Category: Business 11471

Description of the Business

Standleys Bakery is a new bakery store that is based in Ruston that will be primarily selling cakes and cupcakes in Ruston and its neighbourhood. Although Ruston has several bakery stores, it lacks a store that provides high-quality organic cakes and cupcakes at an optimal price. Moreover, it plans to be a special bakery store whose key agenda will be to handle consumers needs at a personal level. Baking cakes and cupcakes will be done according to their specific needs. The challenges of initiating a bakery business just like other food-product businesses include the regulations and guidelines that one must adhere to before being issued a permit and licence. However, the start-up cost will be sufficient to cater for the equipment and the authorisation cost.

Standleys Bakery is launched at a time when the Ruston Municipal Authority is encouraging entrepreneurship and economic development. This observation implies that more businesses will spring up in the community, including bakeries. To counter any potential competition, the bakery will allow customers to apply their imaginations while being assisted by the companys skilled employees to bake their desired dream cakes and cupcakes. This involvement will give customers a sense of identity with the store.

I strive to ensure that the bakery is in tandem with the current trends and technological advancements. Hence, Standleys Bakery will hugely rely on customers responses, suggestions from the internet, and particularly social media. Customers will be allowed to order their products and get a house delivery. The ordering process will be done through a well-designed website that will display various designs of cakes and cupcakes and their respective costs. Considering the small population of Ruston, home delivery will not be a technical problem but rather an advantage over the companys competitors. Social media such as Twitter, YouTube, and Facebook will also be cheap and effective platforms to interact with clients and potential customers. With respect to the routine of the business, the company will operate from Monday to Saturday 7.30 a.m. to 6.30 p.m. The loaf will be prepared during the off-peak hours so that clients can have new merchandise during the sunlight hours. It is anticipated that the number of customers will be at peak during lunch and evening hours when they will be coming for lunch and/or going back to their homes respectively. The products that remain in a day will be sold on a subsequent day at a reduced cost. If products last for three days while in good condition, they will be donated to Louisiana Centre for the Blind.

Goals and Objectives

Short-term Goals

• To attract customers through healthy and tasty cakes and cupcakes
• To establish a base of 100 to 150 sit-and-eat customers and participate in 10-outdoor events
• Actively participate and be recognised as a business that improves the lifestyle of the disadvantaged people in the community through the programme in Louisiana Centre for the Blind
• Retain a profit of 40% and re-invest some of the profits to the business to expand the capital and assets to about $120,000 in two years
• To launch an official website, social media platform, and billboards to promote the products of the business to potential customers

Mid-term Goals

• To increase the companys customer base to over 800 a day with a gross daily income of $ 4000
• To become the first bakery store choice for residents in Monroe, Alexandria, and Shreveport
• To introduce newspapers as a mode of advertisement to reach the ever-growing customer base
• To expand the labour force by retaining skilled and talented employees while seeking even more proficient workers
• To introduce more programmes that are meant to reach out to the community and in particular provide healthy organic cakes to health centres

Long-term Goals

• To open branches of the store in Monroe and Shreveport
• To become a key bakery, store in Louisiana
• To partner with other bakery store investors to develop a brand bakery company that will serve the Louisiana community while striving to join the market in other states

Standleys Bakery envisions providing an unforgettable gift to its customers that will keep them coming for more products. It not only seeks to provide healthy tasty cakes and cupcakes but also to feed the hearts of the people by catering for the underprivileged class in society. The bakery is committed to incorporating technology, art, and healthy measures when preparing its products. I believe that by providing quality cakes and cupcakes, customers will not mind purchasing them at optimal prices.

Industrial Analysis

The US bakery industry comprises about 2,800 commercial bakeries and 6,000 retail bakeries. The retail bakeries earn an average yearly return of $3 billion. The prosperity of most retail bakeries is linked to well-organised services. Big bakery companies flourish because of the economies of scale while inferior ones do well because they avail exceptional merchandise and other services that are advanced to their neighbouring rivals. Moreover, commentators have also observed how investors in the business should consider the following strategies to thrive in the industry.

• Transfer cost of increasing the inputs to consumers by raising the cost of products to maintain the profits
• Retain long-term supply of key ingredients such that price fluctuations do not affect the cost of inputs. This strategy will guarantee the company a competitive advantage over its rival stores.
• Strategic location to attract the ready market, considering that baked products are perishable and that lack of a proximate market will require the business to cater for transportation costs, which will be an additional expense to the business.
• Investing in product differentiation to be conspicuous among competitors
• Be flexible to changes in the market, economy, and consumer predilections while having a plan to respond to such as adjustments

The industry has also become more challenging, considering that bakery stores are now facing competition from consumers. Malls and supermarkets that receive cake supplies from bakery stores are now opting for preparing their cakes. The industry is also saturated. Hence, any new bakery store depends on the saturated market, which relies highly on population increment and economic stability. Moreover, food equipment is easily attacked by allergens if they are not handled well. Such mishandling can contaminate baked products. Serving contaminated food products can lead to revocation of licence following the Food and Drug Administration (FDA) rulings. I will launch Standleys Bakery aware of such risks and success factors. I will consider them in the business operations. It is evident that several television shows focus on the bakery outlets in the US such as Cake Boss, Ace of Cakes, and Food Network Challenge. They have attracted many viewers. The indication is that Americans love cakes. Aware of the public pine for tasty cakes, I seek to utilise this opportunity to penetrate the saturated industry. Ruston has a number of bakery stores such as Social Bites, House of Flowers, Cake Shoppe, and Bimbo Bakeries among others. Most of these bakeries are located along the Vienna Street. Thus, moving closer to the I-20 corridor and further from other bakery stores will give me a competitive advantage over other rivals.

Mission Statement

The company seeks to be the leading provider of healthy and tasty baked products that not only cater for customer needs, but also improve the lives of the community through the companys excellent services.

Core Values

• To provide high quality, healthy, and tasty organic cakes and cupcakes
• To keep the interest of the customers my top priority
• To give back to the community by donating bakery products to the underprivileged class in the society
• To incorporate technology and current trends in the production and promotion of the bakery products

Ownership/Management Plan

The bakery store is a sole proprietorship business. Thus, I will be the owner. Academic excellence, talent, experience, and good character will guide the recruitment and selection of staff members. Staff officials will receive further training to concur with the Standleys Bakery mission and core values. They will be allocated to the different position according to their expertise and existing demand.

Management Team

As the sole proprietor, I will be in charge of the management of the bakery store. I will be assisted by a supervisor whom I will appoint from the first lot of employees that I will recruit at the onset of the bakery store. Other staff members will receive instructions from the management team. They will be given different roles depending on customer demands. This management team will be temporary. As the business expands and the demand increases, I will appoint a manager to be in charge of the administrative issues, an accountant to run the finances, and a supervisor to monitor the baking process and customer delivery. Moreover, since the bakery will have an official website where customers will be allowed to order products online, I will have a team to manage the online transactions, as well as social media marketing progress.

Personnel Plan

Recruitment and selection will be conducted in a way to ensure that I get and retain employees. Promotion and demotion of employees will be based on their performance appraisal report. Some of the programmes that the bakery store will adopt to attract and retain employees include offering flexible working hours to avoid employee burnout and offering lucrative salaries and training programmes to improve their skills. Moreover, there will be team-building sessions where employees will interact and/or be taught about the stores goals and objectives. The salaries of the staff members will be reviewed annually and be increased according to the profits that will have been made over the year. I seek to promote a culture of transformative leadership where the management can easily interact with the other staff members while sharing opinions on the trends of the bakery industry to find out how they can utilise them in the business.

Goods/Services

The bakery industry has largely ignored many customers who need its products. Standleys Bakery seeks to provide organic cakes and cupcakes to the Ruston community. The bakery products will have a variety of flavours as a way of providing a myriad of choices for customers to pick. Moreover, customers will access my services through various platforms, namely online orders, which will be delivered to the customers home, sit-and-eat within the bakery store, and outdoor services. Other services will be offered in events such as Peach Festival. I seek to provide special services by baking cakes and cupcakes according to the instructions from customers. Most bakeries have denied customers who desire sugar-free products. Through Standleys Bakery, customers such as diabetic patients who need sugar-free food products will take tasty cakes while living a healthy lifestyle. Moreover, customers will be given an opportunity to design their own cakes under the guidance of the companys skilled employees. None of the other bakery stores has offered this service. Thus, it will be a competitive advantage over the other stores.

Location

The bakery store will be located in Ruston, Louisiana along Vienna Street and close to the I-20 corridor. Ruston has an estimated population of 25,000 people, with about 75% of the population being below the age of 44. The location of the bakery store is strategic. Hence, the young population and the busy I-20 corridor will provide a ready market for the companys products.

Development and Production

The bakery products will be prepared on a daily basis based on customer demand. Some of the main ingredients will include sugar, baking powder, milk, eggs, cocoa powder, and unbleached white flour. I have made long-term plans with my suppliers to stock the ingredients on given intervals so that I never run out of stock.

Marketing

The primary target for the bakery store will be students from Louisiana Tech University, motorists, and passer-bys along the I-20 corridor. Ruston also has a young population that highly demands baked products. Thus, it will be my ready market. As the business grows, I seek to offer outdoor services in events such as weddings, family reunions, and Peak Festivals. Standleys Bakery will advertise through billboards, social media, and a website, which will detail its products and their prices. I plan to erect a billboard along the I-20 corridor to attract the attention of motorists and along the MacDonald Avenue to grasp potential customers who may want to buy bakery products from my competitors who are concentrated along the Vienna Street. I anticipate that this mode of advertisement will attract customers from neighbouring towns such as Monroe.

Global Issues

The bakery industry is saturated with many investors and large retailers who enjoy most of revenue in the market. Standleys Bakery plans to serve the Ruston community and its neighbourhood. Currently, I have no plan of serving the international market. However, the increased internal demand for my products as well as expanded the expanded capital base may inspire me to spread to other states in America. Nonetheless, this step will follow credible advice from financial analysts and commentators. Meanwhile, Standleys Bakery will focus on serving the small Ruston community.

Financial Plan

Standleys Bakery will require $100,000 as start-up costs for the business. This amount will be retrieved from my savings worth $40,000 and a bank loan of $60,000. In the best-case scenario, my products will attract a high product demand, which will compel me to raise prices of the cakes and cupcakes and/or reduce advertisement expenses. The bakery store will undergo a mammoth growth within the first year, thus leading us to launch other branches within the town and in the neighbouring municipality. Once the loan is settled, I will increase the bank savings to use in purchasing new equipment to replace the existing ones, which I plan to replace within an interval of five years. The plan below shows how the finances will be distributed.

Company Profile

The Gap, Inc. started after its incorporation in 1969 and it has become a global retailer of clothing, accessories and personal care products under the apparel store industry. Its products are uniquely designed and made for men, women, children, and babies and are being marketed under the familiar brands of the Gap, Old Navy, Banana Republic, Piperlime, and Athleta brands. Being a global retailer, it has its stores operated in many parts of the world including the United States, Canada, the United Kingdom, France, Ireland and Japan. Gap stores are for casual apparel and products which include accessories and personal care products for men, khakis, fashion apparel and denim. Included also are the Gap Body stores and Gap Outlets with the first dealing with womens underwear, loungewear, sleepwear, and sport and active apparel while the second dealing with similar categories of products.

Old Navy is for adults, children and infants customers who will get satisfied from a selection of apparel, shoes and accessories and other personal care products. Included also under the brand is a line maternity wear. On the other hand, men and women customers are served under Banana Republic and the related Factory Stores under the same brand name for casual and tailored apparel, personal care products and shoes and accessories.

Added to its more than 3,000 stores worldwide are the two online brands available to customers. One is the Piperlime, at www.piperlime.co, and Althleta as its online and catalog store at www.athleta.com. The first provides women, men and kids as customers with various brands in footwear and handbags plus tips, trends and advice on style while the second makes available sports and active apparel and footwear for various women customers. The products for sports activities included those of tennis and yoga, golf and running.¹

The companys 2008 revenues reached $15,763.00 million while it net income for the same year was posted at $833million.² Its stock is presently listed in the New York Stock Exchange with a price of $16.06 per share.³

Company Vision and Mission; Opinion on its clarity, etc.

From its website, the company appears not to have made a clear statement of its mission and vision as compared to other companies. However its 2008 Annual Report has expressed the words Clean, Classic and American Design which were described to be the very same words that have described the company for the past decades and are still being used by the company. These words for all intents and purposes can be taken as rather an indirect statement of the companys identity or vision and mission. In explaining these words to shareholders, Glenn Murphy companys Chairman of the Board and Chief Executive Officer sent the message that they are determined to do their best to inspire their customers with individual style and make classics relevant for the changing times through the use of bold, color, emotional detail and great fits.⁴

It could be asserted that the vision and mission of the company is rather not clear but it would appear that its main purpose is just to continue making the products available to customers in accordance with the words Clean, Classic and American Design.

Its core competencies, main competitors (domestic and worldwide) and Customer segments primarily served.

Core competencies are those that are considered strengths of the company compared to competitors that help the company in achieving competitive advantage or doing better than its competitors.

One core competency could be viewed from its wide reach of customs through its many stores. Its store could be found in many parts of the world which include those in North America consisting of the United States and Canada and those in Europe which include the United Kingdom, France and Ireland. It had also its stores in Asian countries like Korea, Japan. It has entered also into franchise agreements to operate its Gap or Banana Republic stores with franchisees in Singapore, Malaysia, Korea, Kuwait, Qatar, Oman, Bahrain, Cambodia, Saudi Arabia, Mexico and Indonesia. It had contracted with other parties to also open stores also in Greece Bulgaria, Croatia, Cyprus and Romania.⁵ With more than 3,000 stores in many part of the world, the same could only ensure easier reach to customers.

The second competency can come from unique and classic American design that persisted over more than 4 four decades in relation with time. This has caused the company to put up strong brands that survived many periods and the company was more than willing to defend its trademark no matter what happened. This has caused the company to use its resources to depend its trademark, which is indicative of strong brand.⁶

Its Banana Republic stores can keep its customer as the products are meant to deliver a more stylish image for an fashionable customers who seek what is modern and accessible luxury using its competency of unique and classic design. While using the same strength a broader demography of customers, the Gap does the thing. Still applying unique and classic design, the Old Navy delights families of younger customer by products designed addresses with excitement and energy through the stores what is meant by fun, fashion with and value by delivering. In other words, its products sell in unique markets due to its capacity to develop multiple formats and designs.⁷

Its main competitors from both domestic and worldwide include The TJX Companies, Inc., Limited Brands, Inc., Nordstrom, Inc. and Luxottica Group S.p.A. (ADR). These companies and companies belong to the top five from the industry in terms of revenues.⁸

The segments primarily served are those that are getting a large share of its familiar brands of Banana Republic, The Gap, Old Navy, Piperlime and Athleta.⁹

An analytical perspective about the company with original opinion and justified with a clear reasoning

The company is generally better than industry averages all in terms of profitability, efficiency, liquidity and solvency.¹⁰ No wonder its stock price in relation to competitors despite the recession in 2008. This could be proved in terms of price to book ratio of 2.44 in 2009 as against industry ratio of 1.83.¹¹ What would explain such higher than average performance may come from the unique value of its products in relation to competitors. The company appeared to have its stores also in strategic areas thus reaching the customers at their convenience while delivering superior value.

Therefore there is a basis for the company to claim its values more powerful than ever in 2008 and even claimed progress over the previous year in terms of creativity , customers and results which it believes to have simplified tits and is giving the company the needed competitive advantage to sustain its growth. There is also a basis in its plan to invest in more initiatives that will increase more customers and more revenues while delivering more inspiring products while enhancing customers experiences in shopping at the companys stores. Such plans will make use of the companys competencies as discussed earlier in terms of its numerous stores in strategic locations as well its continued unique and classic products.¹² This will be further strengthened by the company plans to improve its sample stores at each brand in its objective to modernize its fleet and improve productivity as it creates unique product varieties for customers.¹³ Since its considers its product as the end game while giving the brand that would match what the customers want in terms of style and color¹⁴ and other value to customers, a company must really make sure that its products will meet what its customers will buy. In so doing the company could further sustain its better profitability, efficiency, liquidity and solvency than competitors.

Works Cited

The GAP, Inc and Others v Kingsgate Clothing (Pty) Ltd and Others[2009] ZAKZDHC 9

Company Profile  The Gap. 2009a. Reuters.com. Web.

2008 Financial Statements of The Gap 2009. Reuters.com.

Stock Price of The Gap. 2009, Reuters.com.

2008 Annual Report of GAP, 2009. The Gap.

Company Profile  The Gap. 2009a. Reuters.com. Web.

1960s: Commerce, GAP. n.d. Book Rags. 2009.

Rankings. 2009. Reuters.com 2009. Web.

Financial Ratios as Against industry.  2009. Reuters.com. Web.

Footnotes

1. Company Profile  The Gap. 2009. Reuters.com.
2. 2008 Financial Statements of The Gap 2009. Reuters.com.
3. Stock Price of The Gap. 2009, Reuters.com.
4. 2008 Annual Report of GAP, 2009. The Gap.
5.  Company Profile  The Gap. 2009. Reuters.com.
6.  The GAP, Inc and Others v Kingsgate Clothing (Pty) Ltd and Others [2009] ZAKZDHC 9 .
7.  Book Rags. 1960s: Commerce, GAP. n.d. 2009.
8.  Rankings. 2009. Reuters.com 2009.
9.  2008 Annual Report of GAP, 2009. The Gap.
10.  Financial Ratios as Against industry 2009. Reuters.com.
11. Financial Ratios as Against industry 2009. Reuters.com.
12. 2008 Annual Report of GAP, 2009. The Gap.
13. 2008 Annual Report of GAP, 2009. See above.
14. 2008 Annual Report of GAP, 2009. See above

Employers and workers alike put a high emphasis on flexibility in the workplace. Work-life balance is the most critical issue that top candidates think about when choosing where to work, and flexibility is the priority that job seekers place the most emphasis. Allowing personnel flexibility displays confidence in their decision-making abilities and skill as time managers because it demonstrates trust in their capacity to choose how and where they work. This improves job satisfaction as top candidates are attracted and recruited to the organization. Furthermore, employee morale is boosted when they feel appreciated and valued by their company, which increases their likelihood of enjoying going to work every day.

With the aid of contemporary technology and telecommunications, people can work remotely or from home while staying in contact with their employer or company. The main reason why telework has become popular among businesses in the United States is that it lowers operating expenses for workplaces, including rent for office space, power, heating, and other necessities. During the COVID-19 pandemic, telework within my organization and various companies in the United States updated as workers were provided with appropriate software for successful online communication with team members (Belzunegui-Eraso & Erro-Garces, 2020). This made it easier for businesses to operate, sustaining economic growth and generating income for people.

Technology has made it simpler for companies of all types to be more adaptable. By improving physical space utilization and lowering maintenance charges, cloud technology significantly contributes to corporate efficiency. Technology can also automate manual procedures and duties, making them easier to handle or even eliminating them. Technology is a fantastic enabler for raising team morale and participation through platforms such as Microsoft Viva, which tracks worker well-being and promotes a working environment that rewards exceptional services. Moreover, by helping the workforce stay connected at all times from anywhere they operate, Zoom and Google Meet can increase flexibility.

A flexible work arrangement does not support collaboration among team members. It takes a lot of self-motivation to work from home, and it is simple to put off tasks, thus encouraging procrastination. Due to distractions, entering the proper frame of mind to work effectively outside the workplace is challenging. Additionally, communication problems brought on by technology issues make teamwork harder. Limited supervision and a less defined organizational structure lower worker productivity, which results in a lack of accountability and poor collaboration. When employees lack the scrutiny that ordinarily gives their efforts vigor, they quickly lose their enthusiasm and drive.

Employee autonomy over their work schedule can boost output since people can arrange their time according to their preferences. The working schedule will offer structure by ensuring that staff perform their tasks efficiently and on time. Owning the work schedule also protects the work-life balance since employees put in adequate hours at the office, reducing ongoing distractions. This can lessen the employees stress levels and improve their work efficiency. Furthermore, employees will quickly fulfil deadlines because they know the precise window of time before work must be submitted.

I support Elon Musks call to have all Tesla employees return to the office. Offices communicate the brands identity, principles, and ethics to give customers a physical impression of the company. Peoples perception of an organization as they enter its doors impacts its success, which can help it earn customers and draw in talent. There is undoubtedly better teamwork when everyone is present in the office. Offices are essential to cooperation because they make it simpler for coworkers to speak with one another and for teams to discuss and develop ideas. This generates a spirit and a productive environment that cannot be matched remotely or via video calling.

References

Belzunegui-Eraso, A., & Erro-Garces, A. (2020). Teleworking in the context of the COVID-19 crisis. Sustainability, 12(9), 3662-3678. Web.

Taza is a small chocolate-making company based in Sommerville, Massachusetts, which manufactures unique stoneground organic chocolate in the classic Mexican tradition. It has a staff of about 20 people and sources all its ingredients directly from certified organic growers, with whom the company maintains personal relationships. Taza distributes its products at different price points through three channels: wholesale, distributors, and direct retail (Iacobbucci, 2018). Distributors buy in the largest quantities and at the lowest price; wholesale prices are slightly higher, and direct retail has the highest price point.

The three channels make different contributions to the companys marketing efforts. Distributors purchase large quantities of products and resell them to wholesalers, providing the largest market coverage. They run promotions to increase sales and achieve wider distribution. Wholesalers buy goods in medium quantities and sell them to individual resellers. They play the most crucial role in the supply chain process because they provide storage and timely delivery of products to buyers. Direct sales are affected through the companys website and involve direct communication with customers. The prices are the highest, and the quantities are the smallest.

For Taza, wholesale is the most effective channel of distribution that allows the company to maintain the same personal relationships with buyers as with suppliers. Wholesalers accept the companys price policy and purchase the amounts of products that the company is comfortable with. Distributors, on the other hand, are always trying to bargain and organize promotions that are not in line with the companys policy (Iacobbucci, 2018). Taza does not rely on advertising or promotional campaigns to increase the popularity of its products. Instead, it uses social networks, the companys website, themed events and exhibitions, food shows and in-store tastings to attract new customers (Iacobbucci, 2018). Direct sales also facilitate this approach by creating personalized relationships with customers that purchase chocolate directly from the Taza website. To further develop in this direction, the company is planning on opening a factory store.

Pricing the products differently based on the channel is a beneficial strategy. As distributors buy the largest quantities, they are offered the lowest prices. Wholesalers generally buy less, and the price is slightly higher, constituting a 40 or 50 percent of the products shelf price (Iacobbucci, 2018). Direct sale prices are the highest because they include storage, employee, operating, and delivery costs. The most beneficial pricing strategy is based on the balance between healthy sales volumes and profitability, with the largest sales volumes achieved by offering the lowest price.

Integrated marketing is an approach to creating a uniform and seamless experience for consumers in their interaction with the brand. It aims to include all aspects of marketing communication, such as advertising, promotion, direct marketing, social media, and public relations, and ensure that they are consistent across all channels. Taza applies the principles of integrated marketing in direct and wholesale sales. The company positions itself as a premium brand that maintains personal relationships with its suppliers, wholesalers, and customers (Iacobbucci, 2018). These relationships are fostered through direct online sales and the companys participation in chocolate salons, food shows, festivals, and exhibitions, where it promotes its products. Taza mainly relies on responsible wholesalers in distribution and makes efforts in building personal relationships with them, as it does with its suppliers. Overall, the company strives to create an integrated marketing experience for customers by maintaining a clear and personalized distribution process.

Reference

Iacobbucci, D. (2018). Marketing management (5^th ed.). Cengage.

Economic Feasibility

An economic feasibility of a project is essential before making a decision to invest in it. The process involves developing a break-even analysis of a business to analyze the costs against the returns of a project. It assists investors to determine the time required for the project to pay off its debts. An economic feasibility study develops a business model from the project. The technique is essential to prepare for early acquisition of the resources for use. In this concept, a financial analysis to develop a cost benefit analysis is conducted evaluating all the key criteria of the project.

Socio-Economic Feasibility

The economic feasibility study only identifies the costs and benefits of a project in monetary terms. However, the socio-economic study seeks to answer broader questions such as the economic value of the project to the community. This study aims at evaluating whether the project affects people socially and the scale of the impacts. Caring investors would not be selfish to venture into project that have negative socio-economic impacts on the involved community. Thus, it is essential to conduct this study before investing in a project.

Risk Assessment

Every project is exposed to specific and unique risks. However, some can be mitigated when others do not impact the project significantly. A risk Assessment is essential before making an investment decision as one is able to evaluate the measure and scale of loss in case of occurrence. A risk assessment also helps in development of mitigation strategies for various risks. When the risks are high investors tend to shy away from such projects.

Planning

Before the project began, the crucial gathering of the information and other techniques and methods during the projects onset was crucial as it mainly provides an overview of what is expected to be done. Planning is one of those aspects that must be looked at before undertaking a project. Gathering information helps to obtain rough estimates, which are helpful in getting the type of resources necessary. Planning is the second most important thing in project management, given that it forms the basis of setting expectation and making assumptions. Therefore, it is necessary to identify all aspects in a project to ensure that the project reaches completion without challenges.

During the Project

Financial Management

The capacities of financial management are to ensure proper utilization of funds throughout the project. Inadequate financial management would result in failure of a project due to funds misuse and spending below or over the budget. Some of the common financial management practices include financial reporting, financial updating, and organizational coordination. Investors should account for all costs of the project in order to evaluate it effectively.

Risk Assessment

Risk assessment activities should be continuous process carried out throughout the project as new risks may arise as the project progresses. This assists in the identification of gaps and improvement of mitigation practices to ensure minimal risk occurrence and losses (Narayanaswami, 2017, p. 156). Some of the risks that should be identified are the financial, technical, environmental, political, and social risks. A qualified risk manager should be hired for the practice.

After the Project

Economic Feasibility

After complete implementation of the project, an economic feasibility study should be conducted to assess whether the financial costs of the project are as in the proposal. A cost benefit analysis can be conducted out to measure the benefits against the costs (Wang et al., 2016). The results of the economic study may vary in the proposal and evaluation stages. Thus, as Ha et al. (2017) put it, is important to establish the reasons behind such disparities and use it for decision-making processes of the next project.

Socio-Economic Feasibility

The socio-economic feasibility study assists investors identify the value of the project socially. Most projects have additional social value that was not captured in the proposal while some negative impacts may be undocumented. However, it is difficult to record all the socio-economic values of a project. According to Li and Wang (2016), this is why carrying out a socio-economic feasibility studies helps in identifying and documenting all the related values of the project.

Environmental Feasibility

An environment study analyzes the environmental impacts of the project. This may include noise, atmospheric, solid waste, or water impacts. The primary objective of carrying out an environmental feasibility study is to establish the adverse impacts that the project might have on the environment and recommend ways of mitigating them (Shockley et al., 2019, p. 1072). After completion of the project, an environment feasibility is essential to compensate and rectify any reversible impacts.

Risk Assessment

A risk assessment study is essential after completion of the project as it identifies any potential risk to the completed project. It also analyzes the risks that the project poses to the surrounding environmental and ways to mitigate them. In many cases, some risks can only reveal themselves once the project is up and running (Kim, Ha and Kim, 2017, p. 46). These include the unanticipated risks before the start of the project.

Project Analysis

It is crucial to analyze the project once it has been completed as it gives an explicit picture of how the overall project was performed. The techniques and methods used identified the items that could be used to improve the project further. It involves identifying things that require some improvements and could be achieved with some degree of effort (Campisi, Gitto and Morea, 2018, p. 195). In the opinion of Okoye and Oranekwu-Okoye (2018, p. 2538), it is important to involve many stakeholders during the actual analysis to ensure efficient evaluation of the whole process. Before and after the project, good planning shall make the reviews crucial and successful.

Reference List

Campisi, D., Gitto, S. & Morea, D., (2018) Economic feasibility of energy efficiency improvements in street lighting systems in Rome. Journal of Cleaner Production, Volume 175, pp. 190-198. Web.

Ha, S., Kim, K., Kim, K. & Jeong, H., (2017) Reliability Approach in Economic Assessment of Adapting Infrastructure to Climate Change. Journal of Management in Engineering, 33(5).

Kim, K., Ha, S. & Kim, H. (2017) Using real options for urban infrastructure adaptation under climate change. Journal of Cleaner Production, Volume 1, pp. 40-50. Web.

Li, Y. & Wang, X., (2016) Risk assessment for publicprivate partnership projects: using a fuzzy analytic hierarchical process method and expert opinion in China. Journal of Risk Research, 21(8), pp. 952-973. Web.

Narayanaswami, S. (2017) Urban transportation: innovations in infrastructure planning and development. The International Journal of Logistics Management, 28(1), pp. 150-171. Web.

Okoye, C. O. & Oranekwu-Okoye, B. C., (2018) Economic feasibility of solar PV system for rural electrification in Sub-Sahara Africa. Renewable and Sustainable Energy Reviews, 82(3), pp. 2537-2547. Web.

Shockley, J. M., Dillon , C. R. & Shearer, S. A., (2019) An economic feasibility assessment of autonomous field machinery in grain crop production. Precision Agriculture, Volume 20, pp. 10681085. Web.

Wang, T. et al. (2016) A major infrastructure risk-assessment framework: Application to a cross-sea route project in China. International Journal of Project Management, 34(7), pp. 1403-1415. Web.

The main lessons learnt from the Aramex approach to sustainability and strategic CSR are related to the Aramexs success proving the fact that efficient investment in sustainable CSR gives numerous benefits to the business (About Aramex par. 10). The significant role of innovative CSR and sustainability initiatives can be determined based on the SWOT analysis (McDonald, Ward, and Smith 105). The strengths include the companys ability to grow and minimize revenues loss even in the times of severe economic crisis (Richard Ivey School of Business 4). Besides, the companys strengths include huge profit and effective partnerships all over the world (Saadi par. 2).

The weaknesses of the company include lack of effective methods to ensure the promulgation of CSR and sustainability principles in all offices in new locations after the aggressive expansion and growth. The company has numerous opportunities related to the possibility of establishing a unique network of offices of the company across the whole region and out of it. However, these opportunities can be challenged by the threat of losing control over such extensive network and inability to ensure that each office follows the proper CSR and sustainability strategy. The SWOT analysis of the Aramex reveals that the companys effective CSR strategy has contributed to its development and growth a lot and should be further improved and adjusted to the specifics of the environment of every branch of the services.

Leadership played a major role in the Aramexs evolution towards adopting an integrated, full-fledged strategic CSR and sustainability approach. Fadi Ghandours, the founder of the company, realized knowledge was the key to success in the industry (Balakrishnan 32). By providing the unique educational activities adjusted to the needs of the company, the Aramex managed to ensure that people supposed to lead the majority of employees towards achieving goals related to CSR and sustainability are capable of doing it at the highest level. Porters five force model can be used to demonstrate the efficiency of such approach (Ahlstrom and Bruton 131).

The Supplier Power, Buyer Power, Competitive Rivalry, Threat of Substitution, and Threat of New Entry are rather high in comprehensive logistics and transportation solutions industry. Therefore, the managers capable of ensuring that the employees performance satisfies the suppliers and buyers needs and promotes the companys strong competitiveness on the market is of vital importance. Besides, well-educated managers can create a highly-qualified workforce possessing unique skills. Company with such leaders is at low risk of facing the threat of substitution or new entries.

Works Cited

About Aramex. n.d. Web.

Ahlstrom, David, and Garry Bruton. International Management: Strategy and Culture in the Emerging World, Mason Ohio: South-Western Cengage Learning, 2010. Print.

Balakrishnan, Melodena Stephens. The Aramex Philosophy of Business Operation. Actions and Insights: East Meets West. Ed. Melodena Stephens Balakrishnan, Ian Michael, Gunn Elisabeth Birkelund, and Immanuel Azaad Moonesar. Bingley, United Kingdom: Emerald Group Publishing Limited, 2013. Print.

Mcdonald, Malcolm, Keith Ward, and Brian David Smith. Marketing Due Diligence: Reconnecting Strategy to Share Price, Oxford, United Kingdom: Butterworth-Heinemann, 2007. Print.

Richard Ivey School of Business. Sustainability in the Arab World: The Aramex Way, Ontario, Canada: The University of Western Ontario, 2011. Print.

Saadi, Dania. Aramex Sticks with Growth Target as Courier Lines up Acquisition This Year. 2015.

Abstract

The purpose of this report is to emphasize the importance of determining the development needs of an individual, to explain the process of identifying individual needs and the methods that may be applied in formalising training for the individual.

Development needs

This may be viewed as any learning activity which is directed towards future needs rather than present ones, thus the purpose is to strengthen future human capital requirements. It is also focused on increasing chances of individual growth. Samples of development needs may include a need for managers to be able to utilise new facilities in the work place, replacement of retiring staff with a new one, and a necessity to prepare employees to accept change (Bigge & Shermis 2003).

Importance of determining the development needs of an individual

Generally, the benefits are that with a well trained and thoroughly oriented workforce; they will turn out a high standard of goods or services, probably in a more cost-effective manner than the others, and, therefore, with a better chance of achieving organisational goals (Bigge & Shermis 2003). An outline of potential benefits of identifying development needs of an individual may include:

Increase in personal repertoire of skills;

• Increased job satisfaction;
• Increased value of employee in the labour market which refers to the general view of that employee within the realms of the industry;
• Improved prospects of internal promotion which refer to high chances of raising up the managerial ladder;
• Stable labour force which means to have an internal client that is able to counter challenge forces of employee turnover;
• Updating the quality of manpower, which is achieved through continuous education plan;
• Developing strength for survival, which is attained through having a team that adopts to change rapidly;
• Expansion and diversification.
• Utilisation of production at optimum level.
• Improving moral of employees, which refers to a positive inward feeling of an individual towards a particular task or duty.
• Preventing managerial obsolesces, which is achieved by ensuring that the team is up to date with the new changes in the industry.

Systems of identifying individual needs

Every business process training can be very wasteful if not carefully planned and supervised. Without a logical systematic approach, some training may only be a proof of sheer waste of resources (Megginson & Boydell 1984). The systematic approach to identifying the development needs may follow varying programs such as the following ones:

1. Job is analysed and defined. This may be achieved through counter referencing of job recruitment and specification and outlined job description at the time of induction.
2. Reasonable standards are established. This may be achieved through contrasting the new expectations versus the experienced employees (Internal clients).
3. The employees being considered for training are studied to see if the required performance standards are being attained through a probable effective training program. Such programmes are custom made as a result of needs identification (Training gaps).
4. Identifying the training gaps. Though it may be due to faults in the organization, such as poor materials, defective equipment, compromised job description. It is, however, of vital importance to highlight an answered questions that rise out of the daily operations of the production unit. These questions may be why there is an increase of wastage, increased absenteeism, compromised on quality of the final product. Such questions become the foundations and solutions of training gaps.
5. Training is given and appropriate records kept. Such records are considered useful in evaluation and validation of the training program conducted. This is further described with mnemonic APPROACH.

Management by objective clearly shows a different technique by reviewing measureable performance in job descriptions, any disparities between expected standards and performance levels show possible training needs, also known as training gaps (Mager 2004).

Methods Used to Formalize Training for the Individual

Systematic survey and analysis of training needs will be concluded and revealed by making an effective training program analysis which may be summarized by a training proposal in the form of a training plan. The training plan may be different which is explained by the different results of development needs analysis, but basically the criteria of formulating a training plan that answers solutions to training gaps may take a format that answers concerns under the following headings.

• Programme Aims: a general statement as to what the intention of the training is. A sample may be: This programme is to improve the skills of frontline managers in troubleshooting the issues of tetra pack packaging unit, to avoid unexpected breakdown of the machine.
• Target groups: identification of those for whom the training is intended (All grade 6 frontline managers and those involved in maintenance of production packaging unit).
• Programme contents: this may address the topics to be covered, the learning objectives, activities to be employed, and the methods of learning proposed. Ideally, this is what handles solution of training gaps as outlined in the needs analysis.
• Programme Evaluation: proposals for estimating the relative success of the training in respect to objectives achieved and level of validation done. This dictates weather the programme met its core purpose.
• Administration and costing: details of timetable for programme, location of activities, release of staff from normal duties, expenses and costs. Ideally, this handles the logistics of the training programme. Though most of the critics are that the expenses of training existing staff are too high as compared to recruiting new employee who are already trained in the field under focus. It is also argued that the time consumed in training the staff is much more than that used to introduce the new staff that is much qualified and that is already experienced.
• Training staff: his handles identification of staff to be deployed, both specialist trainers and line or departmental staff, as required. This is often in off-job training plans. They may be out sourced or picked form the pool of high performing employees (Tyler 1969).

Conclusion

From the findings of this report, it is evident that every organization is faced with the dilemma of Human resource development, as a key component in any firm. Factor that dictates the ample plan of training is dictated by circumstances around the training gap, degree of change desired, resources available and economic value of the programme to the organization

Works Cited

Bigge ,Morris L. and S. Samuel Shermis. Learning Theories for Teachers. 6th edn. Boston: Pearson/Allyn and Bacon, 2003. Print.

Mager, Robert F. Preparing Instructional Objectives. Mumbai: Jaico Publishing House, 2004. Print.

Megginson, David and Tom Boydell. A Managers Guide to Coaching. London: British Association for Commercial and Industrial Education, 1984. Print.

Tyler, Ralph W. Basic Principles of Curriculum and Instruction. Chicago: University of Chicago Press, 1969. Print.

Introduction

Procter and Gamble (PG) is a manufacturer of cosmetic products. Its products are mainly sold to wholesalers, retail stores, and grocery stores. PGs floods ship brands include an assortment of beauty, health, and household care products. PG operates in the personal and household products industry.

LOreal (LRCLY ) is a close competitor, and thus its performance has been used for comparison with that of PG. The objective of this essay is to perform a trend analysis of the performance of PG in terms of its profitability, liquidity, solvency, and efficiency with a comparison to that of LRCLY.

Profitability

Based on the horizontal analysis, PGs sales increased by 9 percent between the year 2008 and 2009. However, following the global economic meltdown in the year 2009 and 2010, sales dipped by 5 percent. On the other hand, LRCLYs sales increased by 8 percent between years 2008 and 2009wiht no growth recorded in the year 2009 but a 12 percent growth in the year 2010.

Profits for PG grew by 17 percent in the year 2008 and 11 percent in the year 2009. There was however a decrease in profits by 5 percent in the year 2010. In the case of LRCLY, its profits declined by 27 percent in the year 2008 and 8 percent in the year 2009. In 2010, there was a profit of 25 percent. Similar changes are notable from the trend analysis presented by the following table.

ROA shows the profitability of an organizations assets (Bierman, 2009). It is measured as the percentage of the net income to total assets of a company. LRCLY had a superior ROA than PG. PGs ROA was 11% in years 2008 and 2009 and 12% in the year 2010 while LRCLYs ROA was 17% in the year 2008 before falling to 15 percent in the year 2009 due to the economic meltdown. Recovery from the economic downturn led to an improvement in profits in the year 2010 where ROA rose to 17%.

Return on sales is a measure of the relationship between net income and sales for the period. PG generates higher net margins from sales as compared to LRCLY. For instance, in the year 2008, the company generated a return on sales of 14% as compared to a return of 11% earned by LRCLY.

In 2009 PGs return on sales was also superior (17%) to that of LRCLY (10%). A similar trend was noted in year 201- where PGs return on sales was 16 percent compared to 11% earned by LRCLY the following table provides a summary of return on sales ratios for the two companies.

It is also worth noting that LRCLY generated higher returns to common equity holders due to its relatively lower value of outstanding shares as at year end. The following is a summary of the rate of return for the two companies over the review period.

Based on the analysis of profitability ratios above, it is worth noting that PG is more profitable than LRCLY. However, the two companies had a decline in profitability in the year 2009, mainly due to the impacts of the global economic meltdown.

Liquidity

The two companies were in a poor liquidity position. Their current ratios are well below the standard benchmark of 2:1 and similarly for their quick ratios which are below the standard benchmark of 1:1. In 2010, PGs current ratio was 0.79 in the year 2008 (LRCLY: 0.90), there was a slight decline in the current ratio in the year 2009 where PGs ratio fell to 0.71 whereas that of LRCLY increased to 1.10. The following is a summary of current ratios for the two companies.

Quick ratios exhibited a similar trend to that of current ratio. PGs quick ratio was 0.52 in the year 2008, 0.49 in the year 2009 and 0.51 in the year 2010. LRCLYs ratios were better than those of PG. in the year 2008; its quick ratio was 0.68, in the year 2009, 0.83 and 0.79 in the year 2010. LRCLY has relatively stronger liquidity than PG. However, the liquidity position for both companies is below the standard benchmark. There is a need for the management to adopt better working capital management practices.

Efficiency

Efficiency ratios evaluate how well an organization utilizes its assets and liabilities to generate revenues. One of the main efficiency ratios is the average debtors collection period is a measure of the period taken by an organization in collecting amounts due from trade receivables (Helfert, 2001).

Having a high debtors collection period exposes an organization to credit risk in the form of high instances of bad and doubtful debts. The ratio is computed by the diving number of days in a year (365) with the debtors turnover. In the case of PG, it took 27 days to collect from debtors in the year 2010 whereas LRCLY took 48 days. Therefore, LRCLY has poor collection strategies as compared to those of PG.

Solvency

Evaluation of an organizations solvency is a determination of its ability to meet its long term financial obligations (Shim and Siegel, 1999). Several financial ratios have been devised to evaluate the solvency of an organization such as the debt ratio. Organizations with high debt ratios are highly insolvent since there are likely to be unable to pay debt obligations.

The two companies have been very conservative in the use of debt capital having debt ratios that were lower than 50 percent. Therefore none of the companies had solvency risks. However, LRCLY had made use of more debt in its capital structure as compared to PG.

Conclusion

PG has faced intense competition from its peer, LRCLY during the period under review. Its profitability was better than that of the peer, mainly due to its high efficiency. However, the impact of the economic meltdown had a more severe impact on the companys sales than it had on the peer company.

It is also worth noting that PG had made very minimal use of debt as compared to the peer company. Therefore if I were to choose a company to invest in, I would choose PG. This is due to its superior financial performance in terms of its profitability and better financial position about liquidity and solvency ratios.

Reference list

Bierman, H. (2009) An introduction to accounting and managerial finance. Boston: World Scientific

Helfert, E.(2001). Financial analysis: tools and techniques: a guide for managers. New York: McGraw-Hill Professional

Kapil, S., (2010) Financial management. India: Person Education.

Shim, J and Siegel, J., (1999). Schaums Outline of Financial Management, Third Edition. Chicago: McGraw-Hill Professional

What is a Sustainable Supply Chain?

Sustainability refers to the utilization of resources and the production of goods/services in a manner which takes into consideration not only the impact of a company on the environment but also its ability to ensure that the resources it utilizes are sourced in a manner that ensures that they can be renewable (Pullman, Maloni, & Carter, 2009). By doing so, this creates a system where costs are reduced, efficiency is increased and the company presents a far better public image due to the general consensus that implementing sustainable practices creates a beneficial effect for the general public (Pullman, Maloni, & Carter, 2009). As such, sustainable supply chains implement the aforementioned principles into a cohesive whole in every aspect of the supply chain, whether it is the sourcing of raw materials, the manufacturing of goods/services or the distribution of such outputs to consumers. From the perspective of Pagell and Wu (2009) an organization with a truly successful sustainable supply chain could theoretically remain in business forever (depending on continued consumer demand for its products of course) which lends credence to the beneficial effects a sustainable supply chain could have for a company (Pagell and Wu, 2009).

One example of a sustainable supply chain is when a companys management orientation is evidenced by a business model where economic goals are compatible with environmental and social goals. In this particular version of a successful supply chain a company does not focus entirely on a competitor oriented approach (though this is also important) rather what is being accomplished is that it focuses on developing a business model that utilizes Corporate Social Responsibility (CSR) as the basis behind its actions (Pagell and Wu, 2009). Since CSR is a form of internal self regulation, a company that implements this focuses on reducing adverse environmental practices while at the same time develops positive social effects. A second example of a sustainable supply chain is when sustainability becomes integrated in the organization where the organization has both a managerial orientation toward sustainability and an innovation capability (Pagell and Wu, 2009).

This means that internal developments within the organization focus on developing methods wherein processes become more efficient, waste is reduced, resources are obtained from renewable sources and the focus of the company is towards the development of practices that result in positive environmental effects. One last example of a sustainable supply chain comes in the form of the use of the concept of collaboration between companies in order to maximize the use of resources and minimize wastefulness. All too often companies fear cooperation due to the potential of a loss of commercial control however this often results in the creation of wasteful practices (i.e. loading a shipment in a truck, vessel or plain that is not full which wastes fuel). By implementing practices in relation to cooperation and collaboration a supply chain becomes more sustainable due to the reduction of expenditure related to the transportation of goods and services.

Sustainable and Traditional Supply Chains

Traditional supply chains have always operated under the concept of getting a particular product or service from one location to another in order to satisfy consumer demand. It has been an integral aspect of economic activity and one that has stood the test of time as a necessary method of commerce. Yet, what must be understood is that it has only been within the past three decades that aspects related to growing consumer concern regarding the environment, the necessity of Corporate Social Responsibility and the development of the green movement that sustainable practices have been integrated into supply chain management. Supply chains which ascribe to the traditional method of product creation and distribution have often focused so intently on raw material extraction that the end result has been the complete depletion of resources at the raw material supplier level which often causes the entire chain to collapse (Abbasi & Nilsson, 2012).

This was seen in the case of South America, Eastern Europe, Asia and various parts of Australia where the extraction of lumber outstripped the ability of forests to replenish the necessary trees to meet demand resulting in the collapse of several industries as a direct result of this distinctly unsustainable method of resource extraction. Thus, from a certain perspective, it can be stated that waste in the name of production was an enduring facet that can be attributed to traditional supply chains. Sustainable supply chains on the other hand ascribe to a different tactic which focuses on ensuring the continuous flow of resources from one aspect of the chain to another by employing methods which ensure that the raw materials which go into the finished product are extracted and refined through sustainable means (Paulraj, 2011). The advantage this particular method of supply chain management has over traditional methods comes in the form of a far more stable method of supply and production where the creation of products and services are not interrupted due to the depletion of resources at one end of the chain (Pagell, Wu, & Wasserma, 2010).

In terms of creating a competitive advantage it must be noted that organizations that utilize sustainable supply chains have a better cost performance due to their emphasis on reducing waste, have a greater degree of positive public responses due to their emphasis on sustainable practices which is a part of Corporate Social Responsibility and lastly, such organizations are less likely to encounter problems in terms of sudden stoppages in their supply line as a direct result of resource exhaustion (Reuter et al., 2010). When combining such factors it becomes evident that this creates a considerable degree of competitive advantage and is something many corporations have taken into consideration given the positive effects this could have on cost reduction, positive public perception and the uninterrupted production and distribution of goods and resources (Reuter et al., 2010).

Recognizable Challenges

One of the main problems in developing sustainable supply chains is the competitive environment that companies find themselves in at the present which can actually dissuade them from developing sustainable supply chains. What you have to understand is that the current global trade environment is drastically different than it was 30 years ago. While it may be true that consumers have developed a greater degree of consciousness toward the concept of environmental deterioration as a result of industrial processes which translates into preference for sustainable practices in the methods of production for the products they patronize, the fact remains that despite this inherent preference various studies have shown that when it comes down to preference versus affordability, a vast number of consumers still choose a more affordable product rather than one that was created through sustainable means. This has resulted in practices which are distinctly unsustainable finding their way into a variety of supply chains at the present due to its emphasis on getting consumers what they need at an affordable cost despite the inherent environmental costs this may incurr.

Contributing to this problem is the current practice of business process outsourcing which has have encouraged the development of the traditional supply chain due to the cost saving measures this entails for companies. It is interesting to note that the development of sustainable supply chains is actually a practice encouraged by governments due to the increasing amount of concern regarding the state of the environment. Unfortunately, as seen in the case of many western countries such as the U.S., this encouragement towards the development of more sustainable and environmentally beneficial practices for various corporations has resulted in higher costs of doing business coupled with stricter requirements that need to be followed. Environmental restrictions, regulations, laws, local conservation policies and a variety of other practices meant to encourage the development of sustainable supply chains have made it far more costly for companies to do business in countries such as the U.S. which has resulted in a far greater predilection towards the use of outsourcing in order to shift their methods of production elsewhere. This has in effect discouraged the creation of sustainable local supply chains in favor of the creation of traditional supply chains in other countries where local regulations regarding production are far less strict.

Management Implications

There are four characteristics that are in demand within a technology oriented enterprise, namely: high market responsiveness, fast developments, low cost, and finally high levels of creativity, innovation and efficiency. Technology intensive enterprises in particular are constantly pushed towards performance initiatives that place an emphasis on doing things faster, better and with fewer resources. In fact, this push towards better competitive performance through effective and more efficient resource utilization and allocation is one of the current driving forces of many high-tech organizations. It must be noted though that the production processes of certain forms of technological output (i.e. consumer electronics, computer components etc.) do have an impact on the local environment which should be taken into consideration by an organization that utilizes corporate social responsibility as one of the foundations of their managerial practices.

What must be understood is that the drive for faster, better and less resource intensive production processes that are currently being pushed by various companies actually results in many of them choosing to utilize methods of production that have an adverse impact on the local environment. For example, various stores sell vegetables that they deem as being sustainable due to the fact that they were grown utilizing only natural fertilizers yet in order to grow them an entire forest was clear cut in order to make way for farming land. It is due to circumstances such as this that term of green washing comes to mind wherein due to the inherently similar definitions companies sometimes state their products as being sustainable when in fact there is little about them that is sustainable in the first place. Taking this into consideration, the management implications for building sustainable supply chains comes in the form of implementing procedures that not only reduce the negative environmental impact of production processes, reduce waste and ensure that innovative methods of production and resource extraction are utilized but they must also be ethical in terms of actually being sustainable practices instead of merely labeling them as sustainable when in fact they are not.

Reference List

Abbasi, M., & Nilsson, F. (2012). Supply Chain Management: An International Journal Emerald Article: Themes and challenges in making supply chains environmentally sustainable. Emerald, 17(5), 1-29.

Pagell, M., & Wu, Z. (2009). Building a More Complete Theory of Sustainable Supply Chain Management Using Case Studies of 10 Exemplars. Journal Of Supply Chain Management, 45(2), 37-56.

Pagell, M., Wu, Z., & Wasserma, M. E. (2010). Thinking Differently about Purchasing Portfolios: An Assessment of Sustainable Sourcing. Journal Of Supply Chain Management, 46(1), 57-73.

Paulraj, A. (2011). Understanding the Relationships Between Internal Resources and Capabilities, Sustainable Supply Management and Organizational Sustainability. Journal Of Supply Chain Management, 47(1), 19-37.

Pullman, M., Maloni, M. J., & Carter, C. R. (2009). Food for Thought: Social Versus Environmental Sustainability Practices and Performance Outcomes. Journal Of Supply Chain Management, 45(4), 38-54.

Reuter, C., Foerstl, K., Hartmann, E., & Blome, C. (2010). Sustainable Global Supplier Management: The Role of Dynamic Capabilities in Achieving Competitive Advantage. Journal Of Supply Chain Management, 46(2), 45-63.

Outline

This White paper analyzes the case study about the Automated Production Control System Case of the Ajax Company. The paper identifies and describes the associated risks pertaining to the two alternatives under consideration. The report has been prepared in the form of a White Paper.

Description of Problem and/or Need

In have decided to implement a project that aims at automating its production planning and control systems, the Ajax Company is faced with the issue of deciding amongst two options in the context of feasibility in performing the required functions and to improve its efficiency. The company can purchase the best available systems from the market and modify the same as per production requirements or can develop on its own a system that supports the current production procedures. The need to change is vital to meet the technological advancements in the companys area of operations. By implementing the changes, Ajax can considerably enhance its efficiency and productivity.

Overview of the Organization

Ajax must analyze the risks involved in both options and decide upon the best strategy in meeting its corporate objectives. The company will have to involve its risk management team in identifying all sources of risk in terms of their extent and their relationship with different production processes. The company needs to ascertain the impact on costs, schedules quality, and performance. Ajax is a well-established company in its field and has the required expertise and manpower to take the most appropriate decision in this regard.

Overview of Proposed Project

The basic purpose of the project is to find the best option to be used in the companys production planning and control systems in order to integrate them with the latest technological advances. This can be done only by analyzing all associated risks and then preparing a contingency plan in advance in order to save time when the problems surface. The company will benefit from such measures in establishing a competitive edge for itself in adopting the best technologies. The project is important since it is vital to take care of all possible risks so that production does not suffer or get delayed because of hurdles created from anticipated or unforeseen risks.

Project Risk Elements Identified

If the company chooses to purchase the most suitable commercial off-the-shelf system (COTS), there is a disadvantage in terms of the benefits being limited since most of such products are not flexible in being 100% compatible with the existing systems, although the development risks are low. The second option of developing systems that support the current production processes does offer better chances of compatibility and technical and well-designed objectives being met, but there are considerable risks pertaining to software development. Therefore, with the second option, there is a risk of delays in schedules being met and of higher budget overruns. The first option results in a large number of negative developments in addition to the inability of the software to be modified for given needs. It also cannot be integrated with the present management information systems and data. The second option has risks by way of unexpected hurdles that arise in putting together components of the new software and the excess time taken in the processing and recovery of information.

Outcomes

In choosing the first option of buying the commercial off-the-shelf system, the company will not face too many uncertainties due to the reduced development risks, but the benefits are too less in meeting the objectives of adopting the best technology to achieve a competitive edge. In using this option the company will incur lesser uncertainty and risks since costs, schedules, quality, and performances will not be impacted much. In choosing to develop a system on its own which supports the current production procedures, the company benefits in view of the enhanced possibilities for better performance. The company should rank the risks in terms of their severity and measure the disadvantages occurring from each of them and then make a measured decision in terms of costs and profitability.

Evaluation

The evaluation of the risk factors will have to be done by the company in terms of their extent and their relation to the different designs. The evaluation has to be done of the probable effect on costs schedules and performance levels. Ajax then needs to find alternatives that reduce the prevalence of risks. Contingency plans have also to be put in place to reduce costs and time taken for developing programs.

Conclusion

In keeping with the objective of the company to derive maximum benefit by reducing risks to the maximum, the better option is to use a system that it can develop on its own. This will enable Ajax to effectively support the different production and planning processes currently in force. This option will result in better efficiencies despite the higher risks. The company is competent to manage the risks effectively in view of its established practices of managing risks effectively.