European and North American Freight Systems

Introduction

Trade is essential to any nation and country to grow and develop. It is so vital that without it, all the worlds economies would grind to an unceremonious halt. There are no other places in the world where all this could be more practical than the United States of America or the North America and in Europe. These economies are virtually driven by the trade of commodities and services (Anton Silberglitt and Schneider 2001). An essential element of commerce is transport and in the case we are analyzing the freight trade on continents; North America and Europe. To comprehend this, we need to understand the meaning of cargo business. The freight business is the transport of trade goods through air, water, road and rail over long distances and in a trade with other countries. Freight transport can, in essence, be a tool used by many businesses and countries to achieve economic stability and thus the importance cannot get understated (Embree and Gluck 2015).

Comparison and contrasting factors between the European and North American freight systems

European and the North American freight systems contrast and compare different ways in terms of technology, infrastructure, modes and the terminals in use. First, in both systems the use of shipping containers and containerization, in general, plays a significant role in the transportation of commodities (Embree and Gluck 2015).

Another similarity is the adoption of technology to make work easier, faster and thus more efficient. It can be visible in the storage facilities such as refrigeration during transport, transport mechanisms such as fast trains to save time. They need to have a modern harbor for loading and offloading system that can pack and unpack cargo with utmost efficiency (Anton Silberglitt and Schneider 2001).

Transportation systems

The main contrast is in the infrastructure. Due to the difference in geography and climates there are infrastructure differences between these two continents. A key difference is how logistical tactics take place over their respective territories. In 1996, Anton Silberglitt and Schneider (2001) established considerable variations in intermodal rail networks and terminals between Europe and North America.

Globalized trade and global policy implications

Moreover, the contrast between these two continents outlines itself through the globalization of trade and the global policy implications of these two continents. The United States has over the last few years geared its foreign trade policy towards strengthening its political and economic position in Asia in a very dramatic way (Constantinescu Mattoo Ruta 2015). It is in a bid to create a much stronger and more secure economic position over the Asia and curb the growing Chinese influence and assertiveness both in politics and global economic practice. In this policy, the United States seeks to create new jobs and increase its industrial output, therefore re-balancing its external trade deficits and bolstering its position in the global trade index. It has had effects on the United States relations with Europe (Embree and Gluck 2015).

The preferred policies towards China at the expense of the European Union have had some effects on the European trade policies also. First, it has opened the option of trade relations with China (Embree and Gluck 2015). It has consequently created a dilemma for China, and this is the part I find most interesting and as follow. On one hand, China could join the new ties with Europe at the expense of its Asian dominance or maintain its dominance in Asia at the cost of a lucrative deal with the European Union.

The European Union would provide a new and wider market. The European Union is keen to maintain ties with the United States, especially after the signing of the Transatlantic and Pacific trade and investment partnership with the United States (Anton Silberglitt and Schneider 2001). On the other hand, it is keen to try new Asian markets too and also Africa.

Review the future research

Finally, there is need to understand the interesting points in future research on transport logistics global trade and global policy. Looking to the future of commerce amongst countries and continents, one can see the emergence of plurilateral trade relations. It can be best exemplified by the United States adoption of both the transpacific partnership (TPP) and the trans-Atlantic commerce and Investment Company (Constantinescu Mattoo and Ruta 2015).

This is the trade relation between the North America and Asia and North America and Europe respectively. Analysts have both applauded and criticized this form of trade relations in equal measure, but looking at the global trends in trade it is the most preferred way forward. The emerging pattern in the world trades and policies are inspired by, global geographical changes in weather which have consequently led to changes in the supply of raw materials. There have also occurred innovative new prospects in terms of markets and the need for a local presence in trade (Embree and Gluck 2015).

Interesting part

Finally, there is projected global growth to become more concentrated. These factors I indeed find very interesting. They have significantly influenced the making policy process and especially decision-making on the future of trade amongst countries and continents (Embree and Gluck 2015).

Conclusion

In conclusion, the transport sector as a factor that enhances trade is crucial and most especially freight transport and logistics as it fosters international trade. Global trade and policy can have tremendous implications for the future of transportation. As new policies and partnerships are formed, they change the political and economic landscapes across the globe, creating new effects on the future of trade and commerce.

References

Anton, P., Silberglitt, R., and Schneider, J. (2001). The Global Technology Revolution. Santa Monica: RAND.

Constantinescu, C., Mattoo, A., and Ruta, M. (2015). The Global Trade Slowdown. Washington: International Monetary Fund.

Embree, A., and Gluck, C. (2015). Asia in Western and World History. Hoboken: Taylor and Francis.

Abilene Paradox in Organizations

The problem of the Abilene paradox is, unfortunately enough, quite common for most organizations, despite the environment of open-mindedness and acceptance of any ideas voiced by its members within a specific company.

Traditionally defined as the tendency for the company members to understate the significance of their opinion and the following decision-making process resulting in choosing the option that none of the members would have voted for individually (Business analysts and the Abilene paradox, 2015), the problem defined as the Abilene paradox affects organizations significantly. By dismissing their viewpoints as deliberately false, the company members may affect the organization at its very core by disrupting its very system.

Working for an organization that deals with creating sites and developing applications, I have noticed that the Abilene paradox occurs upsettingly often in the setting of any organization.

Particularly, in the process of brainstorming (Savage, 2013), when out team had to come up with the ideas concerning the means of attracting target customers, most people suggested the idea of developing two types of web content for the official site of the organization, i.e., the one that can be viewed with the help of an iPhone or the related devoice, and the one that will be displayed on the computer screen.

However, when it came to the group voicing its decision, most of the team members were clearly afraid of seeming old-fashioned and unacceptable of new ideas. As a result, the companys website was designed in the manner that allowed for viewing it from both a PC and a mobile device.

This affected the information distribution and location on the PC version, making it less readable, yet none of the team members mentioned the specified issue, thus, confirming the key premises of the theory of the Abilene paradox (Savage, 2013). The leader could have made it clear that any ideas were welcome during the meeting, therefore, opening an opportunity for numerous suggestions and a more efficient brainstorming process.

A similar situation occurred in the course of choosing the strategy for the financial management of a project that our team was working on. Choosing a more expensive approach seemed reasonable, as the branding of the new product and its further promotion were going to increase the companys revenues several times, and every single member realized it. Nevertheless, most people voted for an alternative, since, as they confessed later, they were certain that no one would support them.

The above-mentioned experience can be explained from the perspective of the Abilene Paradox quite clearly (Rubin & Dierdorff, 2011), as cost efficacy was deployed as the strategic tool in the company at the time. Less rigid principles for financing the organizations projects would have served as a block to the Abilene paradox in the aforementioned situation.

When it comes to defining the significance of the Abilene paradox, one must admit that its effects on the companys performance may be quite drastic.

Though some of the company members may have a vague idea of how specific company elements work, they still have an intrinsic understanding of the companys key operations, as they have had an extensive experience in the specified domain and, therefore, are most likely to make the intuitive decisions based on their ability no notice minor characteristics of the company unconsciously (Desii, 1999).

As the examples displayed above show, it is imperative that the company members should not neglect their intuitive understanding of how the companys processes work. The specified step encourages the staff and company members to share their ideas concerning a specific issue without fearing of being ridiculed for raising a silly supposition.

Reference List

Business analysts and the Abilene paradox. (2007). Web.

Desii, K. J. (1999). Revisiting the Abilene paradox: Is management of agreement still an issue? Issues and Trends in Diversity, Leadership and Career Development, 8(2), 13.

Rubin, R. S. & Dierdorff, E. C. (2011). On the road to Abilene: Time to manage agreement about MBA curricular relevance. Academy of Management Learning & Education, 10(1), 148161.

Savage, C. M. (2013). Dark matters: On-line education and organizational dynamics. Journal of Higher Education Theory and Practice, 13(2), 7683.

Business Problems: Corporate Fraud

Executive summary

Corporate fraud is a major challenge that has persisted in the business environment for the past decades. Despite the numerous efforts made to curb this problem, some of the approaches are reactive, while others have been counterproductive. This report identifies the trend of the occurrence of corporate fraud through a brief problem history. A brief discussion of the possible solutions that organizations should adopt is outlined. Some of the propositions made include the formation of effective organizational management teams and boards of directors coupled with the adoption of effective risk management practices and reward management. The advantages and drawbacks associated with each of the three solutions are evaluated. Finally, the report recommends the formation of an effective management team and a board of directors as the most feasible solution in dealing with corporate fraud.

Introduction

Corporate fraud is one of the major problems facing organizations. Fraud is the misrepresentation or deception committed by an entity or individual in pursuit for unauthorized gains by the entity, individual, or another party. This report entails an analysis of corporate fraud as one of the business problems that have persisted over the past decades. A brief history of the problem is provided in order to illustrate its impact on businesses long-term operations. Additionally, the report evaluates the significance of the problem, and hence the need to manage it.

This goal is achieved through the proposition of various solutions that organizational leaders should adopt in their strategic management practices. Some of the propositions evaluated include the formation of an effective management team and a board of directors, implementation of an effective reward management scheme, and risk management practices. Finally, a recommendation on the most feasible solution that organizational leaders should consider is illustrated.

Problem history

All organizations are subject to fraud irrespective of their type and size. In most cases, fraud employs unethical and illegal practices. Insiders such as employees are the main perpetrators of corporate fraud. Fraud has adverse effects on an organizations corporate reputation and image. Moreover, fraud undermines an organizations financial strength due to the losses incurred. Corporate fraud has increased remarkably over the past one year.

It is estimated that in 2012/2013, over 70% of companies in different sectors encountered different types of fraud, which is an increment from the 61% level (Maurer par. 1). The high rate of globalization is one of the factors that are exposing businesses to fraud. Most organizations pursuing growth objective through internationalization have not implemented effective strategies to prevent risk (Maurer par. 3).

Numerous attempts to eliminate fraud have been made, but some of the initiatives that organizations have adopted are reactive, hence tripling its adverse impact. For example, some organizations invest a substantial amount of money in investigating the cause of fraud. Alternatively, some firms adopt legal procedures through court cases, thus leading to reputational damage. Maurer (par. 3) identifies corporate policy and budget constraints as some of the major hindrances in fighting corporate fraud.

Discussion of solution

Despite the increased exposure of businesses to fraud due to the high rate of globalization, available literature shows that the practice is mainly an inside job. This assertion means that employees in different levels of management commit most incidences of fraud. Therefore, it is possible for organizations to deal with fraud internally through the implementation of effective corporate governance practices. Bhasin (26) asserts that corporate governance entails the internal mechanism adopted and controlled by an organization. The mechanisms aim at nurturing accountability, transparency, and promoting corporate fairness. Bhasin (26) further argues that corporate governance is paramount due to the agency relationship between organizational owners and managers.

Organizational leaders should consider a number of issues in order to fight corporate fraud through corporate governance. First, they should form a strong management team and a board of directors, which should focus on fostering a culture of corporate integrity. Secondly, firms should adopt effective risk management practices. Thirdly, firms should formulate an attractive reward scheme in order to minimize the likelihood of employees engaging in corporate fraud.

Developing an effective management team and board of directors

Firms should seek to strengthen their corporate governance structures by constituting a strong team. The team should be comprised of managers and board of directors. A number of issues should be considered during the formation of the management team and board of directors. First, the board of directors should be comprised of internal and external parties. Kovacich (76) asserts that a board of directors comprised of outsiders is more likely to be firm in entrenching corporate governance measures as compared to team comprised of insiders. This aspect means that integrating outsiders into the board of directors reduces complacency in implementing the formulated anti-fraud policies.

Complacency is one of the major hindrances in organizations quest to fight fraud (Maurer par. 5). Tunley (68) further corroborates that complacency amongst senior managers due to failure to understand the effect of fraud is one of the major hindrances in fighting corporate fraud. Furthermore, the team should be relatively small in order to eliminate the free-rider problem, which mainly occurs when the directors are dispersed, hence limiting decision making. A lean board of directors can make decisions. Additionally, the burden of responsibility is relatively high in a board of directors comprised of a few individuals.

In addition to the above elements, the board of directors and management team should develop an extensive understanding of the organizations mission in order to enhance integrity. The process of selecting the board of directors and the management team should consider a number of elements such as the individuals personality, integrity, and performance. Furthermore, the shareholders should evaluate the management team and board of directors leadership skills. The significance of assessing the leadership skills arises from the need to nurture a positive organizational culture that transcends the industry expectations.

Risk management practices

The objective of corporate governance is to reduce or eliminate risk. Thus, corporate governance and risk management are correlated positively. In the quest to manage fraud risk, it is imperative for organizational leaders to formulate an effective risk management framework that enables the identification, analysis, evaluation, assessment, and management fraud risks. However, the framework should be designed in accordance with an organizations exposure to fraud risk. Vallabhaneni proposes that using structured and systematic risk management methodologies can assist an organization to assess the level and nature of its exposure to internal and external fraud threats (60). Moreover, an organization can determine its fraud risk profile.

Considering the intricate nature of organizational risk due to the diverse types of risks such as audit, business, security, and enterprise risks, it is essential for organizational leaders to assess the risk based on the overall strategic planning process. For example, the control measures implemented to manage security risk may also serve as fraud control mechanisms.

The risk management process, viz. establishing the context of risk, identification, examination, evaluation, and assessment should guide organizational leaders in developing a fraud control program, which should be comprised of a number of issues. First, it should state clearly the organizations attitude and approach to fraud. Secondly, the plan should integrate all the internal stakeholders such as employees to ensure that they are adequately informed of the existence of fraud.

Furthermore, involving employees would lead to the development of a strong organizational culture. The risk control actions and the timeline within which they should be implemented should be outlined clearly. However, a poorly developed fraud-risk control plan can increase the likelihood of fraud occurring due to ineffective risk identification. Thus, organizations board of directors and managers should ensure that the risk control plan is reviewed continuously to improve its effectiveness.

Reward management

The perpetrators of some of the most famous cases of fraud such as the Enron case are motivated by monetary gains. In order to minimize such risks of fraud, it is imperative for organizations to adopt effective strategic human resource management practices. One of the aspects that firms should focus on entails reward management. Firms should ensure that the benefits received by employees commensurate their efforts.

The reward system adopted should include intrinsic and extrinsic forms of rewards. With reference to extrinsic rewards, organizational leaders should ensure that employees are compensated fairly and equitably through salaries and wages. Other monetary benefits that firms should consider include offering employees rights options, health and insurance schemes, and bonuses.

Conversely, it is crucial for organizations to integrate diverse intrinsic rewards such as employee recognition, job promotion, and establishing a collaborative working environment. Alternatively, organizations should contribute towards their employees career progression through the provision of training and development programs. Integrating an effective reward management scheme plays a fundamental role in minimizing the likelihood of unethical practices amongst insiders such as employees. Furthermore, reward management is a fundamental element in nurturing a strong degree of organizational identification amongst its workforce, which leads to goal congruence between employees and the organization.

Despite the effectiveness of reward management, strong personal interests might motivate some employees. Thus, the implemented reward system might not be successful in establishing a culture of integrity and accountability.

Conclusion and recommendation

Corporate fraud is a major business problem that has persisted over the years. Despite this aspect, organizations have an obligation to eliminate this problem in order to attain business excellence and long-term survival. The different suggestions illustrated in this report are feasible in dealing with this problem. However, developing an effective management team and board of directors is the most effective solution in fighting corporate fraud.

The choice of this solution is informed by the view that an effective management team and board of directors will aid in establishing a strong organizational culture. For example, the management team will ensure that employees in different managerial levels understand the organizations mission, vision, objectives, and goals. Consequently, this aspect will aid in minimizing the prevalence of personal interests over the overall organizational goal.

Additionally, an effective management team will foster the establishment of a good working environment, hence increasing job satisfaction. This goal will be achieved through balancing of various human resource management practices. On the other hand, integrating internal and external parties in the board of directors will play an essential role in entrenching corporate governance structures such as risk management practices. Implementing an effective management and board of directors will also influence the leadership style adopted by an organization. Therefore, the likelihood of succeeding in curbing corporate fraud is high.

Works Cited

Bhasin, Madan. Corporate accounting fraud; a case study of Satyam computers Limited. Open Journal of Accounting 2.1 (2013): 26-38. Print.

Kovacich, Gerald. Fighting fraud; how to establish and manage an anti-fraud Program, Amsterdam: Butterworth-Heinemann, 2008. Print.

Maurer, Roy. Corporate fraud on the rise worldwide 2013. Web.

Tunley, Martin. Mandating the measurement of fraud; legislating against loss, Basingstoke: Palgrave Macmillan, 2014. Print.

Vallabhaneni, Rao. Corporate management, governance and ethics best practices, Hoboken: Wiley, 2008. Print.

Decision Making: Selection of Suppliers

The supplier selection process is quite complex due to the wide range of unpredictable and uncontrollable factors, and thus, it requires wise decision-making addressing the arising issues. Besides the cost, considered the primary basis for this choice, there exists a row of crucial parameters. In the following paper, the research findings will be summarized as for the supplier selection criteria that implements for the best-practice supplier selection process. Overall, analysis of the literature on the study subject suggests the conclusion that it is important to evaluate the candidates against the following criteria: quality, service, expertise, risk factors, and delivery.

First, the selection of suppliers amounts to choosing a partner providing high-quality raw materials or constitute parts. The quality of resources presented by a supplier is one of the major variables affecting the ultimate quality of a company product (Heizer & Render, 2011). According to Heizer and Render (2011), the quality of suppliers product is to be evaluated from the point of view of the level of defects, manufacturing maintenance, safety matters, and training.

Next, the level of service is another vital criterion for the choice of suppliers. While making choices regarding cooperation with a particular supplier, a company needs to check these aspects: (1) customer service; (2) responsiveness; (3) order acceptance, processing, and fulfillment; and (4) potential ability to optimize the cooperation process through the e-commerce (Kontis & Vrysagotis, 2011). The level of service provided by a supplier in its turn directly influences the level of service that the company provides to the customers (Kontis & Vrysagotis, 2011)

Further, expertise is yet another criterion significant for the selection of suppliers. Expertise capability of a supplier firm needs to be assessed in terms of network capabilities, production capabilities, the technical level of manufacturing or raw materials extraction, and the spread of technical preparation (Ozaki, Lo, Kinoshita, & Tzeng, 2012).

In addition, the risk the supplier is taking is one more considerable parameter for the supplier selection decision-making process. If supplier takes too many risks, buyers are exposed to the same multiple risks (Thompson & Martin, 2010). The following aspects in regards to this criterion need assessment: insurance, legislations, currency exchange, and trade relations (Thompson & Martin, 2010).

Finally, the delivery criterion is the last but not the least variable that affects the proper decision-making in the area of supplier choice. The main aspects connected with the delivery criterion are on-time delivery and lead time (Kontis & Vrysagotis, 2011).

Speaking about the criteria for the supplier selection, it is important to remember that the complexity of this process places a high demand on a business player to consider a variety of additional factors connected with the specific problems that may take place. In this vein, one may address the following aspects: (1) potential for the long-time relations; (2) management capability; (3) financial status; (4) responsiveness to the buyers needs; (5) operational performance; (6) behaviors and cultural factors; and (7) environmental compliance (Kontis & Vrysagotis, 2011).

In conclusion, it should be stated that the main criteria for supplier selection apart from the cost are quality, service, expertise, risk factors, and delivery. The optimal choice of suppliers occurs only at the intersection of these variables. Therefore, the company employees responsible for the supplier selection decision-making should be educated on conducting an assessment of all the factors narrated above.

References

Heizer, J. & Render, B. (2011). Operations management (10th ed.). London: Pearson. Web.

Kontis, A., & Vrysagotis, V. (2011). Supplier selection problem: A literature review of multi-criteria approaches based on DEA. Advances in Management and Applied Economics, 1(2), 207-219. Web.

Ozaki, T., Lo, M., Kinoshita, E., & Tzeng, G. (2012). Decision-making for the best selection of suppliers by using minor ANP. Journal of Intelligent Manufacturing,23(6), 2171-2178. Web.

Thompson, J., & Martin, F. (2010). Strategic management awareness & change (6th ed.). London: Cengage Learning. Web.

Encouraging Employees Through Times of Hardship

Introduction

The article How to Keep Your Employees Motivated in a Downturn by Peter Twemlow (published in The Guardian newspaper on the 20th of November 2012) investigates a highly important topic of employee encouragement in the period when the company is going through hard times. The recommendations the author provides are relevant indeed as it is a typical mistake of numerous business leaders to neglect employee engagement concerns while the organization has to deal with outer pressures. (Twemlow, 2012). Yet, I believe that exactly during this period, it is critical to bridge all gaps between top management and employees since collaboration is the key factor determining whether the company will be able to overcome exiting challenges.

Article Summary

The article is devoted to the issue of employee motivation that may help a business to survive through hard times. The author gives some pieces of practical advice that may help leaders establish effective communication with their employees. They can be summed up as follows (Twemlow, 2012):

  • Communication must be reciprocal, comprehensive, and trusting. This implies that leaders should not conceal financial information that can be revealed and keep the staff unaware of the crisis.
  • Example behavior must come from the top since employees should see that their bosses can face difficulties with dignity.
  • Transparency is essential for winning peoples loyalty. Employees must receive answers to all their questions.
  • A Reward system should be reinforced during difficult times. Non-financial incentives are no less important than financial ones.
  • Problem-solving groups may help encourage employees and keep track of their contributions. People feel better even about a critical situation if they know that they can suggest ideas on how to improve it.
  • Business leaders may use various tools (focus groups, tests, questionnaires, etc.) to investigate what concerns employees have and how they can be eliminated.

The authors major purpose is to convince the reader that economic circumstances are not decisive in organizational performance. On the contrary, unified and committed staff can produce an incomparable impact on the companys state of affairs and therefore should never be underestimated.

The author, Peter Twemlow is a professional British reporter working for The Guardian and an associate at DP9 Planning Consultants, who has a direct connection to the business and thus can analyze organizational issues from a practical viewpoint and give applicable tips.

Article Evaluation

The article provides profound, comprehensive, and well-organized information on how to achieve job satisfaction even when the conditions for this are far from being favorable. The major advantage that it has over other articles on the topic is that the author gives guidelines that managers can apply to create an advanced and inclusive workplace not only during a crisis but also when the performance of the company stabilizes.

The author is quite right emphasizing that organizations having less engaged workforce deal with numerous problems concerning absence level, turnover, and poor collaboration, which cannot help affecting their competitive edge (Twemlow, 2012). The absence of redundant theorization and vague digressions makes the article clear and convincing. Yet, there is also a disadvantage: Unlike other authors, Twemlow does not support his research with any kind of statistics obtained from surveys and questionnaires to prove the effectiveness of the proposed method. Thus, it contributes to the readers practical management skills but does not enlarge his theoretical knowledge.

Conclusion

Although employee commitment may seem less significant than crisis management, it is one of the major constituents of any successful business strategy. Even during times of hardship, employers must bear in mind that success is created by people, not by technologies (Wallace, de Chernatony, & Buil, 2013). Thus, according to the article under analysis, employees have a right to be a part of the decision-making system as well as an opportunity to make a difference. The article can be recommended to leaders of any company regardless of its size, industry, mission, or values since every employer should realize the role of HR-management.

References

Twemlow, P. (2012). How to keep your employees motivated. The Guardian. 

Wallace, E., de Chernatony, L., & Buil, I. (2013). Building bank brands: How leadership behavior influences employee commitment. Journal of Business Research, 66(2), 165-171.

Managerial Role in the Workplace and Organization

The modern environment gives rise to numerous challenges in the sphere of business. The increased number of opportunities also means a great rivalry. In such a way, there is a need for an efficient management system that will be able to maintain the functioning of a certain organization at the appropriate level. However, this could be a complex task because of the different obstacles that a manager should overcome to attain success. In this regard, the role of this specialist becomes extremely important for the functioning of any organization that is focused on the preservation of its leading status.

Revolving around the role a manager plays in any organization, it is important to mention several points. First, there are different types and levels of managers. These could be first-line managers, middle managers, and top managers. Their responsibilities differ significantly and precondition the level of authority they possess. However, the majority of workers who join a company or organization will have to accept a certain managerial responsibility which means that they should monitor a working process and ensure its positive outcomes (Schermerhorn, 2011). For this reason, the managers role in the workplace could be associated with a specific activity aimed at the constant improvement of final results.

Moreover, managers are also responsible for the creation of a healthy atmosphere within a collective. This task is extremely complex as workers have different peculiarities of culture and mentality. It could result in the occurrence of numerous ethical issues and conflicts based on divergences in culture. A manager, as a person who possesses a certain authority, can organize the environment and make employees follow a specific model. However, he/she should understand the concept of social responsibility that becomes central to his/her functioning as it regulates relations within the collective and promotes improved cooperation.

That is why ethics should become one of the main landmarks for a manager. The fact is that the functioning of any company presupposes the close cooperation between numerous employees and potential partners. For this reason, the environment is extremely diverse, and a manager should be able to provide ethical support and demonstrate emotional intelligence to ensure that all demands will be satisfied (Schermerhorn, 2011).

Furthermore, the ability to consider cultural differences could also become crucial for a manager as it increases his/her efficiency significantly and preconditions the development of leadership qualities. In this regard, diversity is one of the most important factors that should be taken into account by managers in their work.

Finally, in his/her work, a manager should consider the most important organizations goals and objectives as they precondition the choice of strategies and methods. In general, the main objective of any organization is the preservation of its leading status and acquisition of a certain competitive advantage. However, an organization should also create a shared value model for workers to be able to enjoy the atmosphere and feel their involvement in the process (Bovee & Thill, 2015). In this regard, a manager becomes a person responsible both for a companys further development in terms of its current goals and for the atmosphere within a collective.

Altogether, a manager is one of the most important actors in terms of the modern organization as he/she accomplishes numerous tasks and possesses several responsibilities. This specialist can align the functioning of any company and assist it in acquiring a significant competitive advantage.

References

Bovee, C., & Thill, J. (2015). Business communication essentials, student value edition. New York, NY: Pearson.

Schermerhorn, J. (2011). Exploring management. Hoboken, NJ: Wiley.

Bimbo Factory: Entering the EU Market

Part I: Markets Assessment: Germany, Bulgaria, and Greece

Entering a new economic environment is always a challenge. Despite its success in the home market, Bimbo Factory may face severe challenges in the context of the EU environment. Although each of the markets, i.e., the German, the Bulgarian, and the Greek ones, pose unique challenges to the firm, it seems more reasonable to focus on the German one, as it provides ample opportunities for the further growth and expansion.

Germany

PESTLE

Political Germany is a democratic country;

The state supports free trade.

Economic German takes the 4thposition in the list of the most economically advanced states;

Services sector takes 69% of the GDP (Germany: Share of economic sectors in the gross domestic product (GDP) in 20152016).

Sociocultural Germany is the EU state with the largest population;

The focus of the German culture is on family and traditions.

Technological Germany is a scientifically and technologically progressive state.
Environmental The citizens and state authorities focus on the sustainable use of resources.

The focus on gluten-free products is the current trend.

Legal Germany follows the EU Food Law;

However, recently, the terms vegan and vegetarian have been defined in Germany, as opposed to other EU states (Rixon 2016).

Market evaluation

Market size. According to a recent report, the total turnover of the German food market made ¬168,6 bn, which is 2.1% lower than the 2014 index (¬172.2 bn) (Federation of German Food and Drink Industries 2016). The baked goods segment makes approximately 8.8% of the industry (Germany Trade and Invest 2016) (see Fig. 1).

Development speed. The progress that the German food and drinks industry is making at present is truly fascinating. The promotion of a competence networks makes it possible for a rapid increase in quality standards and the promotion of the latest technological advances (German Food Clusters 2012).

Food and Beverage Industry in Germany by Segment
Figure 1. Food and Beverage Industry in Germany by Segment (2013)

Economy. A consistent consolidation trend that has become the primary characteristic feature of the German bakery industry has led to a drop in the number of home companies operating in the industry.

Competitors. Although the target market does not swarm with rivals, and the identified niche (i.e., bakery) has already been taken by Kellog, GmbH, Dr August Oetker Nahrungsmittel KG, Cereal Partners Deutschland GmbH & Co oHG, and Peter Kölln KGa (Euromonitor International 2014b) (see Fig. 2). Therefore, the entrepreneurship will have to try very hard to make sure that its competitive advantage is strong enough to give its products staying power.

Bakery Industry: Key Companies
Figure 2. Bakery Industry: Key Companies (Germany) (Euromonitor International 2014b)

Customers

There is a strong propensity among German customers to compare prices and choose the firms that offer large discounts.

Bulgaria

PESTLE

Political The Bulgarian market operates in accordance with the global trade regulations;
Economic The domestic market can be deemed as large;

A recent drop in companies; performance due to a stronger emphasis on environmentalism should be mentioned as the primary characteristic;

Sociocultural The market is dominated largely by artisanal products.
Technological The Bulgarian bakery market can be deemed as technologically developed, though further progress is desirable.
Environmental The recent focus on healthy food is becoming increasingly popular;

However, the focus on artisan products prevents progress from occurring.

Legal No specific legal constraints have been detected (Euromonitor International 2014a).

Market evaluation

Market size. The total bakery production in Bulgaria made 600,000 tons in 2013 (a 1% drop), with the consumption rates being 55 kg/head/year (decreasing).

Development speed. At present, the market is rather stale.

Economy. The market share of industrial bakeries makes 87%.

Competitors. The target market can be described as very fragmented, with a total of 65 organizations competing in the environment of the Bulgarian bakery market for an increase in their shares. At present, the market is dominated by Nestle Bulgaria, the company taking 54% of the market share. Kelloggs products take the second spot in the top list of the most influential companies, with only 8% of the shares, though.

Customers. speaking of the Bulgarian peoples buying behaviour, one should mention the fact that they tend to buy artisanal products (International Association of Plant Bakers, 2015).

Greece

PESTLE

Political
  • No political restraints can be identified.
Economic
  • Discounts and promotional activities can be deemed as the primary characteristics of the target market;
Sociocultural
  • Artisanal products make approximately 72% of the total market share;
Technological
  • Gradual technological advancement should be mentioned;
Environmental
  • The recent focus on environmentalism has been noted;
Legal
  • General EU standards are applied.

Market evaluation

Market size. Although the current size of the market is rather small, it is predicted that it is going to grow.

Development speed. With Nestle at the helm, the market is developing at a steady pace.

Economy. The challenging financial situation that the country is facing at present leads to the creation of rather poor conditions for starting a business.

Competitors. Nestle and Tasty Food have been competing in the target market for years, therefore, leaving other companies little to no chance. Currently, Nestle holds a total of 36% market share, whereas Tasty Foods has only 5%.

Customers. In light of the popularity of the artisanal products, it can be assumed that the customers are driven primarily by the necessity to purchase low-cost products.

Conclusion

Based on the analysis carried out above, one must admit that entering the German market seems to be the most reasonable step to take at present. Seeing that the political and environmental factors are largely the same in each of the three states mentioned above, it will be a sensible step to consider the issue regarding the competition and the opportunities for the further development.

As stressed above, the Bulgarian market has already been dominated by Nestle for years, which might seem like an obvious hint at dismissing it. However, a closer look at the target environment will reveal that the rest of the organizations, apart from Kellogg, which is also not very popular, have not developed the competitive advantage that they need to be introduced in the identified environment and, therefore, become successful. Consequently, Bimbo Factory is likely to take a very comfortable niche as long as it develops a strong and unique competitive advantage.

As far as the options that the company has in Greece are concerned, one must admit that the identified option will not lead to any major economic opportunities. It could be argued, though, that the German market has more options for development, with an evident focus on technological advances that creates premises for consistent progress. However, operating in the German environment is likely to trigger a considerably larger number of costs compared with the Bulgarian one.

While the development speed of the Bulgarian market can be deemed as not quite fast, it, nevertheless, has a potential. The tendencies among the local customers to buy artisan products, however, might hamper the developmental process. Still, with a powerful marketing approach that will point to the benefits of buying high-quality products, as well as a flexible system of prices and discounts, the entrepreneurship will be able to attract an increasingly large number of clients in the realm of the Bulgarian bakery market.

Part II: Setting up a Production and Distribution Facility: Factors to Consider

When considering the factors that should be taken into account when doing business in Europe, in general, and setting up the environment for running a bakery, in particular, one should first review the same factors as on would have to consider when starting a company in any other part of the world.

As stressed above, it is imperative to consider economic, political, environmental, sociocultural, technological, and legal factors when deciding which market to choose in order to set a company in its environment. Speaking of the sociocultural context, the needs and key characteristics of the target audience must be identified and analyzed properly so that a cohesive and adequate marketing strategy could be designed.

In addition, an array of internal factors, including the experience of the company leaders, the size of the entrepreneurship, its target audience, the company image, its brand product, its marketing approach, etc. must be incorporated in the analysis so that the potential problems could be isolated and addressed in a manner as timely and efficient as possible. In other words, the first steps of setting a business in Europe are basically the same as in any other part of the world.

Diversity and Tolerance

However, as stressed above, the identified environment has a range of unique characteristics that are likely to affect the further development of the entrepreneurship. Among them, the cultural issues must be addressed first. In light of the recent political events, one must consider the rapid increase in the number of immigrants an obvious trend for most European countries.

As a result, to be successful in the context of the European market, in general, and the markets of Germany, Bulgaria, and Greece, in particular, Bimbo Bakery will have to review its current policies and practices to make sure that they do not contain any item or message that could be viewed as inappropriate or at least controversial by any member of the target population. In other words, the issues regarding religion, culture, and social status need to be addressed with great care and caution to make sure that the companys activities do not hurt anyones feelings or violate anyones rights.

Rebranding

Furthermore, in light of the fact that the European policies for providing rights to marginalized members of the society are very rigid, the entrepreneurship might consider the idea of rebranding. Seeing that the customers of the markets chosen for the further integration can be deemed as having basic English literacy and skills, they might view the companys name as inappropriate in the context of a culturally sensitive environment.

Seeing that the term bimbo can be rendered as offensive to women, the entrepreneurship might consider a change in its brand so that the target audience could be more comfortable with the names of the products that it will buy. Indeed, a closer look at the history of companies entering the European market will show that rebranding as the means of avoiding hurting customers feelings is a rather common phenomenon.

Indeed, a closer look at the title of the company will show that the term might be viewed as offensive to the customers with knowledge of English, especially female ones. Conse4quently, it could be suggested that the entrepreneurship should rebrand its image and products to appeal to the target audience.

Legal Issues

Apart from the cultural aspects of setting a business in a U state, one should bear in mind that there are certain legal requirements that the organization will have to meet in order to establish itself successfully in the designated environment. Particularly, the current EU standards compel the leaders of such companies to make sure that the following demands should be met:

  • The process of setting up should take up to three business days;
  • The procedure should cost the maximum of ¬100;
  • The key stages should be carried out through a single administrative body;
  • The registration-related formalities should be completed via an online form.

Though seemingly simple, the objectives listed above may turn out to be rather difficult to complete since the range of steps to be taken is extremely large. In other words, the time limits can be viewed as the key restrictions. When choosing between the target markets, one must bear in mind that the German bureaucracy has become notorious; therefore, penetrating the identified market is going to be either rather costly or extremely lengthy.

Technology

When it comes to addressing the technological aspect of legal expanding into the target market, one must give credit to the efficacy of the EU policies as far as the provision of the required data is concerned. According to the official statements made by the German, the Bulgarian, and the Greek representatives, the European network offers extensive opportunities for carrying out essential steps required to succeed in the identified environments (European Union 2016a).

Particularly, the focus on technological opportunities, in general, and the information technology, in particular, needs to be mentioned. As the guides to the services providing options for setting a company in the designated areas show, there is an extensive list of opportunities for learning about the details regarding the legal issues that the leaders of entrepreneurship are likely to meet (European Union 2016b).

It should be noted, though, that some of the elements of the form provided by the EU need further development so that the companies representing the food manufacturing business could also retrieve the necessary data and become active members of the local economic community (European Union 2016c).

In spite of minor differences between the economic principles and rather large ones regarding the legal premises that the manufacturing industry is based on in the U.S. and Europe, there are ample opportunities for Bimbo Bakery to integrate into the EU market successfully. The development of distribution channels and the process of acquiring new customers, as well as creating essential business links and developing the companys supply chain, are rather basic and require that the entrepreneurship should be aware of the needs of the target customers and the legal constraints that the local environment suggests. As soon as the key economic, technological, cultural, and legal issues are taken into account, the firm is likely to become outstandingly successful in the identified area.

Reference List

European Union (2016a) Points of Contact: Bulgaria. Web.

European Union (2016c) Points of Contact: Germany. Web.

European Union (2016b) Points of Contact: Greece.

Euromonitor International (2014a) Bakery in Greece.

Euromonitor International (2014b) Bakery in Germany.

Germany: Share of Economic Sectors in Gross Domestic Product (GDP) in 2015.

Federation of German Food and Drink Industries (2016) The German Food and Drink Industry: Facts and Figures 2016. Web.

German Food Clusters (2012) The Food & Beverage Industry in Germany.

Germany Trade and Invest (2016) Industry Overview: The Food & Beverage Industry in Germany.

International Association of Plant Bakers (2015) AIBI Bread Market Report 2013. Web.

Rixon, P (2016) Germany Loses Patience with EU, Defines the Terms Vegan and Vegetarian. EU Food Law.

Crumbs Bakery Companys Installing Solar Panels

Abstract

On February 6th, 2014, the Board of Directors of Crumbs Bakery requested the head of the Procurement and Budgeting Board to conduct a feasibility study about alternative sources of energy that would help the company to reduce its costs. I was chosen as the best qualified applicant to prepare a proposal for the mentioned task which commenced on 20th February, 2014. I found out that the company was spending unnecessary amounts of money to pay electricity bills and this reduced its profit. I observed that most employees did not turn off their computers after work and light bulbs were left on during most nights. The electricity consumption was at its peak during lunch hours and weekends when most employees used water heaters and microwaves to warm water and food respectively. In addition, misuse of electricity was rampart when senior managers were on official duties outside the company. I embarked on a literature review to understand how companies have used solar panels to supplement or substitute electricity and what they achieved. In addition, I noticed that the employees were happy to realize that they would be shifting their attention from electric to solar energy.

I recommend that the company considers installing the solar panels to reduce energy consumption from $7,000 to about $3000- $4000 per month.

Executive Summary

On February 6th, 2014, the Board of Directors of Crumbs Bakery invited the Procurement and Budgeting Department to conduct a feasibility study about the importance of using other sources of energy in the company to supplement or replace electricity. The study was aimed at establishing the difference between alternative sources and electricity to supply energy for the company. On 7th February, 2014, the department accepted my application to conduct a feasibility study. It presented its recommendation to the Board of Directors and I am waiting for it to approve my request and allow me to start the feasibility study as soon as possible.

Currently, Crumbs Bakery uses electricity as a source of energy for its operations. The monthly average expenses on electricity have escalated from $ 5,500 in 2006 to $ 7,000 in 2014 (January). This trend seems to be gaining speed and there are fears that the company may be spending unnecessary amounts of its hard earned profits on electricity bills. Therefore, there is the need for Crumbs Bakery to start exploring other sources of energy that are cheap, reliable and environment friendly. The decision to invite its workers to conduct feasibility studies on various sources of energy is a right step towards reducing unnecessary expenses in the company. The company wants to reduce energy expenses and I proposed the installation of solar panels to substitute or supplement electricity supply (Hurley 61).

I conducted research on companies like McDonalds and McGraw-Hill Publishers on how they have managed to use solar energy and its impacts on their productivity and profit generation. In addition, I conducted interviews to collect information from experts like Mr. Jackson Willis, Lawrence Hopkins and Steven Howard that have experience, skills and knowledge of solar energy. This enabled me to understand the components of solar panels and how they are used to produce energy.

Staff attitude towards a new source of energy was important in determining its success. Therefore, I discovered that staffs will likely be very receptive to this feasibility study and offer their support to ensure it succeeds. Moreover, I found that if Crumbs Bakery installs and uses solar energy workers will be positive about it, provided the company uses equipment that will supply adequate power of not less than 3,000 megawatts. The interviews and questionnaire feedback showed that 89% of employees supported the idea and recommended the use of other environmentfriendly interventions in the company. The company requires energy to run its grinding mills, freezers, ovens, computers and other activities that require electricity. Therefore, the ten solar panels will provide adequate energy to the company.

My feasibility study showed that there is no difference between solar and electricity accessories and this means that the existing ones will continue to serve their purposes. There will be no need to install new electric accessories and this means that there will be no costs in this section. The cables used to supply electricity will not be replaced.

Therefore, these conclusions show that the project of installing and using solar panels will be a productive activity and though it will cost the company a lot of money it will reduce energy expenses and conserve the environment. I recommend that the Board of Directors of Crumbs Bakery proceeds with its feasibility study on the appropriate time to install and start using solar panels to supply energy to the company.

Introduction

The Board of Directors of Crumbs Bakery invited the Procurement and Budgeting Department on February 6th, 2014, to conduct a feasibility study about the importance of using other sources of energy in the company to supplement or replace electricity. The study was aimed at establishing the difference between alternative sources and electricity to supply energy for the company. On 7th February, 2014, the department accepted my application to conduct a feasibility study. It presented its recommendation to the Board of Directors and I am waiting for it to approve my request and allow me to start the feasibility study as soon as possible.

Currently, Crumbs Bakery uses electricity as a source of energy for its operations. The monthly average expenses on electricity have escalated from $ 5,500 in 2006 to $ 7,000 in 2014 (January). This trend seems to be gaining speed and there are fears that the company may be spending unnecessary amounts of its hard earned profits on electricity bills (Pouts 46). Therefore, there is the need for Crumbs Bakery to start exploring other sources of energy that are cheap, reliable and environment friendly. Therefore, the decision to invite its workers to conduct feasibility studies on various sources of energy is a right step towards reducing unnecessary expenses in the company. The company wants to reduce energy expenses and I proposed the installation of solar panels to substitute or supplement electricity supply.

The Board of Directors asked me to conduct research that would answer the following questions and identify ways of exploring alternative sources of energy apart from electricity.

Research Questions

Will the installation of solar panels reduce the energy expenses of the company?

Crumb Bakery relies on electricity for almost 905 of its processes and this means that there is no way it can operate if there is a shortage of this energy. Therefore, its expenses on electricity bills are unavoidable unless the company is not in operation. The need to reduce the companys expenses on electricity usually meets resistance from employees after the introduction and establishment of policies that ensured employees were accountable for how they used this energy (Boxwell 43). Therefore, it was necessary for the Board of Directors to identify other alternatives of minimizing energy costs. My research endeavored to identify ways solar panels can be used to supply energy and substitute or supplement electricity. This means that it focused on the differences of expenses involved in acquiring electricity and solar panels and identifying which is the best alternative (Hurley 76). The answers to this question will help the Board of directors to visualize the economic gains that will be made when the company starts using solar energy. The management and Board of Directors would need to know the differences in expenses between using electricity and solar energy.

Will the solar panel infrastructure be compatible with that of electricity?

I discovered that electrical accessories perform similar roles depending on their specifications. The quality of the accessories used to supply electrical energy was determined by the amount of power required to run various operations. For instance, the cable used to connect the main transformer to the companys power house was larger than all other cables. The sockets, switches and cables were similar and of small sizes since they did not carry a lot of power (Pouts 54). Therefore, these accessories will be used to supply solar power because they have high resistance and can supply solar energy just like electricity without complications. Therefore, the Board of Directors and managers should not worry about any additional expenses to acquire cables and electrical accessories because the existing ones will not be replaced.

Will workers switch from electricity to solar energy given the speed of connectivity and efficiency of the former?

I found out that Crumbs Bakery workers likely will be very receptive to a feasibility study. Moreover, if Crumbs Bakery installs and uses solar energy employees will have a positive attitude towards it because they will not have unnecessary restrictions regarding the use of microwaves, water heaters and fans in their offices (Miller 72). The fact that more than 80% of employees responded positively to my questionnaires shows that they are ready to embrace and start using the new source of energy in the company. It is important to explain that workers appreciate the speed and efficiency of electricity, but they also wanted to work in a clean environment (Brown 26). This motivated them to develop positive attitudes towards the projects of installing solar panels in the company.

What impacts will the new source of energy have on the quality and quantity of products and services offered by the company?

I discovered that Crumbs bakery has four major production processes that include wheat drying, milling, baking and refrigeration. These processes require different amounts of electricity depending on the intensity of energy required. The processes of grinding wheat and baking flour consume a lot of energy compared to other processes. Each process consumes about 6 megawatts of electricity per day while other processes require less energy. The ten solar panels will generate adequate energy to ensure all the operations of Crumbs Bakery are not affected by inadequate power. In addition, the energy produced will accommodate other machines when the company expands. Solar energy eliminates unexpected power blackouts and this means that the company will have seamless production and maintain the supply of its products (Boxwell 75).

Research Methods

Acquire a basic understanding of how solar panels produce and supply energy

Mr. Jackson Willis pointed me to several working illustrations about the use of solar energy. In addition, I conducted literature review that fell into the following categories. First, the general introduction to alternative sources of power in periodicals and science and technology magazines. In addition, scholarly articles on energy sources and their future offered a platform to know the societys trend regarding clean sources of energy. Moreover, manufacturers websites offered invaluable information about types of solar panels and their specifications. This helped me to realize that ten solar panels, each producing 300 megawatts would be appropriate for our company.

Research staff attitudes towards alternative sources of energy

I prepared questionnaires to collect information from workers regarding the installation of solar energy. The feedback I received from them showed that they supported the project and were looking forward to when it would begin. Online sources were important in helping me to evaluate the attitude of workers to new sources of energy (Miller 87). I sent emails to workers and some stakeholders to field-test the questionnaire. The feedback showed a general approval of the project.

Research infrastructural compatibility

I invited Mr. Jackson Willis, Lawrence Hopkins and Steven Howard to examine the current electricity infrastructure of the company and determine whether it can support solar energy. They approved the existing cables, switches, sockets and other accessories as suitable to supply and control solar energy. In addition, I invited the companys electrician, Mr. Jackson Morris, who confirmed that the cables and other accessories used will not be replaced after the installation of solar energy.

Financial impacts

I compared the bills paid by this company with those from other similar companies that use alternative sources of energy. In addition, I contacted energy specialists like David Johns and Robert Elvis who confirmed that solar energy is cheaper than electricity. Therefore, there are high prospects that the company will save on its energy costs.

Data analysis and presentation of report

I prepared a draft report and asked my colleagues who also presented their bids to work on this project for their approval. I asked them to offer their suggestions to help improve the quality of this document before drafting the final copy.

Results

Structure and functions of Solar Panels

Solar panels are flat glass, fiber and wire structures manufacture to trap energy from the sun. They are usually placed on raised grounds and exposed to the sun to ensure they trap suns rays. The components of these structures are made to convert solar energy into electricity, which is then transmitted to main power houses. The power is then distributed to various sections depending on their requirements. Solar energy is suitable in this organization because of its location in a moderately dry region (Maeda 59).

Staff Attitudes

The response I received from workers proved that they are ready to start using solar energy. The management appreciated the need to use alternative sources of energy to reduce electricity bills. Therefore, the staff of Crumbs Bakery has a positive attitude towards this project.

Infrastructural compatibility

Electricians and solar experts confirmed that the existing electrical accessories will not be replaced because they will be used to supply and control solar energy. Therefore, there will be no need of purchasing new electric accessories.

Financial impacts

The proposed installation of the solar panels will reduce the energy expenses from the current $ 7,000 to about $ 4,500. In addition, there will be no recurrent and fixed energy charges that are common in electricity bills. Therefore, the company will save energy and reduce its electricity expenses (Brown 41).

Conclusions

The installation and use of solar panels will reduce the energy expenses of Crumbs Bakery because it is cheap and affordable. Its supply is guaranteed and there are no limits to its use. The solar panel infrastructure will be compatible with that of electricity and this will save the company unnecessary expenses and wastage of time. Workers have a positive attitude towards this project and they are ready to switch from electricity to solar energy. The quality and quantity of the products of Crumbs bakery will not be affected because there will be no difference between the voltage of energy supplied by solar panels and electricity.

Recommendation

I recommend that Crumbs Bakery proceed with its feasibility study of the possibility of using solar panels when the company expands. The existing energy supply infrastructure does not need to be changed; however, there is the need to conduct research and identify the existence or otherwise of solar specific accessories (Maeda 64). It is necessary to consider conducting feasibility studies to identify ways of improving the quality of products of this company and using supportive sources of energy like steam to supplement solar power.

Works Cited

Boxwell, Michael. Solar Electricity Handbook  2013 Edition: A Simple Practical Guide to Solar Energy  Designing and Installing Photovoltaic Solar Electric Systems. Melbourne: Greenstream Publishing, 2012. Print.

Brown, Dwayne. The Beginners Guide to Solar Power: How to Save A LOT of Money the Easy Way. New York: Wiley, 2012. Print.

Hurley, Phillip. Build Your Own Solar Panel: Generate Electricity from the Sun. New York: Good Ideas Creative Services, 2012. Print.

Maeda, Martha. How to Solar Power Your Home Everything You Need to Know Explained Simply (Back-To-Basics Conserving). New York: Atlantic Publishing Group, 2011. Print.

Miller, Steven. A Guide to Understanding Basic Solar Component. New Jersey: Prentice Hall, 2010. Print.

Pouts, Michael. An Introduction to the Challenges Facing Modern Sources of Energy. New York: Wiley, 2011. Print.

Logistical System: Private and Public Warehouses Combining

A coherent logistics system presupposes that a strong link should exist between every single element of the companys production processes (Ismail, 2008). The reasons for combining private and public warehouses into a single system, however, may not be obvious to an outside observer at first. The above-mentioned approach is traditionally used by large companies in order to retain customers and at the same time, become an essential part of the target market.

According to the existing evidence, attracting the target audience to the company and the products that it has to offer is the primary reason for major companies to combine two different types of warehouses (i.e., the private and the public ones) into a single logistical system (Farahani, Rezapour & Kardar, 2011). Indeed, communication with clients is an essential part of any companys existence, and creating a positive image of entrepreneurship by satisfying the customers needs is the key to becoming a success in the market.

While one may aver that the link between the logistics system adopted and the customer satisfaction rates is rather feeble, the two are, in fact, are related closely. The latter hinges on a fast and efficient system of delivery; therefore, it is imperative that devious departments of the company should be included in a single system and that the transportation processes, including the process of information transfer, should be optimized.

Another obvious condition, which private and public warehouses may be combined into a single entity under the necessity for the organization to enter the realm of the go-to-market deserves to be mentioned  traditionally defined as the phase of company development, which includes the design of strategies and tools, allowing the firm to integrate into the target market and connect with its audience (Friedman, 2012).

The creation of a productsupply networks is another reason for most organizations to incorporate private and public warehouses into a single system. This system of integrated services is quite popular among a range of major companies for understandable reasons. First and most obvious, the specified approach creates the premises for a faster transfer of supplies and raw materials, as well as the delivery of the final product to the target customers.

Unless a proper system is established, a company will be incapable of attaining customer satisfaction and creating the environment for proper communication with its suppliers. In other words, for a large company, combining private and public warehouses are the primary condition for efficient performance.

Claiming that the specified process should be part and parcel of any companys operations, however, will mean making a very big leap. Though it does make sense for an average large company to facilitate a flawless transfer of materials and information between the private and public warehouses, the specifics of the companys operations must be taken into account before taking the specified step.

The idea of combining private and public warehouses into a single logistics system is not new; it has been implemented for a number of times in order to make the process of data and product transportation impeccable.

As a rule, when speaking of large companies, the concept of private and public warehouses integration into a logistics system predisposes the premises for the outcomes such as customer satisfaction increase, development of a productsupply networks and promoting the company in the target market with the help of the go-to-market approach must be mentioned.

Reference List

Farahani, R. Z., Rezapour, S. & Kardar, L. (2011). Logistics operations and management: Concepts and models. Waltham, MA: Elsevier.

Friedman, L. (2012). Go to market strategy. New York, NY: Routledge.

Ismail, R. (2008). Logistics management. New Delhi, India: Excel Books India.

Targeting Consumer Segments Based on Sexual Orientation

Oakenfulls article Targeting Consumer Segments Based on Sexual Orientation: Can Advertisers Swing Both Ways (2004) explores the reality of gay-oriented advertising. For most marketers, the gay and lesbian segment is a dream market. Findings from several scientific studies indicate that gays and lesbians have higher disposable incomes compared with heterosexual consumers. There are over 5 million gays and lesbians in the United States. According to Branchik (2002), this segment has a total annual income of over $ 450 million.

Most marketers have found it easy to target gays and lesbians using different gay-oriented media available in the market. Examples of such media include gay magazines and newspapers. On the other hand, Oakenfull (2004) notes that some of the firms that have attempted to advertise their products to this group using the mainstream media have encountered hostility from a heterosexual audience that is not ready to welcome gay and lesbian consumers into the mainstream society.

Oakenfull (2004) argues that marketers should treat gay and lesbian consumers as unique subcultures, as opposed to a segment of the conventional market. I agree with the author of the article that marketers should not target the gay and lesbian segment based on demographic variables alone because attitudinal differences also have a huge influence on their purchase behavior. Marketers need to study gay and lesbian subculture well in order to understand their expectations fully. Gays and lesbians differ in terms of how they respond to the gay-friendly content in advertisements.

Oakenfull (2004) argues that when placing advertisements that target gays and lesbians, advertisers need to use meaningful symbols and messages that the target group can identify with. However, advertisers should be careful not to offend heterosexual consumers who are not acquainted with the gay subculture. I am totally opposed to Oakenfulls argument because marketers should endeavor to develop authentic advertisements that capture the ethos of the gay and lesbian segment.

The only drawback with such a strategy is that most marketers are not familiar with the deeper meaning or history of the subcultural symbols used in gay-oriented advertising, such as the rainbow flag (Lantos, 2010). As such, they are less likely to appeal to this group.

Marketers should target gays and lesbians in order to benefit from the first-mover advantage. In this case, pioneers in this market will gain consumer loyalty. There has also been a rapid increase in the number of people going public with their gay or lesbian statuses. In addition, members of society are slowly accepting gays and lesbians as a part of the mainstream culture (Lantos, 2010). The gay and lesbian segment can also be a source of the niche power to an organization.

Marketers should also target the gay and lesbian segment due to the anticipated future values of the group, such as gay and lesbian partnerships, marriages, and media coverage. In addition, the fact that there are specific media tools already targeting this market segment is a clear indication that homosexuals are both reachable and accessible.

Prior to developing a marketing campaign that targets gay and lesbian consumers, it is important to address a few fundamental questions first:

  1. What is the strategic positioning of the homosexual market segment? In other words, are marketers treating this market as a separate and specific group or an overall, fully integrated market?
  2. While placing marketing advertisements that target gays and lesbian segregants, do these advertisements address homosexual issues implicitly? Explicitly?
  3. Do the symbols used appeal to the gay segment?

Reference List

Branchik, B. J. (2002). Out in the Market: A History of the Gay Market Segment in the United States. Journal of Macromarketing, 22(1), 86-97.

Lantos, G. P. (2010). Consumer Behavior in Action: Real-Life Applications for Marketing Managers. New York: M. E. Sharpe.

Oakenfull, G. (2004). Targeting Consumers Based on Sexual Orientation: Can Advertisers Swing Both Ways. In J. D. Williams, W. Lee, & C. P. Haugtvedt (Eds.) Diversity in Advertising. Mahwah, NJ: Lawrence Erlbaum Associates.