition, managers may also want to enjoy additional perks, such as a jet plane, or fancy offices. Shareholders and managers are therefore likely to disagree over all these things. The agency costs have been studied at length and documented for a long time now. Researchers argue that agency costs come about because managers are individuals too and as such they are inclined to serve their individual best interest even at the workplace.
Another disagreement that could happen between stakeholders at the Walt Disney Company is one between the shareholders and the bondholders. Such a disagreement could be occasioned by a number of things. Kose and Senbet (1997) opine that those firms that have a lot of debt to settle have a higher likelihood of foregoing business opportunities that promises positive growth simply because any accruing benefits would go to the bondholders, as opposed to the shareholders.
Another source of disagreement between the stockholders and bondholders at the Walt Disney Company could be on the issue of the amount of risk facing the company. For instance, assuming that the Walt Disney Company is a levered firm whose equity is equivalent to a call option, in this case, shareholders feel obliged to increase the amount of risk that the firm faces because there is an incentive involved (Pathranarakul 2005). In other words, the shareholders stand a chance to gain an unbounded payoff because of the higher likelihood of a large positive payoff (Pathranarakul 2005). On the other hand, the debt holders only enjoy a limited payoff, and hence the conflict of interest between these two parties.
Potential solutions
One of the ways to control the conflict between managers and shareholders is to ensure that managers are watched over constantly (Trevino, Hartman & Brown 2000, p. 133). However, should this effort fall short of the shareholders expectations, the best options would be having the managers removed (Pottier & Sommer 1997). This strategy is more of a managerial labor market whereby the management feels constraints to yield to the demands of the shareholders. As such, they have no choice but to act in such a manner as to prioritize on the best interests of the shareholders, lest they are removed. However, it is important to note that watching over the managers is quite expansive to the shareholders, not to mention that success is not guaranteed (Rodwin, & Okamoto 2000, p. 345). This is because managers tend to be knowledgeable and better informed. The Board of Directors ensures that the best interests of the shareholders are taken care of and as such, the BOD is also charged with the responsibility of monitoring the management. Shareholders elects the BOD so that their best interest at the company can be taken care of. This method has also not been successful due to a number of reasons (for instance, by and large, the management is also represented on the BOD).
Perhaps a better alternative would be to add attractive incentives to the managements compensation contract. This is to avoid constant monitoring of the management by the shareholders. One way of achieving this goal is to award bonus to managers who please the shareholders (Trevino et al 2000, p. 134). In addition, bonus could also be given after a manager has met certain measures. Nonetheless, these strategies are prone to problems too. For instance, an accounting based measure could result in short-term thinking and in the long-run, may prove counterproductive because managers usually control and influence accounting principles. A more efficient strategy is one that utilizes market-based compensation (Raheja 2006, p. 288). This may be achieved either via Stock Appreciation Rights, stock options, or pure stock ownership. The last two decades have witnessed an explosion in the application of executive stock options. These long-term calls (options) often depend on high leverage alternatives as a way of integrating the stockholders interest with those of the management. The stock option strategy has been criticized but even so, managers appear to concentrate more stock return compared with the past decades.
To prevent a conflict between the shareholders of a firm and the bondholders, the latter may opt to cease lending money to the firm in question. Another strategy is to assume that the firms shareholder will deem it necessary to increase the companys riskiness so that bondholders may increase their interest rates (Andrews & David 1998).This way, the bondholders are actually price-protecting themselves. Alternatively, bondholders may decide to involve a third party in their negotiations with the shareholders. The third party should be neutral, and he/she would be charged with the responsibility of monitoring the firm on behalf of the bondholder. Another way of avoiding the conflict is to ensure that when drafting the lending contract, the terms are so restrictive as to limit s what the shareholders can actually do with the borrowed funds (Pairote 2000). By relying on the reputation of the shareholders, the bondholders may decide to reduce the shareholders opportunistic behavior. In other words, shareholders may be in need of extra funds in the future. Therefore, the most important thing for the bondholders is to make money available to the shareholders now so that in the days ahead, they can borrow again. Another viable alternative to reducing the shareholder-bondholder conflict is to agree to lend the funds in the form of convertible debt that is, the bondholder can always convert the money owed to them by the shareholders into equity. Alternatively, in case something bad occurs, the shareholders of the firm may decide to buy back the money owed to them (puttable debt).
Reference List
Andrews, K.R., & David, D. K., 1998. Ethics in Practice: Managing the Moral Corporation. Boston, Massachusetts: Harvard Business School Press.
Anechioco, F., & Jacobs, J. B., 1996. The Pursuit of Absolute Integrity. Chicago: University of Chicago.
Brickley, J. A., & Van Horn, R. V., 2002. Managerial incentives in nonprofit organizations: evidence from hospitals. Journal of Law and Economics, Vol. 45, pp. 227-249.
Fama, E. F., & Jensen, M. C., 1983. Agency Problems and Residual Claims. Journal of Law and Economics, 26, pp. 327-49.
Fama, E. F., & Jensen, M. C., 1983. Separation of Ownership and Control. Journal of Law and Economics, 26(2), pp. 301-325
Fama, E. F.., 1980. Agency Problems and the Theory of the Firm. Journal of Political Economy, 88(2), pp. 288-307
He, E., & Sommer, D. W., 2006. Separation of ownership and control: implications for board composition.
Kose, J., & Senbet, L. W., 1997. Corporate governance and board effectiveness.
Pairote, P., 2003. Conflict of Interest: Study on Public Sector Professional Groups.
Study Report Submit to the Civil Service Commission, Thailand. [online]. Web.
Pairote, P., 2000. Open System Evaluation: A Challenge to Good Governance. Thai Journal of Development Administration, 40(1), p. 1
Pathranarakul, P., 2005. Conflict of Interest: An Ethical Issue in Public and Private Management. Issue paper (Workshop D). 5th regional anti-corruption conference, Beijing, PR China.
Pottier, S. W., & Sommer, D. W., 1997. Agency Theory and Life Insurer Ownership Structure. Journal of Risk and Insurance, Vol, 64(3), pp. 529-543
Raheja, C. G., 2006. Determinants of Board Size and Composition: A Theory of Corporate Boards. Journal of Financial & Quantitative Analysis, Vol. 40(2), pp. 283-306.
Rodwin, M. A., & Okamoto, A. 2000. Conflicts of Interest, Journal of Health Politics, Policy & Law. Vol. 25(2), pp. 343-375.
Trevino, L. K., Hartman, L. P., & Brown, M. 2000. Moral Person and Moral Manager: How Executives Develop A Reputation for Ethical Leadership. California Management Review, Vol. 42(4), pp. 128-142.
The book called The 7 Habits of Highly Effective People by Stephen Covey is one of the best selling motivational books for businesses. The book discusses seven basic behavioral paradigms that are ought to help companies to grow. The author proposes that the right attitude towards life is the key to the success of any organization. This essay reviews the seven habits presented by Covey as the fundamental ones in achieving success and discusses how they can be utilized by managers who strive to improve their companies.
The first habit that the author proposes is a simple statement: be active. According to Covey, peoples unique ability to reflect and change their behavior upon this reflection is crucial for taking control over ones life (Covey). The author ushers people who want to achieve success to avoid reactive language at any cost, as it leads to the acceptance of the potential issues as unavoidable, secluding people into believing in their powerlessness (Covey). In my opinion, this habit signifies the need for a manager to have a forward-looking vision. Instead of anticipating changes and following patterns, an efficient leader will promote innovation and experiments.
The second habit is to begin with the end in mind. Covey expands this idea beyond simply having the result of a single task in mind, it is necessary to keep a global projection of success. Being busy with something does not automatically mean that this activity leads to the desired result (Covey). I think this notion is well-represented by the popular idea to state the companys mission and purpose. Companies who are able to formulate their goals beyond merely making profits have the most potential to achieve success.
The third one states that people need to put first things first. Placing ones priorities in the right order is one of the most crucial steps in personal growth and character development (Covey). By assigning these priorities, people can stay on track to progress and evade being dragged into pointless activities, as well as optimize their time schedules. This is an essential skill for managers, as their task is to ensure that employees work towards the companys goals.
The fourth habit points out that the leader must think win/win. This behavior relates to the way a person builds their decisions and what factors in this process will lead to the most desirable outcome. Covey writes that you have to water the flowers you want to grow, which means that the collective victory is better than raising one above the others (315). For a manager, it signifies the importance of the advancement of the entire team of employees instead of a single person. It is vital to develop the company as a whole to reveal its true potential.
The fifth proposed principle is to seek first to understand, then to be understood. The author argues that any professional first attempts to analyze the situation and all of its aspects before taking any actions (Covey). In the business context, this habit signifies the need to gain a deeper understanding of the situation, whether it is a conflict between employees or market fluctuations. It is up to a manager to conduct an analysis that will enable him or her to make the right decision.
The sixth habit is to synergize and look for cooperation as one of the most beneficial ways to grow a business. It is not necessary to polarize people whose opinions differ from one another, instead, it is possible to combine their views and create a new option (Covey). In management, this habit can help leaders to resolve conflicts, enable employees to form stronger bonds and explore new opportunities that were unavailable due to the opposite views. Coming to an agreement with all sides on any aspect is better than choosing one over the other.
Habit no. 7, which the author labels sharpen the saw, aims to usher people to work on all of their personal aspects, even those unrelated to business. Covey states that upholding all aspects of ones life in order empowers us to move on an upward spiral of growth and change, of continuous improvement (404). I believe that it is crucial for a manager to follow Coveys advice and maintain physical, spiritual, social, and mental values to keep a clear vision of the world. By taking time to deal with all personal issues, a person does not have to worry about the uncertainty of the future and focus all attention on the desired result.
In conclusion, by assimilating these seven habits, leaders can achieve higher results not only in business but in life in general. These principles concern both internal and external factors that depend on ones behavior. They are interconnected and universally applicable to everyday situations and aim to assist people in taking control of their lives. The lessons by Covey carry an important message that people are able to change the world around them by changing their personalities. After reading this book, I understood that by fostering the discussed characteristics, I could extend my influence over events around me and pursue success via meaningful actions.
Work Cited
Covey, S. R. The 7 habits of highly effective people: Powerful lessons in personal change. EPUB, Mango Publishing Group, 2017.
Abdullah Al Othaim Markets is one of the leading Saudi food and non-food retailers. The company is famous for meeting the clients needs, participating in social responsibility programs, and others (Abdullah Al Othaim Markets, n.d.). That is why it is not a surprise that the business impresses with a significant market share and economic benefits. Thus, the paper is going to present an organizational overview of Abdullah Al Othaim Markets by focusing on its ownership structure, shares number, non-controlling interest, and operational outline.
In the beginning, it is necessary to explain the companys ownership structure. According to Abdullah Al Othaim Markets Company (2020b), it is a joint-stock company. The following tree diagram will present the businesss board of directors that consists of eight members, including a chairman, a CEO, as well as independent and non-executive members. Considering the ownership structure that has been mentioned above, it is evident that the business is owned by its investors and shareholders. The current information demonstrates that the company does not have any significant agency problems.
The second significant point of the overview refers to the number of shares authorized and outstanding. According to Abdullah Al Othaim Markets Company (2020a), the business has 90 million outstanding shares that account for SAR 900 million. The information by Tadawul (2020) shows that the number of shares authorized equals the figure above. This information denotes that the company provides its investors with access to all the shares, meaning that it does not have flexibility in determining how many additional shares it can sell depending on financial needs.
Another essential aspect is to consider whether the company deals with controlling or non-controlling interest. It is non-controlling when shareholders own less than 50% of the companys outstanding shares. Tadawul (2020) demonstrates that minority interest has become SAR 37,745 thousand in 2020 for Abdullah Al Othaim Markets. This information denotes that the business deals with non-controlling interests, meaning that shareholders do not have control over decision-making processes.
Furthermore, a reasonable step is to present the businesss operational outline. Firstly, the company specializes in both retail and wholesale spheres. The firm keeps developing these two directions, and a 7%-growth in the number of stores in 2020 is an indicator that successful results are achieved (Abdullah Al Othaim Markets Company, 2020b).
As has been mentioned above, the company deals with food and non-food products, including home care goods, electronics, and others. Secondly, one should admit that this Saudi Arabian company operates in Saudi Arabia and Egypt. As for the country of origin, the business has either a supermarket or a wholesale store in each province (Abdullah Al Othaim Markets Company, 2020b). Thirdly, Abdullah Al Othaim Markets is a famous brand that was ranked second according to its market share of 11.3% (Argaam Special, 2020). That is why the given company occupies a stable position in the market.
In conclusion, the paper has presented the organizational overview of Abdullah Al Othaim Markets. This joint-stock company has an 8-member board of directors that deals with the business operation. It is so because non-controlling interest is used, meaning that shareholders have less than 50% of the companys outstanding shares. All this information results in the fact that the company increases its presence in Saudi Arabia and Egypt, which inevitably leads to a higher market share.
References
Abdullah Al Othaim Markets. (n.d.). About us. Web.
Abdullah Al Othaim Markets Company. (2020a). A Othaim market organizational structure.
Abdullah Al Othaim Markets Company. (2020b). Investors presentation Q2/2020.
Selfless service is among human virtues that play a significant role in shaping a better society and the world at large. It can also be referred to as dedication to others or service to humanity (Ochnik, 2019). Its philosophy revolves around the idea that an individual can offer services without expecting something in return for the benefit of others or society. Among renowned people who have expressed selflessness for a better world are Mother Teresa, Mahatma Gandhi, Martin Luther King, and Nelson Mandela (Ochnik, 2019). While selfless service is more likely to be found in military and medical fields, it is also evident in the business world.
Business ventures have shown that they can become catalysts for social change through selfless service. Although the main objective of every firm is to optimize their profits, some business enterprises are created to improve the psychological, physical, financial, and social wellbeing of diverse individuals, environments, and communities (Ochnik, 2019). For instance, most social ventures have helped society in addressing such issues as drug addiction, poverty, and homelessness through corporate social responsibility (CSR) initiatives (Ochnik, 2019). In an organizational context, CSR highlights a firms dedication to the community that lives around its proximity. CSR programs such as relief food and free medical supplies have been proven to extend help to deserving individuals such as the poor, the elderly, the disabled, and orphans (Ochnik, 2019). Thus, selfless entrepreneurs are instrumental drivers of positive social change.
Social ventures have also expressed selflessness through social entrepreneurship. This form of business is characterized by individuals who start, spearhead and manage enterprises that pursue a social objective on their own risk and account (Ochnik, 2019). Such people are driven by the desire to expand their efforts out of concern for humanity and to benefit society. Bangladeshs Grameen Bank acts as a conspicuous example of social entrepreneurship (Ochnik, 2019). While most banks are built on a purely profit-oriented business model, Grameen Bank was established to offer unsecured microcredits for start-ups. Specifically, these financial incentives are meant for the poorest rural people, especially women, who are ineligible for loans from conventional banks due to lack of security (Ochnik, 2019). Grameens underpinning objective is that affordable loans can fight poverty while also enhancing education and health outcomes. Research suggests that microcredits are connected to poverty reduction and education, nutrition, and female empowerment (Ochnik, 2019). Social entrepreneurship can be instrumental in alleviating destitution through selfless service.
Some sole proprietors combine selflessness and their self-interests to offer positive contributions to society. Such individuals are inspired by personal experiences of trauma and pain (Ochnik, 2019). They help in addressing significant social problems in deprived areas and institutional voids not only for others benefits but also for theirs (Ochnik, 2019). For instance, in the United Kingdom, such sole proprietors highly likely to be concentrated in the countrys most disadvantaged areas compared to traditional commercial small-scale businesses (Ochnik, 2019). Typically, these people engage in business to pursue individual passions for a better community such as improving the quality of services, environmental protection, social justice, and equality (Ochnik, 2019). Thus, selfless entrepreneurs represent a perfect example of dedication to others for a fair and better society.
In summary, selfless service can also be found in the business sector. Business ventures have shown that they can become catalysts for social change through CSR initiatives. Moreover, Social ventures such as Grameen Bank have also expressed selflessness through social entrepreneurship. In addition, some sole proprietors have shown that individuals can combine selflessness and their self-interests to offer positive contributions to society.
Reference
Ochnik, D. (Ed.). (2019). Selflessness in business (1st ed.). Vernon Press.
Members of the European Union are feeling the impact of Chinas growing economic power. The Chinese market is expanding. However, European companies are still struggling to discover the competitive advantage necessary to earn a profit. There are several reasons why European brands are unable to compete in the international market. First, most of the companies were created using the brick and mortar store framework. High inventory levels burdened European business organizations. Stores are filled with unsold items. In other words, most European companies like Lilybird Digital were late in embracing the principles of Internet marketing and e-commerce revolution.
Root Cause of Current Problems
Less than 40% of available products are accessible online. The company continues to invest in traditional store formats creating significant losses due to high operating costs. It was also pride that drove corporate leaders to establish stores in high-end commercial areas. Customers did not experience high-quality customer service. As a result, the failure to establish an efficient after sales service added to the operating costs.
Things would have been different if the company made the decision to open branches in China. When corporate leaders decided to enter the Chinese market, they made the mistake of establishing large showcase retail outlets. The best course of action was to establish small stores with low operating costs. The more prudent strategy was to start small and grow organically. The company failed to understand the lack of brand loyalty among Chinese customers. This insight would have been helpful in developing a business model that provides high quality and low-cost products.
Strategic Solutions
Lilybird Digital must develop effective marketing strategies such as: product strategy; pricing strategy; promotion strategy; and product distribution (Gitman & Daniel 2009). The centrepiece of the new business model and marketing strategy is online marketing. Lilybird Digital must attempt to pattern its business model on Amazon.com. There are two major reasons. First, Chinese consumers are not concerned about brand loyalty. However, they want to have easy access to the products online. Second, using the business model of Amazon.com, the company can reduce its operating costs (Byers, 2007).
Lilybirds Digital online store must be patterned after Amazon.coms online bookstore (Byers, 2007). In the case of Amazon.coms online bookstore, the company does not need to keep a large inventory of books. The items for sale are viewed in an online catalogue. The customer orders online through that catalogue. The company orders the books from the supplier only after a purchase was made. Therefore, there is no need to allot warehousing space for books. Books that were ordered were sent to the customers preferred delivery address.
Applying the new strategy will enable the company to save a great deal of money because of low-inventory levels and reduced rental costs for the buildings. Nevertheless, the company must invest in efficient and reliable customer support facility. The company must train customer-service personnel that are competent in answering customer queries regarding the products sold online.
Lilybird must promote its products. The company must separate itself from other companies selling the same type of products. However, it is not prudent to spend a significant amount of money through conventional advertising frameworks. At the same time, the company can reach a greater number of new customers by developing promotion strategies that enables the customers to interact with the stores website. The best way to accomplish this is through the use of social media.
Popular social networking sites like Facebook and YouTube attracts people from all walks of life (Caraccilo, 2001). Social networking sites enable people to interact in a profound manner. Therefore, there is greater opportunities for people to talk about Lilybird Digitals products. With regards to the use of social networking sites, the company should consider creating a YouTube channel. The company should also consider developing an Android or iPhone app that would allow people to buy items from Lilybird Digital using their mobile phones.
Social media platforms like YouTube and Facebook are catalysts that will lead to greater customer participation (Campesato & Nilson, 2011). The company must create relevant videos regarding some of the products available online. It is a creative way of presenting advertising content. The company must create customer-specific promos using Facebook. The company must create a Facebook page. Company promos are coursed through the said Facebook page. An example of a limited offer promo is a 30% discount on certain items. However, only the followers listed in the Facebook page have access to the said promo. The company can also invite Twitter followers to a special event. The event is announced on Twitter. Therefore, a significant amount of social media interaction is expected. This will increase awareness about the company.
Conclusion
Lilybird Digital must embrace e-commerce in order to increase its market share in China. The company should not rely on traditional store formats in order to generate revenue. More importantly, the store sizes must be reduced in order to lower operating costs. The main focus is the creation of an online store with a strong after sales service. The main reason for this strategy is based on the realization that Chinese consumers demonstrated very little interest when it comes to brand loyalty. The most important thing for them is high-quality products sold at low prices. In order to lower prices, the company must abandon the brick-and-mortar store concept. The online store strategy enables the company to reduce inventory levels. At the same time, the online store will enable the company to increase its makret share, because a greater number of people will have access to the virtual store as compared to a traditional store. In order to increaes the probability of success, the company must also invest in non-traditional advertising, such as, the use of social media platforms to promote their products.
References
Byers, A 2007, Jeff Bezos: the founder of Amazon.com. The Rosen Publishing Group, New York, New York.
Campesato, O & Nilson, K 2011, Web 2.0 fundamentals. Jones and Bartletts, Boston.
Caraccilo, D 200, E-tailing: careers selling over the web. The Rosen Publishing Group, New York.
Gitman, L & McDaniel, C 2009, The Future of business: the essentials. Cengage Learning, Ohio.
CEMEX is a world leader in the cement industry. The paper discusses the creation and implementation of the organizational learning strategy plan for CEMEX in order to contribute to the companys further progress in the industry. To become a learning organization and to implement an effective learning strategy, CEMEX managers should develop training programs for all the employees and include a different component in courses to address the issue of diversity.
CEMEX Learning Plan
Cementos Mexicanos (CEMEX) is a world leader in the cement industry. The company was established in Mexico in 1906, and today it is one of the most successful cement companies in the world. Changes in the business environment make the companys leaders pay more attention to contributing to the companys growth supported with the use of a lot of technologies and to overcoming challenges associated with flexibility, successor selections, and decreases in operational effectiveness (Abair, 2012). Thus, the paper discusses the creation and implementation of the organizational learning strategy plan for CEMEX in order to increase the companys effectiveness.
CEMEXs Current Mission, Vision, and Core Competencies
CEMEXs current mission is to commit to the customers needs and be responsive to the customers demand by providing high-quality solutions in an environmentally friendly manner. The main focus is on the efforts of a competent, inspired, and motivated team (CEMEX Annual Report, 2002).
CEMEXs current vision is to become the worlds most efficient and profitable cement producer and support the reputation of the global leader in the industry that provides high-quality products and services to customers from many regions.
CEMEXs core competencies include the focus on teamwork, creativity, respect, passion for work, the focus on stakeholders, the accentuation of strategic thinking, integrity, the focus on providing efficient services, professionalism, and learning (CEMEX Annual Report, 2002).
Internal Analysis (SWOT)
In order to discuss the CEMEXs potential for implementing the learning strategy, it is necessary to conduct the SWOT analysis for the company.
Strengths related to the companys development include the companys status of a leader in the cement industry, rapid growth, focus on using the latest technologies, intensive investment in the company, focus on reinvestment and diversity, and operational effectiveness.
Weaknesses that can prevent the company from further progress include the lack of training and education for employees, lack of flexibility, and weaknesses in the current communication technologies.
Threats are the increases in the customers dissatisfaction, increases in the percentage of late deliveries, increased costs, and the intensified competition in the industry (CEMEX Annual Report, 2002).
Opportunities include the implementation of effective communication technology, the use of effective employee training, the use of updated communication devices and software, improvement of the connection between CENEXs plants and offices, and the focus on diversity.
External Analysis
Having conducted the remote analysis, it is important to note that the activities of CEMEX are dependent on the changes in the political, economic, social, technological, and environmental spheres. In Mexico, there are changes in the political regulations of industries, and this fact can influence the CEMEXs operations. Moreover, the deregulation in foreign investments in Mexico is observed in relation to the economic environment (Abair, 2012). CEMEXs activities also depend on changes in regulating environmental issues because of the companys focus on producing cement. However, changes in the social and technological spheres can contribute to the organizations progress positively because CEMEX is oriented to use advanced technologies and new organizational strategies in the corporate environment.
Referring to the industry analysis, it is important to note that CEMEX remains to be a financial leader in the area while working in the Americas, Africa, Europe, and the Middle East. However, the problem is in the increased foreign competition, which stimulates the company to find more ways to grow continuously (CEMEX Financial Report, 2011).
Focusing on the operating environment analysis, it is necessary to state that CEMEX refers to the suppliers and creditors with whom the company works for a long period of time. Moreover, relationships with customers are also based on the principle of building long-term commitments. As a result, the companys competitive position increases.
Recommend Strategic Choices
Strategic choices are decisions to improve the strategy followed by the company, which are based on the available resources. CEMEXs strategic choices are associated with the determined challenges in the companys activities. The first strategic choice is based on the necessity to improve flexibility and guarantee the effective successor selections with references to the effective learning strategies proposed (Deiser, 2009, p. 54). The second strategic choice is the focus on improving the organizations operations with references to increasing the employees competence in working with new technologies according to the requirements of a streamlined digital company. The third strategic choice is the focus on improving customer services and delivery.
Generic and Grand Strategies
Being the third-largest cement company in the world, CEMEX mainly refers to cost leadership as an effective generic strategy because the companys focus on developing the corporate structure and on owning petrochemical plants and mining companies does not allow speaking about the use of the developed differentiation strategy. However, it is possible to speak about the mix of both generic strategies to increase the companys competitive advantage (Kachaner & Deimler, 2008, p. 40). Referring to the grand strategies, it is important to note that CEMEX is oriented to market development, diversification, and to increase the market share.
10 Long-Term Objectives
Increase the customers satisfaction improving the quality of services.
Promote innovation and improvement in all areas.
Focus on the employees engagement and commitment.
Concentrate on the principles of sustainability and social responsibility.
Contribute to improvement while focusing on knowledge management and continuous learning.
Promote employees learning and development.
Manage diversity in relation to human resources and other corporate strategies.
Focus on the use of technologies to improve production and delivery processes.
Promote learning, training, and development at CEMEX plants.
Use the advantages of teamwork and cooperation for improving performance.
Implementation and Control Plan for the 10 Long-Term Objectives
Objective
Implementation Strategy
Control
Timeframe
1
Workshops to discuss customer services and delivery strategies
Mangers, CLO
2014-2015
2
Workshops to improve knowledge and skills on used technologies
CLO
2014-2015
3
Seminars to promote leadership and involvement
Mangers
2014-2015
4
Lectures on sustainability and social responsibility
CLO
2014-2015
5
Application of the knowledge management systems
CLO
2014-2015
6
Workshops, meetings, conferences
Mangers, CLO
2014-2016
7
Conferences, policies, lectures
Mangers, CLO
2014-2016
8
Workshops to discuss customer services and delivery strategies
Managers, CLO
2014-2015
9
Workshops, meetings, conferences
Regional Managers
2014-2016
10
Workshops, meetings, conferences, seminars
Regional Managers, CLO
2014-2016
Recommendations for Restructuring, Reengineering, and Refocusing CEMEX
It is important to restructure CEMEX while focusing on providing the regional plants with more space for independent activities and for making independent decisions on using training and learning programs appropriate for certain regions. Thus, both central and regional managers should be responsible for completing the training courses. While reengineering CEMEX, it is important to pay attention to the implementation of the new communications technology, which can centralize the high tech systems used in the company (Kontoghiorghes, Awbre, & Feurig, 2005, p. 185). Moreover, it is also important to refocus CEMEX while shifting the focus from creating the industry, and market leaders used the traditional technologies to building an effective learning organization. Much attention should be paid to the employees continuous learning and development.
Recommendations for How to Conduct Continuous Process Improvement at CEMEX
To conduct the continuous process improvement at CEMEX, it is necessary to follow several recommendations:
It is necessary to focus on effective leadership as the key requirement to promote improvement, the reformation of the companys management is possible.
The next step is the focus on the successful strategies and planning followed in the company.
One more step is the optimization strategies to promote the employees involvement in the companys activities.
Comprehensive Learning Architecture for CEMEX: Needs Assessments
Learning dimensions that are associated with the process of learning and development are the following ones: topical, analytical, emotional, social, political, and ethical learning. Specific needs assessments which are associated with these dimensions should be incorporated at the individual, organizational, and strategic levels. Thus, topical needs assessments should be used at the individual level to check the employees knowledge related to working with advanced technologies. Analytical and political needs assessments should be used at the strategic level to evaluate the companys readiness to restructure and refocus in order to meet the requirements of the learning organization (Deiser, 2009, p. 68). Emotional, social, and ethical assessments can be used at the organizational level to understand what changes should be made in the corporate culture in order to promote growth and improvement.
Curricular and Implementation Guidance for Learning Objectives
To increase the customers satisfaction improving the quality of services, it is necessary to educate employees on the effective use of systems to promote ordering and billing processes and delivery. Promote innovation and improvement in the company means to focus on the employees understanding of their jobs role in making final products with the help of the advanced technologies. Focusing on the employees engagement, it is necessary to use many topics in training in order to educate the candidates effectively and promote their career development (Elkeles & Phillips, 2007, p. 112). Referring to the fourth objective, it is important to note that employees should focus on creating supportive relationships with the stakeholders.
The fifth objective is associated with using knowledge management systems to promote the employees continuous learning. The employees of different levels should participate in effective centralized training programs. Training programs should be developed according to the principle of diversity. The guidance for the eighth objective is correlated with the first one. Individual training programs should be implemented at regional plants (Deiser, 2009, p. 68). The focus on teamwork and cooperation should be the important factor to develop the training and learning programs.
Differences in Learning Objectives and Technologies of Various Regions, Businesses, and Operational Processes
CEMEX works in the Americas, Europe, Middle East, and Africa. The companys plants are located in different regions. As a result, much attention should be paid to the notions of culture and respect for diversity. Depending on the plant and departments operation processes, the proposed independent training programs should address the needs of the employees working at these plants (Deiser, 2009, p. 89). More attention should be paid to respecting the diversity and cultural differences while promoting teamwork and cooperation in the company. The nature of actively used technologies at plants also influences the topics learnt by employees during their training programs.
Recommendations for How to Manage the New Learning Strategy
To manage the new learning strategy effectively, it is necessary to differentiate between its components. Thus, it is important to control topical learning, acquisition of skills, and the work of seminars and workshops separately from controlling the successes in the companys change and transformation (Elkeles & Phillips, 2007, p. 56). To restructure and refocus the company effectively in order to increase the market share and respond to the customers demands, it is necessary to monitor strategic changes separately from controlling the learning programs implemented in CEMEX.
Conclusion
CEMEX is a leader in the world cement industry. However, to promote the market development strategy, it is necessary to focus on innovation and improvement as the basic objectives followed in the company as the learning organization. To become the learning organization and to implement the effective learning strategy, CEMEX leaders should develop training programs for all the employees and include different component in courses to address the issue of diversity. The development of the learning strategy is an effective method to contribute to increasing the companys competitive advantage.
References
Abair, P. (2012). CEMEX case study: Developing a learning strategy to compliment a high growth global corporation. Web.
CEMEX Annual Report. (2002). Web.
CEMEX Financial Report. (2011). Web.
Deiser, R. (2009). Designing the smart organization. San Francisco: Jossey-Bass.
Elkeles, T., & Phillips, J. (2007). The chief learning officer: Driving value within a changing organization through learning and development. Burlington, MA: Butterworth-Heinemann.
Kachaner, N., & Deimler, M. S. (2008). How leading companies are stretching their strategy. Strategy & Leadership, 36(4), 40-43.
Kontoghiorghes, C., Awbre, S., & Feurig, P. (2005). Examining the relationship between learning organization characteristics and change adaptation, innovation, and organizational performance. Human Resource Development Quarterly, 16(2), 185-211.
The fast-expanding entrepreneurial businesses need managers who can demonstrate a particular set of characteristics. These managers need to work with diligence to recognize and identify the companys needs with the sole focus on improvising ways of meeting them. Contrary to what many people believe, enterprising managers are not those whose ambitions lean towards self-employment.
They are company heads who boast about a mix of leadership, individuality, and creativity. Usually, they have enterprise attributes that revolve around their skills, knowledge, behaviors, and work as shown in Appendix 1. With these attributes, enterprising managers can guarantee a culture of creativity, innovation, opportunism, and risk-taking among other qualities that enable intrapreneurship and entrepreneurship, the transfer of knowledge, and the underpinning of employability (Keeble & Tyler 2005). What differentiates enterprising managers from the other company leaders revolves around their qualities.
One of their characteristics is the ability to handle and deal with risks that come their way, including those that face the company. An enterprising manager has to get prepared for working in a situation that is filled with many risks and uncertainties. He or she is able to strive towards attaining the goals and objectives while making necessary decisions in a situation that lacks some critical information or resources.
Most importantly, enterprising managers are result-oriented. They are dedicated to making crucial decisions to get things done. Such a leader in the I can do it person, as opposed to the one who is only ready to pass tasks to others. The best part is that he or she is energetic and has the energy to do the tasks. He or she has the desire to contribute to the results, as well as see that his or her contributions bear fruits. Since they prefer hard work, enterprising managers have the potential to grow at both personal and organizational levels.
Besides his or her ability to develop at a personal level as shown in Appendix 3, an enterprising manager can help his or her colleagues to improve their performance because he or she is a team player. He or she knows how to make others work while at the same time working with them.
Even when they occupy the highest post in the top-level management, enterprising managers do not get complacent or bossy because they are what Moss Kanter (2004) refers to as the middle managers. They focus on innovative ways of making other employees work hard to ensure that their respective companies attain their goals and objectives. Most of them occupy the middle management level with the hope of making it to the top, but even those at the highest level do not get become reluctant (Kanter, 2004).
Enterprise Attributes
In the modern world, dynamism is the mainstay feature of management. Hence, every manager needs to have more than one quality of running an enterprise. In general, a manager should have the following enterprise attributes- excellent knowledge, recommendable behaviors, positive attitude, and exemplary skills.
Unless a manager has these characters, he or she might struggle to attain success or become what the analysts refer to as the modern manager a visionary, flexible, innovative, team player, and hardworking leader. Appendix 2 expands on the attributes that enterprise managers should demonstrate. The following is an in-depth review of how these enterprise attributes help managers to excel in the ever-changing working environment of the current time (Kirkley 2016).
Exemplary Skills
According to Chell (2013) who is a tutor at Kingston University, a skill is a primary quality that every manager needs to possess. She holds that issues such as the primary nature of skill and the examination of such expertise are crucial to the theoretical and comprehensive understanding of the process of entrepreneurship, which is an innovative aspect of a manager. In her analysis of skills, she holds that numeracy and literacy skills steer young people to improve their employability chances. They also enhance their (young people) productivity level at the company in line with seeking higher job positions.
Such young talents remain competitive at the international front. However, it is imperative to note that numeracy and literacy skills are only necessary, but not sufficient for a manager to run or help a company to grow. In general, a leader needs to have a set of skills, abilities, competence, motivation, creativity, and knowledge to excel at the highest level of management. However, his or her skilfulness determines how best a manager can handle tasks efficiently (Chell, 2013).
Excellent Knowledge
Another enterprise attribute that contributes to the productivity of any organization is knowledge. All businesses demand an extensive set of knowledge, which comprises their understanding of the industry environment, customer needs, and staff members experience and skills. The manner in which a business collects, exploits, and shares the same knowledge can prove crucial to its chances of attaining success. However, this factor does not just apply to large multinational corporations.
The management of Knowledge can benefit any stakeholder of a business. It is the responsibility of the enterprise to utilize the primary sources of knowledge present to the business. It should gather and/or exploit the available information to build a strategy of knowledge for the business. What most managers must understand is that using knowledge in the business does not necessarily mean thinking about ways of introducing new services and products or even implementing ingenious new measures for selling the same items.
Many managers fail to recognize the knowledge that already exists in the company. Hence, they look for new sources. Knowledge exists in the form of employee experience, the processes and quality of the services and products, the companys documents, files, and data, and the future activities, ideas, and plans for the services and goods (Kirkley 2016).
Recommendable Behaviours
Another enterprise attribute that also drives businesses to success includes employee behaviors. One of the most significant goals of organizational behaviors is to have a proper understanding of why workers behave in the manner in which they do. From a broad perspective, they involve four factors, namely, organizational citizenship, job performance, turnover, and absenteeism. It is evident that the first pair of behaviors is pleasant while the last set is considered unpleasant.
In essence, these four behaviors are not the only factors that comprise this enterprise attribute. Understanding how they influence each other opens a platform for having insights for analyzing the other organizational behavior. Job performance is the rate at which an employee succeeds in completing the tasks outlined in the description for a particular job. Given the differences in the descriptions of various duties, there arises a difference in the contents of job performance. On the other hand, organizational behaviors are those that are discrete, including voluntary services that employees offer to benefit the company or help others in contributing to business productivity (Kirkley 2016).
One of the undesirable behaviors that derail the growth of an organization is absenteeism, which can be defined as an unscheduled failure to report to work. Absenteeism is costly to the organization because it comes with various unpredictable outcomes, which affect the managements power and plans to control the budget of the firm or a department. A company rarely wishes to experience a turnover where employees decide to quit the job or terminate their contractual relationship with the company.
Absenteeism and employee turnover poses various harmful consequences to the company, although the latter has more setbacks when compared to the other. Some of the issues associated with it include poor service to customers and a slump in the overall performance of the company. When an employee quits, his or her job still needs someone to perform. Hence, the company has to spend time and money recruiting, hiring, and training a new worker.
As a result, the organization suffers from reduced productivity. Nonetheless, it is important to note that not all turnovers are costly. A turnover becomes a huge problem when a high performing staff member quits while the departure of a less productive worker may come as a blessing in disguise for the company. Such an occurrence gives the organization the chance to boost the morale of the remaining employees towards working hence improving the productivity of the company (Mair 2002).
Positive Attitude
How the employees behave at work depends on their feelings about working at that workplace. For this reason, one would only make sense of how the workers behave if he or she understands their attitudes towards the work at hand in terms of their feelings, opinions, and beliefs about various aspects of their job environment. Peoples attitudes at home are likely to involve the things that make their lives comfortable, including what to eat, where to live, and/or the family members among other things. However, at work, the two job attitudes that can influence how the same individuals behave are organizational commitment and job satisfaction.
Job contentment refers to how people feel towards their jobs. Several studies, including the one conducted by the Society for Human Resource Management (Gallup), reveal that job satisfaction is an essential work attitude. On the other hand, organizational commitment refers to the emotional attachment that employees have not only towards the organization they work for but also towards their employers.
An employee who is highly committed to the company embraces and/or believes in the values of the company. He or she is willing and ready to strive to meet the business goals and objectives while at the same time showing a profound desire to stick around with his or her bosses. Often, employees who have an undying love for their place of work refer to their organization as we whereas the others use they in a similar case. For example, those who love their employers would say, We offer best services while the other parties are likely to report the same message by saying this company offers best services. Therefore, the way employees refer to their place of work indicates the type of identification and attachment they have with it (Shariff & Saud 2009).
Justification
While most well-established managers, almost all of which are at advanced ages, have these enterprise attributes in abundance, their younger counterparts need to have and/or practice ways of implementing them. For example, with the right set of skills, young managers can gain expertise and professionalism that are needed to handle the tasks. They can steer the company towards attaining its goals and objectives.
Similarly, such administrators need to gain valuable management knowledge that will help them in running errands at the company. As a result, they stand a chance to lead and work with other proficient employees. Knowledgeable managers know when and how to delegate duties to the other workers. Besides motivating and boosting their counterparts morale to work, they identify the hard work and the less productive lot of the employees.
With the right organizational behaviors (organizational citizenship), a young manager can improve his or her productivity, including the performance of other employees while at the same time boosting the overall production level of the company. If young managers become ambassadors of the company, they will not adopt other undesirable behaviors such as absenteeism and turnover. Instead, they will use their loyalty as the means for ensuring the progress, growth, and expansion of their place of work. Similarly, young managers need to adopt a positive attitude towards the job. In other words, if they are satisfied with the conditions of their jobs, they become productive by striving to help the company to grow.
All of the four enterprise attributes are crucial to the company in one way or another. My belief is that skills and knowledge are more beneficial to the workplace than the behaviors and attitudes of the managers, which tends to focus on his or her relationship with the other workmates. Skills enable the management to innovate practical ways of helping the business to improve its performance. Skillful managers focus on using their talents and prowess in ways that are productive to the company. Unless a manager has management knowledge, he or she is likely to get on the wrong track in most of the companys operations. At the same time, any manager with this enterprise attributes is likely to develop the right behavior and attitude towards his or her place of work.
Developing Managers
Every company can develop its employees into future managers and leaders using any of the following strategies. For starters, the organization should rotate the employees through different jobs to help them in gaining experience. This exercise also involves challenging them with unfamiliar jobs. The notion of this approach is that managers only perform best when they have sufficient or abundant knowledge about the job itself.
The mastery comes from getting exposure from the different tasks in the company. Other strategies for helping employees to achieve the higher ranks of job positions include coaching, seeking feedback from them, and creating mentoring programs. In the case of the mentoring schemes, employees get a first-hand experience of managing since they interact with managers who also mentor them, coach, and/or give insights of how to run errands for a company at the management level.
Sometimes, learners do not take in everything or the most important things the company teaches them. Hence, the best way to gain knowledge is to seek their feedback. This approach also enables the organization to evaluate the employees progress in management. Only those with ability, readiness, and affinity to learn new things can become enterprise managers who are equipped with all the necessary skills that are needed for management.
Reference List
Chell, E 2013, Review of skill and the entrepreneurial process, International Journal of Entrepreneurial Behaviour & Research, vol. 19, no. 1, pp. 6-31.
Keeble, D & Tyler, P 2005, Enterprising Behaviour & the Urban-Rural Shift, Urban Studies, vol. 32, no. 6, pp. 975-997.
Kirkley, W 2016, Entrepreneurial Behaviour: The Roles of Values, International Journal of Entrepreneurial Behaviour & Research, vol. 22, no. 3, pp. 1-211.
Mair, J 2002, Entrepreneurial Behaviour in a large traditional firm: Exploring key drivers, Research Paper No. 466, IESE University of Navarra, Barcelona.
Shariff, M & Saud, M 2009, An Attitude approach to the prediction of Entrepreneurship on Students at Institution of Higher Learning in Malaysia. International Journal of Business Management, vol. 4, no. 4, pp. 129-135.
Current research deals with analysis of HR practices and procedures that are the most appropriate for the retention of labor force. Changing market relations which can be described as a result of globalization process and flexible labor regulation and market impose new challenges to HR specialists which are to elaborate effective policies and procedures in the view of creating favorable conditions for employees and thus avoiding significant losses in human capital. To provide a proper analysis of this issues current research paper first provides the contours of modern labor market and discusses the reasons for qualified employees rather than seeking stable employment often change their job. Finally some useful transformations in HR policies are proposed in the view of achieving the goal of labor retention.
In the conditions of modern flexible labor market existing models of career development are no longer adequate in modern companies.
Changes in the world economy, decline of manufacturing and growth of IT and services sectors disrupted a long tradition of life-time employment. That also resulted in the changing relationships between company and its employees (Pellegin, 1994).Thus to ensure the implementation of best HRM practices and procedures which are relevant to securing employees retention requires elaboration of new approach to career development. The life-long employment required a framework of permanent rewards for the workers that were based on seniority, loyalty and performance.
In contrast, as Rubin and Rubin suggest, modern global market pose new challenges on companies; hence, modern companies should produce flexible capital and provide the best conditions to achieve employees retention (Rubin & Rubin, 2006, p. 289). The risk of developing human capital while securing retention is inevitable but all depends on the successful HR policies.
In the changed environment more emphasis is placed on employees flexibility than on the employment security. The worker must be competitive which can be ensured by enhancing his competence and creating attractive portfolio (Brewster C., Hilary H., Paul S., 2004). Thus continuous education and training becomes prerequisite of workers success.
Existing labor market depends on the constantly changing demand and proposal as well as flexible wage prices. Hence, for companies to be effective in the retention of their employees it is necessary to secure that they do not change the place of their work for a new one. If another company would propose for worker better conditions of employment, he/she having appropriate training, skills and abilities wouldnt have any qualms to change the job. As Rita and Shay argue, The redistribution of labor and opportunities within and across organization and labor markets occurs primary through employees changing jobs. (Rita & Shay, 2004). Furthermore there is no denying the importance of the fact that actual moves are likely to occur when employees market skills match available opportunities (Mano-Negrin, 1999).
Besides this one of the most important peculiarities of modern labor market and labor relations is the absence of the significant social guarantees for the layoffs. This means that to be effective in the labor market employees should have a good capacities for learning, training and adapting in new situations. If such conditions are provided by the firm it becomes a good precondition for retention. As Schevish argues a good local labor market conditions improve organizational stability (Schevish ,1983) Besides this Hom and Kinicki (2001) argue that labor market variables interpret employee turnover
The new career development pattern should be in the midst of management and customer needs. More emphasis must be placed not on the job development but on promotion of learning for knowledge is the most important comparative advantage in the changing and flexible business environment. The learning process must be based on the available resource and be substantiated and not formalized. This is a main task of HRM. The HRM must create sound career development program which must include:
Developing potential through learning and fostering creation of new skills.
Strategic implementation which means make workers perform well and tie their development with the overall companys goals.
Employability attention to continuous education and training.
Diversity creating positive effect of the specialization of employees skills.
Nurturing culture creating robust culture of workers communication, team spirit and ability of adapting to difficult contingencies.
This approach fosters freedom for employees, which is considered to be a condition for high performance of the company. A one example of this model can be found in HRM practices of Brazilian company Semco. Its CEO drawing on this assumption gives employees possibility to decide on what work they will do and how they will are going to do it. This approach helped this company to occupy a solid place on the IT and service market in Brazil (Budhwar & Debrah, 2001, p. 45) The workers tying their career development with performance of their company utilized all their creativeness, skills and potential that resulted in great progress of the company.
References
Pellegin, J. (1994). The Hidden Sources of Employment. OECD Observer, a(185), 37-40.
Budhwar, P. S. & Debrah, Y. A. (Eds.). (2001). Human Resource Management in Developing Countries. London: Routledge.
Rubin, B., & Rubin, R. (2006). Labor-Management Relations: Conditions for Collaboration. Public Personnel Management, 35(4), 283-305.
