Category: Business 11471

SWOT stands for Strength, weakness, opportunity and threat of a company while some of such variables of General Electric are 

Strengths

Some stronger criteria of GE are 

• General Electric Co. (GE) has long experience as it established in 1892;
• GE has a strong brand image in the global market;
• According to annual report 2009 of GE, General Electric maintained position as forth most valuable brand with a valuation of nearly $50 billion according to one survey;
• It has about 304,000 skilled dynamic, highly motivated, and well-trained employees. Among them 134,000 employees are the US citizen;
• Furthermore, it has effective administrative control over the employees as it uses 31 languages to communicate with the employees.
• GE has strong financial capabilities to expand its business operation all over the world;
• In 2009, GEs net income was $10.70 billion, total assets was $782.0 billion, total equity was $117.0 billion, strong industrial cash flow from operating activities (CFOA) was $16.60 billion, and consolidated cash at year-end was $72.0 billion (General Electric, 2009);
• GE has reduced its total operating costs by $6 billion;
• It has ability to offer more customer value at a lower cost than any of our competitors;
• In addition, General Electronic possesses unique expertise and incessant competitive advantage over competitors along with economies of scale, supply chain management, positioning strategy, remarkable performance in consumer care and successful implementation of future strategic plan;
• It has control over the subsidiaries of the company; so It earns huge profit from subsidiaries like GE Energy, GE Technology Infrastructure, GE Capital, NBC Universal, GE Home & Business Solutions (Karan, 4);
• The company always appreciates recruitment of paramount R&D personnel. In 2009, R&D operating cost was $535 million, which was a 7% rise since that in 2008;
• Moreover, GE has more than 40,000 engineers and scientists all over the world, who engage to introduce modifying industry-specific solutions;
• It has effective audit procedure to measure internal risks, key credit risks, liquidity risks, market risks, and profitability of new business sector;
• Diversified product line is one of the strong point of the company;
• Finally, GE has capability to offer low price for its products and services.

Weaknesses

Some vulnerable factors are 

• GE has to face problem with expatriate recruiting and selection process to reduce staff redundancy rate; however, it has more than 170,000 expatriate employees;
• Integration of local rules and regulations;
• Share price is decreasing in New York stock exchange;
• Frequent change of exchange rates, interest rates, contamination of its products and for increase of product liability claim, it has to change its operation management (Karan).

Opportunities

General Electric has huge opportunities, such as 

• GE is highly diversified company, so it can introduce new products easily in this competitive market. Karan stated that GE offers industrial products, for example, jet engines and gas turbines, but it has a significant presence in consumer businesses such as home appliances (refrigerators and dishwashers) and consumer finance (financial products such as credit cards and mortgages);
• It has opportunity to be world market leader as its position is still behind Coca-Cola, Microsoft and IBM;
• However, GE has the scope to provide high quality products and quick customer service with high satisfaction;
• General Electric (34) forecasted the last three years financial data of the company which showed that its annual revenue has increased each year from all business segments;
• According to annual report 2009 of GE, it has financial capabilities to takeover medium sized companies or merger with other large companies to spread out its business worldwide.

Threats

Some challenging issues are-

• The biggest apprehensive threat for General Electric is the global financial crisis because long lasting recessionary period may lead to falling sales;
• It endures intense competition in the international market;
• Volatile price of raw materials, unstable market, and other risk factors are also major threats for the company;
• According to the annual report 2009 of GE, possible risks of the company are higher receivable delinquencies and bad debts, delays, or cancellations of sales and orders mainly associated to power and aircraft equipment, and slowdown in established financial services activities, and so on.

Stock Performances of GE

Yahoo finance (2010) suggests that the stock prices of GE has always been quite steady and enough attractive for drawing attention of investors; however, in recent financial downturn, the stock prices of GE declined significantly which created practical difficulties for the business. The figure below shows that from January 2006 to mid 2008, GE has enjoyed rather constant share prices, which started to fall from the very beginning of January 2009 due to adverse economic-environment. Nevertheless, it is arguable that along with GE recovering from the financial crisis, its stock prices have also started to revive from 2010.

Future Company Plans

• General Electric plans to work jointly with AVIC in order to construct the most sophisticated open architecture avionics throughout the globe for the industrial aviation sector; these joint cooperation between the two companies would help General Electric to form a competent business organization with a global strategy to benefit China and the United States;
• The company has a future intention to focus on business expansion strategy and it is rather committed to achieve optimistic growth; in addition, GE wants to facilitate and fuel up an American growth renewal;
• With a plan to achieve competitive advantage over its competitors, GE will be expending more on the development and formation of a strong technological infrastructure, IT specialization, and other technical expertise; moreover, with the same vision, it will be upgrading its manufacturing capabilities and selling its products in every corner of the world;
• At GE Audit Committee meeting, the senior-management has planned to concentrate on increasing the efficiency level of employees at every level of the GE to develop risk management skills and financial services-portfolio as well as improving risk-oversight-processes to handle every rudiments of risk managed by ERMC; risk-management-professionals would include underwriters, portfolio managers, collectors, environmental-engineering specialists, and specialized asset managers;
• General Electrics loss alleviation plan will diminish financial loss and can bring about price cutback, primary moderation, expansion, self-control, or supplementary proceedings that can cause the correlated credit to categorize like a troubled-debt-restructuring (TDR); in fact, this policy will help the company in well management of financials during bad economic times like global financial crisis;
• The decision makers at GE hope to develop and enhance the superiority of its healthcare for patients by associating along with general practitioners, doctors, and other stakeholders to concentrate more on modernization and invention practices that purify healthcare-procedures and speed-up caring standards; this would help GE to capture bigger market share and ensure more secured market position for future;
• The company would support its cost cutting strategies by a number of methods; one of the key strategy of the business is to make its production process more lean by introducing a number of approaches (for example, just in time approach, total quality management, total productive maintenance, etc) by replacing unproductive human resources with latest technological assistance;
• With a vision to ensure more convenient customer service and support easier access to the services of GE, the companys strategy is to expend more on convenience assurance proposals; this, according to the companys specialists, would raise to companys revenues by attracting more people toward its services;
• The future objective of lowering the environmental impacts of the business resulting from its operations has made GE to invest in a number of sectors to protect ecological concerns; GE Capitals Energy Financial Services division has prepared the renewable energy investments and planned creating green-collar jobs and assisting US to raise power-generation from renewable-sources, supporting invention, and attracting foreign-investment;
• The top management of the company believes that for such a large business like GE, it is important to ensure that the leadership qualities of the managers remain intact in future; therefore, it intends to train and impose leadership instincts among tomorrows leaders with a view to continually assess and enhance talent.

Works Cited

General Electric. Annual report 2009 of General Electric. 2009. Web.

Karan, Len. General Electric. 2010. Print.

Yahoo finance. Basic Chart: General Electric Co. (GE). 2010. Web.

Communication Piece  Internal Security Change Message

In todays world, security is one of the primary concerns for large organizations, and Marriott Hotels are no exception. At Marriott, we believe that our most critical goal is to ensure that customers can experience the high quality of service in our properties without needing to worry about anything else. Thus, Marriott is committed to earning our customers trust back by implementing a comprehensive organizational change targeting information security in our hotels and properties.

The data breach that occurred in November 2018 in Starwood reservations showed us that the previous information security system applied in our properties was outdated and had significant gaps, which impacted its ability to prevent cyber attacks. As a result of the attack, the perpetrators received access to the personal details of many customers who stayed at the affected properties. The investigation results showed that the effects of the breach have been fully contained by now and that all affected persons have been notified about the risk.

The investigators also identified the technical errors that allowed the leak to happen. While fixing these errors allowed restoring our security system and ensuring the safety of all current customers, Marriott is willing to go beyond that to implement a change to promote security at all levels of the organization.

The first step towards enhancing Marriotts information security is to review the current IT systems for gaps and address them in full. To achieve this goal, we have created a team of IT security experts who will perform an internal audit of our current system and implement changes to make sure that Marriott has state-of-the-art security in all of its properties. The panel of experts will also assist Marriott in designing a plan for implementing a culture change, which will be the second step in the change process.

From our experience, a culture of security is a critical component of the plan for protecting customer data, as it promotes compliance and establishes security as the top priority of the organization. The HR Director will communicate the need for cultural change and the plan for achieving it to all our properties to prevent gaps and noncompliance. Training in information security will be the third step of the change process, with every Marriott employee using our information system receiving skills and knowledge necessary to maintain security and prevent data leaks. While the vast majority of our employees have completed training in information security, this is still necessary to ensure compliance with the updated information security plan.

We expect that the steps above will make Marriott properties more safe and secure for our customers than ever before, and we are committed to ensuring that the change process is fully transparent. If you would like to know more about the upcoming changes, use the e-mail address below to send your inquiry. You can also use these contact details to share your concerns about the change or to find out more about the recent security breach. We assure you that information security is among the top priorities of Marriott and that your stay in our properties will be safe and comfortable.

Analysis of a Media Piece

Establishing transparent communication with customers following a security breach is critical to regaining their trust and containing the impact of the incident. After first announcing a security breach in November 2018, Marriott provided an update on the investigation and the change process that followed the event in January 2019. The present section of the paper will analyze this communication piece to determine whether or not it fulfills the goal.

The primary audience of the news release is Marriotts guests, who may or may not have been affected by the security breach announced in November. The media piece was published in the news center on the companys official website, and thus all external stakeholders have access to it. The primary goal of the communication was to show that the investigation process is fully transparent, the effects of the incident were contained, and that all those affected or at risk will receive full support from the company. To achieve this goal, the report provides information about the changes that took place in Marriott with regards to information security following the breach.

First of all, the news provides an update on the number of people involved in the breach and gives further details of the incident. Marriott International (2019) states that approximately 383 million records as the upper limit for the total number of guest records that were involved in the incident and that the information leaked included passport numbers and payment cards (para. 5). By providing information about the incident, Marriott shows its commitment to gaining back customers trust and addressing the mistakes that led to the breach. Transparency is an essential component of communication following a damaging incident, as it improves the companys image and prevents panic among customers (Jennings, 2018). Therefore, the first part of Marriotts message serves the purpose well.

Besides providing an update on the investigation process, Marriott also identified some of the changes in information security that have already been implemented. For example, Marriott International (2019) reports that the Starwood database that was the source of the breach was discontinued, which means that all properties now use Marriotts system. This piece of information serves two separate purposes: to reassure customers that staying with Marriott is safe not and to identify that the breach was not caused by gaps in the companys information security system. Hence, this section of the message helps to restore Marriotts image that has been damaged as a result of the incident.

The last part of Marriotts news release serves to explain the guest support services offered as part of the change efforts following the breach. Marriott International (2019) provides information about a dedicated website and call center for guests who are concerned about the security of their personal information, as well as details about the free web monitoring service to identify identity theft. By establishing these changes and notifying the public about them, the company fulfills its corporate social responsibility (CSR).

Hovav and Gray (2014) explain that maintaining the customers privacy is part of companies CSR, and so is providing remedying services to stakeholders who are at risk due to data breaches and leaks. Thus, the final portion of the news release shows that Marriott is determined to fulfill its CSR and shows the companys interest in helping those who might have been affected by the incident.

Overall, the communication piece analyzed in this section fulfills Marriotts goals about change communication. It creates a sense of transparency by providing full information about the incident and shows that the plans for containing the effects of the breach have been implemented successfully. Furthermore, the piece supports Marriott in fulfilling its corporate social responsibility by detailing the services available to customers at risk. Based on the analysis, the change communication provided by Marriott is effective and assists in remedying the companys reputation.

Annotated Bibliography

Hovav, A., & Gray, P. (2014). The ripple effect of an information security breach event: A stakeholder analysis. CAIS, 34(50), 893-912.

This scholarly article considers information breach events from the perspective of various stakeholders involved, focusing on passive stakeholders. Hovav and Gray (2014) explain how this type of incident is perceived by various stakeholders, including vendors, customers, hackers, and the wider community. The authors stress the importance of corporate social responsibility in the context of information security, stating that it helps companies to prevent and address such events. The article also provides some recommendations on communicating with stakeholders after a security breach, emphasizing the importance of transparency.

Jennings, H. (2018). Communications Lessons from Marriotts data breach announcement. PR News. Web.

In this Article, the author examines Marriotts security breach and the events connected to it from the perspective of crisis communication. The text offers a brief summary of the incident and the reports provided by Marriott following the breach. Jennings (2018) explains that in its communication with the press and customers, Marriott shows commitment to transparency. However, the author criticizes the companys decision to withhold the information about the breach for almost two months, stating that it might affect Marriotts reputation.

Marriott International. (2019). Marriott provides update on Starwood database security incident. Web.

This source is a news release by Marriott International providing an update on the security breach that occurred in November 2018. The company offers information about the number of persons affected and the types of records accessed by the perpetrators. The piece also explains the companys efforts to remedy the issue by providing support services to those at risk and strengthening the information security system.

References

Hovav, A., & Gray, P. (2014). The ripple effect of an information security breach event: A stakeholder analysis. CAIS, 34(50), 893-912.

Jennings, H. (2018). Communications lessons from Marriotts data breach announcement. PR News. Web.

Marriott International. (2019). Marriott provides update on Starwood database security incident. Web.

Common organizational business structures and processes are multifactorial and complex, consisting of multiple processes. This paper will seek to explore the key processes including finance, procurement, fulfillment, inventory and warehouse management, and manufacturing that involved in business functionality. The overview will examine purpose, activities, and organizational elements as well as the enterprise resource planning systems appropriate to each category.

The Finance Process

All businesses operate on cash flow in one way or another, making the finance process essentially critical to every type of organization. The finance process is overseen by the finance department which oversees the procurement, management, and spending of funds and assets ensuring that the business has available cash and sustainable flow of income versus expenses. The primary responsibility of financing is general accounting which oversees daily expenditure, record-keeping, and financial management such as bookkeeping, payroll, and financial statement preparation (Gartenstein, 2019). The finance process also includes financial controls which includes strategic and long-term decisions, which may involve upper management as well. These responsibilities include planning and ensuring that the budget is followed. Management of long-term responsibilities such as investments, taxes, and financial risks are critical to financial control to guarantee the fiscal health of a company (AccountingEducation, n.d.).

As seen in the chart above, the chief financial officer (CFO) of a company typically oversees organizations finances and accounting functions, reporting directly to the CEO (Managerial accounting, 2012). The finance process ultimately begins with strategic planning when the long-term objectives of a company are determined and financed. A financial plan must be created and implemented to ensure both day-to-day functionalities and long-term financing needs are met (Gartenstein, 2019). ERP processes can significantly simplify and improve efficiency of multiple financial activities. First, the accounting procedures are automated through ERP software which improves financial productivity. Various accounting procedures such as management of payments to vendors and wages to staff are automated. Another way that ERP benefits organizations is accuracy and reliability of data, keeping track of all financial transactions, and compiling it in line with standards (Roehl-Anderson, 2010). This allows for finance departments to concentrate more on core operations and strategic planning while automating the tedious processes.

The Procurement Process

Procurement in an organization is a series of activities and processes to acquire necessary products, goods, and services for operations from the best suppliers at the optimal price. Modern supply chains make procurement management a strategic function of integrating internal and external resources, control of risks, and operational function in lower costs. With the development of complex supply chains, companies outsource in order to implement strategies, highlighting the importance of suppliers. Therefore, the core of procurement management is extensive ranging from order processing to managing external sources of supply. Firms seeks to acquire resources with the most optimal cost, schedule, quality, and quantity via activities such as resource development, supplier selection and qualification, and supplier relationship (Jiang, 2017).

The role of procurement is broad, encompassing market analysis, supplier negotiations, transport and logistics, storage and warehousing, and procurement technologies among others. Responsibilities may include identification of requirements for goods, materials, and services  the point where the procurement process ultimately begins. This is followed by identifying reliable suppliers, price negotiations, delivery terms comparison. Finally, there is the establishing order quantities, coordinating delivery, product and quality control (Procurement Practitioners Handbook, 2012). Furthermore, procurement department also has to manage budgets and payments, in coordination with the financial department. There are two elements to procurement, strategic and operational procurement. Operational procurement focuses on administrative aspects, day-to-day operations, and short-term or repeating tasks in the process of ordering, invoicing, and receiving inventory. Strategic procurement is focused on planning high-level decision-making and tasks that are related to such activities. Furthermore, the department can set an overall direction and strategy to meet the companys needs and possibilities, as well as evaluate and form long-term relationships with suppliers (Ho, 2009).

ERP is commonly utilized in procurement activities to manage the process, oversee budgets, and track spending. ERP optimizes many elements of the process by automation, with common and consistent orders being placed automatically as well as purchase planning for tracking of inventory data for accurate ordering. ERP technology can aid in boosting profit margins by connecting business processes with accounting as well as intelligently comparing data from suppliers including details of transactions and delivery results (Pinto & Morris, 2007). Overall, the elimination of manual processes can aid in efficiency and improve insight to the process.

The Fulfillment Process

ERP software can have significant impacts on the fulfillment process by creating efficient workflows from the warehouse to customer deliver. These workflows may include quote-to-quote order, order-to-fulfillment, and invoice-to-payment  becoming efficient through automatization and removing redundancies. Examples include software being integrated with delivery services to automatically determine freight charges and calculate costs. The picking process can be expedited as well as distributors may choose to purchase the product in bulk but sell individually, with the ERP system converting measurements and organizing pick sequences. The returns process will benefit as well with the software tracking which items have been returned and the cause, contributing to quality control (FullQuota Editor, 2013).

The Inventory and Warehouse Management Process (IWM)

Inventory and warehouse management is an umbrella term encompassing everything that occurs in an organizations storage location, most commonly a warehouse, and the primary activity includes the managing of inventory but can be much more expansive. Inventory can be defined as goods that a business owns and plans to either sell or use for a manufacturing process. Inventory is considered an asset, recorded on the balance sheet and constantly evaluated. Tracking and management of inventory is critical for success for the company as it engages in business and moves the inventory. Inventory and warehouse management is the most complex element of a supply chain, including activities ranging from fulfilling and shipping orders, distribution, maintaining track and quality of inventory, manage transportation, analyzing logistics and customer needs among many others that can be seen in the chart below. The objective of any inventory and warehouse management process is to enable quick response to the custom and highly-accelerated inventory flow (Schmula, 2010).

ERB such as a warehouse management system (WMS) software are highly necessary and have become the cornerstone of the logistics process. WMS helps to configure and manage elements of storage, distribution, and shipping with operations such overseeing inventory balance, material management, pickup processes and auditing. The software aids in making vital processes efficient including maintaining accuracy of inventory with real-time information and benefit of other technologies such as barcode or RFID that accurately track inventory levels, to leverage business operations or seasonal demand in centralized manner to avoid any potential gaps in stock (Lahoti, 2018).

The Manufacturing Process

The manufacturing process are steps when raw materials transformed into the final product. When manufacturing beings, a company has the choice as to the type of manufacturing process it uses, which can vary depending on resources, staff, and information systems it has available. Furthermore, manufacturing process varies depending on final product, whether it is large batches of similar goods or small numbers of custom or complex items. More manufacturing processes typically utilize a production line, with the product moved sequentially along the line and worked upon at specific stations where operations are performed as it is gradually assembled by humans or machines. Other manufacturing processes include continuous flow, custom manufacturing, and fixed position manufacturing (Murray, 2018). Manufacturing typically begins with either orders being placed or a business needing to fill its inventory.

As seen in the organizational chart below, manufacturing represents a major element of an organization. It consists of various sub-elements including production planning, technical design, production, quality assurance, and equipment maintenance. Commonly the manufacturing department works closely with sales and procurement departments to determine orders as well as inventory management where raw materials are stored and completed goods go into inventory. There is cooperation with technical departments that create the product designs and conduct research and development that directly affects the manufacturing process.

ERP and IT systems are essential in the modern, highly automated manufacturing process for businesses. Experts agree that digital and automated manufacturing operations are key to succeeding in the challenging market. Systems such as the Manufacturing Execution System (MES) offers certain benefits such as centralized management of systems, comprehensive data collection to eliminate redundancies and improve quality, and introducing integrate manufacturing operations management digitally. Manufacturing thrives on efficiency, ranging from speed of output to energy monitoring to equipment effectiveness, all of which are possible through the industrial Internet of Things and other IT tools for business analytics (SAP, n.d.).

References

AccountingEducation. (n.d.). Function of finance department. Web.

BSE Logistics. (n.d.). Warehouse management. Web.

Edraw. (n.d.). Manufacturing organizational charts. Web.

FullQuota Editor. (2013). Is ERP distribution software the key to speeding up order fulfillment? Web.

Gartenstein, D. (2019). What roles does the finance department play in a business. Web.

Ho, S. (2009). BLC 304/05 procurement management. Wawasan Open University. Web.

Jiang, Z. (2017). Procurement management in the supply chain environment: Practical guide to understanding procurement management and enhancing procurement effectiveness and efficiency. Chartridge Books Oxford.

Koppelman, L. (2020). What is order fulfillment. Web.

Lahoti, N. (2018). Warehouse management system  Role and functions in logistics chain. Web.

Managerial accounting. (2012). Saylor Academy. Web.

Murray, M. (2018). A guide to the manufacturing production process. The Balance Small Business. 

Pandey, A. (2019). The order fulfillment process. Web.

Pinto, J. K., & Morris, P. G. (2007). The Wiley guide to project technology, supply chain, and procurement management. Wiley

Roehl-Anderson, J. M. (2010). IT best practices for financial managers. Wiley.

SAP. (n.d.). Manufacturing. 

Schwartz, L. (2020). What is order fulfillment? Process & strategies. Web.

Shmula (2012), Warehouse management processes. Web.

There is no use denying the fact that the sphere of relations between an employer and employee is a very complicated issue. There are many various peculiarities that introduce some limits or describe terms of the relations between these two agents. Under these conditions, the working contract between an employer and employee becomes a very important document that helps to regulate this sort of relations and control the activity of the employer and employee, for them to act in terms of the existing contract (Wempe, 2008). This document could also be taken as the guaranty of the protection of interests of one of the sides of the process. In case if someone acts not in accordance with the main aspects of the contract, there are tribunals and courts that could help to find the needed solution.

The case with Peter and Xara could be taken as the bright example of the importance of a contract. The fact is that Peter makes a great mistake when starts to work without a good contract that fixes the main principles of his cooperation with Xara. The absence of the good contract helps Harry, a procurement manager, to dictate his own conditions and change the main principles of their cooperation. Harry wisely uses several tactics that help him to obtain the needed result.

First of all, Harry knows that the Peter has already started to work on the project and created several concepts. It means that he is really interested in the given proposal and, moreover, it will be difficult for him to refuse, because some part of the work has already been done and refusal will mean that there will be no payment for it. Being an experienced worker, Harry obviously knows that there is no contract and, that is why, Peter counts on some decency and business conventions. However, business is a complicated issue and everything should be organized in accordance with the law. That is why, Harry has a great advantage here.

Secondly, Harry also uses the psychological pressure to make Peter work under the proposed conditions. The manager appoints the last-minute meeting and presents the situation in the way which is unexpected to Peter. The facts outlined by Harry confuse Peter who thought that the contract would be unchanged and his conditions would be accepted. Moreover, Peter feels stress because of the tempos and recognition of the fact that there is no time to hesitate and reconsider some approaches. That is why, Harry achieves the desired result.

Finally, Harry points out the fact that bosses do not agree with the given conditions, however, in case of 25% discount they will accept the proposal and will sing the contract. It is obvious that Peter wants this contract and counts on it. The fact that it will be signed immediately influences him on the subconscious level greatly and he becomes ready to accept any conditions. Moreover, he has already started to work on the given project and that is why, it is quite difficult for him to refuse as some his efforts will not be paid.

The given facts show that Harry used three various practices that helped him to achieve the needed result and persuade Peter.

At the first gaze, it might seem that Harry acts unethically and uses his positions to make Peter accept the conditions that are not beneficial for him. However, one should remember the fact that the sphere of business is organized in accordance with the certain laws and has its own unique ethics (Plimpton, 2014). In terms of its main peculiarities, Harry acts in a wise way that helps his company to obtain a good worker and sign up a beneficial contract.

That is why, his actions are quite acceptable (Karrass, 2013). Speaking about the rights of all sides of this situation and their leverages, it is vital to mention the absence of the clear contract that regulates the relations of Peter as an employee and Xara as an employer. The fact is that the main conditions of Peter and Xaras working relations are not fixed by the contract. Moreover, Peter is not guaranteed this very job and certain conditions. That is why, all these facts are used by Harry and bosses. who change the terms of the contract. They obviously have more leverages of influence in the given situation. If Peter has not accepted the given proposal, he will not obtain the given place and will not continue cooperation with Xara. His progress in this project will become useless and the time will also be spent in vain.

Moreover, Peter really needs this contract as it could help him to become more important and influential designer and count on the improvement of his image and new and even more beneficial contracts. That is why, it is possible to make a conclusion that Harry plays a winning game as Peter has no possibility to refuse or insist on the improvement of the terms of the contract.

Resting on the above-mentioned facts, it is possible to suggest several actions that Peter might perform in order to avoid the above-mentioned situation. First of all, it is obvious that the terms of the contract should be discussed at the very beginning of the working process (Cruise, 2014). It is vital for any specialist to take into account the fact that the contract is the most important document that will protect his interests and help to feel protected.

That is why, if Peter has some certain demands towards Xara and has a clear vision of his contract, he should sign it at the very beginning of the cooperation. Additionally, the work on the project should start only after the creation of the clear order. However, Peter has made a certain progress and only after that he is suggested a contract with the conditions which are not good for him. That is why. his unwise actions resulted in the deterioration of the terms of the contract.

The second practice, which could help him to obtain the favorable position lies in the fact that he should not give the company his free proposal. Xara accepted it and it shows that the given proposal is good and efficient. That is why, the given proposal should be suggested the company only after the completion of the contract. It could help Peter to obtain the more favorable position as the company will be dependent on him and will have to sign up a contract in order to obtain the needed project and start the campaign. Nevertheless, it is possible to conclude that Peter should have acted in the more wise and efficient way in order to obtain some benefits.

There is no use denying the fact that any company which is going to continue its development and turn into a great international corporation has to work on the international level in order to obtain new market and partners that could help it to continue its evolution. That is why, officials of the company should have the basic knowledge of the main peculiarities of the culture of the hypothetical partners. It is possible to suggest the analysis of some basic traits of two various cultures in order to compare them and determine what impact these aspects might have of business and negotiations.

Taking into account the peculiarities of the modern trends in the economy, it is possible to suggest to perform the analysis of the main traits of American culture, as the representative of the Western mentality, and the Japanese culture, as the representative of the Eastern world.

Thus, speaking about the aspects of Japanese culture that might have the great impact on business and negotiations, it is vital to mention the following three issues. First of all, people who belong to this culture are very hardworking. Japanese people get used to the hard work and believe that success could be achieved only with the help of great efforts devoted to a certain issue. This fact helps them to develop their business project and achieve even very complicated goals (King, 2009).

The second aspect is their adherence to the rules and laws that regulate a certain sphere. If there is a code that limits the functioning of a company, this code will be followed inviolately. In the sphere of business this characteristic helps to organize every project and create the legal base for its beneficial development. Moreover, a company which functions according to this pattern, could easily protect itself as there are no violations in its functioning.

Finally, another important aspect is honesty. The fact is that due to the peculiarities of the development of Japan, people have their unique attitude towards this issue and they try to use them while organizing and managing their own business. Representatives of Japanese culture follow their own ethics code and consider it to be very important for the given sphere. That is why, it is almost impossible to expect from them some unfair actions that contradict the given code.

However, speaking about the American culture, it is possible to outline the following issues.

First of all, representatives of this culture are very pragmatic. That is why, their functioning is determined by the aim to obtain some benefit and guarantee the further prosperous living and development. Being based on this very principle, the business will also be aimed at some extra benefits and incomes (Sheer & Chen, 2003). Thus, representatives of this very culture will use the way that will guarantee the fastest and the best result.

Besides, another peculiarity of the given culture is self-confidence. American businessmen are sure in their forces and have no hesitations about the result of their actions. That is why, in the sphere of business they are very assertive and even aggressive. Trying to promote their own business, they use all remedies that are at their disposal and do not take into account conditions and obstacles that might prevent them.

Finally, it is the possibility to handle with the representatives of various cultures. The fact is that the U.S. society is multinational and is comprised of a great number of people who have various cultures. That is why, citizens of this state are able to communicate with them as tolerance is the main aspect of the existence of this very society. This peculiarity helps American businessmen to work at the international level taking into account the peculiarities of the partners culture.

Analyzing the given aspects, it is possible to say that in business negotiations representatives of these cultures will adhere to certain practices. Being aimed at the progress of the whole project, the Japanese will adhere to the integrative approach being sure that the development of the project will guarantee the increase of their incomes (Graham & Andrews, 1987). Thus, the Americans would stick to the distributive approach, preferring to increase the number of their own shares and obtain the higher level of incomes.

With this in mind, it is possible to conclude that the knowledge of the main peculiarities of some cultures could help to achieve great success and guarantee beneficial cooperation with the partners.

It is possible to say that the conflict is an integral part of any process which implies the existence of various or opposite points of view. Moreover, the conflict could also be taken one of the main points of the development as this process is impossible without the appearance of disagreements that result in the creation of the revolutionary new approach that will help to change the image of the issue a certain approach. With this in mind, it is possible to say that the statement that any conflict regardless of its nature is bad for negotiation is mistaken. Having appeared in the process of discussion, it could help to find some new approaches and make the accepted strategy more efficient (Hofstrand, 2009). There are many various examples that prove this statement.

Nevertheless, it is possible to say that the first reason that proves the necessity of conflicts is the ability to realize the new perspective of a certain issue. The fact is that very often organizations or companies do not notice some revolutionary new approaches towards the issue they are discussing. Under these conditions, while discussing the conflict connected with the difference in approaches and trying to find the needed solution, companies could create the new method that will satisfy them and result in the reconsideration of some traditional practices. Resting on some personal experience, it is possible to say that situations of this sort are not rare and very often opponents are satisfied with the negotiations because of the new ideas.

Another reason that could prove the necessity of conflicts in various relations is the experience gained while arguing with different opponents. It is obvious that if a company does not face any challenges in its functioning it will not be able to resist some opponents or protect itself. However, conflicts lead to the appearance of the experience which is needed to prove a certain point of view or suggest evidence to a certain statement.

That is why, a company that has a great experience in the given sphere, also has several strategies that might help it to make its functioning safer and protect it from rivals. It should be said that any international company like Apple or Microsoft has a great number of contacts with other corporations that might accuse it of stealing their technologies or some issues connected with the patent. Thus, the great experience gained by these companies due to the great number of such accidents. these companies could cope with them better.

Nevertheless, it is possible to suggest another evidence that could prove the great use of conflicts of various kinds. Besides, The New York times presents the article that revolves around the conflict between Apple and Samsung. The article tells readers about the patent losses of these two companies (Benner, 2015). The fact is that being great manufacturers of various digital devices, these companies use a lot of similar technologies while creating various devices. That is why, there are many trials connected with the activity of Samsung and Apple. However, all these conflicts do not lead to the collapse of any of these companies.

Moreover, having obtained a very useful experience, they now are able to protect their products with the help of various patents and legal regulations. Finally, these conflicts do not make the cooperation between these two companies impossible and there are some generic projects.

Nevertheless, conflicts that might occur in the process of negotiations could also help various companies to see the nature and character of the potential partners better. In other words, the conflict could help to discover some hidden motifs and determine the main aim of the proposed deal. The character of the dispute could show the aspects that are appreciated by the opponent and act in accordance with these new facts, suggesting new conditions which could be interesting for the partner.

With this in mind, it is possible to make a certain conclusion. It should be said that conflicts are an integral part of any negotiation process, however, they have not only the negative impact on the relations between the opponents. On the contrary, the experience obtained due to this very conflict and knowledge gained in debates might help a person or a company to continue its development and become even more powerful and beneficial. That is why, one should not be afraid of conflicts, however, there is the necessity to find the needed and efficient solution.

Market pricing is a process through which pay structures are setting almost selectively by gathering, evaluating, and matching the data on job salary surveys to settle on the payable rates in the external market. In market pricing, use is made of pay survey data to recognize the comparative value of a given job based on other employers is likely to pay for the same job. One of the advantages associated with market pricing is that it links an organizations pay levels with the activities in the market, without the risk of getting distorted by the internal job evaluation process.

Another advantage of market pricing is that it usually informs the employees that the prevailing compensation system is actually market-linked, as opposed to one that has been distorted by internal issues (Mathis and Jackson 87). On the other hand, market pricing is faced with several disadvantages. One of the disadvantages is that it is mainly dependent on market survey data that tends to be limited in terms of scope.

Alternatively, the market survey data could have been gathered through unreliable means. There is also the risk that some of the functions of a given job within an organization can be a bit different in comparison with the ones that have been identified as matching the job in the survey. There is also the concern of the scope of the market data, in that it could be from wide-ranging sources. Another disadvantage of market pricing is that tying the levels of pay to market data might result in wide fluctuations depending on the prevailing market conditions.

Works Cited

Aidt, Toke, and Tzannatos, Zafikirs. Unions and Collective Bargaining. Economic Effects in a Global Environment. Washington, D. C.: The World Bank, 2008. Print.

Belcher, John. How to design & implement a results-oriented variable pay system. New York: AMACOM, 1996. Print.

Martin, Edward. Labor-Management Relations, Collective Bargaining, and the Public Sector: Collaborative Solutions in Alameda, California. Public Administration & Management: An Interactive Journal, 8.2(2003): 54-68.

Mathis, Robert, and Jackson, John. Human Resource Management (Eleventh Edition). Ontario: Thompson business & Professional Publishing, 2005. Print.

Rappaport, Anna. The Future of Retirement Benefits in the U.S.Employer Policy, Benefits and an Older Population. N. d. Web.

Romanoff, Kent., Boehm, Ken and Benson, Edward. Pay Equity: Internal and External Considerations. N. d. Web.

Stanton, Mark. Reducing Costs in the Health Care System: Learning From What Has Been Done. Research in Action, 9.2(2002): 2-11.

This paper aims to discuss the peculiarities of the modern workplace. Moreover, it will describe the challenges faced by employers and employees. Overall, it is possible to single out the following characteristics of the contemporary workplace:

1. Increasing emphasis on autonomy and creativity of employees as well as the flexibility of their schedule;
2. Increasing job insecurity among workers;
3. The growing role of freelance workers and the slow decline of full-time employment;
4. Work stress is an inherent part of the job.
5. Elimination of national borders by the Internet
6. Denial of Fordist approach which stresses standardization and automation of work. This method is often regarded as dull and dehumanizing.
7. The rise of cognitariat or those employees who create or develop different types of content.

This environment gave rise to many companies. One of them is oDesk which acts as an online job marketplace. This company helps both employees and employers in the following way:

1. It provides contact information about the workers and companies;
2. This company enables both sides to make financial transactions;
3. This organization offers tools for the management and monitoring of employees work.

One can distinguish several principles on which the work of oDesk is based.

1. Transparency. This company ensures that employees that they receive compensation for their work.
2. Flexibility. oDesk allows employers to hire cognitariat workers on a part-time basis as this strategy can reduce the cost of the labor force.
3. Visibility. oDesk enables companies to monitor the work of their freelancers.

Overall, it is possible to single out the following conflicts between the employees and employers.

1. Employees desire for autonomy or independence on the one hand and willingness of the management to monitor their work on the other.
2. The companies intention to maximize productivity on the one hand and lack of creativity and innovation on the other.
3. The workers desire to protect their rights and their increasing isolation, especially if we are speaking about online employment.

These conflicts are inherent to post-Fordism companies and workplaces. These changes pose a great number of questions. Yet, the most important one is how modern cognitariat workers can organize themselves to protect their rights. Furthermore, it is particularly interesting to know how modern employers will respond to these changes if they do occur.

Works Cited

Brophy E. Creative Industries and Precarious Employment. Blusson Hall 2011. Power Point presentation.

Caraway Brett. Online labour markets: an inquiry into oDesk providers. Work organisation, labour & globalization 2010 4 (2). Pp 111  126.

Witheford. N & de Peuter G. M.ULE Kicks Back. In Games of Empire pp 65-68 London: University of Minnesota Press. 2009. Print.

Being a consumer, I want to get products I need at fair prices. People often become loyal to certain brands as they like the quality provided (Parker, 2012). If I am looking for a particular brand, I will be quite determined to find it, especially when it comes to athletic shoes. I can be regarded as a perfect target for the brand of my choice as I find this brand appropriate in terms of quality, price, and comfort. I know that I will be satisfied with the athletic shoes I will buy as I am totally satisfied with what the brand has to offer. Clearly, I will try to find what I want in a variety of shops.

Online shopping can be a very good alternative. It is necessary to note that online shopping is growing more and more popular each day. People in many countries find this way of shopping more effective and enjoyable. For instance, 94% of US users shop online (Black, 2011). Interestingly, the USA is only the eighth in the world. In South Korea, 99% of users shop online (Black, 2011). People report that it is more convenient to shop, and it is easier to research online (Horrigan, 2008).

I also find this way of shopping effective and convenient. I have bought a number of things online. I would be glad to find out that the athlete shoes I am looking for can be found online at a lower price. However, I do not think I will buy the model I like without trying it on. I never buy footwear without making sure it is comfortable, and it fits me.

I believe online shopping is a great alternative option for the company. Companies should offer such an alternative for consumers as it is convenient for consumers (they buy things without spending much time/money) as well as for the company as it can have handsome profit (there is no need to have many brick-and-mortar stores and lots of employees). The company should not completely rely on this alternative as people still need to be able to touch the product and try it on. People should have an opportunity to try a model on and buy it online if necessary. There should be a combination of the two options as even though many people shop online, millions of US citizens still need trying before buying.

Reference List

Black, K. (2011). Business statistics: For contemporary decision making. Hoboken, NJ: John Wiley & Sons.

Horrigan, J.B. (2008). Online Shopping. Pew Internet & American Life Project. Web.

Parker, D. (2012). Service operations management: The total experience. Northampton, MA: Edward Elgar Publishing.

Introduction

Hiring highly qualified personnel is a challenging task for present-day companies. It is usually addressed through the involvement of the human resource (HR) management, and their participation implies the development of appropriate job descriptions reflecting business priorities and needs. Therefore, successful talent acquisition is the sole responsibility of organizations managers since they are aware of all specificities of work and the requirements for prospective candidates.

Job Description as a Function of Management

The relation of job descriptions creation to the functions of HR management is explained by the fact that these details reflect future positions circumstances. They include performance evaluations, different compensation types, and available training and recruitment options (Tyler, 2013). Moreover, these documents ensure competitive advantage, which can is as critical as the work itself (Chungyalpa & Karishma, 2016). Hence, in the conditions of growing markets, their creation becomes the managers responsibility.

Components of an Effective Performance Management System

Tasks

The first component of a good job description is the provision of tasks to be performed by employees. Its contribution to the companys effective management is conditional upon the need to match ones willingness to meet the business goals and the duties corresponding to them (Taylor, 2013). In this way, the attention of employers to this aspect correlates with their expectations regarding others work outcomes.

Tools and Technology

The second factor affecting the performance is the use of tools and technology, which is also a part of a job description. Its inclusion in the document is a guarantee of peoples ability to cope with daily tasks requiring the involvement of specific technological solutions or equipment (Taylor, 2013). Hence, it complements them by increasing the chances for a potential employees suitability to an organization.

Knowledge, Skills, and Abilities (KSAs)

The third aspect considered by HR managers preparing job descriptions is the presence of necessary knowledge, skills, and abilities. Their combination reflects the candidates capability to not only apply the existing competencies but also acquire new expertise (Taylor, 2013). Alongside the tasks and technology, they present a solid basis for ones suitability to a companys strategic goals and, therefore, increase the probability of their fulfillment.

Education Requirements

The fourth circumstance affecting the ultimate selection of workers is education, and its requirements are supposed to be aligned with the performed duties. It is directly connected to businesses outcomes and included in the list of principal characteristics when searching for a job (Occupational Outlook Handbook, n.d.). Hence, their importance allows adding them to the factors positively affecting the profitability of enterprises, which pay attention to ones degree.

Legal Components in a Job Description

A job descriptions legal aspect is addressed through a series of measures prohibiting discrimination based on personal information. It incorporates such considerations as an employees race, religion, sex, national origin, age, disability, and many others (Employers, n.d.). The compliance of a companys representation with these conditions is necessary since the given components are included in federal laws (Employers, n.d.). In this way, their breach is unacceptable, and proper management should help avoid it.

Assessment Methods and Organizational Objectives

When recruiting, candidates are assessed through different methods such as employment tests or physical examination. The former is implemented to ascertain vital characteristics, whereas the latter is optional and used mostly for the military or police service (Chungyalpa & Karishma, 2016). Their appropriateness for the regulations of a particular company is conditional upon evaluating the fields specificities. Therefore, these techniques allow meeting organizational objectives by verifying employees compliance with duties.

Conclusion

To summarize, creating a job description is a critical initiative, and HR managers are responsible for it. They elaborate such provisions as tasks, tools and technology, KSAs, and education requirements to hire suitable workers. Moreover, the professionals are guided by federal laws connected to discrimination and apply assessment methods varying depending on ones job. Thus, the respect for the mentioned regulations contributes to the recruitment of qualified personnel.

References

Chungyalpa, W., & Karishma, T. (2016). Best practices and emerging trends in recruitment and selection. Journal of Entrepreneurship & Organization Management, 5(2). Web.

Employers. (n.d.). The U.S. Equal Employment Opportunity Commission. Web.

Occupational Outlook Handbook. (n.d.). The U.S. Bureau of Labor Statistics. Web.

Tyler, K. (2013). Job worth doing: Update descriptions. The Society for Human Resource Management. Web.

A relationship between employers and employees can be a complex one because these individuals often have various priorities. While subordinates want to maximize their employment rights and freedoms, executives emphasize the employees duties and obligations. This situation results in disputes regarding whether subordinates may publicly criticize employers. Thus, some ethical and legal commitments make employees refrain from badmouthing employers, while the latter should allow reasonable criticism to make their working conditions better, which will attract more professionals in the future.

Badmouthing, especially on the firms own website, is not the best option when it is against employees ethical and legal obligations. On the one hand, individuals have a moral duty not to defame their employers. This statement means that employees should make sure that the piece of criticism is reasoned and unbiased prior to expressing it. In other words, it is not right to badmouth employers for personal advantage (Gingeleskie par. 10). On the other hand, it is typical when some organizations have internal regulations that do not allow employees to be involved in such practices. If an individual has signed such a document, they will be legally bound to refrain from badmouthing.

However, it does not mean that organizations should ban any manifestation of criticism. The National Labor Relations Act (NLRA) stipulates that public complaining is allowed if it aims at achieving a groups mutual benefit (Gingeleskie par. 10). It means that criticizing should be allowed, and employers should use this information for their development. It is possible to address complaints to make the workplace better and more attractive for many professionals.

In conclusion, the issue of badmouthing employers is essential in the modern world. On the one hand, employees should refrain from this practice if they have signed a document that does not allow them to do it or when subjective reasons lead to badmouthing. On the other hand, criticism is possible when such a legal document results in challenging conditions for a group of employees. In this case, individuals are encouraged to express their complaints, and employers can use this information for further development.

Work Cited

Gingeleskie, Lisa. Can You Prohibit Employees from Bad-Mouthing Your Company on Social Media. New Jersey Business & Industry Association, 2017, Web.

The Organization and Its Mission

Background of the company

Marks and Spencer PLC, commonly known as M&S, was founded in 1884 by Michael Marks and Thomas Spencer in Leeds under the United Kingdom laws. M&S is a leading British retailer with headquarters in the City of Westminster, London. About 21 million customers visit the stores each week. M&S has over 700 stores across the UK and covers the other 42 territories globally, with a total of 78,000 employees. The companys corporate objectives and the companys principle needs are set out in the mission and vision statement as outlined below.

• Vision statement: The standard against which all others are measured.
• Mission: Making aspirational quality accessible to all
• Values: Quality, value, service, innovation, and trust

Financially, the Group aims to deliver shareholders value in terms of an increase in returns and an increase in sales and market share in retail. M&S outlines its corporate social responsibility (CRS) as we have a strong tradition of CRS, but we want to make sure CRS is integrated into our operations at every level. Finally, M&S would like to continue its differentiation strategy by delivering freshness and innovation (Marks and Spencer, plc).

Budget constraints

Budget constraints for a producer are represented by a production possibility frontier curve. The curve shows the limitation of available factors of production to a producer. The current budget of a firm may not allow it to utilize all aspects of production in the economy. Therefore, there is always a need to maximize the use of available resources. Marks and Spencer faced several limitations in its operations during the financial year ended in April 2011.

First, the uncertain global economic conditions greatly impacted consumers confidence and spending patterns as consumers disposable incomes come under pressure from increased VAT rates, cuts in public spending, and increased fuel prices. The trading conditions continued to remain a challenge, especially for the UK business. These adversely influenced the ability of M&S to achieve forecasted sales, and consequently, the overall budget was affected. The rising commodity prices, particularly in the cost of oil, food, and cotton, as well as general inflationary pressures on the supply base such as an increase in labor costs also impacted negatively on the cost of sales for the Group. Increases in the price of factors of production directly affect the budgeted cost of production.

Also, the inability of the company to leverage its systems and processes hindered the growth of the international business as it reduced the ability of the Group to attract capital for expansion. Finally, the Group faces operational risks in stock management, supply chain management, key supplier constraint, and IT security (Marks and Spencer plc). Given that the Group has to operate within a predetermined budget, changes in the individual component of the budget affect the operations of the entire business.

Revenues and capital structure

Marks and Spencer generates revenue from sales of its wide range of products. The company deals with various products ranging from clothing, shoes, home & furniture, technology, flowers & gifts, and food & wine. In the financial year 2011, clothing and homeware sales accounted for 49% of the business, while the remaining 51% was generated from food sales. Further, the UK market generated £8,733.0 million, equivalent to 89.7% of the total sales for the year ended April 3rd, 2011.

The total revenue for M&S has grown over the two years from 2010 to 2011. In 2010, the Group reported revenue amounting to £9,536.6 million, while in 2011, it amounted to £9,740.3 million, which is an increase by £203.7 million (equivalent to 2.1% increase). Similarly, profit after tax increased by 14.5% from £523 million in 2010 to 598.60 in 2011 (Marks and Spencer plc).

The companys capital structure is made up of both debt and equity financing. Marks and Spencer has not had any new primary source of funding in the two years. In 2011, borrowings and other financial liabilities amounted to £1,924.1 million, which declined from £2,278.0 million reported in 2010. Called-up share capital increased from £395.5 in 2010 to £396.2 in 2011. Other reserves and retained earnings also make up the capital structure.

Both operating and capital expenditure of the Group is financed by the current cash flows (Marks and Spencer plc). Financial statements indicate that in 2011 the M&S acquired new derivative financial instruments amounting to £37.5 million. Generally, long term debt financing declined from £3,076.8 million in 2010 to £2,456.5million in 2011, equivalent to a 20.2% decline, while equity financing increased from £2,185.9 million in 2011 to £2,677.4 million, which is a 22.5% increase. These indicate that the Group is moving towards a cheaper source of financing. Net retirement benefit had a surplus of £168.5 million.

This was an increase of £366.5 million from the previous years deficit of £198 million. Shares issued on exercise of employee share option amounted to £12.4 million. The Group also purchased its own shares held by employee trusts amounting to £19 million. The transaction with non-controlling shareholders generated £1.7 million in 2011, due to the improved cash flow generated from financing activities, management invested in the supply chain, and technology in line with the strategic plan. In the UK market, the Group opened 20 additional stores while in the international market, it opened 49 new stores and closed 15. Reduction in debt and an increase in equity during the two years contributed to an expansion in operations of the Group (Marks and Spencer plc).

Breakdown of the workforce

As pointed out earlier,

M&S employs over 78,000 people in the UK and around the world. Employees turnover fell for the third year running, and it is at 14% in 2011, one of the lowest in the retail sector. Further, 46% of the employees have been with the Group for more than five years, and absence levels have fallen for the second year running (Marks and Spencer plc).

The Groups management committee is made up of very high profile personnel who have worked with top-performing organizations before joining the Group. The committee comprises 15 persons headed by the Chief Executive, Marc Bolland, who was appointed in 2010. Out of the 15 top personnel, 5 are women, which translates to 33.33%. M&S has employed 83% of females out of the total workforce, and 17% are male. Over the past five years, there have been changes in the management committee. These changes have led to a new makeup of the Group, and the business now has a flatter organization structure.

The business lost several layers of authority through a process of delayering. This means that employees throughout the company have more responsibility and can make quick decisions when required. At the same time, these employees have more accountability than before. This means that they must be prepared to explain and justify the decisions that they take (Marks and Spencer plc).

Threats and opportunities

Evaluation of strategic threats and opportunities is essential for an organization as feedback from such appraisal is vital for executing strategic plans and decision making. M&S is exposed to numerous threats; for instance, following the European Integration and Free Trade Agreements, the market has opened up for British Companies to invest in Eastern Europe. Tesco already has a 60 Hypermarket store in Hungary. M&S was forced to close down and sell off its outlets due to stiff competition, which lead to a dip in sales in 1998.

Secondly, the retail sector is relatively responsive to the recession and also very sensitive to changes in interest rates. Since the events of September 11th, the world economies have suffered heavily, stocks plunged, and prices were low at all times. The world economy is, however, now on the up post-September 11th. Consumers are optimistic, and the retail industry is once again booming.

Further, changes in consumer taste and lifestyle represent both opportunities and threats for the industry. Opportunities are in terms of new markets and consumers. However, there are added threats in terms of social acceptance of alcohol and national legislation for health and safety in terms of consumer rights and production of own natural renewable resources for making clothing. The renewable source of resources used in production, namely cotton, and wool, are environmentally friendly. The threats are legal consequences for livestock in terms of health and safety (Mark and Spenser plc).

The Group is surrounded by several opportunities for the growth of the business. For instance, it has not fully explored the international market. It can develop an overseas supply chain, and it should shift the new product market more into global markets. Also, customer demand for change to more value for money products presents itself as an opportunity for the business. M&S still has an opportunity to diversify its products further. Changes in retailing methods as such clothes sales via the Internet is now commonplace in retail. The paperless operation, the management, and administration of the company are undertaken on IT systems, which are accessed through secure servers; provide flexibility in the running of the business (Mark and Spenser plc).

Strategic planning

In November 2010, Marks and Spencer announced a strategic plan on how to grow the business over the next five years and how to combat the threats and challenges currently facing the company. According to the project, the first three years (2010-2013) will focus on UK businesses to develop the M&S brand, improving stores, and focusing on the clothing, home, and food business. The plan outlines what will be done in each segment, and the duration of time it will take to implement it. The plan will be funded from the existing cash flows. Also, M&S also has an eco and ethical program known as plan A.

This plan has the objective of reducing environmental impact, developing sustainable products, and improving the lives of the Groups employees, customers, suppliers, and people in the local community. The main aim of plan A is to enable M&S to be the worlds most sustainable major retailer by 2015 (Marks and Spencer plc). The plan was launched in 2007 with a target of making 180 commitments by 2015. For the year ended 2011, the Group had fulfilled 95 of the commitments. Further, the plan generated a net benefit of over £70 million achieved by a combination of increased efficiencies, new businesses, and growth of the business (Marks and Spencer plc).

Training, Career Development, and Performance Appraisal

Training and career development

Marks and Spencer Group endeavor to have a pipeline of talent to work towards achieving long-term objectives. In support of the goals, the Group has organized several tailored training and development schemes designed to help its people fulfill their potential. The training and development programs are both on-the-job and off-the-job. For instance, the Group initiated the Lead to Succeed program. It is built around the core business values and is firmly aligned with the business strategy  developing skills that will support the future growth of the business.

The program is designed for senior managers, and since it was launched, over 300 senior managers have completed it. In the financial year 2010/2011, over 100 senior managers participated in the program. The Group also has a graduate scheme initiated to put candidates on the fast track to management. In the 2010/2011 financial year, the Group had over 11,000 applicants for approximately 180 places. The MBA program was also introduced to enhance the talent base, and four students were expected to start in September.

The Group also has a program for the homeless, disabled, lone parents, and unemployed known as Marks and Start. In the year 2010/2011, about 840 people took part in the program to support a hired coach. The program results are encouraging, as about 40% of those involved go on to gain full-time employment. M&S also has a new initiative in partnership with HM Prison Send in Working. It is a training program for women offenders to build confidence and prepare them for the world of work. The major restructuring that occurred in the company impacted on the training and development program (Marks and Spencer plc).

Training and development form part of organizational strategy mostly because the company has been characterized by numerous expansions both without and within the region. Consequently, there is a need to merge organizational skills, knowledge, and culture with new challenges and demands. Marks and Spencer needs to use training and development primarily because it is operating in a highly competitive retail sector.

Consequently, there is a need to ensure that the company remains ahead of the competition. Management ought to realize that there is no better way to achieve this rather than through the use of training and development. Further, M&S should evaluate the effectiveness of training and development in realizing the goals and objectives of the Group. Finally, the companys management should use outcomes of training and development in decision-making relating to promotions and transfers within the organization (Marks and Spencer plc).

M&S should undertake several career development programs. Such would be necessary for attracting and retaining a human resource base. The Group should consider providing a job compensation structure that supports the organizations and individuals growth and development perspectives. The Group should also evaluate employees and produce succession pipelines for vital job positions in the organization (Marks and Spencer plc).

Performance appraisal

At the end of every six months, performance reviews are carried out at M&S for all the employees. Employees engage their line managers in discussing their performances for six months. The employees are rated based on the proficiencies and competencies they have shown during the period ended. Staff members are then given ratings for the skills and competencies they have shown over the past period. A comparison is then made between the ratings and the expected results as agreed upon at the beginning of the year and also with expected skills profiles for these areas. Such appraisals are important as they help employees to establish their performance concerning the expectations from the business and expected outcomes as agreed during performance planning.

Further, the appraisals reveal gaps that may be inherent when executing duties. At the end of the appraisal procedure, the line manager and the staff member formulate a plan for further development for the next period. In the personal development plan, the employees set objectives based on their performance appraisal feedback, and all staff members must have such a plan. The whole interactive appraisal process is beneficial as it aids employees in developing a focused vocation trail.

Further, the process is realistic. The gaps noted during the review process are bridged by training and development. This training also helps in preparing the staff members for future managerial duties. The performance review process helps the Groups management to have a well-organized, effectual, and motivated human resource base.

The appraisal procedure is all-encompassing, and it reflects the actual performance by the staff members because it involves both the line managers and the staff members. Also, there is a comparison of the actual and expected performance, and any variances are noted. Actions in the form of training, development, and disciplinary measures are taken to improve future performance. The performance management at M&S is satisfactory because overall strategic goals are cascaded down to departments and further to the individual staff members. Therefore work done by each employee contributes to the overall strategic goal. Further, the staff members performance is cascaded upwards, and the actual performance of the Group can be compared with the forecasts (Marks and Spencer plc).

The outcomes of performance appraisal are not only influenced by the job performance of the employee. Several other factors may influence the performance appraisal rating of the employees. For instance, a line managers attitude towards the employee may influence his/her decision on the grade to award such an employee. This grade may not reflect the true performance of the staff member. Further, errors in the system, especially for automated human resource processes, may give faulty results.

Summary and Evaluation

In the last five years, Marks and Spencer have experienced a succession of management and corporate structure changes following a massive decline in sales. What used to be a leading worldwide quality food and clothing retailer became an out-of-date, uncompetitive haze on the UK stock market. The decline began in the late 1990s due to pressure from changing economic demand, causing Marks and Spencer to undergo continual business restructuring (Marks and Spencer plc).

However, the days when M&S was unchallenged have long gone as clothing sales have come under pressure from Next and Asda, while Tesco has hit food revenue due to the opening of the European market. The company closed many stores resulting in job losses  humanist issues of existing employees need to be addressed (e.g., trust, anxiety, and commitment). The Group adopted a new structure coupled with new management.

These changes have immensely enabled M&S to turn around from the deteriorating performance noticed in the late 1990s. M&S has reported an increase in revenues, profit, and dividends for shareholders for the past two years. Several stores have been open both in the UK and the international market. Further, M&S is now able to survive stiff competition and downswing in the economy. Employees turnover remains a threat to human resource management, especially in top management.

A planned change approach is required with the initiation and implementation of change being driven by management with the aid of a practitioner. The magnitude of change is quantum, as large changes involving culture, structure, and strategy of the company is required. Transformational change is a relatively new count to organizational change. It is concerned with drastic change and is fundamentally about altering the way that the organization is perceived both internally and externally as well as how it functions. This type of change would be particularly relevant to Marks and Spencers case as it needs to radically alter how it operates in the face of stiff competition.

Works Cited

Marks and Spencer plc. About Us. 2011. Web.

Marks and Spencer plc. Our plan, 2011. Web.

Marks and Spencer plc. Financial reports, 2011. Web.