Kemya Polyethylene Plant and Its Ergonomics

Introduction

The manufacturing business environment has undergone considerable evolution over the years. The transformations have been spurred by different causes. Technological development is one of the critical forces that have changed the industry significantly. Manufacturing firms are progressively integrating different computing technologies in the quest to achieve efficiency in their operation.

The implementation of the various innovative technologies has further been increased by the industry shakeups that have arisen from the intense competition amongst the industry players. Erdinc and Vayvay emphasise that despite the view that the shakeouts might be catastrophic, they also present a critical source of opportunity for manufacturing firms that integrate proper foresight into their management processes (728). Bloom, Kretschmer, and Reenen argue, One of the common precipitators of an industry shakeout is a shift in the core technologies driving the manufacturing processes (343).

Past studies on the survival of manufacturing firms emphasise the importance of adopting effective production processes. The management processes range from the integration of diverse management philosophies such as lean manufacturing, flexible operation, and gradual or continuous improvement (Erdinc and Vayvay 728). The incorporation of effective process management constitutes a fundamental component in quality-related initiatives, for example, total quality management.

One of the areas of focus that businesses should focus on entails ergonomics. Bloom, Kretschmer, and Reenen define ergonomic to include the interaction between humans, technology, organisation, work environment, and the influence of these interactions on quality (344). Business organisations must establish a link between quality management and ergonomics. Despite, the integration of technology in organisations operations, firms need to focus on establishing a balance between human and technological capital.

Problem statement

Efficient operation is critical in firms quest to achieve sustainable performance. Nevertheless, achieving this outcome presents a major organisational challenge. Despite the development of technology and the subsequent substitution of human capital by computer technology, no organisation can succeed in sustainable performance without the input of human capital. One of the issues that can contribute towards the attainment of sustainable performance entails providing clients with high-quality products and services. However, delivering quality products is subject to the skills and knowledge of the employees.

Erdinc and Vayvay support this perspective by asserting that human capital plays a critical role in promoting efficient operations and deliverance of the quality promise (728). To promote the employees performance, it is critical for the organisations human resource management teams to ensure that the job roles assigned to the employees are aligned with their specific skills and knowledge. This aspect requires effective work designing.

In the recent past, KEMYA has implemented diverse reforms in its manufacturing process such as debottlenecking some of its manufacturing plants. The reforms contributed to a remarkable improvement in the firms manufacturing capacity. For example, phase 1 of the debottlenecking process led to the improvement of the firms production capacity by 280-kilo tons annually. The second debottlenecking on the LDPE plant increased the production capacity to 325-kilo tons annually. Nevertheless, the firm encountered a challenge in undertaking the final debottlenecking on its plant, as the process was unsuccessful. The firm encountered leakages in its reactor, quality issues, increase in failure rate and process issues such as tube fouling. Debottlenecking can contribute to remarkable improvement in downstream manufacturing activities.

Despite its quest to achieve competitiveness in the petrochemical industry through the implementation of crossover projects and debottlenecking, KEMYA has continued to experience a high rate of plant shutdown and reduction in the quality of its products. The problem has been spurred by the high rate of employee turnover and inefficient employee knowledge and skills. The available literature affirms that human error is a major factor that increases the incidences of poor quality in the manufacturing sector (Erdinc and Vayvay 728). Despite the faced challenges, the firm can attain sustainable competitive advantage through the adoption of effective human resource management practices. Ergonomics is one of the HR aspects that the firm should take into account in delivering quality and sustainable performance.

Aims and objectives

The purpose of this paper is to examine how KEMYAs management team can revamp the performance of its LPE plant regarding quality by applying the concept of ergonomics.

Research objectives

To achieve the research purpose, the study will focus on the following objectives.

  1. To examine how KEMYA can improve the quality of its products by focusing on human capital.
  2. To investigate how the application of ergonomics can lead to a reduction in the rate of employee turnover.
  3. To explore how ergonomics can enhance KEMYAs efficiency in achieving sustainable quality and performance.

Research question

In line with the research objectives, the study will seek to respond to the following questions.

  1. In what ways can KEMYA leverage human capital in improving the quality of its products?
  2. How can the application of ergonomics assist KEMYA in reducing the rate of employee turnover?
  3. How can KEMYA enhance its efficiency in achieving sustainable quality and performance through the application of ergonomics?

By focusing on the research objectives, the study will seek to test the following hypothesis.

  1. H0: Ergonomics is positively related to the performance of a firm.
  2. H1: There is no correlation between ergonomics and the firms performance.

Significance of the study

Investigating the relationship between ergonomics and the firms performance will provide KEMYAs management team with additional insight on how to achieve sustainable performance by leveraging on the concept of ergonomics. Thus, the study will lead to a remarkable decline in the firms understanding of the significance of the internal environment in the organisation. Subsequently, the firm will reduce its over-focus on the implementation of technology as the only strategy towards achieving competitive advantage.

Limitations of the study

The study is based on a survey on the application of human resource management practices at KEMYA. However, the study might be limited by resource constraints such as time and finances. The study intends to eliminate these limitations through the application of sampling technique and the integration of information communication technologies in conducting the study.

Literature review

The available literature on manufacturing reveals the existence of a strong link between ergonomics and quality. Ergonomics underscore the importance of establishing a fit between the work environment in a particular organisation and the human capital. The importance of establishing this fit is to promote the well-being of an organisations human capital.

Despite this recognition, Bloom, Kretschmer, and Reenen argue that organisations consider the link between employee and performance to be obvious (344). However, most firms are only concerned with improving the employees productivity as an avenue towards enhancing value such as by gaining high-profit returns. This approach might be counterproductive in an organisations quest to achieve sustainable performance.

Pierre and Adelaide affirm that establishing the requisite fit in an organisations performance stimulates high-performance amongst the workforce (3857). Subsequently, quality is improved. Bloom, Kretschmer, and Reenen argue that quality depends on human performance (347). Moreover, Bloom, Kretschmer, and Reenen emphasise that the concepts of quality and ergonomics are concerned with one outcome, which entails enhancing the efficiency of an organisations systems and the employees performance. The concepts of ergonomics and quality are based on similar practices and processes such as continuous improvement and employee participation.

Erdinc and Yeow affirm that whilst good ergonomics leads to good quality performance, quality management systems like total quality management or ISO 9000 facilitate the improvement of ergonomics such as better working conditions (950). Findings of a study conducted on the application of ergonomic and quality management amongst companies in Bursa, Turkey, showed that 88% of all the firms that have adopted the concept of total quality management experienced a remarkable improvement in their ergonomics. Additionally, the level of employee participation in the firms quality management system was enhanced substantially.

One of the approaches that firms should take into account in ensuring participation entails entrenching an effective communication plan. The communication plan should entail a two-way communication approach. Providing employees with an opportunity to share information on work-related issues would lead to the development of a strong degree of employee retention (Erdinc and Yeow 950).

The fundamental role of ergonomics in an organisations operation is to strengthen the working environment hence promoting high-performance amongst the workforce. Furthermore, quality deficiencies and human errors are reduced significantly. Some of the aspects of working conditions that ergonomics emphasises in promoting quality and efficient performance entail safety. For example, manufacturing firms should ensure that the workstations are well lit and free from other hazards that might affect the employees concentration in undertaking their job roles (Erdinc and Yeow 950). A survey conducted in a Swedish car assembly plant in 2005 showed that 66% of the quality deficiencies in the final product were due to ergonomically demanding tasks.

Studies on the role of ergonomics in improving the employees performance and quality have led to the development of diverse ergonomic interventions. Some of the ergonomic interventions proposed include training, installation of effective workstations, the formulation of operations manual to be used in instructing employees on the correct work method, and the installation of reminders on work posture in the workstations.

Erdinc and Vayvay affirm that ergonomics training should focus on equipping employees with knowledge on issues related to occupational health and safety (734). Conversely, Gorny supports the view that occupational health and safety is fundamental to achieving organisational success (1708). The working environment comprises one of the essential aspects of fostering occupational safety and health. The extent to which safety and health aspects are observed in the work environment influences the level of employee satisfaction.

Organisational managers have to examine the nature of the working condition within their respective firms. Therefore, a comprehensive ergonomic criterion should be adopted in assessing the prevailing working conditions. The criteria should focus on the anthropometric, physiological, psychosocial, and hygienic requirements (Stanton, Young, and Harvey 118). Anthropometric requirement entails examining the technical equipment used in the working process such as examining how the equipment promotes the adoption of a rational working position. On the other hand, physiological requirements involve ensuring that the technical tools are adapted effectively to the employees psychological needs such as optimum load on muscles, limbs, and joints. Concerning hygienic requirements, organisations should ensure that the work environment is adapted effectively to address human needs to prevent the environment from affecting the employees comfort adversely.

The work environment has a significant impact on the effectiveness and efficiency with which an organisations workforce undertakes the assigned roles and responsibilities. According to Bellagamba et al., the work environment can lead to a significant increase in the level of job strain and the employees levels of job-related stress (357). Bellagamba et al. add that work-related stress adversely affect the employees mental and physical stress (357).

The outcome is that an organisation might incur a significant financial cost due to the high rate of absenteeism, employee turnover, and a decline in the rate level of employee productivity and social climate. A study conducted to examine the financial cost of occupational stress on an organisations performance showed that the prevalence of occupation stress increases the incurred financial cost. In 2001, the US lost approximately US$ 42 billion while France lost US$14.81 billion in 2008. On the other hand, French firms lost between 2-3 billion Euros in 2007 (Bellagamba et al. 357). This aspect underlines the importance of developing an effective work environment.

In the process of leveraging on ergonomics as an approach towards improving quality, organisations management team must take into account the technical and managerial dimensions of ergonomics and quality. Despite the different studies conducted on the relationship between poor quality and ergonomic problems, the studies have failed to establish the magnitude to which ergonomics culminates in the reduction of quality defects.

Erdinc and Yeow posit, A positive contribution of ergonomics to quality is proven in the labour-intensive manufacturing processes (950). Due to the labour nature of the manufacturing industry, the probability of human error is substantially high. Moreover, the poor ergonomics increases the employees job strain and fatigue hence limiting their concentration. However, the application of ergonomics tends to increase the level of concentration. The importance of KEMYAs management team developing a significant understanding of how it can leverage on ergonomics to deal with the high rate of employee turnover and human errors in the manufacturing process is critical.

Research methodology

This study intends to develop additional insight into the causes of the high rate of quality defects and employee turnover at KEMYAs LDPE plant. To achieve the research purpose, the study will adopt the exploratory research approach. The rationale for adopting this design is to gather sufficient data on the subject hence increasing the likelihood of the study being conclusive. Jha corroborates that exploratory research design contributes to the development of critical insight on the research subject (106). Moreover, the research study will further be enhanced through the adoption of the concept of triangulation.

This goal will be achieved through the adoption of hybrid research design. Thus, qualitative and quantitative research design will be considered. The quantitative research design will aid in managing the voluminous qualitative data collected from the field.

Data collection

The research process will specifically target employees working in the different departments at the KEMYAs LDPE plant. The rationale for targeting the firms employees is to gain sufficient understanding of the fundamental issues that are increasing their turnover intention and the high incidents of quality defects. For example, the inclusion of plant managers will enable the researcher to gather reliable insight into the nature of quality problems currently being encountered at the LDPE plant.

The research data will be gathered by surveying KEMYAs employees. The decision to conduct a survey is to increase the likelihood of gathering adequate data regarding the research topic. Simple random sampling technique will be adopted in constructing the survey. This aspect will provide employees with equal chances of being included in the study. The data collection process will be actualised through the integration of a questionnaire as the core data collection process. A set of questions on the research topic will be designed and distributed to the research respondents.

The collected data will be effectively analysed and presented using descriptive and inferential statistics. Descriptive statistics will enable the researcher to condense the qualitative data (Marshall and Gerald 57). One of the tools that will be used in analysing the qualitative data entails the Likert scale (McNabb 45). Moreover, the integration of data analysis tools such as Microsoft Excel will enhance the data analysis and presentation process using graphs and tables.

Considering that the study involves human subjected, it will be ensured that the requisite ethical issues are considered. First, authorisation to conduct the study involving the KEMYA LDPE plant will be sought from the companys management team. This goal will be achieved by explaining the purpose of the study hence eliminating suspicion. It will also be ensured that a high level of respect is observed in conducting the study. This goal will be attained by ensuring that the respondents are not coerced to participate in the study. On the contrary, the firm will ensure that the respondents are free to pull out of the research study without any consequences. Moreover, the researcher will obtain informed consent from the respondents by informing them of the risks and consequences of participating in the study. The respondents will further be informed of how confidentiality will be attained.

Research schedule

Approximately the research project will take about 14 months. The bar chart below shows the major tasks to be accomplished and the time of their completion.

The major tasks to be accomplished and the time of their completion.

Monitoring and evaluation

The research process will be evaluated progressively to determine whether it is aligned with the stipulated milestones. The monitoring and evaluation process will use the specified tasks in the research schedule as the milestones. One of the aspects that will be considered in evaluating the research data entails examining its validity. The different types of validity will be considered. This aspect will play a fundamental role in ensuring that the findings of the study are reliable in making decisions on ergonomics and quality in the workplace. Using the findings of the study, the value of the research in enhancing KEMYAs capacity to address the quality and turnover challenges encountered will be remarkably improved. In summary, it is expected that the application of the proposed research approaches and techniques will lead to a significant improvement in the outcome of the study.

Works Cited

Bellagamba, Gauthier, Guillaume Gionta, Julie Senergue, Christine Bèque, and Marie Lehucher. Organisational Factors Impacting Job Strain and Mental Quality Of Life in Emergency and Critical Care Units. International Journal of Occupational Medicine and Environmental Health 28.2 (2011): 357-367. Print.

Bloom, Nick, Tobia Kretschmer, and John Reenen. Are Family-Friendly Workplace Practices A Valuable Firm Resource. Strategic Management Journal 32.1 (2011): 342-367. Print.

Erdinc, Oguzhan, and Ozalp Vayvay. Quality Improvement through Ergonomics Methodology; Conceptual Framework and an Application. International Journal of Productivity and Quality Management 3.3(2008): 311-326. Print.

Erdinc, Oguzhan, and Paul Yeow. Proving External Validity Ergonomics and Quality Relationship through Review of Real World Case Studies. International Journal of Production Research 49.4 (2011): 949-962. Print.

Gorny, Adam. Ergonomics in the Formation of Work Condition Quality. Work 41.7 (2008): 1708- 1711. Print.

Jha, Adam. Social Research Methods, New Delhi: McGraw-Hill Education, 2014. Print.

Marshall, Celten, and Rossman Gerald. Designing Qualitative Research, Thousand Oaks: Sage,2011. Print.

McNabb, Daniel. Research Methods for Political Science: Quantitative and Qualitative Methods, Armonk: M.E Sharpe, 2004. Print.

Pierre, Falzon, and Nascimento Adelaide. Performance-Based Management And Quality of Work; an Empirical Assessment. Supplement 41.6 (2012): 3855-60. Print.

Stanton, Neville, Mark Young, and Catherine Harvey. Guide to Methodology in Ergonomics: Designing for Human Use, Boca Raton: CRC Press, 2014. Print.

Skills for Approaching a Job Interview on Marketer

My early childhood involuntarily set me up for a sales and marketing career. I was an assistant to my father in his art gallery and with time, I gained first-hand expertise in customer service, sales, and marketing. I developed a liking for this job and with time I sought to establish myself as a marketer. I realized that to succeed I had to go to get lengths to achieve their dream. This is the reason why I enrolled at the best colleges and universities that would not only give me valuable academic qualification, but practical knowledge as well as help me increase my market value and chances for career advancement. Modern careers are so complicated and dynamically change instantly, therefore the need for professionals to keep upgrading their skills. The process of landing the dream job is a job in itself. I therefore have realized the need not only to possess the relevant skills but also to convince the prospective employer that I am the employees the company needs. It is therefore important to know that each company has unique needs and to understand how qualifications talents, skills, and abilities meet those needs. Prospective employees, therefore, need to prepare for interviews adequately, whether with the help of an interview coach or not. The purpose of this essay is to analyze how a prospective employee prepares adequately for an interview for a job as a marketer.

Marketing is one of the most interesting and sought after jobs because of its potential for growth and advancement. To succeed in this career I need to set goals for both short-term and long teams. My short-term goal s will be a gradual move towards the achievement of my long-term goal. Currently, I have a goal to seek a position for an internship for at least a year with a reputable company that will give me relevant on the job training as well as the opportunity to gain valuable experience in international marketing. This will be an opportunity to show my leadership and team-building skills. During my internship period, I will very part of the marketing team that grows the companys international market value through innovative marketing tools and products. The internship will have allowed me to complete my masters as well as establishing myself as a valuable asset to Nokia America. This will have made me fully qualified to seek a marketing role permanently for a minimum period of three years through an in-house application. This will allow me to win Nokia America corporate clients(Martin, 2000).

Martin, (2000) adds that a career goal shows intentions to commit on a long-term basis to the company A career goal is a description of (my) personal and professional philosophies and how they will help (my) professional advancement (Hansen, 2011a). My career objective should be reflected in my CVs and should emphasize my professional (not personal) aspirations (Resume & Cover Letter Guide, 2009). This is an opportunity to express not only professional expertise but also other essential skills such as interpersonal and intrapersonal skills (Hansen, 2011b).

Achieving my career as a marketer will require me to have an action plan. Backlar (2000) explains that a career strategy is a personal brand, purposed to propel a persons career. Cameron. (2009) states that a successful career plan involves four aspects: understanding oneself, planning for your career, learning to learn, and adapt to new learning. My career strategy is influenced by my abilities to do win corporate clients. It involved acquiring the necessary academic qualification co-currently with the necessary job experience. My experience in American Mobile was deliberate to gain the necessary skills for an international career in the mobile phone industry. While at American mobile I utilized all the necessary opportunities to learn on the job, including learning from experienced marketers both within and without the firm. This will also be a valuable skill while at Nokia and will greatly help me in moving towards my career goal.

I have to position myself as the right candidate for this job through the following actions. I will research all Nokia and how it is relevant to the market in terms of market-relevant products, pricing of products, logistical abilities to manage the supply and distribution chains competitors size of the market, customers purchase power, the rate at which the market is growing and the key issues that the company can utilize for its success (NetMba, 2010; IMEC, 2008). I will then prepare a brief but informative presentation for the interview, a valuable tool that portrays that I not only understand the market but also Nokias opposition in it. The last bit of the presentation will relate to my previous experience in marketing coupled with my qualifications as important to my success in this position especially in winning corporate customers for Nokia.

Marketing roles vary from industry to industry and as such, I need to exhibit unique knowledge on the roles of a marketer in the mobile phone industry (Marketing Profs., 2005). My unique role for Nokia America will be doing a market study and identifying which corporate clients are worthy of recruiting into our clientele database. To facilitate my skills I will portray to the interviewer that I have the necessary skills. They include minimizing marketing budgets while maximizing returns, team building, and team management skills, not only understand what brand positioning is but also how to use that knowledge to position the company products in the market while differentiating the different roles of sales and marketing (Slideshare, 2011; Watson, 2011; Murdoch, 2011; Brelsford, 2011). The mobile phone industrys biggest challenge is the uncoordinated relationship between developers of mobile phone applications and hardware technologies (Marie, 2006). As established marketing research, I will use this skill to link these two stakeholders. The results will be manufacturing gadgets that respond to diverse user needs.

The current position needs a person who is flexible enough to travel on short notice as well as experience in corporate marketing coupled with at least a masters degree in marketing. This role will in cooperation entering into agreements with dealers, service providers, and mobile phone software developers. For this type of job interview, there is a need to show to the interviewer that I possess not only personality-based strengths but also professional based. Such traits as an adventure as exhibited in my hobby will be very important in seeking new markets for Nokia America. I will demonstrate that the enthusiasm that I acquired while working at my fathers shop will be a motivational factor in achieving my daily career aims. Other than honesty, professional marketers need to show concern for other peoples affairs (customer needs and CSR) (Meyerson, 2009). Other than these, portraying positive mindedness, excellent interpersonal skills, self-motivation, and ingenuity will be an added advantage (Sales Marketing Management, 2011). Lastly, the most valuable professional knowledge is the holistic perspective of marketing and its direct influence on the business, portraying this will set me apart from the rest (Golden, 2006).

The most important skill that will not only help me during the job search but also while on the job is my refined ability as a deal maker as well as creating valuable networks. These networks have yielded important market information. I also learned about this position through a professional colleague. I also have managed to help companies maximize marketing return through increased profits as well as reducing marketing budgets to the bare minimum. Not only am I a team leader but a motivator and mentor. I have previously mentored two of my team member to become established marketers in their own right. The job of a marketer needs one to be flexible in terms of movements and ideas. Networking has helped me liaise and establish mutual contacts and doing marketing research is the other half. This has been one of my highest scoring points. It has helped me acquire not only market information but also market intelligence. However, even though the American mobile is one of the biggest companies in America, it has not attained international status. International marketing is new territory to me and thus Nokia will need to consider offering further insight to help me learn on the job. I will also need to develop further insight into Nokias business model, marketing philosophy, and product description. Thus marketing at Nokia America is the ideal position that meets my skills

In conclusion, approaching a prospective employer need not be a complicated matter. Jobseekers need to teat job search as the job in itself. They should be actively involved in the whole process by finding out the latest professional dynamics and upgrade their qualifications if need be. They also need to do thorough research on the prospective employer. This knowledge equips them with valuable information that is useful during a job interview. They also need to impress the interviewer with their persona skills. displaying the right personal traits such as positive mindedness, altruistic attitude, perseverance, open-mindedness, and flexibility during an interview is encouraged. Other than these skills, they must prove that they understand the job description, roles, and responsibilities. Not all these would be useful if jobseekers do not have a career goal that expresses their future professional aspirations. A career goal is usually accompanied by a workable career strategy, a map that clearly outlines a job seekers career path to success. Lastly, it is important for job seekers to not that having all his is not a guarantee for the job. This is because there be competition for the job and another candidate may have other advantages such as genders and job experience. After a failed interview a job seeker is encouraged to maintain cordial relations with the world have been an employee. This increases their chances for future consideration or referrals.

Reference List

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Cameron, R., 2009. A Career and Learning Transitional Model for Those Labor Market Disadvantage. SCU publications. Print.

Golden, M., 2006. Top 5 Traits of a marketing professional. Golden Practices Inc [Online].

Hansen, S., 2011a. Your job skills portfolio: giving you an edge in the marketplace. Quintessential Careers. [Online].

Hansen, S., 2011b. Job interview question database: Questions with excellent sample responses. Quintessential Careers. [Online]. Web.

Hansen, S., 2011c. Developing a Strategic Vision for Your Career Plan. Quintessential Careers. [Online].

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Azerbaijani State Oil Companys Digital Transformation

Executive Summary

SOCAR is an Azerbaijanian company that operates in the energy sector. It contributes to the exploration of oil fields in as well as the production, transportation, and the selling of oil and gas. The company is highly technological and works on the advancement of its operations each year. Its goal is to increase the technical, scientific, intellectual, and economic potential of Azerbaijan while also providing its gas station clients with top-notch services.

In the proposed digital transformation strategy, the focus will be placed on clients who buy SOCAR fuel for their cars as well as use services available on their stations. A gap in the connection between clients and the company has been identified, which is why the proposed digital transformation offered the introduction of a mobile application for gas stations. It is expected to enhance communication between customers and SOCAR as well as encourage the company to be technologically innovative. The main barriers and deadweights such as data security will be addressed through the hiring of a skilled team of IT professionals and the investment in anti-fraud technologies.

Company Background

The State Oil Company of the Azerbaijan Republic (SOCAR) works in the energy sector and is involved in the exploration of gas fields, as well producing, transporting, and processing oil, gas, and gas condensate. In addition, the company markets its products in both domestic and international markets and is notable for supplying the public of Azerbaijan with natural gas. Apart from local operations, SOCAR does business in such countries as Romania, Switzerland, Georgia, Ukraine, Germany, and Turkey and is involved in trading activities in Nigeria, Switzerland, and Singapore (About SOCAR, 2018). SOCAR is continuously expanding the number of gas station locations in several countries and is setting their locations apart by providing an abundance of additional services ranging from dry cleaning to free WIFI.

Industry

In Azerbaijan, the oil and gas industry plays an integral role in sustaining the countrys economy. Ever since the 1990s, the country has been successful in engaging valuable foreign investors from various global companies to increase the rates of production of oil and gas. Azerbaijan represents the beginning of the Baku-Tbilisi-Ceyhan oil pipeline, which is among the most important energy corridors that continue their expansion (Azerbaijan  Oil and gas, 2016). Because of the territorial value, Azerbaijan has vast opportunities to expand its oil and gas industry and attract international investment. In the long term, the region presents a particular interest for U.S. companies that may find Caspian gas fields potentially profitable.

Value Proposition

Being a state-owned company, SOCAR targets the issue of the Republic of Azerbaijans energy security while also engaging operations in other countries for financial gain. The mission of the organization is increasing the technical, scientific, intellectual, and economic potential of Azerbaijan through the application of ecologically-friendly technologies. SOCAR aims to maintain its crucial role in contributing to the success of local and international energy projects as well as maximizing profits from the sales of oil and gas products in domestic and global markets.

The close collaboration with customers when it comes to standalone operations in different countries lies in the basis of SOCARs philosophy. When providing services to clients, the company always puts culture and respect at the forefront of fostering trusting relationships that contribute to the maturity of the economy and society in general. Today, the company employs more than 53,000 workers and continues expanding, and with the expected developments in the oil and gas industry, has immense potential.

For the purpose of narrowing down the focus of the digital transformation strategy, it necessary to choose an operational aspect that requires the most attention. Since SOCAR is also a popular gas station company, this sphere of the companys operations will be targeted for digital transformation. At the moment, gas stations offer a variety of services ranging from currency exchange to shoe cleaning, but the way in which clients get to know about these services could be better.

Formulating a Strategy for Digital Transformation

Vision

SOCARs vision is to become a vertically integrated international energy company resting upon advanced experience on operations efficiency, social and environmental responsibility (About SOCAR, 2018, para. 2). Thus, a digital transformation strategy should align with the overall vision of the company and enhance the current value of the company. In terms of the gas stations located in several countries, SOCAR is working toward the goal of providing high-quality services of the same level as well as expanding the range of these services to set the company apart from competitors.

Engaging Stakeholders

When it comes to working with stakeholders that can contribute to the success of a digital transformation strategy, SOCAR already has some key partners and is recommended to seek out more. As one of the latest developments, SOCAR announced the development of a joint venture with IBM. The collaborative effort will be targeted at creating and an operative analytics and delivery center to provide IT, business transformation, and business consulting services in Azerbaijan, the Caspian Region and other countries (SOCAR and IBM announce joint venture, 2018, para. 1).

Similarly, in order to transform the business in a digital way, SOCAR is recommended to engage stakeholders such as IBM and Axens into changing the way the company perceives the value of technologies  not only for making competitive analytics work but also for enhancing the quality of service provided to customers.

The engagement of stakeholders for SOCAR should imply the communication of the value of digital transformation and the benefits it would yield long-term. To achieve success in digital transformation, SOCAR should select stakeholders that have experience in the field of IT as well as e-commerce. Internally, the companys president will be responsible for the overall management and the hiring of specialists to facilitate the new strategy. The head office in Baku, Azerbaijan, will hire new personnel, manage the integration of new processes in different locations, and analyze the overall progress of the program.

Core Competencies

Core competencies that set SOCAR apart from its competitors in the market include the quality of products, services, and innovation. Sustaining all of these three components is hard, especially given the fact that SOCAR petrol stations are located in several countries around the world but have very different expectations of quality. However, the company operates at a consistently high level and is not in a rush when it comes to gaining profit. By incorporating innovation and continuous quality improvement, it targets gaps in existing services and makes them better.

Assessment of Readiness

While SOCAR is a highly technological company that puts innovation at the top of its priorities, the integration of a digital transformation strategy may help it achieve new goals. In the sphere of gas station operations, there is a need for integrating technologies when it comes to connecting with clients and making their experiences more positive. In this section, the assessment of the readiness of clients, partners, and the company will be conducted.

Clients

When customers use SOCAR products and services, they expect to receive the best value for the price. When it comes to gas stations, customers are used to seeing cleanliness, quick service, high-quality fuel, and a range of other products and services for their convenience. When it comes to new technologies, they do not associate the company with them despite IT being an integral part of the oil and gas industry. For customers, creating a tech solution for enhancing engagement with the brand may be a beneficial service that they will use on a daily basis.

Company

SOCAR operates in multiple markets and has different websites and social media pages to appeal to each target audience of clients. Despite this method working, there is a lack of an integrated solution that it will offer customers worldwide, without the need for switching from one country to another. Also, for getting the most from analytics, technological solutions are necessary for the company for measuring customer satisfaction. Also, the company can offer additional services such as GPS application for travelers. With the engagement of such partners as Axens, such solutions are possible to implement (SOCAR selects Axens AlphaButol technology for its GPC project in Azerbaijan, 2017).

Partners

Companies and investors that work with SOCAR on both long- and short-term basis expect the integration of a digital transformation strategy that will enhance the collaboration. The collaboration between SOCAR and IBM showed that digital business transformation has become an essential element of the successful management of industrial operations (SOCAR and IBM announce joint venture, 2018, para. 4). Because of this, partners expect the company to be prepared to integrate technologies in its future operations.

Roadmap for Transformation

The strategy to digitally transform SOCAR will be based on Rogers (2016) framework developed in The Digital Transformation Playbook that includes such domains as customers, competition, data, innovation, and value (p. 1). The differentiation between the five domains is presented below:

Customers

The platform SOCAR will develop specifically target customers that use the companys products and services at gas stations. The solution will be integrated into their phones or tablets, representing a bundle of service suggestions from the database. For instance, customers will be able to find the nearest gas station to their location, see what services are available there (e.g., dry cleaning, currency exchange, a business corner, luggage packaging for stations nearby airports, shoe cleaning services, free WIFI, showers, and so on).

The application will also have an integrated payment option so that clients could use it to pay for services. Bonus points will be given for each purchase thus allowing clients to collect them and then exchange for products and services. Also, clients will give feedback on the services they received as well as file complaints. The gaps between the company and its customers will reduce when there is an easy-to-use technological solution that has different purposes.

Competition

SOCARs competitors such as Shell, Lukoil, Esso, Statoil, and multiple others do provide similar applications to their customers. However, the main argument that customers make against them is that they can be inconvenient and do not provide accurate information. Thus, the goal of SOCAR is to develop an application that will offer as much detail as possible while being easy to use. An important issue that most gas station applications miss the accuracy of location. Since SOCAR is already working with Axens to optimize the location identification options and hire professionals in the sphere of IT to update the relevant information within the application continuously.

Data

The integration of the application to boost customer engagement and enhance the quality of services will require the storing, management, and analysis of data. Clients will insert their credit card information, name, age, and location into the app to access its main features as well as to be integrated. They will be asked to give permission to use this information for analysis purposes. The company will then analyze the data to make conclusions about the customer demographics as well as collect feedback from clients about SOCAR services.

Innovation

The introduction of the SOCAR application will be beneficial for allowing the company to experiment with how technology can help the services grow and expand. Customers will be able to get access to the companys services quicker and more efficiently, especially with the help of an integrated GPS technology allowing to find the nearest gas station. This technology will also allow the company to see what locations of their gas stations are the most popular. The application will be continuously updated based on customer feedback, with new versions offering more options and features. The platform will be intuitive, easy-to-use, developed by the best IT professionals in the field, and completely free.

Value

The application will reduce the gap between the company and its clients, making the quality of services better. Many clients struggle with available apps because they show incorrect gas station locations and do not provide enough information about available services. The SOCAR app will bring the company and its customers together and improve the brand image and set the app apart from those available in the market. The sense of newness is expected to boost engagement among clients and create a unique value proposition.

Governance

Challenges of implementation

In the development of a digital transformation strategy for SOCAR, several challenges that could impact the success of the process were identified. First, customers may not receive the application well due to the lack of understanding of their benefits. Second, there may be some issues with the privacy and security of customers data because the application will need clients to share their information to personalize it. Third, failures to communicate with customers and get their feedback on the progress of the newly-integrated solution may limit the companys ability to improve in the future.

Recommendation for implementation

To ensure that the digital transformation plan is successful, the company is recommended to implement some steps. For customers to receive the application well, the company will have to communicate a full list of benefits that they will get through appropriate marketing. Special attention should be paid to securing the information of customers who will use the application. Hiring a team of skilled professionals and investing in anti-cyber fraud solutions is recommended because SOCAR will be held accountable for any breaches that occur because of the app. It is also advised to get the feedback from customers.

References

About SOCAR. (2018). Web.

Azerbaijan  Oil and gas. (2016). Web.

Rogers, D. (2016). The digital transformation playbook: Rethink your business for the digital age. New York, NY: Columbia Business School Publishing.

SOCAR and IBM announce joint venture. (2018). Azertag. Web.

SOCAR selects Axens AlphaButol technology for its GPC project in Azerbaijan. (2017).

Jones-Blair Companys SWOT Analysis

Internal Strengths

SWOT Quality and experience Sales and Services Market
Internal Strengths
  • Jones-Blair Company is known for providing the best quality products.
  • The Company follows ISO 9001:2000 quality system and has an additional lab which performs quality assurance tests (Jones-Blair, 2010).
  • Jones-Blair company was founded in 1928 and has mastered its field over the past many years.
  • The company has an experience of 82 years giving it advantage over its competitors.
  • The company provides quality services to its customers and gives a quick response to all the queries.
  • The sales persons of the company know their customers well and are know how to satisfy the needs of the customer.
  • The sales representatives of the company dont only have a strong relationship with its customers, but also with the retail stores (Aldrete, Davis, Robinson, & Lin, 2010)
  • Jones-Blair Company has the total market of 80 million dollars with a 35 per cent of total market share in urban areas and 45 per cent share in the rural areas (Aldrete, Davis, Robinson, & Lin, 2010).
  • The clients of the company mostly comprises of business giants who prefer quality products.
  • Jones-Blair company targets both, professionals and people who do not seek professional help.

Internal Weaknesses

SWOT Cost Sales and Limited Market Advertisement
Internal Weaknesses
  • To maintain the quality of their products, Jones-Blair spends too much on its internal quality program and its compliance with ISO 9001:2000 increases its manufacturing costs even more compared to its competitors who spend very little on quality maintenance (Jones-Blair, 2010).
  • Jones-Blair company follows the rules laid down by Environmental Protection Agency (EPA) which decreases its profit margin (U.S. EPA, 2010).
  • The cost of the goods sold by Jones-Blair is 60 per cent of the sales, leaving only 40 per cent of the profit for the company (Aldrete, Davis, Robinson, & Lin, 2010).
  • Because of the high cost, the market of the company is limited to only a number of people who can afford it.
  • The company has only 8 sales representatives (Aldrete, Davis, Robinson, & Lin, 2010).
  • There is not much awareness of the brand outside Dallas Fort Worth making it more of a regional than a national brand.
  • The company does not spend more than 3 per cent of its total sale on advertisement making the brand rather unpopular (Aldrete, Davis, Robinson, & Lin, 2010).
  • Because of its lack of advertisement, the company is unable to exploit market outside Dallas Fort Worth.

External Opportunities

SWOT Multiple Product Line and Sales Market Advertising outside DFW
External Opportunities
  • There are a number of services, other than paint, offered by the company which include industrial products, such as powder coatings, paint sundries, wall covering, and resins for operations (PCI, 2002).
  • The company can hire more sales representative which can bring the company more profit.
  • The company offers interior paint along with exterior coatings.
  • The customers of Jones-Blair include professionals and do-it-yourselfers which gives is advantage over other companies.
  • Most of the market is still unexplored by Jones-Blair Company; the firm can significantly increase its market by making a few efforts.
  • The market growth of Jones-Blair is 1 to 2 per cent per year (Aldrete, Davis, Robinson, & Lin, 2010).
  • The number of paint companies is declining each year, giving Jones-Blair an opportunity to attract more customers (IBIS World, 2010).
  • The company can spend more on advertising its brand to increase awareness outside the Dallas Fort Worth.
  • The company was rated 27thin the top 50 paint manufacturers list by the Paint and Coatings Industry in 2002 (PCI, 2002); this can be used by the company to attract more customers nationally.
  • Jones-Blair has an advantage over other paint companies because of its high quality which attracts many professionals who prefer durable paints of high quality.

External Threats

SWOT Brand awareness and regulations External Competition Consumer Threats
External Threats
  • There is not much awareness about Jones-Blair nationally.
  • The Volatile Organic Compound (VOC) regulations are also a threat for the company.
  • The company has to compete with around 600 other paint companies (Aldrete, Davis, Robinson, & Lin, 2010).
  • The competitors of Jones-Blair have an advantage of the company because they offer low prices to their customers.
  • The companies offering cheap paint are a big threat to Jones-Blair because contractors as well as DIYers prefer brands which are inexpensive.
  • The competitors of Jones-Blair are spending more on advertisement than Jones-Blair (Aldrete, Davis, Robinson, & Lin, 2010), and so are more popular among the masses.
  • The biggest threat to Jones-Blair is the Sherwin-Williams since it is the second largest paint manufacturer in the U.S. (Hoovers, 2010).
  • The number of DYI paint sales is decreasing which may have an effect on the companys sales in the future (Challener, 2004).
  • There is no room for Jones-Blair company to make a mistake since there are plenty of other companies the consumers can chose from at a cheaper price, such as Sherwin Williams, Benjamin Moore, Kmart, Home Depot etc.

References

Aldrete, A., Davis, A., Robinson, J., & Lin, M. (2010). Jones Blair. Web.

Challener, C. (2004). DIY paint sales are on the decline as consumers choose to enjoy more leisure time. Web.

Hoovers. (2010). The Serwin-Williams Company. Web.

IBIS World. (2010). Paint manufacturing in the US  Industry risk rating report. IBIS World.

Jones-Blair. (2010). Our manufacturing process. Web.

PCI. (2002). The PCI 50 % global top 10. Web.

U.S. EPA. (2010). Facility Registry System. Web.

Thorntons Companys Corporate Social Initiatives

Introduction

Corporate Social Responsibility (CSR) refers to the initiatives sponsored by a firm to promote the wellbeing of the community in which it does its business. In the recent past, the concept of CSR has gained root where each corporation is seeking to gain customers loyalty by giving back to the society (Benn & Bolton 2011; Crane, Matten & Spence 2008). The UK firms are among the most CSR conscious firms around the globe. This paper explores the concept of CSR with specific reference to a UK firm, Thorntons. The paper will examine the environmental and social initiatives undertaken by the identified company to guarantee the welfare of the society.

Critical Analysis of Thorntons CSR

Water and Energy Conservation

The majority of the projects initiated by Thorntons to promote CSR are directed toward conserving the environment. The environmental conservation plan involves the preservation of water and energy by reducing the overall consumption of the two important resources. In the recent past, the company has recorded a sharp decrease in the capacity of water it consumes in its production processes. Water conservation is an important CSR component since it ensures that the society has enough of this resource. If the company decides to spend water without saving it, perhaps the region in which it operates would run short of water in the near future. In addition to conserving water, the company also ensures that it conserves energy by reducing the overall amount of energy it consumes on a daily basis. The world has experienced a shortage in the overall exploitable energy resources, a situation that underscores the need to conserve the rare resource. Thorntons is aware of the current energy deficits. Hence, it ensures that the available energy resources are used in the best way possible. According to Grant Thornton (2014), adopting CSR helps a company in various ways, as shown in Figure 1 below.

Key drivers
Source: Grant Thornton (2014).

In Thorntons, energy is conserved by identifying all the unnecessary operations that consume energy and scraping them from the companys processes. In 2015, the company achieved a 10% decrease in the energy consumed annually (Charity choice 2015). One of the major benefits achieved by the company because of conserving the water and energy is that it reduced its overall operations costs. The government usually charges the companies operating in the UK some fee in exchange for the supply of water and electricity. The bills are calculated based on the number of units consumed within a certain period. Therefore, a reduction in consumption will lead to a decrease in the bills payable by the company. Figure 2 shows the extent to which the environment has been damaged following companies failure to adopt CSR activities.

The cost of damage to the environment by business sectors
Source: (Boychenko 2013)

Other than the savings, the company also ensures that the surrounding communities get enough water for their domestic use. If the company did not limit the amount of water it uses, perhaps the water sources would run dry in the near future. This outcome will not be in line with the concept of CSR. Lastly, by controlling its daily water consumption, the company reduces the overall amount of energy required to pump the water to the reservoirs. This strategy saves the government some money, which could be used for development purposes. Additionally, it reduces the overall greenhouse gas emissions into the atmosphere. It is important to note that much of the energy consumed in the UK comes from burning fossil fuels. Fuels usually emit carbon, which is harmful to the environment. Therefore, by reducing the amount of energy required to pump the water, the company indirectly contributes to the conservation of the environment. However, although the company has achieved much in terms of conserving the environment, it needs to partner with the local community and/or sponsor environmental conservation projects such as tree planting to gain an edge over its competitors (Porter & Kramer 2006). The company may also educate the community about the importance of conserving the environment. Reducing usage alone cannot ultimately offer a solution to the pollution problem.

Ethical Supply Chain

The other CSR activity undertaken by the company is the supply of high-quality goods to customers at reasonable prices. The company achieves this goal by outsourcing its raw materials from highly reputable sources. The major suppliers of its products are Barry Callebaut and Cargill, which provide excellent raw materials (Charity choice 2015). Besides maintaining good connections with farmers from the Ivory Coast, the companies ensure that they grow high quality and healthy products, which are worth their prices in the market. The company regularly audits the suppliers to ensure that they comply not only with the local laws but also with its quality standards. Hence, the suppliers conform to the laws of the countries from which they obtain the cocoa, which they sell to Thorntons. In addition to maintaining high quality for its goods, the company also discloses the health issues attributed to the product.

In the recent past, chocolate overconsumption has been linked to various health issues, which sellers need to unveil to buyers. According to the companys website, the business is aware of the issues and that it minimizes them by not adding artificial sugars to its product. Additionally, the company educates buyers about the dangers of consuming too much chocolate. This goal is achieved by attaching a script containing such information on each packet. The health of the minors is also considered by the companys failure to add flavors to the product. Adding flavors to the chocolate would lead to overconsumption by the minors, a situation, which may lead to deteriorated health. However, although the company is ahead of its rivals in terms of embracing the CSR concept, it needs to look for a permanent solution to the health issues associated with its products. As it stands now, the company does very little to promote the health of its customers since it sells its products, despite knowing the health issues they may cause. In the future, the company should strive to achieve zero-sugar for its chocolate.

Government and CSOs Role in Achieving the Described CSR Activities

The CSRs activities described above are largely influenced by the UK government, civil society organizations (CSOs), non-governmental organizations, and other businesses operating in the country. The first one, the government, is responsible for enacting legislation, which regulates the operations of businesses across the country (Galbreath 2006; Peloza & Falkenberg 2009; Gond, Kang & Moon 2011). In the recent past, the world has become environmentally conscious due to the climatic changes that have been experienced in the past few decades. Consequently, the UK, just like other nations around the globe, has enacted various legislations that hold companies responsible for any pollution that they cause. The Environment Protection Act of 1990 requires companies such as Thorntons to take care of the environment by reducing their overall emissions to the environment. The decision by Thorntons to reduce the overall water and energy consumption is congruent with the Act since the plan endeavors to help in reducing the overall amount of coal used to produce energy.

It is important to note that coal is the major source of energy for the UK. This finding underscores the need to reduce its consumption since it is responsible for greenhouse emissions. Other than the Act, the government has several institutions that regulate the consumption of water and energy by UK firms. One of the key governmental institutions that have ensured that Thorntons remains environmentally friendly is the Food and Drink Federation (FDF) (Albareda, Lozano & Ysa 2007). The stated organization assesses the operations of each company in the UK and sets the energy and water limits, which firms should use. Thorntons, as a member of the institution, has signed a contract to reduce the overall energy consumption. According to the companys website, the company has managed to comply with the limits set by the body, a move that indicates its commitment to conserving the environment.

Other than the FDF, the company is also a member of the Federation House Commitment (FHC), which regulates water usage by companies. Thorntons signed an agreement with the mentioned institution compelling it to reduce its water usage by 20% by the year 2020. On the other hand, NGOs and CSOs play a pivotal role in causing companies to comply with pollution laws. Such organizations act as watchdogs for the government. They raise the alarm concerning any organization that causes pollution to the environment (Arenas, Lozano & Albareda 2009; Fischer 2004; Quairel-Lanoizelée 2011). Additionally, NGOs work closely with local firms to sponsor environmental conservation initiatives. NGOs may be more effective compared to governmental institutions since the latter organizations are present on the ground, implying that they are aware of the environmental situations.

For the ethical supply chain, the government equally plays an important role in ensuring that Thorntons supply chain and the production processes are in line with customers health needs. The Food Standards Act of 1999 protects customers from irresponsible firms that may offer unhealthy food products (Hamid 2016). Through the Foods Standards Agency, the UK government regulates companies supply chains, production processes, and distribution channels to ensure that they meet the set health standards. Such standards compel Thorntons to outsource its products from ethical companies to guarantee its customers healthy chocolate. The UK advertising industry is one of the most regulated industries in the world, with the government playing a direct role in controlling the sector. False advertisement is a criminal offense in the country. Customers are empowered to demand the package as promised in the adverts. Besides, under the advertisement legislations, customers have the ability to rescind a purchase agreement with the seller on the grounds of a false advertisement (Nava et al. 2013). This situation compels Thorntons to place scripts regarding the ingredients used to make the chocolate products and to disclose all the material facts regarding the health issues associated with the products. The scripts warn customers against consuming much of the product in the backdrop of the emerging numerous chronic illnesses.

Critical Analysis of the Influence of FHC in Thorntons Water Conservation Strategy

As stated previously in this paper, Federation House Commitment (FHC) is one of the institutions that have played a vital role in helping Thorntons to achieve its CSR objective of reducing water consumption. The stated organization provides incentives aimed at attracting firms to show commitment to reducing their overall water consumption. One of the incentives available to the member companies is technical support for water conservation. Once a company subscribes to be a member of the organization, it receives a technical team to help it in assessing areas, which lead to water overconsumption (WRAP 2012). Based on the assessment, the technical team in liaison with the concerned company develops the water consumption targets to be achieved by the company in question. For Thorntons, FHC helped to identify areas in which water leakages continued without the knowledge of the company. Before the company subscribed to FHC membership, it used the utility monitoring software to track water usage.

It fully relied on the data obtained from the software, assuming that no wastage was occurring in the companys operations. However, the assessment of water usage in the company by FHCs technical team revealed that it paid for extra 30,000 cubic meters whose use could not be traced (WRAP 2012). Following the lead, the team identified areas in which water was apparently being lost through leakage. The identification and the subsequent fixing of the water system resulted in savings for the company. The availability of such technical support is a major source of inspiration for companies to apply for membership to reap from water conservation. However, although technical support is arguably one of the major drivers of the embracement of water conservation in Thorntons, the shortage of technical staff may prove otherwise. In the past, FHC has been criticized for its failure to offer such support when it is needed. The problem is associated with the low number of technical staffs coupled with the rapid growth of its members.

In addition to the technical support, the organisation plays a critical role in encouraging companies to honour the water conservation agreements they make with FHC when they subscribe for membership. This goal is achieved by making annual assessments of water consumption for the member companies and publicising the companies that achieve high decrements in water expenditure (WRAP 2012). The information acts as an incentive for companies to achieve the set targets to receive publicity in the backdrop of the rising awareness among customers about the need to conserve the environment (Crane 2008; Carroll 2008; Lawrence & Weber 2008). It is important to note that customers are increasingly engaging companies, which are environmentally conscious. In fact, they tend to shun those that are reluctant to conserve the environment. Since Thorntons became a member of FHC, its annual achievements have successively been publicised, a move that encourages it to cut wastage to obtain a better reputation in the future (WRAP 2012). However, as much as publicity is a crucial element of encouraging firms such as Thorntons to reduce their water consumption, FHC needs to develop more incentives to achieve better results. Publicity alone is not encouraging enough to cause firms to abide by the agreements. There is the need to partner with the government to offer other attractive goodies such as tax incentives to the companies that achieve their targets.

Why the UK and the CSR Activities Are Selected for This Analysis

One of the reasons why the author picked the UK to analyse the concept of CSR is that the country hosts the most socially responsible companies in the world. In the UK, the concept of CSR is widely applied. Most companies in the country know how to utilise it to gain a competitive advantage over the rivals (QuairelLanoizelée 2011). Additionally, the countrys laws regarding environmental conservation in line with the selected CSR activities are among the most elaborate around the globe, hence making the activities suitable for analysis (Nava et al. 2013). It is important to note that the embracement of CSR by companies is largely influenced by the laws of the land, which underscore the need to analyse the topic from a country with straightforward legislations. Based on this view, the author deems it fit to analyse the topic based on the country.

Conclusion

In the recent past, companies have realised the need to embrace the concept of CSR to achieve a competitive advantage against the backdrop of the rising awareness of the need to conserve the environment. This paper has explored the CSR concept with reference to Thorntons, which is a UK chocolate producing business. The analysis has confirmed that CSR is an important aspect of the contemporary business and that companies need to embrace it. The two major CSR activities, which Thorntons engages in include water and energy conservation and ethical supply chain. The listed CSR endeavours have been described in details in this paper.

Reference List

Albareda, L, Lozano, J & Ysa, T 2007, Public policies on corporate social responsibility: the role of governments in Europe, Journal of Business Ethics, vol. 5, no. 7, pp.391-407.

Arenas, D, Lozano, J & Albareda, L 2009, The role of NGOs in CSR: mutual perceptions among stakeholders, Journal of Business Ethics, vol. 88, no. 1, pp. 175-197.

Benn, S & Bolton, D 2011, Key concepts in corporate social responsibility, Sage, Thousand Oaks.

Boychenko, M 2013, Addressing CSR issues in supplier-buyer relationships: agency theory perspective.

Carroll, A 2008, A history of corporate social responsibility: concepts and practices.

Charity choice 2015, 5 great UK companies getting corporate social responsibility right.

Crane, A 2008, The Oxford handbook of corporate social responsibility, Oxford University Press, Oxford.

Crane, A, Matten, D & Spence, L 2008, Corporate social responsibility: readings and cases in a global context, Routledge, London.

Fischer, J 2004, Social responsibility and ethics: clarifying the concepts, Journal of Business Ethics, vol. 52, no. 4, pp. 381-390.

Galbreath, J 2006, Corporate social responsibility strategy: strategic options, global considerations, Corporate Governance: The International Journal of Business in Society, vol. 6, no. 2, pp.175-187.

Gond, G, Kang, N & Moon, J 2011, The government of self-regulation: on the comparative dynamics of corporate social responsibility, Economy and Society, vol. 40, no. 4, pp. 640-671.

Grant Thornton 2014, Trends in corporate social responsibility 2014, Web.

Hamid, H 2016, Businesses self-regulating themselves through CSR, Web.

Lawrence, A & Weber, J 2008, Business and society: stakeholders, ethics, public policy. McGraw-Hill Education, New York City.

Nava, M, Blake, A, MacRury, I & Richards, B 2013, Buy this book: studies in advertising and consumption, Routledge, London.

Peloza, J & Falkenberg, L 2009, The role of collaboration in achieving corporate social responsibility objectives, California Management Review, vol. 51, no. 3, pp. 95-113.

Porter, M & Kramer, M 2006, Strategy and society: the link between competitive advantage and corporate responsibility, Harvard Business Review, vol. 84, no. 12, pp. 78-92.

QuairelLanoizelée, F 2011, Are competition and corporate social responsibility compatible? The myth of sustainable competitive advantage, Society and Business Review, vol. 6, no. 1, pp. 77-98.

Clinx Clinics Structure and Operations Plan

My medical practice area is that of a privately-owned clinic. This clinic will be located in the State of Florida in the United States. The customer type for my clinic will be patients and those people who need medical consultation. My stakeholders will be the local government, the ministry of public health, other clinicians and my customers or clients. My strategic partners will include the major hospitals, labor unions and pharmaceuticals. The mission of my clinic will be to heal where others try while the vision will be to become the most reliable and trusted clinic in the State of Florida. The corporate status of my clinic will be a profit-based organization. The core values of the organization will be honesty, professionalism, diligence, hard work, respect of human dignity and conservation of our environment

Organizational Structure for My Clinic

Organizational Structure for My Clinic

One years budget for my clinical practice

Item Description Amount in USD Anticipated Revenue
Startup Requirements 20 rooms Apartment rent for 1 year 60,000 Revenue from consultancy and service delivery

500, 000

Expenses One years salary for employees
Utilities like water, electricity and tax payment
60, 000

20, 000

Capital Items Screening machines and equipments
Furniture
ICT infrastructure
200, 000
40, 000
20, 000
Total 400,000

I plan to prevent medical malpractices by ensuring that each and every employee strictly adheres to the code of conduct of the medical profession. Each will be expected to maintain high standards of integrity. I will also ensure that I have in place an organizational culture which upholds best practices so that the employees will not be supervised every now and then. I will also put in place an open policy whereby the customers will have an avenue to report any kind of medical malpractice without the fear of victimization. This will scare away any defiant staff who may be tempted to engage in fraudulent schemes, both internally and externally (Keir, 2008).

I plan to increase revenue collection through establishment of mobile services. This will entail taking healthcare services, including treatment, screening and therapy to the homes of particular patients who for one reason or the other are not able to come to the facility. This will ensure that my revenue bracket will be expanded. I plan to reduce bad debt by ensuring that there is a proper plan of what constitutes essential and non essential costs, and ensure that the plan is strictly adhered to.

The typical patient experience will be one that leaves a lasting impression due to the manner in which they will be handled. As mentioned in the practice definition, one of the core values to guide the practice will be professionalism. The patients will be given priority at all accounts and no gambling will be entertained when dealing with the patients. Patients form the backbone of the practice and without them; the practice would not exist in the first place (Balestracci & Barlow, 1996). The patients will be handled with utmost care to ensure that they not only feel at the correct facility but also feel as if they are at home.

The practice will be based on the principle of learning and continuous improvement. The practice will do a SWOT analysis so as o identify the Strengths, Weaknesses, Opportunities and Threats. The strengths of the practice will be measured against the other similar practices in the region and see how the strengths can be applied to put the practice above par with other similar practices. The weaknesses of the practice will be assessed so as to establish what really the real challenges are and what can be done to overcome them. The practice will also endeavour to establish the opportunities for growth for the practice and the best strategies of applying the same. The practice will have in place a robust strategy of identifying the threats and how to convert them to opportunities.

In regards to compliance to ethics and quality, the practice will have in place very strict adherence to all the ethics of the profession and also respect the right of the patients to get the best quality of services. In order to improve on quality, the organization will introduce a training system, which will be employee tailored. There will be training for the nurses, the clinicians and the administrators on how to improve on quality. Each of them will be trained on service delivery as well as on team work and how to relate well with others in the workplace. The overall objective will be to create an organizational culture which will enhance learning from each other so as to improve the quality of services offered by the organization on the long run (Breen, 2010).

I plan to market the practice through the use of the local and international media. The local news channels and radio stations will air advertisements on frequent basis for a period of at least one year. I will also create a website for the practice where all information about the practice will be posted. The practice will also employ other marketing strategies such as differentiation and positioning based on the business environment at any given time (Charyulu, 2011).

References

Balestracci, D., & Barlow, J.L.(1996). Quality improvement: practical applications for medical group practice. Englewood, Colo: Center for Research in Ambulatory Health Care Administration.

Breen, K. (2010). Good medical practice: professionalism, ethics and law. New York : Cambridge University Press.

Charyulu, K.(2011).Rural Marketing. Pearson, GA: Pearson Education.

Keir, L.(2008). Medical assisting: administrative and clinical competencies. Clifton Park, NY: Thomson Delmar Learning.

Fitbit Companys Mission Statement

Market-Oriented Mission Statement

Fitbits current mission statement is customer-oriented, which is a good thing. A company based around catering to the wants and needs of the customer is more likely to find success when compared to a product-based company suffering from market myopia. Market myopia is what brought down giants like Nokia and Kodak, and almost did the same with Fitbit, who missed the emergence of smartwatch products.

However, this mission statement does not directly address the market, nor does it present how Fitbits products are preferable to those of their direct competitors. Xiaomis wristbands and Apples smartwatches are also capable of being seamlessly integrated into a persons life and helping them achieve their fitness goals. Fitbits key advantage over Apple and Xiaomi is that both of its primary competitors are primarily smartphone companies that lack in-depth expertise in fitness and medicine. Fitbits mission statement should emphasize the quality of medical data as well as customer privacy. The existing mission statement should be updated to address these points:

To empower and inspire you to live a healthier, more active life. We design products and experiences that provide you with unmatched quality of health information and personal data protection so you can achieve your health and fitness goals, whatever they may be. It is an alteration of the initial statement they had, with an emphasis on the quality of health information that no other fitness band or smartwatch can currently provide.

Fitbits Business Portfolio

Before Fitbits yearly revenues fell more than 50% in 2016, the companys product range included a rather narrow line of fitness bands to cater to different price ranges and provide a varied range of capabilities. For example, the Flex and Charge wristbands provided information on steps, calories, sleep tracking, and minutes the user was active, whereas professional wristband models such as the Charge HR and Surge offered a much wider range of information for a steeper price (Xu & Wang, 2016).

Fitbit could get away with such a narrow line of products due to its dominant position in the market. However, after 2016, the company sought to diversify its product range. Fitbit featured not only fitness wristbands but also its models of smartwatches, as according to Gartner analysis, wristband sales were expected to drop by 15%, while smartwatch sales  to rise by 17% (Xu & Wang, 2016). To aid in these efforts, Fitbit made several acquisitions, such as Pebble and Vector Watch SRL.

Fitbits Macroenvironment Analysis

  • Political: Fitbit is affected by high tax rates in the USA as well as Chinese laws governing industry and production for foreign businesses. Social and political events in China have the potential to affect the companys businesses (Xu & Wang, 2016).
  • Economic: Fitbit moved its production facilities to China to save costs. However, due to the Chinese governments adoption of floating currency policy, the costs of production in China are likely to rise, affecting Fitbits pricing strategy (Xu & Wang, 2016).
  • Social: The company suffered a backlash in 2015 when it was forced to recall a major portion of its products due to a technological error. This enabled other companies, such as Apple and Xiaomi, to claim large portions of the wristband market. Fitbits net incomes have been negative ever since (Xu & Wang, 2016).
  • Technological: Fitbit is faced with increasing competition from other technology companies that have the capabilities of matching Fitbits technological prowess and providing products with similar qualities (Xu & Wang, 2016).
  • Environmental: Fitbits products are non-recyclable, which raises concerns among the environmental community.
  • Legal: Fitbit is engaged in a class-action lawsuit in the aftermath of the product recall of 2015. Depending on how the lawsuit is resolved, Fitbit might suffer adverse consequences, including a loss of reputation.

Several of these macroenvironmental factors affected Fitbits microenvironmental situation as well as the future strategy for the company for the next several years. Namely, social, technological, and legal events that led to the crisis of 2015-2016 forced the company to transform itself from a consumer electronics company into a digital health company.

Fitbits Microenvironment Analysis

Three major micro environment factors that forced Fitbits to change its approach to its product line and the companys future strategy are as follows:

  • Customers. According to Xu and Wang (2016), smartwatches with functions of fitness wristbands offered more functionality for the customer when compared to typical wristbands. The majority of the customers did not care about advanced medical data as much as basic functions to go along with the average smartwatch. This factor forced Fitbit to expand its product line to cater to a larger customer base.
  • Competitors. Fitbit could not compete with the likes of Apple and Xiaomi in terms of technological prowess and with European watchmakers in terms of quality. To overcome this, the company has transformed from a consumer electronics company to a digital healthcare company, with an emphasis on the quality of medical data while at the same time maintaining a modicum of versatility. (Xu & Wang, 2016).
  • Media and the general public. As Fitbit suffered a legal scandal as a consequence of poor testing and quality control, the company was forced to publically announce gradual improvements in both testing and research to re-establish credibility. Also, Fitbit engaged in various charity and humanitarian campaigns to better its image (Xu & Wang, 2016).

References

Xu, X., & Wang, X. S. (2016). Fitbit: The business about wrist. Web.

The Cost of Quality

Background information

The concept of Cost of Quality (COQ) has been part of the globalised business environment for more than half a century (Rasamanie & Kanapathy 2011). Nonetheless, quality has been part of human existence and has continued to evolve over time (Crandall & Julien 2010). As such, it is apparent that COQ is a vital aspect of running businesses in the highly competitive business environments in the world. For any business venture to attain success and survive competition, quality must be integrated into all its undertakings.

It is prudent, therefore, for business stakeholders to ensure that quality is part of business. In the course of attaining quality, nonetheless, costs are incurred. On the other hand, if the correct procedures are not adhered to and compromise product quality, the probability of incurring losses are extremely high.

Some quality experts argue that quality is free (Sower et al. 2007). The proponents of this view suggest that money and resources are lost because of not doing things in the right manner for the first time (Sower et al. 2007). Cost of quality, therefore, is the loss incurred or the expenses accrued due to non-conformance and doing and not adhering to proper guidelines. Joseph Juran, a quality expert, suggested that all costs that would be avoided if there were no quality issues that sum up to what is termed as cost of poor quality (Sower et al. 2007).

Quality costs can be classified according to their sources and nature. It is worth noting, however, that there is no a single agreement on classification of costs. A common classification technique groups quality cost into prevention, appraisal, internal failure, and external failure. The typology is commonly known as PAF (prevention, appraisal, and failure) and is adopted by experts in cost of quality in different countries, including the US and the Great Britain (Sower et al. 2007).

The PAF model provides relatively comprehensive but precise definitions, which are commonly adopted by experts in COQ and business stakeholders.

Definition of costs

Prevention costs are endeavours and efforts put in place to avert poor quality in products and services (Fons 2012).

Appraisal costs are linked to efforts geared at measuring/evaluating/auditing products and services to guarantee conformance to quality criterions and performance principles (Fons 2012).

Internal failure costs are the consequences of products and services having compromised/poor quality before their delivery to the consumer/customer.

External failure cost result from product/services failing to meet the set quality prerequisites after delivery/shipment to the end user (Fons 2012).

Other typological techniques used in COQ include the model of possibilities costs; process cost model; and the Activity Based Cost model (Snieska et al. 2013).

Literature review

The inception of COQ can be attributed to various quality gurus. Several philosophers/researchers have made significant contributions since the 1930s (Giakatis et al. 2010). The pioneers either came up with new ideas or made vital modifications to the COQ concept.

Allusion to COQ from the 1920s

In his work, Walter Andrew Shewhart, alluded to what can be termed as quality control, which is a vital element of the COQ concept. Shewhart provided a diagram that paved the way for quality control in the manufacturing field (Giakatis et al. 2010).

Shewhart categorised problem into assignable-cause and chance-cause variation while using control chart as a differentiating mechanism. In addition, Shewhart pioneered the use of scientific formula, principles of probability and statistics. The Shewharts model was useful in differentiating between acceptable and unacceptable variation and defining the issue of managing quality.

The Shewharts models of quality control in different fields, including the business world and defence industry. He authored many quality control books such as Economic Control of Quality of Manufactured Product among others.

Another key contributor to quality control is concept is Deming who developed sampling techniques borrowing a lot from Shewhart. Deming quality control techniques were highly accepted due to augmented quality, especially in large-scale production. The techniques by Deming are based on augmenting production by minimizing uncertainty and variability during decision-making processes.

According to Deming, variations, and poor management contribute immensely to poor quality in production (Aole & Gorantiwar 2013). As such, he made suggestions to the effect that worker/management relationship and interaction should be improved for optimal quality production. Further, Deming linked augmented quality production to business competitiveness. He came up with 14 points, which became a basis for quality management techniques (Aole & Gorantiwar 2013).

Demings proposal to a new thinking that emphasized the improving of quality in manufacturing highly adopted statistical quality control methods. He taught many manufacturers in different countries, especially in Japan. The Demings quality control techniques revolutionised production in Japan prompting the Japanese government to introduce an award with his name to recognize business entities that adhered to quality production and quality improvement (Aole & Gorantiwar 2013).

Moreover, Deming propagated the use of Shewarts Learning and Improvement Cycle.

Other COQ pioneers of the 1930s include Miner and Crocket whose contributions were minor but crucial in quality management (Sower et al. 2007).

The Demings work influenced some Japanese and, consequently, some quality experts emerged in Japan. Some of the prominent Japanese that made key developments on the COQ concept include Ishikawa, Taguchi, and Shigeo Shingo (Aole & Gorantiwar 2013). Shigeo Shingos contributions are vital even in the current manufacturing sector. Shingos techniques are directed to reducing costs while improving quality. A majority of modern manufacturing firms that have adopted Shingos model have realised substantial profits due to minimizing of costs (Aole & Gorantiwar 2013).

Formalization of the COQ concept from the 1950s

Quality experts such as Joseph Juran first formalised the COQ concept from the 1950s (Fons 2012). In addition, the formalization of the Prevention-Appraisal-Failure concept from Armand Feigenbaum model was first published.

Juran made vital contributions to the COQ concept. He defined the quality cost as the cost incurred by a firm in its endeavors to improve quality, especially in meeting customers quality requirements (Fons 2012). He founded a quality consultancy business, whose principles had global recognition. In addition, Juran authored many books that outlined detailed mechanism pertinent to the COQ concept. Some of the most outstanding provisions by Juran include providing the need for improvement, specificity, organization, problem cause diagnosis, and providing the most appropriate remedies to problems. Juran had three approaches to the COQ concept, including quality planning, quality control and quality improvement (Snieska et al. 2013).

Juran had significant contribution in the PAF model. The model is vital in the COQ concept, especially in the classification of costs. PAF model is used globally due to its relatively comprehensive and precise nature. Feigenbaum and Juran propagated the PAF model in their works from the early 1950s. Nonetheless, the PAF model of classification by some modern quality gurus for some of its shortcoming, including the incapacity to incorporate all types of costs in COQ (Snieska et al. 2013). The original model, for instance, did not incorporate hidden failure costs. In addition, the original PAF model of costs classification did not comprehensively evaluate all elements of poor quality costs (Snieska et al. 2013).

Juran espoused the Pareto Principle and was of the view that quality in not free and, therefore, firms have to incur costs in attaining quality. His work was recognised globally with Japan awarding him for his role in quality control management and in rekindling the US-Japanese cooperation. His work emphasized the concept of quality circles due to their ability to improve interdepartmental communication, especially management and labour.

Moreover, the Jurans approaches to the COQ concept endorsed the use of statistical and scientific process control. The law of diminishing returns, according to Juran, affects COQ and, as such, quality will optimize at a certain level beyond which conformance will be more costly relative to the returns.

Other key developments in the COQ concepts can be attributed to Feigenbaum who devised the concept of Total Quality Management. Many consider his books as the basis of quality management. He published books in 1957 and 1961 that elaborated the concept of COQ and the importance of quality management. He emphasized the technical aspect of quality management highlighting the role of HR and administration in quality management and COQ. Further, Feigenbaum pointed out that quality and cost are a sum, not a difference and, therefore, he made it clear that COQ concept should be considered in all stages of production. His focus was put on three business elements, including the customer, teamwork, and progressive quality improvement.

Another important expert in the COQ concept is Crosby, who came up with a model that necessitates the doing of things right in the first time (Vaxevanidis et al. 2009). The Crosbys work, therefore, portrays COQ as costs of correcting reworking to cater for failures (Vaxevanidis et al. 2009).

In the 1970s, Ross came up with an alternative approach to COQ when he developed the Process Cost Model. The Process Cost Model stresses the processes of production as opposed to products/services.

In the 1980s and the 1990s, COQ approaches were slight adjustments to the 1950s model. Some of the models in this era include a method based on a team approach, and the collecting quality cost (Schiffauerova & Thomson 2006).

The ISO and the COQ concept

The international Organizational for Standardization has played vital roles in quality management processes. The ISO has quality requirements that highly inform quality management decisions and approaches to the COQ concepts. The agency emphasizes quality elements such as customer focus, leadership, stakeholder involvement among others.

The Six Sigma and the COQ concept

The Six Sigma philosophy has revolutionised management and quality control from the traditional COQ concepts approaches (Jourabchi et al. 2015). The traditional COQ approaches cannot comprehensively deal with elements in the modern competitive market. Businesses, therefore, invest adopt the six sigma model to augment output quality while retaining competitive pricing. The Six Sigma approaches are vital in contributing to quality improvement, especially in waste minimization, reducing time-related costs, reducing defects and variation while working at the least COQ possible (Jourabchi et al. 2015). The Six Sigma philosophy incorporates doing things right for the first time, augmenting quality in production, and reducing defects to zero.

Businesses that adopt proper sigma significantly reduce prevention and appraisal costs. Some costs such as appraisal and prevention costs can never be eliminated from business operations and, therefore, COQ are part of businesses. With the Six Sigma philosophy, however, some costs such as failure costs can be eliminated or reduced to zero.

The lean philosophy is another key approach in the modern perspectives on the COQ concept. The lean philosophy emphasizes the elimination of waste, which incorporates waste emanating from COQ elements such as product/services failures (Crandall & Julien 2010).

Generic model Cost/activity categories
P-A-F model Prevention + appraisal + failure
Crosbys model Prevention + appraisal + failure + opportunity
Opportunity or intangible cost
Models
Conformance + non-conformance
Conformance + non-conformance + opportunity
Tangibles + intangibles
P-A-F (failure cost includes opportunity cost)
Process cost models Conformance + non-conformance
ABC models Value-added + non-value-added

The Six Sigma and the COQ concept

The Cost of Quality is as relevant today as it has ever been

Currently, the business world is highly competitive (Snieska et al. 2013). In addition, globalization has drastically changed markets making it more possible for customers to get products/services from wider ranges of suppliers. Subsequently, customers expectations have drastically improved with customers expecting high-quality products/services at the lowest prices. This leaves businesses with the option of producing high-quality products and services at the lowest cost to sell at competitive prices.

As discussed in the literature review, numerous costs come with quality. Doing things the wrong way and, consequently, compromising the quality of products and services can have adverse effects on a business. On the other hand, the course of doing things the right way is associated with extra cost. Therefore, the relevance of COQ in all types of businesses is apparent.

The relevance of COQ in the past years is as evident as it is today. In order to improve quality, some organizations adopted COQ models. As such, organizations have, throughout history, taken into account cost emanating from achieving quality at lowest cost.

Knowing the quality of cost in today world of business is critical in, especially in informing decision-making processes (Bangert 2012). The number of organizations adopting COQ is steadily increasing with about 33% of business firms systematically tracking their quality-related costs (Bangert 2012). This is an indication that more businesses are appreciating the relevance of the COQ concept.

A key element of COQ that has gained relevance in the current business world is the COQ reporting. According to studies, COQ reporting is relevant and beneficial in todays competitive, quality oriented, and market-focused business environment. The reporting is critical at corporate and operational levels.

Studies have inexorably linked quality to profitability and success of business. Over the last five or so decades, since the formalization of the COQ concept, augmented and improved quality methods have made many businesses realize great success and improved quality of products and services.

The relevance of COQ, however, was limited to certain industries. Currently, the relevance of the COQ concepts has gained popularity among different types of business including but not limited to manufacturing and services. Companies that strictly adhere to marketability/quality techniques and prerequisites are more likely to be successful. It is, therefore, prudent for businesses to embrace the COQ concept. Successful businesses today strive to strike balances between COQ and competitiveness/profitability.

Although the significance of quality in success and achieving competitive advantages of any business is apparent and critical, the cost of quality concept is insufficiently appreciated by many organizations, especially due to organizations inability to track their COQs. Many firms, especially small-scale firms, do not have the capacity to track their COQs and, therefore, they incur more losses (Crandall & Julien 2010). As such, the relevance of the COQ can be said to be imprecise since it is difficult to establish how pertinent COQ in some businesses today. The impreciseness of the significance of the COQ concept makes it difficult to compute its pertinence, especially when majorities of modern organizations do not adopt formalised quality costing techniques (Schiffauerova & Thomson 2006).

Research has revealed that the traditional COQ and COPQ models adopted by some organizations do not comprehensively address the impact of quality improvement endeavors. Therefore, the relevance of the COQ concept may not be fully appreciated due to their inadequacies in dealing with costs associated with quality. Consequently, more comprehensive and robust model for describing the COQ implications in quality-based structures should be adopted (Vaxevanidis et al. 2009).

Decisively the COQ concept has strong relevance from its inception to the current global business environments. The high levels of competition, small profit margins, and high expectations from customers and other stakeholders have made business management to put the return on quality investment under high scrutiny. More and more businesses are adopting COQ techniques in the current business world. On the other hand, the relevance of the COQ today is less as ostensibly apparent as in the past. Some experts argue that the modern emphasis on COQ is not as sufficient as it should be and, therefore, improvement should be made on the current models to improve their relevance.

References

Aole, R& & Gorantiwar, V. S., 2013. Quality Gurus: Philosophy and Teachings. International Journal of Research in Aeronautical and Mechanical Engineering, 1(8), pp. 46-52.

Bangert, M., 2012. The Cost of Quality. Quality, pp. 34-37.

Crandall, R. E. & Julien, O., 2010. Measuring the Cost of Quality. Industrial Management, 52(4), p. 14.

Fons, L. A. S., 2012. Integration of Quality Cost and Accounting Practices. The TQM Journal, 24(4), pp. 338-351.

Giakatis, G., Enkawa, T. & Washitani, K., 2010. Hidden Quality Costs and the Distinction between Quality Cost and Quality Loss. Total Quality Management, 12(2), pp. 179-190.

Jourabchi, S. M., Arabian, T., Leman, Z. & Ismail, Y. B., 2015. Contribution of Lean and Six Sigma to Effective Cost of Quality Management. International Journal of Productivity and Quality Management , 14(2).

Rasamanie, M. & Kanapathy, K., 2011. The Implementation of Cost of Quality (COQ) Reporting System in Malaysian Manufacturing Companies : Difficulties Encountered and Benefits Acquired. International Journal of Business and Social Science, 2(6), pp. 243-247.

Schiffauerova, A. & Thomson, V., 2006. Managing Cost of Quality: Insight into Industry Practice. The TQM Magazine, pp. 1-10.

Snieska, V., Daunoriene, A. & Zekeviciene, A., 2013. Hidden Costs in the Evaluation of Quality Failure Costs. Engineering Economics, 24(3), pp. 176-186.

Sower, V. E., Quarles, R. & Broussard, E., 2007. Cost of Quality Usage and its Relationship to Quality System Maturity. International Journal of Quality & Reliability Management, 24(2), pp. 121-140.

Vaxevanidis, N., Petropoulos, G., Avakumovic, J. & Mourlas, A., 2009. Cost Of Quality Models And Their Implementation. International Journal of Quality Research, 3(1), pp. 27-36.

Computer-Based Communication Technologies and Their Influence on Business Communication

Executive Summary

Computer-based communication technologies became widely used with Internet connection getting easily accessible. Using these technologies requires only basic computer skills this is why they are popular among people of all possible ages.

Computer-based technologies led to the emerging of social media, as well as social networking, instant messaging, blogging, podcasting, etc with each of these having an impact on the effectiveness of communication, especially when it comes to the business field.

Since communication is the most important constituent of any business organization, making it effective is vital. Using such computer-based technologies as social networking and instant messaging can both impede and enhance communication in business organizations. If they are used for business purposes they are likely to have a positive impact on communication; if the personnel use them for personal purposes, the communication is impeded and the performance of the organization is negatively affected. Other factors which impede communication with respect to these technologies are their impersonality and the possible instability of Internet connection.

Introduction

Due to the rapid development of computer-based communication technologies, peoples way of communicating their ideas and information in numerous spheres of human activities has significantly changed with business being the field where the application of these technologies is especially concerning. Computer-based communication technologies, just like other technological innovations, cannot be absolutely advantageous for society. Their main fault is that they cause peoples dependence on them and quite often, instead of facilitating communication between organizations or private individuals, they may impede it or make it impossible. These technologies are a reliable means of communication, but like anything dependent on a computer, they may malfunction. Within the business field, this may lead to serious consequences which can later question the reliability and reputation of an organization. One of such consequences may be the breaking of negotiations between companies from different countries. This report will describe different communication technologies and their influence on business communication concentrating on instant messaging and social networking in particular, as well as it will present some recommendations for business entities regarding the usage of these technologies.

Definition of Computer-Based Communication Technologies

Computer-based communication technologies are often referred to as social media. They can be defined as online media which not only facilitates peoples communication but allows them to create and develop its content. For some people, these technologies are of no practical value because without their usage the communication and sharing of information were still possible. For others, however, these technologies are a business opportunity to be approached cautiously but optimistically, that offer new avenues for extending sales, marketing, recruitment, research, and technical support, which complement traditional working practices (Wilson 2009, p. 55). The usage of these technologies depends on how much a person needs them. Recently, their application in ordinary life has become no less frequent than that in business activities. They are used by corporate and government organizations to facilitate communication and collaboration between groups of people and separate individuals (Perkins 2008). Social media has resulted in emerging of social networking used by companies and corporations every day. This phenomenon has significantly changed strategies which business organizations used in communicating with customers and supplying them with their products and services.

Varieties of Communication Technologies

Computer-based communication technologies encompass a vast variety of social networking Web sites and broadcast activities. They are used by the biggest part of the worlds population and the number of people getting involved in social networking continues growing every hour.

Social Networking Web Sites

Some of the social networking Web sites are Facebook, LinkedIn, Classmates.com, MySpace, and the like. Such Web sites are rarely used in business, though they are used by business workers, which became the most widespread reason for limiting access to them. These sites contain profiles of different people with who a person can be familiar. The communication at them takes place by means of messages; the additional service provided by these sites is the access to city networks grouped according to peoples interests.

Instant Messaging

These days there is hardly any organization that does not use instant messaging (IM) as a means of communication. IM allows two or more people to communicate in real-time via the Internet. The most widespread instant messaging systems are ICQ, Google Talk, Skype, etc of which the latter allows establishing even video connection.

Creativity Works Sharing Web Sites

To no less popular forms of media belong blogging, podcasts, and vlogging (Pannunzio & Nelson 2008). These social networks are, as a rule, maintained by a separate individual. In the case of blogging, for instance, an individual may place an article regarding some news on a Web site that other users will comment and discuss. Comments are left in an interactive format, which often leads to people who do not even know each other finding common interests or arguing about politics, religion, and other issues. Vlogging is almost the same as blogging with video being used as a medium; they are often used by advertisers to achieve visual recognition (Pannunzio & Nelson 2008). Podcasts, in their turn, allow easily downloading video files and even series of them. One of the world-known video-sharing Web sites is YouTube which displays user-generated videos and allows registered users to download them.

Social Media Benefits as Compared to the Industrial Media

Perhaps, one of the greatest benefits is social medias low cost. Social media does not demand any expenses for paper, ink, electricity, etc, which makes it quite cheap. What is more important, it is accessible to a greater number of people who do not need to buy information to read it. All it takes is to pay for the services of the Internet provider. Another benefit is that social media can be reached by a global audience. This is of great use for advertising and distribution of products. Furthermore, social media allows updating information quickly, unlike industrial media updating of which may take days and even weeks. Finally, the information presented, for instance, in an online article can be easily altered, which is impossible in the case with traditional media. This all makes social media more attractive for business organizations that find new business opportunities and are able to share the experience through social media.

Influence of Computer-Based Communication Technologies on Business Communication

Computer-based communication technologies are often used in business communication for they allow one person to interact with several people at one and the same time, regardless of how far these people can be. These technologies have significantly influenced integrated marketing communications (IMC) which, as stated by Mangold & Faulds (2009), are used to coordinate and control the various elements of the promotional mix-advertising, personal selling, public relations, publicity, direct marketing, and sales promotion  to produce a unified customer-focused message and, therefore, achieve various organizational objectives (p. 357). The matter is that, with the emergence of social networking, IMCs have also changed, which resulted in the re-considering of customer communication strategies that companies and organizations used to follow. Social media has now become vital for business communication for it allowed creating online information sources which companies and consumers use daily to inform or get informed about new brands, products, and their prices, services, and other business-related issues.

Importance of Communication in Business

Effective communication is a guarantee of success for any organization. One of its greatest functions is establishing contacts with the consumers and business partners. None of the organizations would succeed in selling their products or services without explaining to the consumers their necessity. Another function of communication is the establishment of relations between the administration and personnel. Good communication between the chief and his/her subordinates results in the latters higher productivity, understanding, and cooperation, which is beneficial for the overall performance of the organization. Thus, communication can either build or destroy trust between the organizations employees, as well as between the organization and its customers. This is why facilitating communication is extremely vital in the business field; this is the reason, social media has become so popular with business entities.

Social Networking and Instant Messaging Enhancing Business Communication

Social Networking is able to enhance business communication in a number of ways. For instance, it is able to group people according to their interests. Facebook and MySpace make it possible for the users to search for definite organizations members and enter the groups these members belong to. The users can then take part in discussions within the group. The topics of such discussions often include strengths or weaknesses of the organization, which allows developing and improving it. These discussions improve communication between the group members, thus contributing to their better performance. Moreover, it may happen that a subordinate and an administration member will enter one and the same group, which will not only make communication between them more effective but will narrow the social gap between them.

The business world witnessed a number of examples when organizations improved their communication by means of social networks. Thus, for instance, Gibson Musical Instruments has areas at MySpace, Twitter, and YouTube which contain videos, audios, and news related to the company (Wilson 2009). This makes communication between the organization and its consumers more effective and serves as an additional (and, most importantly, free) advertising material.

Instant messaging can also make business communication more effective. First of all, it allows the employees to communicate with each other on business matters and share necessary files which otherwise would demand special devices to share. Secondly, it improves communication between the employees and the administration. Some employees may find it difficult to talk to, for example, the chief directly, while communicating with him/her by means of instant messaging is easier because it does not require direct eye contact or verbal conversation. Lastly, it saves time and money if accessing a business partner by means of the telephone is impossible. In the case of Skype, communication becomes even more efficient, for business partners are able to see each other and even take part in a video conference involving more than two people.

Social Networking and Instant Messaging Impeding Business Communication

While social networking and instant messaging have a number of advantages, they can also impede communication within and outside a business organization. Both social networking and instant messaging can significantly lower the productivity of the employees due to the latter using this system for personal communications with their friends and colleagues, which distracts them from their work. In the case of instant messaging, the harm is not as great as in the case with social networks where the employees tend to spend hours communicating with their online friends, commenting on pictures and videos, and searching for new friends.

Firstly, social networking and instant messaging minimize personal communication both among the employees and between the employees and the consumers. Instant messaging allows communicating with all the people which are on the list of contacts. Not all of these people may be familiar to the user, but he/she will still need to communicate with them on business matters. This makes communication less effective. The same goes for conversing with the customers. Lack of eye contact or at least emotions (as in the case of a telephone conversation) greatly impedes communication.

Secondly, the employees may opt to converse with the customers through chats, especially when settling the conflicts. Of course, this is more convenient because the employees get less exposed to negative emotions. On the other hand, however, this is unfair with respect to the customers because they may get a feeling that they communicate with a machine.

Finally, communication by means of these systems becomes impossible when there is no Internet connection. Though all the Internet providers promise stable Internet connections, they cannot guarantee anything. The absence of an Internet connection is not fatal for communication within the organization, but it may seriously affect its relations with business partners who, for instance, are waiting for the online conference by means of Skype or the like programs ensuring video connection.

Conclusion

Computer-based communication technologies have a great influence on how business is carried out. They have a considerable impact on communication within and outside an organization. Out of all these technologies, social networking and instant messaging are the most widely used by organizations for both business and personal purposes. These technologies can either enhance or impede communication, depending on whether they are used for business or for personal purposes. Thus, they can make communication more effective because they help to establish a connection between the employees and customers, as well as business partners faster than any other means of communication. At the same time, they may distract employees from their work and minimize personal communication among the employees and between them and their customers.

Recommendations

  • That the organizations have a reliable Internet provider for the connection to be stable. This will contribute to the effectiveness of the communication within and outside the company.
  • That the use of social networking and instant messaging for personal purposes be minimized. This may be done by installing chat programs for the organizations employees only and banning the most frequently used social networks (Facebook, MySpace, LinkedIn, etc).
  • That the communication with customers is more personal. This may be achieved through introducing incentives for the employees encouraging them to prefer telephone conversation to the chat one when communicating with customers.

References

Mangold, W.G. & Faulds, D.J. 2009, Social media: The new hybrid element of the promotion mix, Business Horizons, vol. 52, pp. 357-365.

Pannunzio, C.O. & Nelson, C. 2008, Leverage the power of social media, Journal of Financial Planning, pp. 6-10.

Perkins, B. 2008, The pitfalls of social networking, Computerworld, vol. 42, num. 7, p. 44.

Wilson, J. 2009, Social networking: The business case, Engineering & Technology, pp. 55-56.

New Belgium Brewing: Case Study

New Belgium Brewing (NBB) made significant improvements in the development of sustainability as a major part of corporate social responsibility (CSR). However, there rumors that Belgium Beer wants to sell the company to willing buyers, which will potentially lead to the loss of independence and shift from its environmentally friendly paradigm (Carroll, Brown and Buchholtz, 2017). In other words, the next owner might not have sustainability as the primary objective of the business. This will most likely lead to gradual change within the company if the sustainable efforts go against the strategic goals of new management. It is important to note that NBB has already built the relevant infrastructure because it has invested in solar panels and lighting upgrades, a bio-digester plant for water recycling, and a partnership with The Climate Conservancy (Carroll, Brown and Buchholtz, 2017). Therefore, the overall change from the given sustainable operations will not occur immediately or in a short period of time, but further improvements might not take place. In addition, the current systems might be abandoned for more efficient ones, which might necessarily be environment friendly.

The most critical aspect of selling NBB to a larger brewing company will be the management change, which will have a direct impact on the corporate social responsibility of the company. It is stated that even mid-manager efforts can lead to CSRs progression and state (Godkin, 2015). However, the main hindrance to the new managers potential abandonment of NBBs sustainability efforts will be customer perception, which will dictate whether such change will be met with market segment loyalty (Alvarado-Herrera et al., 2017). The next step of improvement can be observed in delivery and packaging, which are key elements of the supply chain (SC). It is stated that it is possible to enhance both CSR and SC without a decrease in profitability (Hsueh, 2015). Therefore, the change in ownership might lead to a reduction in efforts, but the following upgrades to delivery will not hinder the cash flow.

The existence of a direct relationship between the measures taken by corporations to implement the sustainable development strategy and the growth in the price of their shares has not been statistically confirmed. However, in the long term, better management of environmental, social, labor, and ethical risks leads to better overall performance. Sustainable business development allows you to switch attention from obtaining short-term financial results of activities to ensuring long-term corporate growth. The process of interaction between a corporation and its stakeholders will be effective only if it motivates corporate management to align its own goals with the expectations and requirements of stakeholders. For a social contract to be effective, corporate governance must ensure that mutual benefits and benefits can be derived that provide incentives to all those involved in the business.

Conclusion

In conclusion, NBB made major accomplishments in adhering to their corporate social responsibility from the perspective of environmental sustainability. The company ensured that the majority of the electricity is coming from renewable sources, such as a solar panel. It also implemented water and waste recycling in order to decrease the out-system usage of these scarce resources. In addition, it is looking forward to reducing its carbon emissions through improved packaging and distribution. Although some aspects of these efforts can lead to undesirable changes in customer perception, such as canned beer, the overall issue of selling the company is a more critical one. The main reason lies within the shift of management and loss of independence, which will inevitably change the key sustainability objectives.

Reference List

Alvarado-Herrera, A., et al. (2017). A scale for measuring consumer perceptions of corporate social responsibility following the sustainable development paradigm, Journal of Business Ethics, 140, pp. 243-262.

Carroll, A. B., Brown, J., and Buchholtz, A. K. (2017) Business & society: ethics, sustainability & stakeholder management. 10th edn. Boston: Cengage Learning.

Godkin, L. (2015) Mid-management, employee engagement, and the generation of reliable sustainable corporate social responsibility, Journal of Business Ethics, 130, pp. 15-28.

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