Category: Business 11471

Introduction

Conducting business in a foreign country comes with numerous challenges. The main reason is the fact that countries possess divergent orientations on various aspects that directly or indirectly affect the way businesses are conducted. Not taking close consideration to some of the unique attributes in every country can potentially result in the failure of excellent business ideas. Entrepreneurs crossing borders should thus take time to understand the socio-economic, political as well as other factors for better adaptation. This paper adopts a comparative discussion of Indias business environment as defined by the legal aspects, the social-cultural aspects in comparison with that of the US.

Country Profile

India is an expansive country estimated to cover 1.27 million sq. miles. This is about a third of the US land coverage. The administrative capital is New Delhi with a population of 12.8 million. Other major commercial cities are Mumbai, Bombay, Chennai, Calcutta, Bangalore and Hyderabad. The entire population is 1.17 billion people with 29% of them living in urban areas. India is governed by a federal government headed by New Delhi (US Department of State, Par2).

The Indian GDP stands at $1.21 trillion. In recent years the economy has been experiencing a high growth rate of above 6%. The three major sectors driving the economy are agriculture, industry and services. Agriculture accounts for 18%, industry accounts for 29%, while the service sector is the largest and accounts for 54% of the GDP. The country engages in major export trade with the most important trade partners being China, the US, the U.A.E, EU, Japan and Russia (US Department of State, Par3).

The economy is the 12th largest in the world and is only number three in Asia being led by Japan and China. Since 1997 poverty levels have reduced by about ten percent and more importantly the middle class is expected to grow ten-fold by the year 2025. Some notable hindrances to smooth business operations are foreign investment controls, cumbersome bureaucracy and corruption. However, major economic reforms in areas such as intellectual property rights, monetary and fiscal policies, reduction in tariffs, and other controls continue to propel the economy.

Legal Aspects

Most foreigners investing in India prefer to wholly own their businesses. A large percentage of businesses owned by foreigners are established as branch offices, wholly-owned subsidiaries, acquiring of existing businesses and joint ventures. The legal and cultural framework in India is very different thus forcing alterations in the companys policies (Lawyers.com, Par2).

It is easy to establish a branch in India especially if the branch is to perform tasks such as a representation of parent company in India, to engage in research activities, to carry out export or import business, or to support financial and technical collaborations between Indian and foreign company. A form called FNC-12 has to be filled and sent to the Controller, Exchange Control Department for authorization.

Setting up a fully foreign-owned company has several stipulations. Software companies are allowed to be fully foreign-owned but others have to either set up operations in areas known as Export Processing Zones (EPZ), Software Technology Park (STP), and Electronic technology Park (EHTP). However, setting up a business under the said parks requires that at least 75% of the formed companys output be for export and only 25% for local sales. This protects local producers. Again, setting up a business under these parks has advantages especially in taxation. Imports are duty-free, incomes are free from taxes, and there exists well-developed infrastructure. Setting up such businesses requires an application form to be submitted to the Secretariat for the Industrial Approvals (SIA) (Lawyers.com, Par4).

Joint ventures are the most common and easiest to form. The maximum allowable foreign ownership is 51%. Despite the low ability to control, foreigners are able to establish businesses and channels of distribution fast.

Acquiring Indian-owned companies is allowed but subject to RBIs approval. However, no foreigner can own more than 5% of paid-up capital in publicly listed companies nor can he/ she own more than 24% of total capital.

There exist some requirements imposed by the federal governments as well as others imposed by the state governments. Under the federal requirements, all businesses except for sole proprietors should obtain an Employment Identification Number (EIN). In addition, those who offer health insurance require a National Standard Employer Identifier (NSEI) used to track electronic transactions. No federal licenses are required unless the business involves drug manufacturing, investment advising, broadcasting, ground transportation, broadcasting, manufacturing of meat products, and sale of tobacco, alcohol and firearms (Lawyers.com, Par5).

The state however requires businesses to obtain some form of permit. The business license is the main certificate. It is required for taxation. For Professional services and occupations, special licenses are required. Employers are also expected to make unemployment insurance contributions.

India had resisted the implementation of intellectual property rights. It managed to strengthen copyright laws in the 1990s to meet international standards. Indeed, the country is a party to Berne Convention on copyrights. Therefore, registering intellectual property in the US leads to automatic protection by the federal government in India.

Most of these legal requirements are meant to regulate the business operations and protect the indigenous Indians from foreigners who are well endowed with capital. Requirements for maximum foreign shareholding often discourage foreign investors who are keen on ensuring full control.

Negotiations

Carrying out successful negotiations in India is substantially different from the American way. First, negotiations are primarily based on a widely believed adage that love comes after marriage. Unlike in the US where there is a broader room for successful negotiations at the middle-level management, negotiations in India must be done at the top of the highly hierarchical structures.

Parties negotiating have to be harmonious. Attempts to coerce or confront as is the case in the US are counterproductive. More importantly, it is not common to obtain straight negative answers such as no from Indians as they consider this rude. Instead, they prolong the negotiation by evading. Again, unlike the case in the US, swaying the head from left to right during negotiation does not mean refusal or denial. It is actually a sign that one understands or consents to the proposals (Negotiations Training Institute of America, Par2).

A large number of businesses in India are owned by families, unlike the US. This fact makes negotiating more complex. One has to be willing to deal with families in securing deals. Identifying the most powerful and most influential family member is often the first step towards successful negotiations. The caste system is much respected in India. In this case, sending or accompanying someone of a higher social level may boost the chances of closing a deal.

It is good to note that Indians are very good at negotiations as the process is well embedded in their cultures. Having many options and skills in mind and engaging the best negotiation skills is crucial. Always check around for other vendors before closing the deal. It helps to be flexible and creatively reach deals that not only fulfill ones goals but ensure that the involved party is contented. Being too strict and rigid puts them off (Negotiations Training Institute of America, Par5).

Cultural Components

The most striking cultural issue in India is the Caste system. The Indian culture has established social classes under which people fall. As described above, negotiations can be substantially affected by the inclusion of persons of higher class. In hiring senior management, it makes sense to consider the social level of recruits where possible. Hiring a member of a higher class as the manager may be more effective due to the extra respect he/ she wields. Manual work such as cleaning and moving desks can only be done by people in the lowest caste level called Peon. Again, unlike the US disparities in perception between men and women are high in India. Men are superior to women. It is thus prudent to hire men for top positions (Kwintessential, Par3).

When engaging informal meetings, the handshake just like in the US is widely used. However, the namaste, which involves bringing the pams together near the chest accompanied by a slight bowing of the head is better acceptable and demonstrates some knowledge of their culture. Adhering to this action breaks some barriers between a foreigner and locals.

The most prominent religion in India is Hindu with an 81% following and it is the origin of the caste system. Identification of someones caste can easily be got from their names. A name that has the suffix &jee denotes a person from a high social level. Unlike the US where decisions are almost purely based on statistics and supporting arguments, Indians rely heavily on their religious faith, intuition and feelings. The secret here is to always exhibit good character, be patient and humble. These are critical virtues for Indians and are fundamental in developing trust (Kwintessential, Par3).

It is not uncommon for an Indian to forego a very lucrative deal just to stick with the party where a relationship has been established. They mostly favor those known to them. Unlike the American focus on open tendering, business in India is largely based on friendships and clanships. Conflict of interest is not considered a serious issue. In this regard, it is important to establish networks and strong relationships as opposed to focusing on competitiveness in conducting business.

Corporate social responsibility is very strong among Indians. In this regard, a company must be seen to give to the society for it to be better accepted by the local communities. Focus in India is on stakeholders rather than shareholders in evaluating a companys success.

Even the very formal meetings are normally started with some easy chart as a way of first knowing each other before proceeding to a more serious agenda.

Language

India being an expansive country with different states has several official languages for the states. However, Hindi is the only recognized official language. English is fully accepted as the official language in business circles. It is wise though to include some Hindi translations in some business documents and business cards as this show some form of appreciation for the local language.

Hofstedes Dimension of Culture

The Geert Hofstede Analysis considers four critical dimensions in social-cultural issues. The Power Distance Index (PDI) evaluates issues of inequality. For the Indian case, the PDI is the highest dimension. The country has a ranking of 77 while the US has a rank of 40. This is against a world average of 56.5. Interestingly the issue of the high inequality is accepted as a cultural norm especially due to the strong caste system (Itim International, Par 1).

In the Individualism (IDV) dimension which is tagged on the extent to which the society supports collectivism or individuality, India has a ranking of 40. This is because the family ties in the country are fairly strong and most businesses and other activities are done in a family context. This is unlike the US where individualism is the norm. In this regard, it is always wise to have secure wider support from family members rather than relying on one person whose decision however good may be rejected by other influential figures (Itim International, Par2).

Masculinity (MAS) has a similar argument. India has a ranking of 56. The distribution of roles is largely skewed in favor of men. Most of the leadership and managerial positions are held by men with women being largely seen as implementers. It is thus important to consider men for higher positions to gain support for the community (Itim International, Par 4).

The uncertainty avoidance index (UAI) focuses on the extent to which society is tolerant to ambiguity and uncertainty. India has a rank of 40. This is a relatively low index. The indication is that Indians are not afraid of uncertainties an important attribute to business acumen. They are willing to take risks and the implication to businesses is that it is always possible to engage them in high-risk areas and reap high returns (Itim International, Par5).

Long-term Orientation (LTO) as opposed to the short-term orientation dimension assesses the elements of perseverance and thrift for a society. In this dimension, India has a ranking of 61. This is a result of Indian societys orientation towards forming lasting relationships. The high ranking shows that they are able to persevere to ensure the fulfillment of business obligations a very valuable attribute for long-term foreign investors (Itim International, Par7).

Membership

India is a member of the World Trade Organization (WTO). The implication is that the country is bound by the proposal touching on areas such as intellectual property rights as well as the ban on subsidizing of agricultural sector an area that has remained a bone of contention. However, members of the WTO are focused on rationalizing trade policies, a good opportunity for India to attract western investors. Again, there are increased export opportunities as opposed to non-members.

The country is also a member of the Association of South East Nations (ASEAN). The trade blocks introduced improved economic political and social interactions among the Asian countries. The implication is that by investing in India, the company is able to access markets in neighboring countries without incurring huge cross-border tariffs. The expanded markets help firms to grow faster (ASEAN Secretariat, Par3).

An assessment of the Indian social-cultural as well as economic standing is fair and investing in the country would be a viable decision. Most importantly care should be taken to ensure smoother operations while conducting business.

Works Cited

ASEAN Secretariat. ASEAN-India Dialogue Relations. 2009. Web.

Itim International. Geert Hofstede Cultural Dimensions. 2009. Web.

Lawyers.com. Legal Issues & Starting or Buying a Small Business. 2009. Web.

Negotiations Training Institute of America. Business Negotiations in India: Negotiating with Indian Counterparts. 2009. Web.

US Department of State. Background Note: India. 2009. Web.

Kwintessential. Doing Business in India. Web.

Today, Ferrero can be called one of the largest companies in Italy. The company has been recognized more than once as an excellent place to work and has a significantly high business reputation. Its products are well-known and in demand among consumers around the world. Before achieving these and many other successes, the company went from a small confectionery in an Italian town to a world-famous brand. Studies of its main success factors and difficulties on the path of the giant can serve as valuable information for start-up companies.

• One of the main aspects that help a company stay in the market is its standards and goals. The central values of the Ferrero Company are high quality, the freshness of the products used, explicit and high-quality selection of raw materials, and respect for customers. Undoubtedly, the firm adheres to the corporate strategy of related diversification: it produces many different types of products, but all of them are somehow related to food and chocolate. Customer demand is the thing that helps the company determine the direction of development and maintain a leading position. In addition, loyalty to customers helps the company because consumers begin to buy constantly and more often and promote the company among their friends and acquaintances. However, in addition to focusing on customers, it is necessary to remember about employees. So, Ferrero also prioritizes training and other assistance to its employees. Ferrero has been recognized as the best employer in 17 countries (Kittilaksanawong & Curcuraci, 2021). This indicator attracts more and more specialists, both young and experienced.
  Such advanced technologies as the Internet contribute to the growth of the companys popularity and popularity due to its global nature. As the authors write, through the websites, the company engaged customers in several initiatives and provided visitors with a complete brand experience. (Kittilaksanawong & Curcuraci, 2021). Any modern company needs Internet promotion and advertising if managers want to increase the percentage of their sales and grow. This process gives the opportunity to advertise products, make a company known to the world, and gradually build up the online customer base.
  The following important factor of the companys success is the careful quality control of the manufactured products. In 2006, Soremartec Italia Srl was established to create new products that improve health, safety, quality, and nutritional value (Kittilaksanawong & Curcuraci, 2021). The company also advertises not its products but the quality and safety of its products. All information about the production of goods and ingredients is publicly available and accessible to anyone. Sponsoring sports events and collaborating with chefs around the world cannot go unnoticed either. Such actions are aimed at promoting Ferrero products and are a very successful business move.
• One of the main challenges now for chocolate producers is the shift to a healthier diet. People are increasingly choosing to buy healthier alternatives to chocolate. This trend is reflected in slower company growth and declining sales. However, Ferrero, which promotes usefulness and quality in every possible way, can avoid a crisis from such a trend. The products must correspond to the lifestyle of people who are willing to pay for compliance with naturalness and taste. Therefore, it is necessary to select the ingredients carefully and honestly inform customers about the energy value of the finished product.
  As in any other field, there is competition in the chocolate industry. Companies compete for sales, customers, and the title of best manufacturer. The main competitors in the American market for Ferrero were Hershey and Mars (Kittilaksanawong & Curcuraci, 2021). The main opportunity to gain success with consumers for the company was the introduction of an innovative product. In addition, the decline in prices for such an ingredient as cocoa has become a problem for companies as a result of the high level of competition (Kittilaksanawong & Curcuraci, 2021). Cocoa is the main component of any chocolate product. Improper cultivation of it and insufficiently educated farmers who plant it can cause a decline in the productivity of the company. In order to avoid negative consequences, Ferrero educates farmers from different regions of the world, providing them with the necessary information and skills.
• Vertical integration can help companies effectively reduce costs and improve efficiency. However, it is sometimes more efficient for a company to rely on the accumulated experience and economies of scale of other suppliers than to become vertically integrated. In Ferrero, vertical integration is used in relation to its supply chain. Kittilaksanawong and Curcuraci (2020) mention that the company acquired the hazelnut suppliers to gain better control over the supply chain. This move was made to maintain the sustainability of the companys products.
  The use of a vertical strategy was a positive factor for Ferrero. Becoming a member of the Supply Chain Initiative and Behaviors to support farmers towards a sustainable supply chain of farm values has helped develop and improve the company (Kittilaksanawong and Curcuraci, 2021). A vertical strategy and involvement of the parties at all stages can help to reduce the companys dependence on the external environment and consolidate the company in the dominant positions.
• Many companies seeking further growth often use the transition to publicity as a necessary way to expand their business. Some analysts suggested that Ferrero Company would also take similar actions and go public, but the CEO denied these assumptions (Kittilaksanawong and Curcuraci, 2021). If the company did decide to do so, there would be several advantages. Therefore, Ferrero would be able to increase the financial benefit of raising capital. The increased capital would go to various researches in the confectionery industry connected with improving raw materials and sustainability, training and paying employees, or more expensive ingredients. In addition, publicity would lead to increased public awareness of the company. As already mentioned, the more customers a company has, the stronger it can hold its leading position. One of the companys goals for 2020 is to increase the number of women by 5% (Kittilaksanawong and Curcuraci, 2021). Publicity and special training would help attract the female population to work in the industry.
  However, when going public, the company may face additional pressure in the market, which may lead to the fact that the focus of the business may change to short-term results rather than long-term growth. As statistics show, the first place in the list of thriving confectionery industries in 2015 is occupied by Mars, which in turn has been a private company for four generations (Kittilaksanawong and Curcuraci, 2021). Therefore, publicity cannot always guarantee great success. Besides, in such a scenario, the company may lose complete control over the enterprises due to an increase in shareholders.
• The corporate social responsibility (CSR) of the company is based on the principle of voluntary assistance of business managers at all levels to the social development of their employees, the arrangement of public life, and the implementation of measures to protect the environment. The main objective of the company within the framework of CSR is long-term support and attention to all involved parties. Kittilaksanawong and Curcuraci (2021) note that this strategy is the integral part of the entire value chain and was considered the most effective tool in managing the complexity of the chocolate industry, addressing the scarcity of raw materials, volatility of prices, and slow growth. This management principle ensures the stability of the enterprise and is the basis of the companys corporate social responsibility.

Environmental protection should be an integral part of the development process. Ferreros corporate social responsibility is reflected in its material sustainability and nature conservation policies. In 2014, Ferrero signed a declaration on forests to halve the rate of deforestation by 2020 (Kittilaksanawong and Curcuraci, 2021). The companys management adheres to the principles of environmental friendliness, reducing carbon dioxide emissions. The company also founded Energhe, which offered services in the industrial sector to maximize economic efficiency while minimizing environmental impact (Kittilaksanawong and Curcuraci, 2021). The presence of such modern eco-friendly technologies allows to modernize production, reduce costs or increase the profitability of the enterprise.

Analysis of the weak aspects of corporate social responsibility is necessary for every company. After conducting such a study, Ferrero indicated that the safety and quality of products and ingredients and the responsible search for raw materials should be prioritized (Kittilaksanawong and Curcuraci, 2021). The irrevocable conduct of actions to pursue their goals has borne fruit even before the scheduled date. So, Kittilaksanawong and Curcuraci (2021) say that the goal for as sustainable and segregated palm oil was reached in 2014 as certified by the Roundtable for Sustainable Palm Oil. Thus, it can be concluded that the environmental management system, thanks to the means that are integrated into all aspects of the organizations activities, forms the basis for improving the effectiveness of the organizations environmental responsibility.

However, the use of environmentally friendly materials for the manufacture of products is not enough; the company must also take care of the comfort of its employees, as this is one of the main tasks of corporate social responsibility. Ferrero strongly supports the people involved in the company. The business enables employees in different countries to receive daycare for their children and college scholarship programs (Kittilaksanawong and Curcuraci, 2021). In addition, the company conducts ongoing training activities for its employees. This focus on the parts of the company involved helps Ferrero avoid crises within the company and fit in as a leading business, which justifies all costs.

Ferrero is a company that has managed to establish itself in the world as a manufacturer of unique products. At the same time, it was able to create a uniquely human context within its structure, based on the principles of corporate social responsibility and values that then became an integral part of its culture. The company was able to combine a strong entrepreneurial spirit and a high sense of cohesion that was established in the mind while creating a natural and deep connection between Ferrero and its employees. This is precisely the factor that has given Ferrero an extraordinary look and holds a leading position among confectionery manufacturers.

Reference

Kittilaksanawong, W., & Curcuraci, O. (2021). Ferrero Group: Achieving sustainability through supply chain integration. Ivey Publishing.

Causes

ChassisCo was Toyotas suspension cradle supplier and they worked successfully in two projects until 2004. After successful launches of Suprima in 1997 and Responsa in 1999, Toyota decided to engage the company with another project, Suprima 2003. However, this project did not achieve expected success as it registered poor quality, increased costs, and low returns among other things. These failure problems were significantly caused by both Toyota and ChissisCo. Thus, while Toyota gave ChissisCo increased responsibilities, ChissisCo did not have the qualification to meet the companys demands.

Toyota caused the Suprima 2003 failure when it added ChissisCo more responsibilities. ChissisCo was already producing a suspension cradle for Suprima 1997 and Responsa 1999 for continued Toyota production, when Suprima 2003 was added as a new launch project. Toyota assumed that following past success with the two projects, ChissisCo would deliver success for the new project. Toyota also entrusted ChissisCo with project 2003 management yet they had no adequate skills. Furthermore, Toyota introduced ChissisCo to Technical Instruction Sheet (TIS) on top of TPS yet the management had no skills to run the program.

ChissisCo was also the primary cause of the Suprima 2003 project failure. First, the company had decentralized its office operations meaning that the experts who had worked for the past two Toyota projects had been scattered to three different branches. Therefore, when the company was hired for Suprima 2003 launch, it had no adequate skills, yet the management did not disclose this fact.

Another mistake is that ChissisCo was already doing launch projects for other companies from all over the world. Hence, it did not have enough resources and time to meet Toyotas demands. ChissisCo worsened the situation by assuming automatic success for the new project, however, it had changed the working settings and skills. The last major mistake that caused the project failure is that the project did not have a Supply Manager to control the use of resources, hence ChissisCo incurred extra costs off-budget.

Resolution 1

ChissisCo had a chance to rectify the low-quality production of the project 2003 suspension cradle. During the launching of the projects, the defects going to Toyota Motor Manufacturings Macon in Georgia (TMMGA) increased from 565 to 2845 in 2004. These defects were caused by increased robots, use of TIS without necessary skills, and poor management of the ChissisCo. The best solution would be for ChissisCo to hire qualified personnel to use the system and other competent staff for tuning as the current tuning caused gaps, hence increasing reshaping time. A defect flow-out control system would also be needed to detect and report a defective suspension cradle before it reaches TMMGA. Furthermore, on behalf of ChissisCo, I would ask for tuning help from the Japanese branch because the Japanese covered only 15% and left the rest of the work to ChissisCo, which is now a burden.

Resolution 2

Toyota would resolve the low-quality production of cradles by increasing the project budget. The ChissisCo Project Manager reports that Toyota was not willing to incur an extra cost when defects began to increase as it intended to stay on budget. Consequently, the project management could not rectify existing defects and quality problems. Being in charge on behalf of Toyota I would finance new skills to be acquired by personnel and also the purchase of defect flow-out control system. Furthermore, I would finance other extra expenses which would contribute to reduced production defects and improved quality.

Key Objectives for Eastman Kodak

1. Develop the company into a viable business in the field of photography
2. Focus on lean operations wherein fewer people are needed to perform operational tasks
3. Penetrate new markets where there are fewer competitors
4. Expand the companys product line to encompass new trends in technology development
5. Ensure the continued development of the company by hiring the necessary experts to take the company to the next level.

Why are the Objectives Essential to the success of the Company?

There are four characteristics that are in demand within a technology-oriented enterprise, namely: high market responsiveness, fast developments, low cost, and finally, high levels of creativity, innovation, and efficiency. As such, the objectives that have been indicated encompass such aspects and will be the basis behind the future development of Kodak. In relation to the final objective, what must be understood is that the aforementioned characteristics are dependent upon the type of technical teams that are the backbone of the company. Through the utilization of a variety of management practices, a seamless integration of vertical and horizontal means of collaboration need to be implemented in order to create a stable organizational structure for proper operations and product development.

Appropriate Corporate Level Strategy

One appropriate corporate-level strategy that the company can utilize in order to gain a competitive advantage is to attempt to provide services to clients in developing countries. The reason behind this is related to the current potential such regions have towards creating a profitable customer base for Kodak. It is based on this that the company would be justified in scaling back operations within its U.S. and U.K. markets due to slow economic growth which is indicative of a deterioration of consumer spending which makes expansion far from ideal since it is unlikely that consumers would continue to patronize products at the same level that they used to. Not only that, there is a significant degree of market saturation within the U.S. and UK with numerous well-established brands that would make it difficult for the company to establish a sufficient foothold to gain market dominance.

Pursuing a multi-business approach would be profitable for the company

Industry diversity results in less competition

While having the potential for more profit, attractive industries have a far greater degree of market competition resulting in the erosion of a firms economic performance as compared to companies that exist in unattractive industries where, through the development of innovative products and services, a dominant market position can be reached with fewer problems related to intense competition due to the nature of the industry (Chatha, Ajaefobi & Weston, 2007).

Even if a firm has valuable, costly to imitate and rare products which has resulted in it developing a dominant market position, the problem of operating within a highly competitive market within an attractive industry is that it cannot ensure that it will be able to capture 100% of the market nor can it say with absolute certainty that other competitors within the same industry will not be able to subsequently take over its dominant position (Chatha et al., 2007). This was the problem encountered by Kodak as more competitors entered into its industry with different product offerings. By diversifying the industries the company performs in (namely in attractive and unattractive industries), this lessens the possibility of the company being overwhelmed by external forces or competitors.

An inter-functional coordination approach enables the company to respond better to its business environment

In the case of the customer orientation approach to market orientation, a company spends what resources it has in gathering data on the needs and behaviors of various consumers, the same can be said for the competitor orientation; however, it focuses on competitors instead. What must be understood is that either method has a distinct weakness; focusing too much on consumer orientation can actually blind a company to changes in the market or may actually stifle innovation since the company focuses too much on consumer satisfaction rather than changing based on trends.

Focusing too much on competitor orientation, on the other hand, results in too much time and capital being placed on competitive activities, which results in companies at times neglecting their consumer bases and focusing too much on getting ahead of the competition. By implementing a multi-business approach through the use of inter-functional coordination (i.e., combining the different approaches), a company is able to diversify its approach to dealing with its market environment resulting in a much better rate of operational performance.

Diversifying Pricing Options

One multi-business approach that the company should implement is to take into account business cycles and market slumps and adjust prices accordingly (Nilsson & Olve, 2001). Not only that, other possible pricing options include selling different types of consumer products for different consumer segments (i.e., high-end products as well as mid-range items). Pricing is a critical element of successful marketing, in good times and in bad, many companies do not focus enough on getting their pricing right. It is based on this and the cyclical cycle of business that Kodak should consider proper pricing strategies when selling particularly hard to move products (Nilsson & Olve, 2001).

This takes the form of taking into account the physical value of the product being sold as well as various non-tangible elements that consumers take into consideration before they are willing to pay for a product. By utilizing a multi-business approach that has a diverse pricing option, this enables the company to target multiple consumer segments and allow it to reduce losses should demand in one segment decrease.

International Expansion

It should be noted that another multi-business approach is to expand into various international locations that are outside of a companys traditional markets. The reason behind such a strategy is related to the potential such untapped markets have towards increasing the profits of the company. As such, by utilizing a multi-business approach of market diversification, the company is able to potentially utilize untapped resources and increase its overall profitability (Den Haan, Judd & Juillard, 2011). Such a strategy was seen in the case of the company Whole Foods Market, wherein it utilized a multi-business approach of multiple market expansion in order to compete in untapped foreign markets.

Consumer Type Diversity

One lesson in utilizing the multi-business approach can be seen in the operations of IBM wherein the company has slowly taken itself out of competing directly in the consumer market and instead has focused on business to business sales and making itself into a solutions provider (Den Haan et al., 2011). By performing a similar strategy yet in developing markets, this multi-business strategy will enable Kodak to target new types of consumers.

Implementation Strategy

The suggested implementation strategy is to shift the companys focus from operating within its traditional markets to operating within developing countries. The problem with Kodaks traditional markets is that they are already saturated with competitors; as such, Kodak should look towards other markets for expansion. One possible avenue of approach is to shift resources towards foreign markets that have not been as adversely affected by the current economic downturn and focus efforts there instead of in cathartic local markets. For example, Chinas recent economic success has resulted in the creation of an upper and middle class whose spending habits have been growing as of late and is increasingly oriented towards consuming various types of western goods and resources.

This has resulted in an unprecedented level of demand for Western goods and brands, making the Chinese market an ideal location for the expansion of numerous established brands within the U.S. and Europe. Similar to the case of China, the Philippines has enjoyed a considerable boon due to the effect of the global outsourcing industry. At present, the country has well over 350,000 workers in the various call centers and business processing centers that have opened up within the country resulting in greater levels of purchasing power. Kodak can expand in these countries, utilizing a variety of potential digital products without having to compete in an overly saturated market directly.

Ethics

Overall, when examining the suggested strategy for Kodak, it is evident that there are no problems in relation to violations of CSR (Corporate Social Responsibility) or proper business ethics. To ensure compliance with proper ethical practices, the company needs to be able to hire personnel that can help the company improve itself through the development of better products, services, and event management so as to produce positive and, above all, ethical operational gains.

Reference List

Chatha, K. A., Ajaefobi, J. O., & Weston, R. H. (2007). Enriched multi-process modelling in support of the life cycle engineering of Business Processes. International Journal Of Production Research, 45(1), 103-141. Web.

Den Haan, W. J., Judd, K. L., & Juillard, M. (2011). Computational suite of models with heterogeneous agents II: Multi-country real business cycle models. Journal Of Economic Dynamics & Control, 35(2), 175-177. Web.

Nilsson, F., & Olve, N. (2001). Control Systems in Multibusiness Companies: From Performance Management to Strategic Management. European Management Journal, 19(4), 344. Web.

Introduction

At present, Porters five forces analysis is one of the most well-known evaluation methods of business performance. Michael Porter (1979) emphasized the threat of new entrants, the threat of substitutes, the bargaining power of customers and suppliers, and competition as five primary elements of economic rivalry. Specifically, the threat of entry is a significant factor that defines the markets attractiveness (Porter, 1979). Since then, financial experts have used the framework to evaluate the business performances of organizations and industries. In the golf equipment industry, which has developed significantly in recent decades, the threat of entry into the sector becomes more evident each year. As more entrepreneurs become interested in the production and distribution of golf equipment products, this market continues to grow denser and more complicated to enter. The current paper analyzes the threat of entry factors in relation to the golf equipment industry, providing empirical examples to explain each barrier that might be faced by potential entrants.

Economies of Scale

The initial and most significant barrier for new companies entering the golf equipment market concerns economies of scale. This concept generally refers to the difference between the established and new companies with associated advantages of scale economies in production and marketing (Porter, 1979). In other words, a large organization can take significant advantage of its position in the market and negotiate lower prices from suppliers. As golf has recently seen a drastic increase in popularity, making the golf equipment industry a denser market, the industry giant Acushnet Holdings has experienced a 200% revenue increase over the last five years (Hunt, 2021). Acushnet reported an $85 million Q1 2021 profit, surpassing the S&P 500 expectations, exceeding the annual break-even points by approximately 10% (Barba, 2021). Furthermore, considering the shortage of supply in the industry, there is little prospect for new entrants in the market (Hunt, 2021). Ultimately, it is highly possible that new organizations in the golf equipment industry would struggle to attract customers due to differentiated economies of scale.

Product Differentiation

The second barrier for new entrants is product differentiation, which requires the novel companies to develop intelligent targeting and positioning strategies to take a competitive place in the market. However, in the industry of golf equipment, the weight of the barrier can become strenuous due to the regulations imposed by the golfing committees (Poulin et al., 2006). While the measures of the produced equipment are controlled by official entities, the corporations which create and deliver the merchandise must also adhere to the customers need to experience new service methods (Poulin et al., 2006). As a result, it poses significant challenges for the new entrants in the golf equipment market, who must develop innovative ideas while following strict regulations.

Capital Investment

The third barrier to entry concerns the average capital investment necessary for new organizations to enter the market. It refers to all obligatory costs that cover various expenses, such as licenses, equipment, rent, labor wages, and other fees (Porter, 1979). An empirical example from the golf equipment industry concerns the expense requirements followed by merchandise distributors. Expenses connected to the acquisition of necessary materials and mechanical equipment patents costs significantly hinder the new entrants in the market, forcing the newly-created businesses to obtain capital of at least $500000 (Craw & Dickson, 2017). As a result, capital investment becomes a challenge for a novel corporation, which struggles to accumulate the necessary funds.

Cost Disadvantage and Access to Distribution

Cost disadvantage and access to distribution are two factors that are associated with the learning curve. In other words, the new entrants need to consider the recent research, government regulations, secure raw materials, and distribution chains, all of which require a deep understanding of fundamentals. In the free market system, knowledge and experience are essentials that define the chances of success. Craw and Dickson (2017) demonstrate the significance of experience in the golf equipment industry, explaining that new companies frequently encounter such complications as a lack of connections and knowledge. While veteran firms can easily adapt to the surrounding environment, newly-established corporations are forced to account for high learning costs and the absence of communication with acknowledged distributors (Craw & Dickson, 2017). Ultimately, a lack of experience poses severe challenges for new entrants in the industry.

Government Policies

Lastly, governments generally play a significant role in the economic situation due to the impact of sanctions, patents, and regulations on new entrants. In the golf equipment industry, government policies have little effect on the new companies entering the market, but they might enforce such barriers as quality and safety checks (Robertson, 2017). These regulations typically apply to novel manufacturers as they might lack the necessary experience and funds, thus attempting to balance the costs of competing with large-scale firms and comply with the rules (Robertson, 2017). Although the policies ensure safety control and protection from low-quality equipment, they also make it highly complicated for new companies to enter the market.

Conclusion

The current paper has demonstrated the importance of the threat of new entrants to business performance, first introduced by Michael E. Porter. The examined entry barriers pose significant challenges to organizations in the golf equipment industry. Such obstacles significantly affect the new entrants eligibility and force them to be prepared to address each barrier. Currently, the economies of scale and product differentiation appear to be the most severe challenges for enterprises trying to obtain a competitive position in the market.

References

Barba, J. (2021). Q1 financial reports: Acushnet and Callaway. MyGolfSpy. Web.

Craw, M., & Dickson, G. (2017). Innovation in golf. In Golf business and management. Routledge.

Hunt, R. (2021). 4 reasons Acushnet Holdings will thrive despite a golf ball shortage. The Motley Fool. Web.

Porter, M. E. (1979). How competitive forces shape strategy. Harvard Business Review. Web.

Poulin, M., Montreuil, B., & Martel, A. (2006). Implications of personalization offers on demand and supply network design: A case from the golf club industry. European Journal of Operational Research, 169(3), 9961009. Web.

Robertson, J. (2017). Golf retail. In Golf business and management. Routledge.

Introduction

Team work is one of the most difficult types of work as absolutely different people with various preferences should collaborate and work together placing the interests of the group above personal ones. The main purpose of the paper is to identify the group dynamics that occur when working collaboratively in organized teams and explain the possible effects of each of these dynamics, both positive and negative, on the productivity at the workplace and on the learning team work at the University of Phoenix.

The notion of team and team dynamics

It is crucial to understand the main idea of the team work and dynamics in general. According to George Eckes (2003) team dynamics are a number of motivating and driving forces which are aimed to propel the team towards its main goal or mission. Thus, the group dynamics is the power that makes team members desire achieve the best results of the work they do. Team members are sure to face a number of challenges and difficulties.

However, the identification of the team dynamics may help cope with these problems. While problem solving, it is important to remember that the result or solution should the main focus, not the problem statement (Problem Solving-Based Scenarios). The team dynamics should be directed to the results, people should be motivated to reach the final purpose via various drivers, depending on the main goal of the project.

Friendship group dynamics

The first team dynamic that can be offered is the friendship. Communicating outside the workplace, people get to know each other better and the collaboration goes faster and smoother. The team members enjoy the work they do with people they know. This adds to the motivation greatly. Still, there are a number of negative sides to consider. First of all, the friendship relations can bother pointing to some mistakes in order not to offend. Furthermore, the personal quarrel can be transferred to the working environment and can be negatively reflected on the results.

Working with this dynamic in mind, the productivity of work may be influenced both negatively and positively, depending on the situation. First of all, the employees willingly go to the work with the anticipation to see people they like. On the other hand, the reluctance to hurt a friend by pointing to the mistake can reduce either the volume or the quality of the work performance.

The quarrels also negatively influence the work productivity as most people are unable to ignore personal feelings while work conduction and usually transfer them to the workplace. Relating to the situation with the learning team work at the University of Phoenix, the friendship dynamics is extremely important and effective, learning is communication and it is twice pleasant to communicate with people who have common interests and vision of life.

Western approach as the type of team dynamic

The example of the other team dynamic may be the one based on the Western approach. The main idea of this dynamic is that time is money and the work should be done quickly for saving time and shifting to the other work/project. The team work is based on the principle the quicker the work is done the higher financial profit is received (Jehn & Weigelt, 2004). Thus, this dynamic is not always work in appropriate way. The team often considers just the time reduction without dealing with the quality which should be on the highest level.

The importance of this dynamic at the workplace is that the work is done fast and the results may be seen almost immediately. This dynamic should be used for dealing with the work that requires less attention and qualified intrusion, however, should be done within the short period of time. When the employees work under constant pressure of deadlines, they have nothing to do but to submit to the necessity to be motivated by the time issue. The productivity of the work is influenced via the volume of the done work as the quicker the work is done the more tasks may be accomplished.

While learning at the University of Phoenix, this dynamic should be used when a group project should be completed within an hour. It is obligatory to work fast, still with the possibility to complete the task for the high grade. Students should remember that the offered motivation should not become the regular one, as the fast completion of projects cannot be of the highest quality, and the students task is to do the work carefully and without the mistakes.

Eastern approach to time as one of the dynamics

It is possible to use Eastern approach to time as one of the dynamics for the team work. The main idea of this motivation is that the time is of no importance. The work must be conducted with calmness and it should be more detached and holistic, nonlinear, with a long-term focus (Jehn & Weigelt, 2004, p. 109). Using this approach as the main propel for the task completion, the workers are to remember that they are to use all their thinking abilities and involve the whole brain thinking (Jehn & Weigelt, 2004, p. 109).

Considering the positive and negative sides of this dynamic, it is important to notice that the patience in doing some kind of work leads to the possession of higher knowledge. Using this idea on the workplace, the employees will be able to improve their professional skills and increase their competence in some question. This dynamic is crucial when the deadline can be extended or it does not influence the working process. Furthermore, this dynamics is mostly used when the scrupulous work must be done. The positive influence of this approach on the workplace is expressed via the high quality of productivity of the work done.

This team dynamic should be the most crucial for students while learning at the University of Phoenix as the high quality of the completed task is the main purpose of the education. Doing the tasks of the high quality, students are sure to possess some knowledge and be able to apply them in future profession.

In conclusion, team dynamics are the motivators for the employees to perform their work. The type of the team dynamics should depend on the main goals the company defines. If the main purpose of the company is to create the higher volume of products, the Western approach to motivation should be used. Otherwise, if the quality is important, the Eastern one should be implemented. The Friendship dynamics also has its specifics and it depends on the working process whether it should be utilized or not.

Reference list

Eckes, G. (2003). Six sigma team dynamics: the elusive key to project success. New York: John Wiley and Sons.

Jehn, K. A. & Weigelt, K. (2004). Reflective versus Expedient Decision Making: Views from East and West. In S. J. Hoch, H. C. Kunreuther, & R. E. Gunther (Eds.), Wharton on Making Decisions (pp. 103-114). New York: John Wiley and Sons.

Problem Solving-Based Scenarios: An Approach to Identify Opportunities to Create Value for the Business.

It is more profitable to open an LLC than a corporation. However, they are both economic entities created by submitting constituent documents to the state (Rendtorff, 2019). In addition, they enable their owners to have the same type of protection and responsibility (Mancuso, 2021). As a rule, neither the owners of LLCs nor corporations are personally responsible for business obligations.

However, corporations have existed for a long time and offer a more predictable structure, viability, and effortless transfer of shares; LLC provides greater flexibility in management. A limited liability company is similar to a corporation, but it is easier to tax and has fewer requirements for maintaining documentation (Mancuso, 2021). In addition, LLC is the easiest-to-maintain organization with the least number of formal annual requirements. While in corporations, meetings are necessary to maintain corporate status.

However, it is difficult to say which company is better individually since both have disadvantages. For example, an LLC cannot attract external investments other than banks, while corporations can sell shares to raise capital (Mancuso, 2021). On the other hand, corporations may incur more fees than limited liability companies (Rendtorff, 2019). Therefore, it is essential to push away from the goals and opportunities of the business since an LLC is often better for a single owner and probably better for a partnership (Mancuso, 2021). LLC is more suitable for business owners whose main task is the flexibility of business management. Moreover, it would be best to create a corporation for a business owner who wants to have the maximum number of personal asset protection plans aimed at finding significant investments from outsiders. Thus, choosing the proper business structure will depend on the number of employees, the size and scope of the company, the level of participation of the owner, and tax considerations.

References

Mancuso, A. (2021). Your Own Limited Liability Company: Create an LLC in Any State. Nolo.

Rendtorff, J. D. (2019). The concept of business legitimacy: Corporate social responsibility, corporate citizenship, and corporate governance as essential elements of ethical business legitimacy. Responsibility and Governance Springer, Singapore, 45-60. Web.

Introduction

The traditional view of supply chain management in the FMCG (Fast Moving Consumer Goods) in the Middle East has significantly changed because of the global financial crisis (Hugos 2011). FMCG companies operating in the Middle East experience fierce competition in the production, distribution and selling of low priced fast moving consumer goods. The production, distribution, and selling of fast moving consumer goods for many years have relied on traditional supply chain activities to move raw materials and products from the manufacturer to the consumer (Alvarez, Pilbeam & Wilding 2010).

The modern business environment demands a radical shift from the traditional supply chain management systems to the more robust future supply chain systems. The rationale for shifting from the traditional supply chain management systems to the more robust management systems have been because of competition in the industry, the nature of the goods in the industry, and the need to optimise the supply systems to achieve high levels of efficiency and effectiveness. One of the companies involved in the FMCG in the Middle East is Nestlé. Nestlé was established in 1867 in Switzerland and has grown to become the worlds number one brand in FMCG industry. The company has a presence in 81 countries, 522 factories distributed globally, and specialises in 700 products (Alvarez, Pilbeam & Wilding 2010).

History of the Supply Chain

Optimal operations and competiveness in the FMCG industry are based on the efficiency of the logistics and supply chain activities. Traditional strategic supply chain maps used in the FMCG industry have been defined by some elements, which have compelled companies operating in the industry to go back to the drawing board and create new logistics and supply chain management strategies for the purpose of competiveness and efficiency. From a historical perspective, firms operating in the industry emphasised on vertical integration, where the supply chain was managed within the ownership of the main firm. The companies were enterprise oriented and the flow of warehousing activities was based on interruptions and cost optimisation per each enterprise (Hugos 2011).

The Planning, risk identification, and relationships across the units were enterprise oriented. The companyies could source for raw materials, manufacture, market, and sell their product without involving other companies. Any company in the supply chain concentrated their efforts on working towards meeting the goals of the parent company. Barratt (2004, p.45) argues that the supply chain was concentrated into one company based on previous models.

According to Barratt (2004, p.45), vertical integration was the sole architecture underlying the operations and supply chain activities. The problems with vertical integration included huge internal coordination costs, higher switching costs, and weak motivation to achieve good staff performance. Lack of expertise, the presence of anti-trust laws, and the use of inferior technology for non-core business purposes characterised the traditional supply chain industry (Barratt 2004). Successive growth experienced investments in the heavily acquisition of new supply chain systems and a radical departure from the traditional supply chain models.

Over the last 20 years, FMCG companies have undergone radical changes by focusing on developing supply strategies and core competencies. Such new supply chain management strategies focus on global integration of a network of suppliers, manufacturers, distribution centres, retailers, and service centres. Current supply chain management strategies have adopted different models such as the contract manufacturing model, enhanced vertical integration strategies, electronic manufacturing services model, and the virtual supply chain management strategy.

Traditional supply chain management strategies

The traditional supply chain model is shown in the diagram below. Traditional models were characterised by the manufacturer, the distributor, and the retailer. Information was the most important element in the manufacturing phase, contracts were important at the distribution stage, and materials were of significant importance at the retail stage.

In the above model, the company is responsible for the planning and forecasting consumer needs. In the traditional model, firms kept valuable information as trade secrets. Traditional boundaries were kept between suppliers, manufacturers, and consumers and remained intact. It is important to note that each party in the traditional supply chain system focused on core efficiencies and strategies to generate optimum profits by concentrating their efforts to ensure optimum use of resources. Contracts formed a significant part of the legal tussles and issues which proved to be very expensive (Hugos 2011).

Here, the activities in the supply chain were based on demand and supply models. Channel partners were not harmonised in the traditional supply chain strategies, which focused on individual performance, without factoring how the decisions could affect the performance of their partners in the supply chain system. Traditional methods lacked long term and short term strategic plans for growth. In addition to that, the traditional model is supported on legacy systems which could not be integrated to produce an efficient and effective supply chain map. The following graph shows the problems inherent in the traditional supply chain management strategies. The problems include low customer satisfaction, high distribution costs, lack of proper communication, and high product unreliability.

Current supply chain strategy

Changes in the economic landscape, fierce competition and threats from new entrants into the industry coupled with changes in consumer behavior and new innovative technologies have accumulative effects on the supply chain of companies operating in FMCG industry (Alvarez, Pilbeam & Wilding 2010).

Examples of companies which have been successful in their supply chain management strategies are Unilever, Nestlé, and Coca-Cola. Nestlé has registered successful revenue growth in the provision of quality services, and is actively engaged in working to create value for customers. The company has strategies to create new consumer products and brands suited to the needs of the market, and have a strategy of investing in new and upcoming manufacturing and distribution methods to keep abreast with its growth strategy. In addition, the company has automated the provision of services. It has developed a shorter product lifecycle, with a faster break-even point to increase profitability and reduce the cost of her products. A modern supply chain management process is shown in the diagram below. The chain consists of suppliers, inbound and outbound elements, operations and customers (Alvarez, Pilbeam & Wilding 2010).

Challenges overcomed during the development phase

Success in the FMCG industry depends on the successful implementation of supply chain and logistics strategies, which address the unique challenges in the industry. The challenges include the difficult in prioritising supply chain efforts to improve the delivery of products to the target market on time, the need to identify the best areas to deploy expert resources, and the performance lagging problems.

Performance lagging revolves around the need to provide the customer with the right product and satisfy their needs and the need to optimise performance to ensue efficient delivery of services. Another challenge to overcome was the result of a complex supply chain system that requires the provision of services for a wide variety of products. The industry has a unique structure and a multitude of players, which influence the demand and supply for her products. One critical challenge that the industry experienced in its growth was the provision of next generation supply chain systems, which formed the basis for the tension between the demand and supply. To overcome the challenges, the FMCG industry engaged earlier with policy makers and the governments to put in place structures to support the implementation of the next generation supply chain management strategies.

Some of the challenges experienced in the FMCG industry over the years include the problem of mixing of supply chain models, cost containment, customer intimacy, risk, visibility, and the effects of globilisation. Cost structures were contained during the global economic crisis by integrating cost reduction strategies including commoditisation and value chain addition activities to the supply chain management system (Stadtler & Kilger 2010).

Different models fit into different process and a universal model fits well into the operations of the parent company. The adoption of a more robust supply chain model has provided solutions to the long standing problems experienced in the FMCG industry. Another challenge is globilisation (Stadtler & Kilger 2010). Global procurement networks are difficult to manage because of the variations across countries including legal obligations, reliability, quality, and availability. Lead time, quality of products and services, and the problem of tracking and disposing obsolete inventory management systems in the FMCG industry.

An economic analysis shows that the company has the challenge of developing adequate capacity to grow a big customer base by factoring risk, legal, and bureaucratic issues.

In the coming years FMCG companies such as Nestlé face the new challenges of climate change, increased political momentum, cost efficiency, and on-shelf availability of products and services are additional future challenges. To address the increasing number of new changes, the companies have developed strategic supply chain models to address such problems (Stadtler & Kilger 2010).

Success factors for the industry

Success factors in the FMCG industry have been demonstrated by Nestlé improved performance, which has shown significant continuous growth in value shares, with a record growth of 1.5 billion consolidated shares by 2013 (Alvarez, Pilbeam & Wilding 2010). The companys strategy is defined by internal and external partners, relationship, customer satisfaction, and a 55% market growth. The success of the company is based on the provision of a range of consumer products, market, product, and geographic segmentation. The company has a market capitalisation base of 200 billion US dollars all over the world (Alvarez, Pilbeam & Wilding 2010).

Currently the company has a future strategy which is based on value based innovation, new market penetrations, and innovative products for new markets. The companys strategic pillars are defined by good quality product offerings, one company; one culture, single portfolio, and effective customer experience. Nestle has grown in the Middle East to be the biggest company in the FMCG industry (Alvarez, Pilbeam & Wilding 2010).

Aligning supply chain with business strategy

To move from its current position and focus on the future as the winning formula for success, the company intends to align its supply chain with its strategy by focusing on physical supply chain innovation strategy (Horvath 2001). The company intends to achieve excellence through collaborations by introducing into its supply chain architecture inventory optimisations systems, and by ensuring that store logistics including store visibility and shopper interactions are implemented into the supply chain of the company. The future strategic supply chain must operate in a sustainable manner by focusing on the customer (Horvath 2001).

The new supply chain strategy provides the company with an enhanced collaboration model. The company has experienced senior management involvement to align key performance indicators with internal organisational performance metrics that are transparent and visible throughout the supply chain of the company (Horvath 2001).

The current business strategy is shown below.

A future supply chain, which integrates strategy, is shown in the following diagram.

End to end process architecture

The key end to end process supply chain architecture is defined by a number of elements (Horvath 2001). Typically, the process can only be effective and can enhance the performance of the company based on the processes that go into the model. The key elements in the supply chain end to end process architecture includes planning, balancing the demand and supply of products and services, and aligning the business strategies into the supply chain of the company. Once the planning component has been implemented successfully, the execution phase follows. In the execution phase, the organisation prepares to source for products and services to satisfy the needs of her customers. The key elements included in this phase include the strategic role of the company to make, deliver, and products to the customer.

Design a high performance supply chain organizations

The high performance supply chain model for organisations functions on the supply chain excellence levers, which include customers and products at the service level. Customer requirements are factored at the service level to ensure they are fulfilled at the product level. Complexity and standardisation are removed from the system. At the network level, the levers of excellence to factor include customised product flow and shared logistics hub.

Build the right collaborative model

Nestle faces fierce competition from her rivals and to ensure the market share is maintained, the company has developed collaborations with different supply chain systems. The key elements of the model include information sharing which included a number of elements (Stadtler & Kilger 2010). The elements which fall into the information category include demand forecasts for products, overall inventory policy for the company, delivery schedules, order status, on hand inventory levels, and inventory holding costs. The model elements are optimised for competiveness. The next element in the model is the decision synchronisation, which factors joint plans for various activities such as consultation on pricing joint demand forecasts, and joint resolution on order exceptions (Stadtler & Kilger 2010). The key driving factors for the model include low prices, high quality products, dependable product delivery, product innovation, and improved organisational performance.

Drawing about the strategic supply chain process map

The model shown below is based on the modified ISO 9001:2000 interpretation model.

Major findings, limitations

A radical shift into the new collaborative supply chain model from the traditional model, which emphasised on customising the supply chain to fit into the supply chain needs of the parent company, has been witnessed. The companies have emphasised on service and product excellence by factoring supply chain excellence levers at the customer, network, and processes levels. Organisations use supply chain models with inherent problems such as poor documentation of supply chain activities, lack of standardised templates for performing supply chain activities, and poor spending priorities.

Implications

Implications include inconsistent management of the suppliers, maverick spending, risk for regulatory compliance, and missing the significant potential for cost reduction. Other implications include poor integration of the business level strategy into the supply chain model, improved scalability, lack of excellent in processes, poor supplier performance measures, and demand management for the collaborating entities in the supply chain system.

Solutions

Solutions range from the use of a high performance model which integrates the key performance enhancements elements such as proper planning based on a deep and complete mapping and understanding of the supply chain needs of the companies. In addition, the plan should consist of defined processes with top level management commitment. The optimal use of the internal supply chain to enhance supplier capabilities and recommended use of performance measures to manage the supply chain performance are contributing factors to the success of companies in the FMCG industry. Building flexibility into the supply chain using the right people, processes, and technology will contribute to the excellence in performance of the supply chain. In addition to that, the elimination of supply chain shortages reduction of inventory costs, reduction of logistics costs, and a full integration of the end to end supply chain process model.

Recommendations and Conclusion

A radical departure from the traditional supply chain management strategies has enabled the growth of the FMCG companies in the competitive business environment. Nestle is an existing example of a company that has recorded strategic growth by integrating the key elements of planning, delivery dependability, information sharing, decision synchronisation, sales forecasting, and strategic demand and supply activities.

To eliminate the weaknesses and problems discovered in previous and current models, the study recommends the company to develop an integrated model which factors the best practises of the traditional models with the current supply chain models to optimise performance at all levels of product and service delivery to develop a future supply chain model. Outcomes include an elimination of supply shortages, which could results in customer satisfaction, short cycle and lead times, and the integration of common goals to achieve supply chain efficiencies in the FMCG industry as shown below.

References

Alvarez, G, Pilbeam, C & Wilding, R 2010, Nestlé Nespresso AAA sustainable quality program: an investigation into the governance dynamics in a multi-stakeholder supply chain network. Supply Chain Management: An International Journal, vol. 15, no. 2, pp. 165-182. Web.

Barratt, M 2004, Understanding the meaning of collaboration in the supply chain. Supply Chain Management, An International Journal, vol. 9, no.1, pp. 30-42. Web.

Horvath, L 2001, Collaboration: the key to value creation in supply chain management. Supply Chain Management, An International Journal, vol. 6, no. 5, pp. 205-207. Web.

Hugos, MH 2011, Essentials of supply chain management, John Wiley & Sons, New York. Web.

Stadtler, H & Kilger, C 2010, Supply Chain Management and Advanced Planning: Concepts, Models, Software, and Case Studies, John Wiley & Sons, New York. Web.

Job Interview

Employers might be constrained by the law and are required to follow specific criteria while interviewing prospective workers, notwithstanding their desire to pick the finest candidates.

Main body

For instance, businesses are not permitted to discriminate against job applicants based on their age, race, gender, or national origin under the 1964 Civil Rights Act (Williams, 2019). This implies that they are unable to inquire about these topics in an interview. Additionally, companies are forbidden from discriminating against job applicants based on a medical condition or impairment under the Americans with Disabilities Act (ADA) (Williams, 2019). As a result, unless it is directly relevant to employment requirements, a hiring manager cannot inquire about a candidates health. Finally, as per the First Amendment of the U.S. Constitution, employers cannot discriminate against job applicants based on their religion (Hughes, 2020). Employers cannot inquire about their religious beliefs, practices, or affiliations.

I have encountered some of these prejudiced questions throughout my many interviews. I remember being questioned about my plans to have children during an interview. I felt awkward since the interviewer seemed to be attempting to determine whether I would be taking a leave soon. Another time, I was asked at an interview about my ethnicity and birthplace. Although I replied to the inquiry, I realized it was not the right decision. These encounters have made me realize how crucial it is for job seekers to be aware of their rights. The verse for the week, James 2, teaches us about the sin of partiality.

Conclusion

It serves as a reminder that individuals should not treat others unfairly or show favoritism based on their looks, social standing, or background (Bible, n.d.). Job applicants must keep in mind that, according to God, all persons are created equally and need to be treated as such by employers.

References

Bible. (n.d.). James 2. New International Version. Web.

Hughes, C. (2020). Implementation strategies for improving diversity in organizations. IGI Global.

Williams, C. (2019). MGMT11: Principles of Management (11th ed.). Cengage.

Introduction

Many companies are trying to adhere to the principles of diversity in the workplace, as it helps to bring new ideas into the activity and meets the rules of ethical attitude to co-workers of different races, genders, etc. Even though diversity is already becoming commonplace, the stereotypical mindset of some colleagues toward others remains the same. Stereotypes generate a confident attitude of colleagues toward each other, and often these relationships are negative rather than positive, which leads to inevitable consequences. Nevertheless, diversity takes place in the workplace and is divided into two levels: surface diversity and deep. Although these types of varieties differ precisely in their depth, they still have some similarities.

Main body

Diversity on the surface level is that it shows the characteristics of people that are visible to everyone around. These include gender, race, external features of people, and others. At a deep level, diversity is the characteristics of people that cannot be seen but can only be learned over time. A deep level of diversity includes thoughts, values, and beliefs, that is, what has a significant impact on peoples behavior (Williams, 2019). Stereotypes are often formed based on diversity, the signs of which lie on the surface, that is, they are apparent. It is more difficult to subject an employee to specific stereotyping based on deep signs since it takes time to detect this stereotype.

That is, the differences lie precisely in the fact that it is more challenging to identify diversity at a deep level than at a superficial level. In addition, diversity at a deep level, as opposed to a superficial one, can be measured, for example, by analyzing the decision-making methods of employees or other available tools (Franklin & Woodward, 2019). Another significant difference is that diversity at the surface level does not affect the effectiveness of the teams work, while deep variety can make the team successful. Thus, it is imperative to distinguish diversity at the surface level from diversity at the deep level since they may not have a relationship.

The similarity naturally lies in the fact that both levels are inherent in diversity and can complement each other. Every type of diversity plays a significant role in creating an effective working environment, and therefore attention should be paid to each of these levels (Jansen & Searle, 2021). Each level of diversity gives an understanding that it is imperative to treat all people equally positively, even though everyone is different, and each person has their peculiarity.

Diversity is also encouraged in the Bible, for example, the Book of James 2 demonstrates the example of a poor and wealthy person to indicate to people that it is necessary to treat everyone equally regardless of characteristics. The message of James 2 is that choosing in favor of people of higher status and belittling people with low incomes and poorly dressed is sinful, and it is necessary to treat all people with respect. Discrimination and stereotyping in a negative way are a sin that needs to be eradicated, as it brings discord not only between employees but also brings negative consequences for human hearts and thoughts.

Conclusion

In conclusion, diversity at the surface level consists of visible signs such as age, gender, race, etc. Diversity at a deep level demonstrates the difference in views, thoughts, beliefs, and values. These types of diversity have their similarities and differences, and each of them can occur in modern times in the workplace. It is imperative not to evaluate people by their appearance and subject them to stereotypical thinking since all people are different and should be equally considered by others.

References

Franklin, A., & Woodward, B. (2019). The effects of surface-level diversity compared to deep-level diversity. In Proceedings of the 20th Annual SIG Conference on Information Technology Education (pp. 155-155). Web.

Jansen, A. E., & Searle, B. J. (2021). Diverse effects of team diversity: a review and framework of surface and deep-level diversity. Personnel Review, 50(9), 1838-1853. Web.

Williams, C. (2019). MGMT11: principles of management (11th ed.). Boston, MA: Cengage.