Category: Business 11471

Briefly summarize the key events surrounding the case

The key events surrounding the case of Fred Stern & Company, Inc include the acts that restricted the rights of auditors and plaintiffs making the case really complicated. As such, any company can make a financial statement which contains some errors while the work of auditors is in identifying all misstatements. At the same time, it is important to review the figures and be able to correct the financial statement in case it contains some errors. The company ran by Fred Stern was in the rubber importing business though it could not afford to increase the volumes of imported goods due to lack of capital. As such, it needed a loan to obtain which could improve its business. The decade when the company operated was full of frauds and lack of restrictions and legal regulations in liabilities and auditing was apparent.

At the same time, the number of frauds who operated well-performing companies was not large. In this respect, small companies were more likely to employ people who turned out to be frauds or to deal with frauds. So, the company ran by Fred Stern used the Touche auditing company as an independent auditor for several years due to good reputation of the latter. As such, the key events surrounding the case include the level of fraud and the limitations in auditing responsibility when the auditing company bears responsibility for misstatements and inappropriate information. The opportunity for fraud could be used by any individual who was involved in business or worked for an auditing company.

Briefly summarize the key auditing topic (example, ethical conduct, independence, legal liabilities to foreseeable users, etc); relevant issues to the Auditing

The case is based on such key auditing topic as professional issues in auditing including unethical behavior and negligence as well as attempts of fraud. As the case is confusing, it was important to identify the fault of the auditors and the company that made an incorrect financial statement. At the same time, the legal liabilities to foreseeable users can be listed as key topic related to the case in terms of auditing issues.

The unprofessional and unethical behavior can be considered synonymous because a professional is aware of the ethical code and should follow it. As such, it was necessary for the auditors to report about the discrepancies between the results of auditing and the sheet prepared for financial statement. The thing is that the auditing company was aware of the Sterns intent to get a loan from a larger company and a bank without knowing that financial balance sheets would be provided at request.

The inappropriate figures indicated in the balance sheet were received after one of the auditors for Sterns company added a few entries falsifying the balance sheet for Stern to obtain the loan whereas the financial conditions of the company were not too promising.

In this respect, the unethical behavior when a representative of the auditing company falsifies the entries in the customers balance sheet as well as an attempts to misinform the stakeholders about the financial conditions of the company are key issues related to auditing activities. Actually, it was not clear whether the auditing company was an independent auditor provided that they were aware of Sterns plan to obtain a loan and falsified the balance sheet to help the company.

Introduction

Advisory services provided by a company encompass a broad range of services that business consultants offer. Such services include advice on the formation of capital, the management of financial assets or cash flow, the integration of successful business strategies, and so on. An advisory company may assist its clients in establishing both long- and short-term business goals and suggest various investment options based on the established goals. As a rule, businesses and high net worth individuals seek the services of an advisory company. Responsibilities that employees in an advisory firm must implement include the following:

• Conducting meetings with clients to understand their financial capacities and goals;
• Educating customers about different forms of investment and how they can affect their business;
• Recommending suitable investment options and helping to develop a financial plan;
• Monitoring clients progress and recommend improvement steps.

It is important to mention that the majority of advisory firms spend the largest bulk of their assets on advertisements of their services to attract new and prospective clients. This means that an advisory company does not require a large office nor does it have to employ a lot of staff. To minimize their spending and maximize profits, an advisory company can consist of several individuals who perform key functions in a company.

Best Legal Form of Company to Create in UAE

When it comes to creating an advisory company in the UAE, it is first important to select the least expensive and the simplest legal form of company. It has been suggested to create an advisory company with a friend who may be considered a business partner. In this case, a general partnership (GPC) is the easiest and the cheapest legal form of company that only UAE nationals can create. Such a company is usually created by at least two partners who are responsible for the overall performance of a company while also being liable for its debts. Under the UAE law, interests of partners in a general partnership are conveyed either through the approval of another partner or the written expression of partnership in a legal agreement. Due to the reputation of the UAE as a tax-free jurisdiction that discourages all forms of money laundering, the government supports the establishment of general partnership companies by UAE citizens, which means that the process of creating an advisory company in this manner will be the least complex and the most cost-effective in the UAE context (GPC  general partnership company  partnership in UAE, 2017).

Advantages of General Partnerships

When creating a general partnership company to advise clients on business optimization, it is essential to note several advantages that place the choice of such a legal structure above other options. First, easy formation is essentially the largest advantage that a general partnership company offers. Its creation requires a minimum amount of paperwork; as a rule, partners sign a contract of general partnership commencement, which describes the distribution of profits and losses. Second, the general partnership gives equal rights to each partner with regards to participation in the control and management of the business. This means that the responsibilities of each partner in a GPC are clear to one another, which minimizes the number of misunderstandings and other conflicts that may arise based on owners responsibilities. Third, it is important to mention that unlike other countries, the UAE does not impose federal income taxes on general partnership companies as they only consist of UAE nationals. As a rule, the government predominantly enforces taxes on foreign companies that actively engage in oil and petroleum activities as well as foreign banks (PWC, 2015). Fourth, the overall general partnership system allows for an easy resolution of disputes and does not require the involvement of too many stakeholders, which may often facilitate bureaucracy that often occurs in such a legal structure of companies as corporations.

Comparison of General Partnerships with Other Legal Forms

Compared to other legal types of companies, a general partnership has been concluded to be the most reasonable because other structures bear a large list of disadvantages that may hinder the effectiveness and the profitability of business advising company. For instance, if to compare a general partnership with a joint venture, there is one major disadvantage that makes joint ventures less effective  issues of equal involvement, which is usually practiced in general ownerships (12 advantages and disadvantages of a joint venture, 2017). Another example is a limited liability company (LLC) structure, which suggests that the responsibilities of owners are only limited to the value of shares that they hold, which means less equality between partners.

While an LLC structure may be a solution for the advisory business in the future because of possible growth and expansion, it is not appropriate to be used at the first stages of a companys creation and early development (LLC  limited liability company in UAE, 2017). Lastly, it is also important to mention that neither a public shareholding company nor a private shareholder company structures can be applied to the scenario of creating a small advisory company with a minimum amount of employees and partners. The mentioned legal structures of businesses are characterized by such complex rules of having no less than ten founders (public shareholding) or ensuring a minimum capital of AED 2 million (private shareholding), as well as many more regulations. At the moment, the advisory company is planning to operate on several human resources and spend as little as possible on unnecessary amenities to invest in advertising and attracting potential clients. Therefore, large starting capitals are out of the question in this case, which means that a general ownership structure will potentially bring the most advantages to the company.

Procedures to Open a Business

To open a business, several legal and governmental procedures should be undertaken. In the beginning, it is important to ensure that partners in a general partnership company are all UAE nationals. Also, the name of the company should include the names of partners to show that they have equal responsibilities in businesses (Dubai Chamber of Commerce and Industry, 2012).

It usually takes approximately fifteen days to start a company in the UAE; however, the maximum period is sixty-two days. First, the company should determine its nature of the activity (consulting) to obtain an occupational license from the Abu Dhabi Department of Economic Development (Starting a business, 2017). Second, it is important to come up with a legal form of the company. For instance, because the company is planning to become a financial consultancy firm, it is more likely to be a stand-alone business, which means that a sole proprietor is not allowed to take up such an activity (Starting a business, 2017). Therefore, the company should establish itself as a general partnership company.

Third, the company should register a trading name, which should follow a large list of legal conditions. For instance, the name of the company to be registered should not have been registered previously; it should align with the activities of the company and its legal status, it should not mention any religions, authorities, international bodies, and so on. Other requirements for a trading name include adhering to public law, being honest with potential clients, and being different from other registered names. It is essential to note that in case of non-compliance with the mentioned rules on trade names, the DED has the authority to cancel or change the companys name.

After obtaining a trading name and deciding on the occupational license to issue, the company should apply for approval from DED for enabling the completion of all other procedures promptly. Even though the majority of economic activities in the UAE usually need only a preliminary approval of business, some companies that apply for registration may be asked to contact other authorities to obtain approval. After getting all approvals necessary for the registration, applicants can contact the DED for paying the required fees, submitting documents, and collecting a business license (Starting a business, 2017). Depending on the legal and economic status of a company, the required documents may vary.

Other steps involved in the registration of the advising company include the establishment of a directors board. Since the company is not planning to hire many employees, the board of directors can include only the two partners involved in a general partnership. Regarding local support for the company, it can be advised to have a local agent (sponsor, partner, etc.) for helping to get business forward, expand, and develop. However, this is not a mandatory requirement for UAE nationals; foreign business owners are more likely to benefit from having a local agent.

Additional Steps for the Type of Business

In conclusion, it should be mentioned that setting up a company in the United Arab Emirates is not as complex compared to other countries. Since the company does not impose corporate income taxes on its nationals, a general partnership between two friends is a venture that can be undertaken with minimum efforts and financial support. Additional steps (or advice) that a general partnership can use to its advantage include sharing the same values between partners, choosing a partner that has complementary skills, defining roles and responsibilities from the first days, drawing up legal documents for increased clarity, and facilitating the culture of honesty. Even though the mentioned advice does not necessarily cover steps to create a business, they cater to the needs of a general partnership, which implies honesty and equal distribution of responsibilities between partners.

Overall, an advisory firm created as a general partnership has some great business opportunities in the United Arab Emirates. After obtaining an occupational license and registering a trading name, the company will be legally eligible to offer its consulting services to its clients. Since the advising services will be provided to clients on-site, the company has great potential to meet new clients and maximize its advertisement efforts to achieve success.

References

Dubai Chamber of Commerce and Industry. (2012). Starting a business in Dubai. Web.

GPC  general partnership company  partnership in UAE. (2017). Web.

LLC  limited liability company in UAE. (2017). Web.

PWC. (2015). Doing business in the UAE. A tax and legal guide. Web.

Starting a business. (2017). Web.

12 advantages and disadvantages of a joint venture. (2017). Web.

Introduction

In a fast-paced business environment, it has become a necessity for organizations to come up with strategies to improve service delivery while reducing operational costs. Business process reengineering has to do with identifying, analyzing, and redesigning an organizations major business procedures with the key aim of increasing or improving output. The aim is to ensure that there is efficient utilization of resources to reduce costs and ensure that better services are provided by different departments in the organization (Davenport, 1993). These different functions carry out their functions by setting their departmental objectives with the overall business mission and vision. Also, known as business redesign, re-engineering makes use of technology to improve the various business processes and not entirely replace the way of doing things in the business. Technology plays a vital part in business processes re-engineering. It ensures proper communication within the business and also between the business and the outside world (p. 124). This can be through shared databases, wireless communication systems, automatic identification, and tracking among others.

Body

The first step in the business process of engineering is making sure that the business has a practical mission. It should be directly related to business goals. Goals are usually drawn from the mission. Goals ensure that the various departments are aligned to meet the overall business mission. Meeting these departmental goals ensures that the various steps of improvement in the production of goods and services. Business process re-engineering ensures that the various departments are giving their optimal performance (Grover, 1995). Most of all it seeks to improve the whole business process in general and recognizes the fact that the whole business success. This is a distinguishing factor between re-engineering and process improvement that focus on functional improvement (Grover, 1995).

The first step in a functional business re-engineering process making sure that the business vision dictates the business goals. Then you have to make sure you correctly identify the business departments where changes have to be made. These are those areas that seem to have goals that are contradicting the business mission. One has to understand these processes targeted for change to know where there are shortcomings and how best to solve them. Also, identify areas where technology can be incorporated to make them more productive.

When re-engineering the business several factors determine how the process is to be affected. If there are emerging conflicts due to the business process, re-engineering should seek to come up with solutions to these conflicts. The presence of distorted communication that is not timely is a sign that engineering needs a high percentage of technologically improved communication strategies. Reengineering business processes should be done with a lot of care. This makes sure that it does not upset the entire organization. It can lead to detrimental effects like lay off of workers since it tends to assume that business low performance is because of underperformance of people. In business reengineering, it is important to note that downsizing staff notes the key point here, but other important factors should be put under consideration (Davenport, 1995). Taking the step-by-step approach is a more viable option than replacing the whole system at once.

It is a smart move for an organization to adapt business re-engineering strategies as it increases profits.

Conclusion

In conclusion, business reengineering is a radical change in the way an organization carries out its activities to adapt to changing needs of customers, competitors, and other key business indicators.

References

Davenport, T (1993). Process Innovation: Reengineering work through information technology. Boston: Harvard Business School Press.

Grover, V (1995). Business Process Change: Reengineering Concepts, Methods and Technologies. New Jersey: Idea Group Publishing.

Business organizations currently must have an effective warehousing and inventory management system for manufacturing equipment within the mining industry. Choosing the best methods for storing, supplying, and purchasing is crucial for quality and reliability in inventory management. Individual item criticality, which explains how important a component is, should be taken into account in this situation. In this sense, both qualitative and quantitative methods could be used to assess such criticality in the given industry.

Quantitative methods and qualitative methods can both be used to categorize the criticality of inventories. It is standard procedure in the mining industry to employ ABC categories, a conventional classification, to ascertain the maintenance needs for spare components (Ahmad and Mondal, 2019). The categorization makes inventory control simpler for businesses. The goal of ABC analysis is to divide the stock-keeping units (SKUs) into three categories: A (extremely significant products); B (relatively essential products); and C (less significant products) (Teixeira et al., 2017). ABC category validates the inventory control of commodities that are generally homogeneous and is simple to utilize (Teixeira et al., 2017). Product annual demand and mean unit price are used as the grading criteria.

The qualitative methods typically employed for classifying mining spare parts are based on subjective assessment or grading techniques. The given approach is the VED (Vital, Essential, Desirable) criteria (Teixeira et al., 2017). The expertise of the maintenance specialist is the foundation of the VED categorization system (Pardede & Vanany, 2021). Despite appearing straightforward, the structure can be challenging because user perceptions can affect how it is implemented. Hence, among some criteria that can be used to determine the criticality of inventory within the mining industry are ABC analysis and VED categorization.

References

Ahmad, M.T. & Mondal, S. (2019). Dynamic supplier selection approach for mining equipment company. Journal of Modelling in Management, 14(1), 77-105. Web.

Fisher, M. L., Hammond, J. H., Obermeyer, W. R., & Raman, A. (1994). Making supply meet demand in an uncertain world. Harvard Business Review, 72, 83-83. Web.

Pardede, S. R., & Vanany, I. (2021). Analysis and Control for Heavy Equipment Spare Parts Inventory in the Nickel Mining Industry. IPTEK Journal of Proceedings Series, 6, 478-483. Web.

Sainathuni, B., Guthrie, B., Parikh, P. J., & Kong, N. (2019). Distribution planning for products with varying life cycles. Flexible Services and Manufacturing Journal, 31(1), 41-74.

Teixeira, C., Lopes, I., & Figueiredo, M. (2017). Multi-criteria classification for spare parts management: A case study. Procedia Manufacturing, 11, 1560-1567.

Lidl is one of the leading grocery discounters in the European and global markets. The retailers worldwide volume in sales was ¬62.7 billion in 2014, which made it the ninth top grocery retailer in the world or number one in Europe (Schmid et al., 2018). The company was established in Germany in 1973 and started its international expansion in 1989. At present, it operates in approximately 30 countries (in Europe and North America). The organization has to face rather fierce competition in Germany and globally, and it chose international expansion as one of the strategies to develop and maintain its competitiveness. This report includes an analysis of the potential benefits of the entry of Lidl into the Mexican market in comparison to its prospects in Norway.

Macroenvironmental Analysis

In order to identify the most appropriate country for further expansion, it is possible to implement a macroenvironmental analysis. The basis of this examination will be the PESTEL model that implies the focus on such factors as political, economic, social, technological, environmental, and legal (Henry, 2018). First, it is necessary to admit that Norway and Mexico are rather different countries as the former is a developed country with a strong economy, while the former is an emerging market from the developing world. It is important to add that Mexico is regarded as one of the rapidly developing and highly attractive markets due to its governments focus on competitiveness, innovation, and technological development (Stevanovic et al., 2018). As far as political aspects are concerned, Norway appears to be an attractive destination for any business, while Mexican political characteristics lead to quite mixed conclusions.

For instance, Norway rests on the 16th position for the public-sector performance, whereas Mexico is only the 59th country on the list (World Economic Forum, 2019). Norways index of corruption is 84.0 (out of 100), while Mexico scored only 28.0. However, the indices related to corporate governance (conflict of interest regulation) are not very different and range between 6 and 7 (out of 10) (World Economic Forum, 2019). Although the government ensuring policy stability index is 3.6 for Mexico and 5.2 for Norway, the difference between the governments responsiveness to change indices is less pronounced (3.0 for Mexico and 4.5 for Norway). Notably, Stevanovic et al. (2018) emphasized that the governments preparedness and willingness to change and innovate has become central to countries development and competitiveness.

Economic factors are also mixed for the two countries, making Mexico an attractive host country. Norways GDP per capita was 81,694.6 U.S. dollars in 2019, while in Mexico, this indicator was only slightly higher than 9,807 U.S. dollars (World Economic Forum, 2019). Clearly, such data demonstrates the economic wellbeing of people in Norway and the lack of economic stability in Mexico, which has an impact on peoples buying capacity. At the same time, the percentage of ten-year average annual GDP growth illustrates a high potential of Mexico (with its 2.6% compared to 1.4% in Norway) (World Economic Forum, 2019).

Social factors influencing organizations development are more favorable in Mexico. The Mexican population is over 124 million people, while in Norway, only slightly over 5 million people live (World Economic Forum, 2019). More importantly, population density, which is an important indicator for a discounter chain, is 65 people per square kilometer in Mexico and only 5 people per square kilometer in Norway (World Bank, 2019). This low population density became one of the primary reasons for the failure of Lidls entry to the Norway market in 2008 (Schmid et al., 2018). The grocery discounter chain had considerable issues with logistics and customers who reached the stores occasionally, which is unacceptable for a discounter.

The technological development of Norway is overall higher than that of Mexico, but in some areas, the difference is not critical. At that, these areas are essential for logistics, especially when it comes to retailers. The road connectivity index of Norway is 90.3 (compared to 66 in Mexico), but railroad density is 11.3 kilometers per 1,000 square kilometers in Norway and 7.3 in Mexico (World Economic Forum, 2019). The index of the efficiency of seaport services is 5.1 in Norway and 4.3 in Mexico. Mobile-cellular telephone subscription in Norway is 107 per 100 and 93 per 100 in Mexico. It is clear that the gap between the two countries is not as big as it could be.

The environmental factors do not have an overwhelming influence on retail chains operations in both countries, but both countries try to encourage companies to increase their consumption of renewable energy. Lidl, with its values and experience, can become one of the exemplary corporate citizens in Mexico. Legal factors that can affect the development of the retailer in both countries are quite favorable in both countries. As the interests of business are safeguarded by the government and the judicial system, but, of course, this security is considerably higher in Norway.

The quantitative PESTEL analysis (see Appendix) shows that Norway could be an attractive market for Lidl as its total score equals to that of Mexico (18 to 18 respectively). Nevertheless, when it comes to the most influential factors for the companys entry (for instance, population, population density, road connectivity, and road infrastructure quality), Mexico has higher scores. The PESTEL analysis of the prospects of Lidl in Norway and Mexico suggests that the latter is a more attractive option for the retailer.

Competitive Intensity of Lidls Industrial Environment

In order to explore the competitive density of the organization under consideration, it is possible to apply Porters Five Forces. This instrument consists of the analysis of such aspects as the threat of new entry, the threat of substitution, supplier power, buyer power, and competitive rivalry (Henry, 2018). The prospects of Lidl in the Mexican market are rather attractive due to certain features of the Mexican economy. As far as the threat of substitution is concerned, it is low, which is favorable for the company (see Figure 1). One of the most obvious threats in this respect is the online retail market that is developing rapidly in Mexico, as well as the global market (Castellanos, 2019). Walmart offers the delivery of its products at the customers doors, which is gaining popularity among the growing urban population. The development of technology and the growth of internet coverage in the country contribute to the increasing use of such services. However, discounter retail chains have a competitive advantage due to their low prices and well-developed networks of outlets. It is still more convenient for many people to buy products and various items from these sellers rather than buy online.

The threat of new entry is characterized by medium power as new players can enter the market, but to be competitive, they will need quite substantial investment. The retail market is rather competitive; however new players, such as local or international chains and traditional stores, can still enter. Nevertheless, to earn competitive advantage and occupy a niche, they will need to invest substantial funds, which makes entry less attractive for many, especially in the period of upcoming financial constraints (Castellanos, 2019). The influence of the USA on the economic development of Mexico is still significant, so the relations between these two countries may also affect the financial stability of the latter (Stevanovic et al., 2018). Hence, the threat of new entry is low although some players may appear, which should be considered when developing the strategic plan for Lidl.

Supplier power is associated with positive outcomes for retailers because it is low. The suppliers are exploited by retailers, especially when it comes to well-developed chains. Suppliers have to deal with bulk orders and cut prices to win the competition and retail contracts (Castellanos, 2019). Local producers and international manufacturers (over 70% of imported goods come from the USA) provide a wide range of products (Castellanos, 2019). Low labor prices in Mexico, its agricultural potential, as well as the proximity of the United States and the development of logistics and transportation, enable numerous suppliers to reach the market and make their competition over contracts stiff.

Regarding the competitive rivalry in the retail market, it is quite considerable. Such giants as Walmart have a substantial influence on the development of the grocery retail market in Mexico. The company operates in different formats in Mexico, directly and through its chains Bodega Aurrera and Superama (Castellanos, 2019). Local companies, such as Soriana, Chedraui, and Commercial Mexicana, are retailers with well-developed networks of outlets across the country, mainly in its biggest cities. It is noteworthy that almost 80% of the Mexican population lives in big cities (Castellanos, 2019). The market is competitive, but it is steadily growing, which opens up valuable opportunities for retailers. Although almost half of the market is composed of traditional trade, supermarkets share is also considerable (25%) (Castellanos, 2019). Moreover, the retail market increased in sales by over 8% in 2018, and supermarkets were the drivers of this growth (Castellanos, 2019). Hence, the competitive rivalry is quite high, but an effective strategy can make Lidl successful in Mexico.

Buyer power is the most challenging force that has a significant impact on retailers operating in Mexico, and similar trends are apparent globally. As mentioned above, online retailing is developing at a considerable pace, so some products are often ordered online. People living in big cities and working long hours, tend to find it more convenient to have certain products delivered at their door (Castellanos, 2019). However, discounters still have a competitive advantage due to their low prices and highly developed networks. Buyers also access and share information easily, so the news regarding low prices different retailers offer or scandals (a controversy or any other negative data) spreads quickly. The buyer power is high, so Lidl will have to develop the corresponding strategies.

Lidls Internal Environment

Companies internal environment should also be considered when identifying their competitive advantage (Henry, 2018). The value chain model is an effective instrument to analyze this aspect and evaluate the organizations value-added activities that can support the entry into the Mexican market (see Figure 2). The analysis includes the focus on primary (inbound logistics, operations, outbound logistics, marketing and sales, service) and supportive activities. (infrastructure, human resources management, technological development, and procurement).

As for inbound logistics, Lidl has managed to achieve considerable competitive advantage in Europe and the USA. The majority of the items sold in the stores are Lidl brands, which enables the company to set low prices and attract more customers (Ladd, 2018). The company also establishes close contacts with local farmers and producers in the regions where it operates, which also ensures effective procurement. Lidls operations are also characterized by high performance due to the focus on their won production of the delivered goods. This strategy enables the retailer to control the quality of its products. The company has developed effective outbound logistics strategies, and it has warehouses to support its operations. At that, Ladd (2018) states that the company should be more careful with choosing the location of their stores and establishing distribution centers in the most appropriate places. Although the companys strategy has proved to be effective in Europe, some issues emerged in the U. S. market. Hence, this area needs specific attention when developing a strategic plan to enter the Mexican market.

Marketing and sales effort are building competitive advantage as well. Lidl stores have a similar layout and space, which is convenient for customers. The deviations from this strategy led to certain difficulties in the American market, so the European approach should be used in Mexico (Ladd, 2018). As mentioned above, the discounter offers products at very low prices, which makes other competitors less successful or more focused on prices (Steenkamp & Sloot, 2018). The company also launches numerous campaigns that reach diverse objectives. The products are displayed in their original package, which reduces costs and the time for replenishing the shelves. In addition, Lidl started its bring your own bag campaign that helps them reduce their costs related to package (providing customers with bags) (Lidl, 2020). Apart from cost saving, this policy serves as an environmentally-friendly activity, which is positively accepted in the Western society that is environmentally conscious.

The policies mentioned above also instrumental in creating a favorable atmosphere for customers who pay less and receive high-quality products. The staff of the retailer is continuously trained in terms of their human resources management strategies (Steenkamp & Sloot, 2018). The staff is friendly, and people receive the necessary information, so they are willing to buy more. Ladd (2018) admits that Lidl managed to attract a considerable army of American shoppers, so it has high potential in other regions of the western hemisphere as well. The author stresses that local customers preferences should be analyzed and the necessary policies and campaigns should be developed.

The analysis of support activities also suggests that the company can enter the Mexican market successfully. As mentioned above, procurement is associated with the use of distribution centers, which makes transportation and logistics effective. Nevertheless, the locations for these centers should be chosen carefully to ensure the reach of the maximum number of stores in a particular area. Long-term contracts with partners ensure control over costs and operations.

Human resources management policies involve various training and development incentives for employees, which has a positive effect on the quality of provided services and customer satisfaction. The use of advanced technology has become one of the priorities that drive the organizations competitive advantage (Schmid et al., 2018). The above-mentioned bring your own bag campaign is supported by the use of appliances that enable customers to weigh products and purchase them comfortably. The retailer also employs effective information systems and equipment, which has a positive impact on its operations (Steenkamp & Sloot, 2018). These strategies should guide Lidls entry into the Mexican market. Lidls infrastructure has proved to be effective as the companys global expansion has been successful in the vast majority of countries (Schmid et al., 2018). Nevertheless, the expansion failures in Norway or difficulties in the U. S. market should be considered, and the corresponding adjustments should be made when entering into the Mexican market.

Modes of Entry

Organic Growth

International retailers employ different modes of entry depending on their resources, culture, as well as the target market. The company under study also utilizes diverse strategies for entering new markets (Schmid et al., 2018). For example, Lidl tends to choose organic growth but also resorts to the acquisition of competitors (Zentes et al., 2016). The latter mode was chosen for operations in Romania and Bulgaria, where the organization has gained the necessary popularity among local people.

A combination of the two models mentioned above can be effective in Mexico. Organic growth implies the multiplication of domestic operations in new markets (Zentes et al., 2016). Importantly, the development of strategies and operations are based on the companies domestic experience that is transferred with only some adjustments. Zentes et al. (2016) stress that the creation of a completely different model for other countries instead of replicating domestic operations is likely to lead to considerable issues. This approach is also referred to as greenfield investment and is associated with the setup of wholly-owned subsidiaries (Zentes et al., 2016, p. 173). This entry mode ensures a high level of control over operations and the process of the establishment of business in the new market. At the same time, it is related to several disadvantages that should be addressed. High costs of the strategy are one of the weaknesses of the model. Another obvious risk is the threat of a failure due to the necessity to operate in an unknown environment. Finally, slow entry is another shortcoming as dynamic growth is often preferable.

If the company fails to adjust its operations to the peculiarities of the new market, the use of greenfield setup results in substantial losses, which can be illustrated by Lidls experience in Norway (Schmid et al., 2018). The need to invest significant funds can be a serious burden for some organizations, especially when the company experiences certain financial issues. The US expansion of Lidl can illustrate the point as the company had to allocate considerable funds and change some of its operations in the region to avoid another failure (Ladd, 2018). However, the international success of the retailer shows that the chosen mode (greenfield investment) is effective and leads to successful global expansion.

This strategy is still appropriate for entry into the Mexican market due to certain factors. The region is highly attractive as it is growing at a high pace. The majority of the population of the country is not financially secured compared to other states, so Lidl can appeal to a large cohort. The population and population density of Mexico are significant factors that make the market attractive as the retail chain can develop sustainability and avoid the issues the company faced in Norway (Schmid et al., 2018). Furthermore, Lidl is operating in the USA so it has sufficient distribution centers to support the growth in the Mexican market at the initial stage. In order to mitigate the risks of high losses, the expansion should be fast and research-based. It is important to implement research to identify the major peculiarities of Mexicans and meet these needs. Collaboration with local producers is another important step to undertake in order to ensure lower costs. The establishment of smaller stores can be a successful strategy due to lower costs and the opportunity to open more stores.

Acquisitions

Greenfield investment should be supported by acquisitions that will help the company reduce costs, ensure higher control over operations, and address certain risks. The acquisition is associated with the fast entry and the use of properly set operations, but it requires considerable investment and can also lead to some issues with the integration with the European office (Zentes et al. 2016). Ladd (2018) notes that the acquisition of smaller retail chains in the USA is likely to facilitate the growth of the company in the region. This step can also be undertaken in Mexico, and Lidl can acquire La Comer or a smaller local retailer. La Comer is the tenth biggest retailer in Mexico, having a well-established chain, which makes it an attractive target for acquisition (Castellanos, 2019). As mentioned above, the largest part of the grocery market in Mexico is traditional, so Lidl has an opportunity to gain a part of this share due to its efficient operations and low prices.

The risks linked to the use of this model are comparatively low as the company has been operating in the global market for over two decades. Lidl has sufficient experience for integrating other retailers with its head office. The organizations operations in the USA equip the discounter with the necessary knowledge to succeed in the western hemisphere. Moreover, since acquisition will be used alongside greenfield investment, the company will be able to explore the Mexican market and establish strong relationships with local companies (as well as producers, authorities, and so on). Therefore, Mexico can be regarded as an attractive market for further international expansion for Lidl.

References

Castellanos, L. (2019). Mexico: Retail Foods: Mexico trends towards E Commerce. USDA Foreign Agricultural Service. Web.

Henry, A. E. (2018). Understanding strategic management. Oxford University Press.

Ladd, B. (2018). Lidl USA: What went wrong and what it can do to recover. Forbes. Web.

Lidl. (2020). About us. Web.

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Introduction

Evidently enough, the development of contemporary technologies continues to have a vast impact on nearly every sphere of the life of modern society. Throughout the world, the use of mobile services and the Internet is steadily increasing, which implies the extension of opportunities for the development of various business industries. In particular, the influence of modern telecommunication technologies on activities related to the economic sphere could hardly be overlooked.

Accordingly, the combination of the aforementioned facts led to the emergence of such phenomenon as mobile financial services. Essentially, these services allow their users to perform various tasks such as payments and transactions directly from their mobile devices. Due to the set of different factors, which will be discussed later in the paper, the implementation of mobile financial services appears to be a very promising direction of development for contemporary telecommunication companies.

The overall purpose of this paper is to develop a proposal for the implementation of mobile financial services in Azercell Telecom LLC, one of the largest providers of telecommunication in Azerbaijan. The paper aims to discuss several principal aspects of the development of the project, including the observation of the background and research objectives of the project, research methodology, expected results, and other important factors. Thus, the author will ensure that the project is feasible and that its implementation would likely to have positive long-term outcomes.

Motivation

Background Information Leading to the Issue

First of all, it is essential to discuss the background information that is highly relevant to the understanding of the projects significance. Thus, further reasoning will be put in the proper context. As it was already mentioned in the introduction, mobile financial services (MFS) have an increasingly vast popularity and applicability across the world. There are several factors that contribute to the current increase in the use of these instruments.

Primarily, as it is the case with the majority of customer and business-oriented services, contemporary banking systems are working towards the digitalization of their facilities in order to create the best experience for their customers (Dennehy & Sammon, 2015). Secondly, the increasing number of people across the world use mobile phones (Dennehy & Sammon, 2015). Particularly, there is a tendency, which developed within the recent decade, that individuals mobile devices serve not merely as the tool for phoning and sending text messages, but as the instrument that allows performing a vast set of different tasks (Humbani & Wiese, 2018). Accordingly, payments and transactions from mobile devices are within the direction in which the majority of contemporary financial systems are working toward.

However, the provision of mobile financial services is not restricted to the use of mobile applications that are connected to the customers bank account (Neudert, Ruehs, & Beckmann, 2015). The industry of various e-wallets and e-payments that are not directly connected to the banking systems (or not connected to them at all) is rapidly growing nowadays (Dennehy & Sammon, 2015). For example, such services gain significant popularity in countries where banking facilities and payment options are not diversified enough or do not have sufficient coverage throughout the country (Agwu & Carter, 2014).

Another factor that has a large influence on the current popularity of mobile financial services throughout the world is the aftermath of the global financial crisis (Humbani & Wiese, 2018). Due to its vast negative impact on the world economy and the banking system in particular, numerous people tend to perceive banks as a less reliable tool for storing and operating their finances (Xu & Zia, 2012). Additionally, the emergence of various cryptocurrencies, most notably, Bitcoin, also drives many companies to implement MFS.

Therefore, it is possible to state with certainty that mobile financial services are among the most rapidly growing industries in the contemporary economy (Alguliyev & Aliyev, 2015). This section exemplifies several principal factors that influence the increasing popularity of this payment method. In general, it could be observed that the sphere of technology under consideration is highly perspective in terms of the potential number of users and, accordingly, revenues that could be gained from the implementation of the technology.

The Relevance of the Mobile Financial Services in the Context of Azerbaijan

In addition to the facts identified in the previous subsection, it is also of high importance to discuss the relevance of the mobile financial services implementation in the context of Azerbaijan. Primarily, the population of the country is widely using cellphones and other mobile devices in their everyday life (Imanzade, Zeynalov, & Hasanov, 2017). However, the most important factor that should be considered is the impact of the global financial crisis.

Even before the outbreak of the crisis, the government of Azerbaijan was working on the legislation that would regulate the implementation of financial services outside the traditional banking system. In other words, the government assumed that there is an evident need to extend the opportunity for non-banking companies and businesses to provide financial services as well. However, when the crisis struck Azerbaijan in 2015, the drafting of the mentioned bill was suspended due to the fact that the government had to deal with more serious problems.

Nevertheless, as of now, the economic situation in Azerbaijan has stabilized, and the government decided to reanimate the bill and put it back to the drafting stage. Moreover, it is possible to notice that the overall conditions in the economy of the country allow implementing mobile financial services with great success and efficiency (Karimov & Imrani, 2015).

Brief Description of the Project

Two previous subsections provided an extended explanation of the reasons for the current popularity of mobile financial services, both in the context of the international economy and Azerbaijan in particular. It is apparent that numerous factors drive people to use such methods, and altogether combined, they create an favoring opportunity for the implementation of the mobile financial services in Azerbaijan (Enhancing financial capability, 2017). Accordingly, in spite of the mentioned factors and the overall importance of the MFS as an effective economic tool, it is possible to move the discussion to the observation of the projects and its primary scope.

As it was already mentioned, the new Financial Market Supervisory Authority decided to reanimate the bill about the implementation of mobile financial services outside the banking system. Azercell Telecom LLC, the company in which I am currently working, was requested to take part in the drafting of the bill. Particularly, I was assigned by the CEO of the company as an official representative of Azercell Telecom LLC in this project. It is strongly believed that the implementation of this bill will have a vast positive impact on the overall economic situation in the country.

However, what is the purpose of this particular proposal? It could be stated with certainty that the implementation of such projects is linked to considerable risks that should be taken into account. In overall, nearly every project that is intended to be executed successfully requires a strong preliminary research as the basis on which the development is built.

Therefore, in this particular situation, in order to successfully introduce mobile financial services, it is essential that the company would have a profound understanding of the projects feasibility, expected results, perception of the project by potential team members, their competencies, and the general planning of the implementation. Accordingly, this proposal serves as the initial stage of the consulting project that would help to ensure that Azercell Telecom LLC will succeed in developing its mobile financial services.

Major and Minor Research Questions and Objectives

The essential part of every research project is the identification of primary and secondary research questions, which should correlate directly with research objectives. On the basis of these questions and objectives, an efficient research could be carried as they will serve and concise and comprehensive guidelines. As I am the coordinator of the consulting project, it is appropriate to state that the overall research question for this proposal could be formulated as follows: will Azercell Telecom LLC succeed in the development of mobile financial services? As this question covers the overall scope of the project, it is necessary to support it with secondary research questions, that would highlight particular aspects of the project:

1. Is the current economic situation in Azerbaijan as well as the companys position in the market are favorable for the implementation of such project?
2. How the members of the company, as well as people from other companies and businesses, perceive the probability of such projects success?
3. What are the core competencies that are needed for its implementation, and what kind of results is expected?
4. What are particular steps that should be taken in order for the project to succeed?

Accordingly, the developed set of research questions could be translated into corresponding research objectives. First of all, it is essential to understand the economic context in which the project will be developed. Secondly, the qualitative information about the opinions of potential team members within the company along with other relevant stakeholders from the telecommunication and financial industries should be gathered. Thirdly, the core competencies and responsibilities needed for the successful achievement of the expected results should be developed. Finally, it is essential to outline the plan of the project implementation that would guide further activities.

Feasibility

According to the identified research objectives, it is essential to first discuss the feasibility of the project. As it was identified previously, the current economic situation in Azerbaijan is considerably favorable for the implementation of mobile financial services. Accordingly, what are the factors related to Azercell Telecom LLC that will help the company to implement the project successfully?

It is essential to state that Azercell Telecom LLC is the leader in the market of mobile services in Azerbaijan with the customer base of more than 3,5 million people. It is worth noticing that currently there is no bank in the country that has the same client base. In other words, the company has a large number of active users that would be potentially interested in operating their finances through the company that is reliable in their opinion.

Also, it is necessary to observe that my contribution to the development of the project will make it feasible enough. First of all, I have an over ten years experience in the telecommunication sector. Currently, I am holding the position of Treasury Manager in Azercell Telecom LLC, and thus my financial background is highly suitable for the implementation of the project. Moreover, as the part of the bill drafting team and the project coordinator, I have the access to the primary data which should be gathered. In particular, I am capable of collecting the information from stakeholders both within and outside the company by interviewing them. Therefore, there are no significant obstacles that would aggravate the research process.

Research Methodology

The Identification of the Research Methodology

It is apparent that carrying out a research requires the employment of a strong methodology. Due to the nature of the particular research objectives that were identified previously, it is appropriate to state that qualitative methodology is the most suitable approach for this consulting project. As the overall purpose of the consultancy project is to provide the stakeholders with sufficient information so that they could decide to introduce mobile financial services in Azercell Telecom LLC, large amounts of qualitative data should be processed.

Accordingly, both primary and secondary data collection methods will be used. Primary data collection will be conducted mainly in forms of interview and questionnaires. In the context of my position within the company as well as in the bill drafting team, there are no difficulties in conducting this type of research. By interviewing the top management of the company, sector specialists, government authorities, and other relevant stakeholders, I will be able to get a comprehensive understanding of the current state of the economy and the probability of the projects success.

Secondary data collection methods are also highly important for the research. These methods will include the investigation of government data and statistics, academic articles, analytical reports, and research papers on the topic related to the purpose of the project. Thus, I will be able to incorporate the experience of other researchers and the evidence that they retrieved.

Discussion of the Research Methodology Literature

Also, it is important to observe the insights from the research methodology literature. For example, it is possible to mention the article by Kahlke (2014), in which the author discussed the general principles of conducting a qualitative research. It is stated in the article that an increasing number of studies employs a research method that is characterized by a less formal structure than well-established approaches to research. One of such methods is entitled generic qualitative research, which is subdivided into interpretive description and descriptive qualitative research (Kahlke, 2014, p. 13). The author indicates that this method is useful when it is needed to find an inventive approach to a topic.

Additionally, the study by Palinkas et al. (2015) emphasizes that purposeful sampling is a very beneficial aspect of the qualitative research methodology. The authors recommend that, in general, the sampling strategy should be developed as a logical extension of the research objectives. In other words, the sampling method should correspond to the overall purpose of the research and enhance it. Accordingly, the choice of the most suitable sampling strategy will largely increase the chances of retrieving meaningful insights and results will be reliable and generalizable. In general, it could be concluded that the qualitative methodology is a highly relevant method that correlates with the purposes of this research.

Expected Results

In the context of the aforementioned advantages that I have due to my position in Azercell Telecom LLC as well as in the bill drafting team, it is expected to retrieve valuable results from this research. Due to the fact that the company has no prior experience in implementing mobile financial services, the contribution of the research to the success of the company will be significant. It is expected that through the series of interviews and completed questionnaires, a vast qualitative dataset will be developed. Since I have the capability of interviewing various stakeholders that hold an important position in the industry, the insights gathered in the process of the research will have a large impact on the final decision-making when implementing mobile financial services in Azercell Telecom LLC.

Competencies

Similarly to the advantages discussed in the previous section, it is possible to state with certainty that I have a set of competencies that are sufficient for carrying out a successful research and implementing MFS. In general, I have access to the network that would help me to gather all the essential information needed for the implementation of the project. As it was already mentioned, I consider myself to be a highly suitable candidate for conducting this research.

Primarily, my excellent financial background and 10-years experience in the telecommunication sphere are highly significant factors that influence the success of the project. It could be stated that I have a combination of technical and research skills, which is essential for the completion of the project. Not only can I successfully apply the qualitative research methodology for retrieving meaningful information, but also my proficiency in the technical aspects of the economy and business will help me to interpret the results of the research correctly. Thus, it is assured that I have a set of all essential competencies.

Planning

Finally, it is necessary to outline the essential steps of the projects and estimate the amount of time which is needed for their completion. Firstly, the investigation of secondary data on the topic should be conducted for approximately two weeks so that a profound understanding of the current economic context would be acquired. Simultaneously, the research team, which would include specialists that are interested in the research, should be gathered. Secondly, the most important step of the research, which is the completion of interviews and questionnaires, should be conducted for approximate period of two months.

Thus, a sample of participants that is enough for retrieving reliable results will be covered. Then, the final step of the project is the analysis of the gathered data. This process will require a month because large amounts of data should be processed. As a result of the final stage of the research, a comprehensive report should be developed.

Conclusion

In conclusion, it is possible to observe that this paper efficiently contributes to the development of the project. The proposal dwells on the discussion of all relevant aspects of the projected research. It is found out that the economic situation in Azerbaijan, as well as the position of Azercell Telecom LLC in the market, are favorable for the implementation of mobile financial services. My profound experience in the telecommunication sphere along with the advantages of my position in the company will positively contribute to the successful completion of the research project. This proposal serves as a comprehensive framework for the further development of the consulting project as it clearly identifies research question and objectives, and it also discussed the feasibility and research methodology of the study.

References

Agwu, E., & Carter, A-L. (2014). Mobile phone banking in Nigeria: Benefits, problems and prospects. International Journal of Business and Commerce, 3(6), 50-70.

Alguliyev, R. M., & Aliyev, A. G. (2015). Elaboration development strategy and the analysis of trends shaping the information economy in Azerbaijan on the basis of the experience of foreign countries. International Journal of Social, Behavioral, Educational, Economic, Business and Industrial Engineering, 9(3), 941-944.

Dennehy, D., & Sammon, D. (2015). Trends in mobile payments research: A literature review. Journal of Innovation Management, 3(1), 49-61.

Enhancing financial capability and inclusion in Azerbaijan: A demand-side assessment. (2016). Web.

Humbani, M., & Wiese, M. (2018). A cashless society for all: Determining consumers readiness to adopt mobile payment services. Journal of African Business, 19(3), 409-429.

Imanzade, A., Zeynalov, A., & Hasanov, S. (2017). Financial inclusion: What and how? Evidence from Azerbaijani economy. Web.

Kahlke, R. M. (2014). Generic qualitative approaches: Pitfalls and benefits of methodological mixology. International Journal of Qualitative Methods, 13(1), 37-52.

Karimov, R., & Imrani, Z. (2015). Study of development of information and communication technology in Azerbaijan with marketing approach. International Journal of Advanced Computer Research, 5(18), 80-93.

Neudert, R., Ruehs, M., & Beckmann, V. (2015). Implementation of pasture leasing rights for mobile pastoralistsA case study on institutional change during post-socialist reforms in Azerbaijan. International Journal of the Commons, 9(2), 648-669.

Palinkas, L. A., Horwitz, S. M., Green, C. A., Wisdom, J. P., Duan, N., & Hoagwood, K. (2015). Purposeful sampling for qualitative data collection and analysis in mixed method implementation research. Administration and Policy in Mental Health and Mental Health Services Research, 42(5), 533-544.

Xu, L., & Zia, B. (2012). Financial literacy around the world: An overview of the evidence with practical suggestions for the way forward. Web.

The company selected for the analysis is UPS, experiencing a rise in online sales and should monitor and manage the sudden upsurge. Based on the case study, in 2013, UPS miscalculated Christmas demand and failed to deliver items on time due to poor weather. Since then, the carrier has focused on ensuring sufficient resources are available to address the end-of-year spike. UPS claimed in June 2017 that it would impose a surcharge on specific high-season pricing. The 2017 peak season rate would apply to particular services and oversize shipments. According to UPS, the increased price is required to offset the expenses of additional resources needed to accomplish planned capacity increases.

Although surcharges are used, the price structure aims to discourage the shipment of large, odd-sized, or excessive loads since such packages would not pass through the companys sorting system. Growing consumer demand for Christmas shipments combined with the pandemics impact on transportation supplies produced the perfect storm. UPS delivered 96.1 percent of its shipments on schedule for the week of December 6. Nonetheless, the number of goods lost or delayed appeared to be high. Thus, the current business situation requires assessment and analysis to develop a strategic plan and manage existing obstacles.

Mission and Vision

The UPS mission statement is clear and straightforward because it explains the companys core principles and how they generate success and motivate workers, vendors, the general public, investors, and stakeholders. According to the UPS mission statement, the corporation seeks to expand its worldwide business by servicing customers logistical needs while providing value and excellence in what they do (Hughes, 2020). UPS purports to be a financially solid firm with widespread employee ownership that offers shareholders long-term competitive returns. The organization motivates employees and business partners by providing chances for personal growth and achievement (Hughes, 2020). Furthermore, UPS pledges to be a responsible, compassionate, and sustainable corporation that contributes to positive change in the communities it serves.

UPSs vision statement emphasizes the value of customers to the company. According to the UPS official website, the vision statement is Our customers growth is our growth (Our strategy, n.d., para 2). UPS strives to assist companies of all sizes and locations in achieving their objectives in a continuously changing world (Our strategy, n.d.). Hence, as a global logistics leader, UPS recognizes and values the responsibility of assisting in the development of safer, better, and more resilient communities based on equality and economic opportunity for everyone.

SWOT

Based on the case study, it is vital to conduct a SWOT analysis of UPS to evaluate the business situation (See Figure 1). Firms use SWOT analysis to understand their internal strengths and weaknesses and what external forces may provide opportunities for success or threats (OpenStax, 2021).

First, UPSs corporate image as a top shipper and customer loyalty are strengths. The weaknesses are the inability to deliver packages on time during busy seasons owing to insufficient resources and the difficulty of the companys sorting system to handle large, odd-sized, or enormous shipments. The opportunities are increased e-commerce and peak season price positioning required to accomplish forecasted capacity increases. The threats include the pandemics impact on transportation supplies and bad weather conditions.

The Five-Step Planning

Planning is a future-oriented, extensive, systematic, coordinated, and collaborative process. The five steps are as follows: generating an awareness of the current condition, establishing outcome statements, premising, deciding on a course of action, and developing supportive strategies (OpenStax, 2021). First, the SWOT analysis assists in positioning UPSs current situation. Second, the outcome statement means establishing goals; UPSs goal is to monitor and reduce weaknesses, such as shortcomings of the companys sorting system and manage threats, such as transportation supply difficulties. The next step, premising, requires building assumptions about future events. For instance, the pandemics consequences may worsen the current business situation by increasing demand for holiday shipments and the rising number of massive packages. The fourth step is identifying a future course of action; UPS should focus on operational goals that represent the precise intentions of management. The organization may invest in improving and updating the sorting system. Finally, the supportive strategy should consider hiring additional employees and purchasing trucks because of supply problems.

Conclusion

The recommendation for the most challenging goal, namely meeting the customers expectations and satisfying the increased demand after the pandemic, is to increase the budget for the R&D department and focus on improving UPSs sorting system. The corporation should prioritize the development of administrative strategies and the distribution of organizational resources to internal divisions. The entire workforce should understand that the customers happiness is the foundation of success. It is vital to conduct additional training and educate on the new sorting system. The risk management department should also analyze the current situation and make predictions based on the systems data. The number of lost and delayed packages should be monitored, and preventive measures are needed to avoid such unfavorable situations. Strategic management must develop and apply techniques that fit an organizations mission and vision as closely as feasible to its environment.

References

OpenStax. (2021). Principles of Management. Rice University.

Hughes, J. (2020). UPS mission statement explained. Business Chronicler. Web.

Our strategy. (n.d.). UPS. Web.

Major Facts

John Lewis Partnership is one of the leading UK retailers with 28 department stores, 234 Waitrose supermarkets, and other businesses (Mangan & Lalwani, 2016). The companys stores stock over 350,000 goods lines. The retailers growth led to the development and introduction of the so-called SANDC (Semi-Automated National Distribution Center) in 2009. The center includes 46 despatch and 33 receiving docks. The SANDC can handle item-level picking, which enables the company to meet the growing needs of its customers. The center also has a specific area for direct delivery to the customer. The goods are delivered to the customers home or to a retail store chosen by the customer.

Major Problem

The direct delivery operations need to be expanded through the increase in the area devoted to such services and software improvements.

Possible Solutions

One of the possible solutions is the increase of the area within the center in Milton Keynes. It is possible to construct additional facilities as it is impossible to reduce other areas of the center to accommodate a larger zone for direct delivery. Another option is the development of one more center in Hougton or Carlisle. In this way, the retailer will be able to deliver goods faster and more efficiently to Scotland, Northern Ireland, as well as northern parts of England. Another option may be the construction of a network of small Semi-Automated National Distribution Centers across the country. It is also possible to make three shifts (instead of two shifts) a norm for the direct delivery area of the SANDC.

Choice and Rationale

The most appropriate option for the retailer is the construction of a new facility in Hougton or Carlisle. The company is constantly growing and expanding its operations and its network. The establishment of new stores and facilities in Wales and other areas of the UK boosted sales in these regions (Skapinker & Felsted, 2015). As has been mentioned above, the increasing interest in e-commerce will inevitably lead to an increase in direct delivery services. The company will be able to deliver products faster and meet the growing demand for one- or two-day delivery offered by such giants as Amazon or other online retailers (Mangan & Lalwani, 2016).

The option involving the construction of additional facilities within the existing center is less effective as compared to this option. The use of another location is beneficial due to the ability to reach more customers. The solution implying the construction of small centers is not very cost-effective. The construction and maintenance costs are quite significant, and it can be difficult to choose the most optimal locations due to the demographics changing rather rapidly. The strategy involving the introduction of three shifts is not effective as it will not meet the growing demand in the long run. Besides, it will require additional funds to pay to the staff, but there will be no need for the construction of a new facility, which may be rather expensive.

Implementation

To implement the strategy chosen, it is important to undertake certain steps. The stage of planning will involve such areas as the choice of location, design, and construction, hiring and training personnel, development of the software as well as the improvement of the existing information system. After the planning process, the implementation and evaluation will take place. The stages involving information management and HRM should be properly planned and implemented. As to HRM, it can be beneficial to recruit the existing employees (working at the existing SANDC) to work in the new facility. These employees have the necessary skills and knowledge, and they will share their experiences (Christopher, 2016). The upgraded software should include more services for customers. Items tracking should be one of these services as modern shoppers are accustomed to being in complete control of their orders.

References

Christopher, M. (2016). Logistics & supply chain management. New York, NY: Pearson.

Mangan, J., & Lalwani, C. (2016). Global logistics and supply chain management. Chichester, UK: John Wiley & Sons.

Skapinker, M., & Felsted, A. (2015). John Lewis: Trouble in store. Financial Times. Web.

Appendix

• To address the changing demand patterns, it is necessary to increase the number of picking stations and automated lines. The development of e-commerce is likely to result in the increase in the associated operations provided by John Lewis Partnerships. The use of the upgraded SANDC can make the operations more efficient. At that, the software should be improved in the area of items tracking.
• The use of the area dedicated exclusively to home shopping is beneficial as it enables to achieve maximum cost-efficiency. The storage areas will be used efficiently, and more orders can be processed. To address the increasing attention to online shopping, the retailer can make the area even larger and the development of more picking stations. It is also possible to consider developing a new facility in another location.
• One of the major areas to pay attention to when it comes to the improvements of SANDC is the development of new services. People have become accustomed to their ability to track their products when shopping online. Therefore, the introduction of this service will attract more customer and make them more loyal. The introduction of picking points devoted to particular orders or items will enhance efficiency.

Introduction

Today, in the time of mass media and instant communication tools, people have more and more information to process and makes it necessary to filter and arrange the information. Professionals usually receive dozens of messages every day, and their time to read and answer them is very limited. This is why it is important to compose business messages in a way that helps to save the recipients time and resources. Writing emails is not the same as chatting, and it is required that the message include all the necessary details so that the recipient does not have to make additional inquiries (Bauer, & Jerz, 2015).

Identifying and Solving the Communication Problems with the Given Email

The following email has been rewritten according to the 10 Cs for writing effectively. These Cs are Content, Completeness, Correctness, Clarity, Coherence, Conciseness, Connection, Creativity, Courtesy, and Closure.

• FROM: Bobby Johnson
• TO: Friends and Colleagues of Joe Banyon
• SUBJECT: Retirement Party for Joe Banyon
• DATE: October 16, 2015

Hello everyone,

As you probably know, Joe Banyon is retiring next month. Some of his friends asked me to arrange a little farewell party in his honor.

The date is Friday, November 20, 2015, 6 p.m. at City Café (1034 W 4th Ave Anchorage, AK 99501), and we hope you (and your spouses) can make it.

We are covering all the dinner expenses, but we would also like to give Joe a gift certificate. We are asking everyone to contribute. I will inform you as to the amount of the contribution on November 4, as soon as I know how many people are coming.

Please let me know if you are participating and if you are coming alone or with your spouse by November 3.

Best regards,

Bobby.

The first thing that catches the eye in the original message is the address. There is a mistake, and this is probably what each of the 50 receivers is going to think. They might delete or ignore the message, and it will not fulfill its purpose. The Correctness rule is violated here. To improve the situation, the sender must double-check the address list. Any misprints will fail to receive the message. A line with the senders name should also be included.

The subject line is present in the original message, which is good. It complies with the Clarity rule: the recipient will instantly understand what the message is about. The subject line needs to be filled in, but it should not be too long and complicated. Although, in this case, it could be a little bit more precise: Retirement Party for Joe Banyon, for example.

As to the Content rule, the original message lacks the date and the address of the establishment the party is going to be held at. Including the date will help the recipients understand if the message is urgent and relevant. It is useful to mention the address, even if the writer supposes that all the recipients know it  misunderstandings can happen. It is also necessary to specify the type of party, whether the guests will have to pay for themselves and if they can take someone with them. As a contribution is mentioned, it is required to specify the expected amount of money. If the sender cannot provide the necessary information at the moment, he should give a deadline by which to expect it.

There is an implied assumption in the body of the message that everyone knows that Joe Banyon is retiring. However, this may be not the case, and it can be news for some receivers. It is necessary to add something to make the sentence sound less assuming and straightforward, for instance, probably. This will make the message more Coherent.

Formal elements such as Courtesy and Closure have to be present in the message to give it a completed look. In the given letter these elements are: Hello everyone, best regards and Bobby. The writer must make sure the letter does not come abruptly to an end (all its elements are connected to each other) and has all the necessary information, i.e. is Complete, and does not include anything off the topic, i.e. is Concise (Stolley, & Brizee, 2010).

Strategies for Composing More Effective Messages

All messages should have a subject line, a greeting and a closing in accordance with the correspondents relationship (more or less formal), and be carefully proofread. Irrelevant information and solid blocks of text are to be avoided, as the message must be brief and informative. Excessive usage of caps and punctuation marks (such as too many exclamation marks in succession), as well as spelling mistakes and typos, make messages uncomfortable to read and can even distort the information. Sometimes it is necessary to thank the receiver for their previous message, and it is always required to state the purpose of the message clearly (Connor, 2012).

Conclusion

When composing a message, the writer should always review it from the recipients point of view. The message must be proofread, and all names, dates and numbers double-checked. The message must be brief and informative to save both the senders and the recipients time.

References

Bauer, J., & Jerz, D. (2015). Email tips: Top 10 strategies for writing effective email. Web.

Connor, P. (2012). Business email. Writing@CSU. Web.

Stolley, K, & Brizee, A. (2010). Email etiquette. Web.

Introduction

Mass customization is modifying and making products available on the market to fit a specific customers requirements. It refers to a marketing and manufacturing strategy that combines the adaptability and individualization of products created to order with the lower per-item costs typical of mass production. Mass customization can be referred to as made-to-order customization or built-to-order customization. The article, Mass Customization at Hewlett-Packard: The Power of Postponement, will serve as the primary subject of this presentation, and its key concepts and ideas will be discussed in detail.

Reason for Mass-Customization

Customers seek products tailored to their needs based on the environment they plan to utilize. Without tailor-made items, it is difficult for organizations that make generic products used by consumers in various industries, such as hospitals, banks, security businesses, airports, and schools, to meet their clients needs. As a result, many companies prioritize the need to tailor their products to retain and expand their customer base and sales revenue. However, Fitzinger and Lee (1997) warn of the ramifications of mass customization without an adequate plan, which has caused numerous companies production costs to spiral out of control. In order to avoid incurring losses during the process, the business should consider sustainable customization.

Mass customization allows businesses to rethink their offerings to ensure that customers derive the most significant possible benefit from utilizing those offerings. It enables the company to review its product line and adopt an efficient distribution network. When this is done, the company can run at maximum efficiency while satisfying the customers expectations with the fewest possible supplies (Render et al., 2020). Firms should therefore put off the process of differentiating products while catering to a particular customer until the last possible stage of the distribution chain.

Concepts and Ideas Discussed in the Article

Hewlett-Packard (HP) is an American multinational corporation that has been in business for over three decades and specializes in developing computers and other computer-related goods. According to Feitzinger and Lees (1997) suggestion in the article, the company has successfully made an impression on the market by developing products that are useful to all its customers in various ways. The current status that it enjoys in the market is highlighted in these articles. They emphasize three critical concepts in mass customization embraced by HP, which have propelled it to its current status in the industry.

The fundamental notion behind these concepts is that the items produced should be composed of various components that are simple to put together. The manufacturing process should be composed of individual components, each of which may be arranged and moved to support the many distribution networks that the company may choose to use. They highlight the necessity of positioning the companys inventory in crucial places that enhance the product supplys flexibility and cost-effectiveness, further highlighting the fact that this must be done.

As a direct consequence, HP has adopted three fundamental concepts that have contributed significantly to the companys success in the market: Modular Product Design (MPD), Modular Process Design (MPD), and Agile Supply Networks. The approaches to mass customization mentioned above maximize customer satisfaction while minimizing overall production expenses. The idea enables the development of high-quality goods that customers value since they are tailored to meet the specific requirements of individual customers (Render et al., 2020). On the other hand, the company gains when it makes the most of its available resources to enhance its output while simultaneously keeping its production costs low.

Modular Product Design

Creating an idea that an organization can use to create a complete product by combining or merging small, independent elements necessitates using modular design as an intrinsic component. A modular design has assisted the planning process by allowing for increased renewability, task management, and troubleshooting (Render et al., 2020). It has numerous advantages, including adaptability, reduced production time, and consistency throughout the projects lifetime. The modular products components all adhere to a standard interface, allowing the elements to be combined to form the finished product (Render et al., 2020). Non-modular designs, however, are more challenging to customize and maintain due to their inability to be broken down into individual components.

When products are modularized, they can take the form of interchangeable modules that an organization can quickly modify to fit the specific requirements of individual customers. Render et al. (2020) highlights the significance of modularization as an essential part of the customization process since it shortens the total amount of time spent on the production process. Modularization allows the business to better cater to the needs of those customers. According to the order, multiple components are assembled to create completed goods that are suitable and beneficial for the customers intended purpose. As a direct result of this, mass production of the product can occur while focusing on a specific target market.

As a result of HPs use of modularization, the company has been able to reduce its production costs. It can now access a more significant portion of the worldwide market due to the modularization and standardization of its goods. According to Feitzinger and Lee (1997), adopting this technique resulted in a reduction of 25 percent in the total expenses associated with manufacturing, shipping, and inventory management. They further advise that using modular elements to sustain mass customization may increase the cost of raw materials. Therefore, businesses ought to carefully evaluate whether the benefits of standardization outweigh the added costs to determine whether or not to implement standardization.

Modular Process Design

Modular process design and fabrication is a distinct method of creating process structures. Feitzinger and Lees article states that the approach entails breaking the manufacturing process into discrete sub-processes (1997). Typically, this means engineering the systems to be movable skids. These skids are self-contained components that can be combined or changed in various configurations to contribute to or develop whole operations. This approach is built on three fundamental components: process postponement, process resequencing, and process optimization. It provides corporate organizations with the flexibility that effective mass customization necessitates.

The concept is critical for any company that wishes to maximize productivity and revenue while keeping manufacturing costs low. According to Render et al. (2020), one of the benefits of adopting this paradigm is the implementation of mass customization. While restructuring the production process within the organization to achieve lean design, management can incorporate a design structure that will permit customization of the final product based on the intended market. Render et al. (2020) argue that the firm should embrace automation during the process to improve customization. As a result, the company will have satisfied customers at a lower production cost.

Process postponement is a critical component of the modular process design that organizations seeking to maximize profits while decreasing production costs should adopt. According to the article by Feitzinger and Lee, (1997) the technique provides clients with an infinite number of consistent options while simultaneously minimizing inventory and satisfying customer demand. According to Render et al., the concept of postponement is to postpone the change in shape, identity, and location until customer commitments are met (2020). It is done by capitalizing on the similarities shared by many items and structuring the steps of manufacture and distribution so that the point of distinction is postponed.

When business entities implement process postponement, they can make the most of the resources available to them since they only concentrate on the products that the consumer needs at that given time. The procedure improves customization since it focuses on the customers particular requirements and makes every effort to fulfill those requirements whenever they crop up (Render et al., 2020). Consequently, the company does not create products for which there is no immediate need. Doing so would result in dead stock being stored in warehouses while the company waits for the demand for the product to increase.

Agile Supply Networks

In its most fundamental sense, the term agile supply chain relates to the use of response, proficiency, adaptability, and speed to manage how effectively a supply chain unit functions daily. When making decisions about day-to-day operations, agile supply chains rely on real-time and forecasted data for use in supply projections. According to Render and colleagues findings, a company can have the potential to keep its operating costs under control when it implements agile supply (2020). The idea of agile supply calls for many checkpoints and feedback loops to be set up so that the products progress can be monitored from the beginning of the manufacturing process until it is delivered to the end user.

Businesses want flexible supply networks to maximize revenue while maintaining low production costs. Feitzinger and Lee argue that determining the optimal number of factories and distribution centers and where to locate them is a difficult choice that corporate groups should make (1997). Render et al. (2020) emphasize balancing the time required to respond to a customers order request, the marketing cost incurred, and local content requirements and duties. Additionally, organizations should consider the time and expense of transit, the cost of local labor and occupancy, and the cost of duplicating fixed assets.

Due to unanticipated disruptions in continuity, firms face many supply chain difficulties. The challenges include, among others, the capacity to adjust to changes in demand variability, the improvement of services, the reduction of incoming costs, and the improvement of on-time delivery. Businesses must adjust to the ever-increasing unpredictability of demand and prioritize long-term profitability (Render et al., 2020). It is essential for developing and keeping a competitive edge by responding quickly to market and consumer demand shifts. Consequently, firms will need to reevaluate how they organize their supply chains in order to address the issue of adaptability and preserve a competitive advantage in the global market, which is highly competitive.

Relevance of the Article to Business Practices of the Present Day

Even though Feitzinger and Lee wrote the article over twenty years ago, the research is still relevant. It offers practical suggestions to corporate organizations that wish to optimize their profits while maintaining low production costs. The article focuses on the fundamental principles and ideals Hewlett-Packard has adhered to over the years, contributing to the companys rise to prominence as a producer of computers, computer components, and accessories producer. It has achieved mastery of the art of mass customization and has expanded its consumer base by conquering all regions of the world.

Businesses wanting to expand their consumer base should compare themselves to HP using the information provided in the article as a benchmark. The article emphasizes several important ideas and concepts regarding mass customization, including the requirement for modular product designs, modular process designs, and the utilization of agile supply networks. It emphasizes the necessity of delaying the process while simultaneously capitalizing on the market and addressing the current requirements of consumers. As a result of the predictability of consumer behavior, the information presented in the article applies to the present day and will continue to be applicable for many years to come.

Conclusion

Any company or organization in the business world that aspires to be successful and continue to be competitive in the global market should understand and implement the notion of mass customization. It is a concept that has been put into action for many years and has proved that if it is well utilized, it can contribute to a companys success. As a consequence of this, businesses should perform a study on numerous ways in which they can improve the process, in addition to the three ideas that have been presented above.

References

Feitzinger, E., & Lee, H. L. (1997). Mass customization at Hewlett-Packard: the power of postponement. Harvard business review, 75, 116-123. Web.

Render, B., Heizer, J., & Munson, C. (2020). Principles of Operations Management (11th ed.). Pearson.