Category: Challenges

Abstract

Corporate downsizing & restructuring is essential to overcome challenges in modest business marketplace. Most companies carry out restructuring and downsizing in accordance with the requisite of their businesses. This is aimed at enhancing the aspects of competitive advantages and critical business strategies. Evidently, some organizations do this through acquisitions, mergers and divisions as well.

There are other organizations that make structural alterations and conduct resource optimization in an organization. However, there are some issues and challenges related to downsizing and restructuring. In this report, these issues and challenges are analyzed based on information from already established works.

Introduction

Since 1980s, different organizations and companies have embraced various strategies to minimize costs and maintain competitive advantages (Shiva 1999). Approaches like downsizing and restructuring were intended to change organizations from unproductive formalities and embrace the aspects of active client-driven businesses. However, professionals have been questioning whether these strategies are effective in both short term and long term objectives of the business.

Research conducted on various organisations that adopted downsizing and restructuring without proper communication of their intentions, visions and missions indicate that they failed. Most firms have embraced downsizing and restructuring as a means of conserving resources and minimizing expenses. Concurrently, the market has become fiercely competitive, profitable, and with significant reforms.

There has been a raging debate on whether restructuring and downsizing are necessary for competitive advantage of a business. However, in spite of the benefits of these strategies there are issues and challenges associated with them, which forms the basis of this report. This research seeks to find out the benefits as well as challenges of implementing these strategies with relation to gaining a competitive advantage (Alkhafaji 2001, p. 151).

Background information

Sometimes in the past, the management of corporations and organisations showed very little concern on their HR departments. This was a critical observation following its ability to affect the business progress and the general prosperity of the organisation.

The trend was meant to downsize, restructure or right-size the business with an aim of producing more returns from its investments. One of the most effective way of generating short term profits was to decrease head count to enhance overhead savings (Karake 1999). Corporations sought for ways of making profits in the shortest time possible.

However, questions still lingered on the exact benefits that companies got from implementing these strategies, whether is provided a business with a competitive advantage, whether it made them more responsive to the needs of their customers or it simply reduced members of the staff and move work to fewer workers. Based on the review of literature used for this research there was a mixed results on the data obtained. This is a critical provision in the context of competitive advantages.

Issues and Challenges of downsizing and restructuring

Restructuring and downsizing is currently widely used by most organisations and companies all over the world. Industries transform at an alarming rate, technology shifts fast, and corporations have learned that endurance means being deft. Companies have to handle the unique prospects and demands of customers.

Some specialists argue that because of downsizing and restructuring strategies, companies were able to raise their overall competitiveness over the past decades (Shiva, 1999). Most companies were able to fruitfully transform themselves from unproductive formalities into active client-driven businesses, which could react to the new market situations. However, other studies also indicate no any substantial developments in productivity during the past decade.

According to the research which was conducted by Wyatt Company in 1993, less than half the number of downsized organisations were able to achieve a decline in their expenses and less than a quarter being able to improve productivity. Only 12 per cent experienced an upsurge in their market share, and only 7% realised a growth in technological innovations (Karake 1999, p. 80).

These data and statistics indicate that the policymakers using downsizing and restructuring strategies never explored deeply into their implications. They never analysed the consequences of these strategies beyond the balance sheet figures.

To the normal employee, these approaches were considered deplorable since they generated mistrust, disrespect and bitterness not only between the everyday workers and employees but also the middle level and top level management. Equally, implementing these strategies become very difficult for middle level management as they were directly involved in the downsizing and restructuring process (Shiva Ramu 1999, Pg. 102).

Particularly, downsizing is quite demanding for all the parties involved. Workers whose duties become terminated may be distressed and experience shock (Gilson & Altman 2010). In addition, those employees preserving their positions will also be influenced negatively. Remaining workers are anticipated to efficiently adapt to new structure of the organisation which is not easy (Shiva Ramu 1999, p. 218).

In the context of restructuring and downsizing business operations, virtual organisations have higher potential to reach considerable number of clients with a wider range of commodities and services compared to conventional organisations. This follows the nature of business and operations. The online connections, geographical distributions, and extensive use of communication technologies have helped them attain this goal.

Concurrently, in the context of restructuring and downsizing business operations, some organisations collaborate with other organisations to attain the desired competitive advantages. Since the organisation is privately held, this paper compares and contrasts options available for the expansion of its operations and makes a recommendation about which strategy will best suit its business interests and prowess in regard to competitive advantages.

Among the compared options include the formation of mergers with other organizations, leasing services and business options, and acquisitions of other organisations. Advisably, it is recommendable that the company should resort to restructuring in case it wants to grow expansively, avoid future wrangles, attain a wider market share, promote its business efficiency, and gain a considerable autonomy.

Restructuring and downsizing are crucial in this case since it will provide the company with ample time to assimilate the acquired firm, restructure its operations, and provide the market with the best. Although downsizing is also considerable, it might emerge with varied logistical issues that hinder the growth of the concerned company.

Conclusion

In conclusion, changing business requirements can result into an organisation considering downsizing and restructuring its business operations. Corporate reorganisation could result into several issues that require a proper address for successful implementation of the proposed restructure. An effective restructure encompasses not only a developing a sound approach, but also the successful implementation of that plan. This necessitates keeping personnel on side in the course of a restructure.

List of References

Alkhafaji, F2001, Corporate transformation and restructuring: a strategic approach, Quorum Books, Westport, CT.

Gilson, C & Altman, I 2010, Creating value through corporate restructuring: case studies for bankruptcies, buyouts, and breakups, Wiley, Hoboken, NJ.

Karake, A 1999, Organizational downsizing, discrimination, and corporate social responsibility, Quorum Books, Westport, CT.

Shiva, S 1999, Restructuring and break-ups: corporate growth through divestitures, spin-offs, split-ups and swaps, Response Books, New Delhi.

Abstract

To create an alternative source of revenue for its economy and avoid over-dependency on oil, the UAE resolved to contract engineering companies and other human resources expertise in the design and construction of the 1.5 billion dollar project. Various formidable challenges were significant in the design and construction process. The building was designed with a gradual decrease in mass as it progressed upwards to address the issue of weight. The central core of the structure was designed to overcome the twisting effects of wind and a cultural theme was incorporated in the design. Specially designed cranes were used to move materials and man up the building and silicone materials specially designed and tested were used to curb and control thermal effects on the building. Water was sufficiently supplied and drained appropriately. The structure was a success.

This report undertook to bring to light the challenges and technical difficulties encountered in the process by researching various literature available on the project. Various problems and technical challenges were experienced.

The Problem: Thermal effects, the movement of materials and man, the force due to the wind, turning effects on the structure, and pressure due to the weight of the building in addition to the curing effect of cement during construction was the main problem.

Results: These measures were overcome through various approaches and conclusively the building was a success.

Recommendation: However, it was worth noting that the human factor, ethics and fair play, and a detailed analysis of materials should be done in any future project.

Executive Summary: To create an additional source of revenue and address the problem of overdependence on oil, the UAE undertook to contract skilled and experienced designers and contractors to design and construct the Burj Khalifa structure. To address the problems and technical challenges faced in the construction of the Burj Dubai structure, special cement was used to reinforce the concrete and steel mixtures. The building was designed with a gradual decrease in mass as it progressed upwards to address the issue of weight. The central core of the structure was designed to overcome the twisting effects of wind and a cultural theme was incorporated in the design. Specially designed cranes were used to move materials and man up the building and silicone materials specially designed and tested were used to curb and control thermal effects on the building. Water was sufficiently supplied and drained appropriately. The structure was a success. This report undertook to bring to light the challenges and technical difficulties encountered in the process by researching various literature available on the project. The Problems included thermal effects, the movements of materials and man, force due to the wind, turning effects on the structure, and pressure due to the weight of the building in addition to the curing effect of cement during construction were the main challenges.

The Project

Burj Dubai is a project of its own. Being the worlds tallest building, it spans 828 meters above ground level with approximately 160 stories. It is visible from a distance of 95 kilometers, boasting 3000 underground parking spaces. Sitting on 19 hectares, and with a record-holding capacity of 160 hotel suits, it is a marvel of engineering ingenuity. Designed and constructed with reinforced concrete and steel, its primary structure occupies 45,000 cubic meters weighing approximately 110, 000 tonnes. At the base, the structure is built on a concrete and steel foundation consisting of approximately 192 piles buried 164 feet deep to impress stability in its foundation. Thousands of tonnes of steel and rebar were used in the construction process. The structure, an engineering ingenuity took a whole 22 million man-hours for its completion. The construction of the foundation was materials-specific. Low-density cement with low permeability was the best option (Burj Khalifa Construction 2010)

Built by Samsung Engineering and construction in partnership with Besix, and Arabtec, the project had additional characteristics. It had a high number of compartments that are supplied with highly pressurized air for refreshments and fire safety or disaster safety floors located at every 35 floors in case of an emergency.

Pressures due to the tonnage of the structure are withstood by the use of special concrete mixtures thoroughly tested and evaluated for their structural strength in supporting the massive building to withstand the huge amounts of pressure and force.

The hotel is designed with a central core that structurally reduces with every rise of the building. The core provides support for structure on a hexagonal design with a reinforcement of three buttresses.

Water into the hotel is supplied at a rate of 946,000 liters daily. The structure has an embed system for cooling purposes that exploits the humidity of air from the outside of the structure and condensed moisture from the air. The whole water system is designed for reuse in the park after its drained from the building. Cameras and a state-of-the-art information security system are used to keep check of any potential threats to the building.

To ensure thorough and uniform curing of the concrete mixture, mixing was done during the night and the concrete mixture was mixed with ice for additional delays in curing and setting to avoid cracking and breaking of the concrete.

This was done not to mention the deplorable condition of workers who saw the structure span the sky. The abysmal pay, the inhuman conditions they lived in was the sole cause of the high number of injured workers and deaths.

The state-of-the-art design was done by Merill and Skidmore in partnership with Owings. The designers were culturally specific. In an Islamic setting, the design pattern symbolizes Islamic art. The Y-shaped structure was specific for hotels and residency.

The Project Director

Under the able leadership of H.E. Hamad Buamim, the director of General Dubai Chamber, various trained and experienced architects, and engineering companies, the project came to a successful end. Equipped with wide experience and management skills, the directorship of Hamad Buamim was a success. Besides, the designers of the projects were widely experienced in the design of various structures in diverse environments. In addition to that, construction companies were widely experienced in the construction of similar structures and had the right equipment for the construction work.

Purpose of the Project

The purpose of the project was to establish up to 30,000 homes, prestigious hotels, residential areas, and an impressive tourist attraction, and more specifically the Burl Khalifa Lake. The government of the United Arab Emirates purposed to diversify from the dependency on oil as a driver of its economy to a service-oriented and tourism-driven economy. To this end, the government set out the project that could bring it to the international scene. With the formidable challenges that faced the project, UAEs government forth the project (Economic Development n.d). UAE is a country dependent on revenue from oil. It is a desert country without any agricultural activities and to supplement its income. In addition to that, the country is situated in a politically volatile region where the possibility of war can impair its oil business. Besides that, oil is not a renewable source of energy and if the taps run dry, the possibilities of an economy collapsing are disastrous.

Engineering Challenges

Every engineering project comes with its challenges. These challenges put to the test Engineers experiences and skills in addressing them. That was the case with Burj Khalifa (The Project n.d).

With a budget of 1.5 billion $ and a structure of a height of over 828 meters above ground level, several challenges and technical difficulties were experienced. These included managing thermal effects, the movement of construction materials and man up the structure as it progressed, the effect of forces due to the wind, enveloping the building, internal pressures, and the weight of the structure on its base, security concerns, and labor ethics.

Thermal effects were addressed by engineers use of tested and verified materials that could withstand high temperatures, specifically tested to fit in an environment with sandstorms and drastically varying temperatures. To reduce the high risk of pressures, the design incorporated interlocking panels positioned at high points of the structure. According to Baker (2010), the silicone sealant was developed with best-practice standards to ensure high and excellent performance. In addition to that, the curing of cement was addressed by incorporating ice in the cement concrete mixtures and construction piles could be buried to a depth of 164 feet deep to help the foundation support the structure.

The movement of machinery, man, and materials was achieved through cranes designed for the purpose, while special high-density cement was used as discussed above.

Conclusion

Being the worlds tallest building and spanning a height of 828 meters above ground level, with approximately 160 stories, the project was an engineering success. Various challenges such as the force of the wind, cement curing, the weight of the structure, thermal effects, and various other aspects were overcome to see the construction become a success. The purpose to create a center-piece structure was technically achieved amid the formidable engineering challenges faced.

References

Baker W F 2010, Civil Engineering. Engineering an Idea: The realization of the Burj Khalifa. Web.

Barj Khalifa Construction 2010, Burj Khalifa, Worlds Tallest Building. Web.

Economic Development. Dubai, World class Infrastructure and a Global Hub for Trade, Transport and Tourism, Web.

The Project. Silicone Solves High Altitude Technical Challenges at the Worlds Tallest Tower. Case Study. Burj Khalifa, Dubai. Web.

Introduction

Resume and various background inspections of a potential employee is not a waste of time or energy but a strategy to safeguard the firms resources. The critical analysis assists in weeding out possible fraudsters and unqualified persons. Deceiving candidates can either format their resumes to indicate high credentials or provide functional resumes to cover up or underplay the negative and unusual circumstances. The presented documents are therefore not enough for determining qualifications of a candidate.

Due to the current harsh economical situation and high unemployment rates, potential employees are today customizing their resumes to indicate that their credentials are a perfect fit for the specified jobs. Targeting resumes causes people to structure resumes that cover details in order to ensure perfect qualification or fit.

Background of the Problem

There are considerable amount of pressure on matters of recruitment. There have been great changes on the subject pertaining hiring methods, for instance legislation of laws relevant to protection of privacy and formality that criminalize negligence or abuse of employees rights.

Nevertheless, today most employees have centrally strengthened their position against fraudulent employees. With this kind of confrontation over employment procedures, hiring matters continues to be of great controversy especially due to the obvious link towards outcomes. The problems associated with employees hiring methods concerns its legal procedures and effects caused by lack of scrutiny, especially much later in their subsistence.

Thesis Statement

As a legal practice pertinent to the law, what are the benefits of employees screening before employment? This paper is an analysis of the basic procedures of employees appointment process, as well as its implication over the firms growth. The research is an analysis of dominant hiring procedures common among various employees. The study also forms an analysis of effects of poor recruitment procedures.

Objective/significance of the study

The main objective of the paper focuses on job appointment procedures, with a close analysis of the developmental problems associated with the process. Another significance of the study focuses on various intervention approaches and procedures to avoid major economical impacts to the firm. The paper also forms an analysis over other probable choices in the subject matter. Lastly, the research takes a conclusion concerning the issue based on the findings.

The procedure of the study

The literature reviews and external consultations will enable better understanding of the topic. Preparation of the research over the chosen topic will enhance and quantify the research as a study topic and prepare for responses. Collected information tabulates and ranks the findings to broad areas and helps to narrow the scope to the objectives of the study analysis. The analysis then draws the conclusion from generally analyzed data of the review.

Purpose of the study

The main purpose of this study is to evaluate the right and common procedures of hiring. The document also offer suggestions from research on ways of considering various processes and predicament, in the aim of eliminating economical losses associated with wrong hiring.

Background checks

The background checks are very important during hiring since they enable the employer to safeguard the organization, firm, members of staffs and the potential employee under interview. Any employees should avoid making poor hiring decisions by rushing to engage someone. In most business settings, one appalling hire can be the main source of failure, especially when the candidate is to hold a high-level position in the firm.

In line with the United Stated Chamber of Commerce (Towers and Terry, 2004), more that 30% of failures in small and medium sized firms fail due to poor hiring practices. The poor hiring is mainly attributable to lack of proper background checks. Due to the current competitive markets in the job industries, lack of proper mitigation practices causes high probabilities of hiring dangerous and objectionable employees.

The background checks involve the resume scrutiny. The economically challenging times requires an employer or HR department that is able to analyze the credentials of a prospective candidate since fraud cases are rampant. Most job seekers are desperate because they start their search when in frantic need. The resumes are thus full of fictions stellar facts that require critical analysis.

Reference checks

Reference checks entail background research of prospective candidates either through online, interviews or through social networking. The procedure of finding further information of the potential candidate beside what the employee provides in the curriculum vitae is significant and not unethical or discriminatory, as critics would argue.

The potential candidates only offer the employment dates, salary history and job categories; therefore, a lot of information remains tentative. This makes the procedure of reference checking tiresome and lengthy.

Arguably, sometimes it is important for employers or the HR team to move beyond the official setting and check background information of the potential employees provided in social media sites. Resumes often dupe employers into engaging, training and integrating wrong candidates into their firms only to discover that the presented credentials were fraudulent. Thorough analysis is time consuming, but the procedure safe guards the huge amount of resources invested for recruitment and hiring procedures.

Reference checks should also include critical review of presented backups such as cover letters and job applications. According to Levitt and Dubner (2009), over 50% of job applicants lie about their credentials through exaggerations or embellishments and it is easy to detect mismatches from analysis of all the presented materials.

Educational history checks

Performing educational checks is also important due to the increased forgery cases of the academic certifications such as fake degrees. There are bogus job references as well as evident high volumes of ill-equipped applications. The HR management has to find the right person from huge volumes of unqualified applicants, thus need to invest time and energy to ensure academic background accuracy. Direct interview also assist in detecting suspicious responses, contradictions on issues regarding academic performances and achievement.

Checking on every fact on the academic certificates such as exact dates of undertaking or completion of study, the majors, the trainers or supervisors details requires verification from the institutions, in relation to what the candidate provides.

Employment history checks

The employer must be in a position to determine truthfulness over issues regarding job titles, salary histories, reason why the candidate left previous jobs and job performance history, compensations, previous remuneration offers and any other assisting financial information. This procedure requires one to verify what the candidate provides by consulting the previous employees.

Consulting the former employers

Former employers can provide vital information and free employment screening of a candidate. They are able give information that will never be in any of the presented documents such as, performance efforts and employment histories. The best procedure is to either visit or call and seek answers to specific questions for instance achievement history in the firm.

Direct questioning assists in getting a clear picture. The employer must consult previous employees and inquire how the candidate was able to achieve the stated success, improvements, teamwork, marketing goals, official and unofficial contributions. Any negative information from previous employers ought to reveal the reality from stated oblivious facts in the resume.

References

Levitt, S. & Dubner, S. (2009). Freakonomics: A Rogue Economist Explores the Hidden Side of Everything. New York, NY: Harper Perennial.

Towers, B. & Terry, M. (2004). European Industrial Relations: Annual Review 2001/2002. Massachusetts, MA: Blackwell Publishing.

Challenges and problems

In the beginning of the 1980s the Pilkington Brothers, a glass manufacturing company was operating under loss. This was as result of numerous problems which the company was experiencing from both internal and external environment. The Pilkington glass was faced with competition challenge from other companies.

This saw the company market share drop from 80% to 50%. The emergence of new companies in the market reduced the monopoly the company was enjoying in the 1970s. Other than the challenges the company also experienced numerous problems that forced the company change its way of operations.

The major problem was the cost-production problem that was as a result of non competitive working practices and inefficiency in the company and the industry. The inefficiency was as a result of the model that the company operated using.

The company also had technological problems brought about by the new companies. To be on the same level as the competitors the company wanted an operating cost of six million dollars that was required to boost the capital base of the company.

Under the circumstances, the challenges and the problems it was going through this was too far beyond its reach. To realize the dream the company had to initiate capital investment, rationalize its plants and tighten its belt in terms of operations.

It was only left with the problem of cutting the employees costs as well as restructuring the management team. The economic recession that had hit the UK economy had spread across affecting the market industry.

The company found itself in this struggle where it had to survive until the recession ended. After the emergence of new companies in the market, Pilkington market share reduced.

This was further reduced by the decline of the British motor industry and the loss of government financial support for home insulation programmes (Starkey & McKinlay 1990, p.354). This reduced the market demand of its products making its market share worse off.

The company was also facing price wars and pressure from its competitors in the market. This forced the company to aggressively re-stimulate its price spiral with the aim of attaining more market share.

Aspects of Pilkington that were changed

Because of the enormous losses and competition the company was facing it was decided that some aspects of the company be changed. The company decided to readjust the management practices with the aim of meeting the prevailing change in market conditions (Starkey & McKinlay 1990, p.354).

The management style was changed to accommodated the changes prevailed in the market. This was done on the operations departments where the personal directors made changes through negotiation of their personal needs. This was done to increase the collective bargaining power of the company.

The company decided to the working flexibility and the mobility of the employees. This geared towards the promotion of individual commitment in the company as well as ensuring that the product was of high quality. This would meet the market demand and be competitive enough.

The company was also able to restructure the jobs definitions with the aim of removing unnecessary job tittles. For instance the company got rid of craftsman assistants and replaced with the electrical/mechanical craftsman.

Change strategies used

The company introduced new managerial culture to reduce bureaucracy and the functions of the managers. This was triggered by the fact that the company believed in technical excellence only forgetting the business part of it.

According to Starkey and McKinlay (1990, p.354) the business aspect in terms of entrepreneurship, operating on low costs and the sense of having business done was minimal. The management operations which were centralized were decentralized for easy operations.

Decentralizing of the operations was meant to achieve a collective bargaining power in its operations. Cut down the operation cost of the company. This was to be achieved through the restructuring of thee of the working practices, initiation of low cost structures in its major sites. The main aim of initiating the restructuring was come up with employment structures, working parties and systems that would increase the level of cost effectiveness (Starkey & McKinlay1990, p.356).

This targeted the human resources where it would eliminate any problems arising between the working groups. The restructuring was also aimed at improving the business identity and improve the quality of the relations in the industry though attitude change (Starkey & McKinlay1990, p.356)

The timing of the change strategies

The timing of adopting new strategies in the operation of the company was timely and mature. Being in a competitive market structure the company would have continued to make losses. It would also operate under the shutdown point where the total revenue would be equal to the total costs.

This would only enable the company operate in a short while waiting the market structure and conditions to change. In this situations this could not have happened, it would exit the market in the long run. But instead the company opted to strategies its operations.

It is evident that by the end of 1986 the company was able to make a profit of 3.8 million dollars from a loss of 3.5 million dollars. The restructuring brought about positive changes. It has also improved both internal and external understanding and reputations making the business come to its business feet.

Extent of Pilkingtons strategic approach in its HR management

The Pilkington Company is the case study is taking a strategic approach in the management of its people. This can be explained through the following approaches theories and models. Grant (2005, p.25) notes that strategic approach is achieved through the top down process.

For example the Pilkington is moving from centralized management to decentralized management. The aim of having a strategy is to have huge returns on the invested capital achieved in the long run and when this does not occur the company has the duty of having it happen (Whittington 2001, p. 11).

Strategic fit models of HRM are aimed in matching the capabilities of the HR to the resources of the opportunities available in the external environment (Durai 2006, p.27). The strategic fit integrates the HR strategies together with the strategy of the business.

The integrative approach is used to support the HR practices development like industrial relations, evaluations, training, and compensations among others. The strategic fit model is divided into vertical and horizontal fit models (Kazmi 2006, p.435; Durai 2010, p. 27).

The vertical fit is concerned with the alignment of the HR strategies components with the business strategy essential elements. The horizontal fit deals with the alignment of the various HR strategy components in an organizations.

According to Pattanayak (2005, p.34) strategic human resource management is aimed in achieving the changes that are associated with the changing market conditions. The combination of these two types pg fit model ensures that competitiveness is realized through various HR policy areas.

Through the evaluation of its performance in the market the company applied the BCG (Boston Consulting Group) matrix. According to Griffin (2008, p. 218), the BCG matrix is used to provide a framework from which the performance of the company can be evaluated based on the diversification of the organization.

The matrix uses two dimensions in evaluating the business set. Griffin (2008, p217) notes that the two dimensions used are market share of the business and the growth rate of a particular market.

This can be traced in the Pilkington Company where it has to restructure and manage its image to the outside world. After the decline in the market share the company used strategies to get back its market share.

The BCG matrix classifies business as star, dog, question mark or cash cows (Berkowitz 2011, p.62; Kurtz Mackenzie & snow 2009, p. 65). The Pilkington Company started to gain market share but at a low rate after initiating the strategic plans.

This could classify the company using the BCG matrix as a questions market, because its making low profits. Competition and strategy are inseparable Blyton & Turnbull (1992, p.136), this is because competition in the market necessitate the adoption of a strategy to counter.

The human resource department in the Pilkington Company has introduced performance management. According to Gratton1999, p.61) performance management approach necessitates the contribution of an employee in an organization.

This is seen through the training of employees and allowing career development. It can also be achieved through labour management (Bratton &Gold 2001, p.46), through policies that are followed by the organization. In the Pilkington the company has introduced multi union discussion plan. This would ensure that the voice of the employees is heard.. The SLAP model involves strategic decision making on the part of HR managers (Durai 2010, p.27).

This is witnessed in the Pilkington Company where managers job descriptions and decision making process are restructured. The SLAP model ensures interdependence among the organizational changes, business strategy, and the HR strategies.

Because of the increased cost of production, the company decided to be cost effective. Becker, Huselid & Ulrich (2001, p.80) notes that the importance of cost benefit analysis as a strategy is to aim achieve the operational goals. This was achieved through cost effective leadership that aimed in increasing efficiency and output.

According to Porter (1998, p.12) cost leadership approach is a strategy used by companies with the aim of becoming low cost producers. This is achieved through the use of economies of scale and adopting new technology. Porter (1998, p.13) notes that cost leader should be able to achieve parity with its competitors.

This is evident in the Pilkington Company where it tries to gain parity with its competitors. Schermerhorn (2010, p.223) cost leadership structures allows profits making. The company initiates company capability which according to Phadtare (n.d, p.56) involves the coordination of companys resources towards productive use. This is first achieved through the restructure of an organization so as to fit in the company capability model. The organizational capability factors range from marketing to infrastructure.

Phadtare (n.d, p.8) adds that for strategy to be of success it should be well designed. Daft (2010, 69) notes that the essence of cost leadership strategy is to increase market share by keeping low compared to competitors

Mudra (2006, p. 51) notes that restructuring of a business operations is aimed at achieving long term solutions to problems being faced. This can be applied to Pilkington which is restructuring its operations after experiencing problems.

According to Winterton & Winterton (199, p.53) through rational planning and efficiency and profit maximization s are achieved in long run. Through job structure planning Grant 1989, 2), and analysis a company is able to increase its production. This is seen in the Pilkington Company where it introduces job structure and planning.

Through the initiative of accountability a company can ensure that work by employees is well done. Price (2007, p, 606) adds that leaders should be willing to be accountable in the work place s means of ensuring prosperity. Cartwright (2005, p.45) observes that reorganization through downsizing makes the working relevant. This enables the organization survive as it cut down its costs. So it can be concluded that the Pilkington Company indeed used strategic approach in its operations.

The company had to build a relationship between the employee groups and the industry itself. This according to Pattanayak (2005, p.34) is achieved through the human resource planning effectiveness and the integrative process through contemporary approach. It applies work flexibility and mobility and incorporation of skills development programs. The contemporary approach is concerned with the individual goals as well as those of the company (Pattanayak 2005, p.34).

Reference List

Berkowitz, E. N., 2011, Essentials of health care marketing. Sudbury, MA, Jones & Bartlett Learning.

Becker, B. E., Huselid, M. A., & Ulrich, D., 2001, The HR scorecard: linking people, strategy, and performance. Boston, MA.: Harvard Business School Press.

Blyton, P., & Turnbull, P., 1992, Reassessing Human Resource Management. London: Sage.

Bratton, J., &, Gold, J., 2001, Human resource management: theory and practice, London: Routledge.

Cartwright, S., 2005, Human Resource Management. New Delhi: Mittal Publications.

Daft, R. L., 2010, Organization theory and design. Mason, Ohio: South-Western Cengage Learning.

Durai. P. 2010. Human Resource Management. India. Pearson Education India.

Grant, R. M., 2005, Contemporary strategy analysis. Oxford [u.a.]: Blackwell Publishing.

Grant, P. C., 1989, Multiple use job descriptions: a guide to analysis, preparation, and applications for human resources managers. New York: Quorum Books.

Gratton, L., 1999, Strategic human resource management: corporate rhetoric and human reality. New York: Oxford Univ. Press.

Griffin, R. W., 2008. Management. Boston: Houghton Mifflin Co.

Kazmi, A. 2008. Strategic management and business policy. New Delhi, Tata McGraw Hill Education.

Kurtz, D. L., Mackenzie, H. F., & Snow, K., 2009, Contemporary marketing. Toronto: Nelson Education.

Madura, J., 2006, International corporate finance. Mason, Ohio: Thomson, South-Western.

Pattanayak, B., 2005, Human resource management. New Delhi: Prentice-Hall of India.

Phadtare. M. T., n.d, Strategic Management Concepts and Cases. New Delhi: PHI Learning Pvt. Ltd.

Porter, M. E., 1998, Competitive advantage: creating and sustaining superior performance : with a new introduction. New York: Simon and Schuster.

Price, A., 2007, Human resource management in a business context. London: Thomson.

Schermerhorn, J. R., 2010, Management. New York: John Wiley & Sons Inc.

Starkey, K., & McKinlay, A.,1990, Realigning Internal and External Environments: Organisational Change at Pilkington, in Wilson, DC and Rosenfeld, R. (eds), Managing Organisations: Text, Readings and Cases. London: McGraw-Hill.

Winterton, J., & Winterton , R.,1999, Developing managerial competence. London: Routledge.

Whittington, R., 2001, What is Strategy  and Does it Matter? London: Thomson learning.

Introduction

The task is a close analysis of Bank of America. This is accomplished by using the SWOT analysis, Porter and Millars five forces model, Porters competitive strategy, Nolans stage model and McFarlans strategic grid.

Additionally, issues relating to e-business strategy formulation, an evaluation of proposed e-business strategy, discussion of the barriers to the adaptation of m-commerce by the company and evaluation of the critical success factors for the e-business are succinctly covered.

SWOT Analysis

The bank needs to invest in ICT which will later provide education and training to her employees. Similarly, there is a need for the bank to have in place a set of strategies that will help address concerns of customers hence making the business stable

Porter and Millars Five Forces Model

It is worth noting that the model brings an understanding to business community that the following five aspects have an impact on profitability of an incumbent firm, the intensity of competition, ability of suppliers or buyers of a firms product to restrain profits of the firm, behaviors of those firms that produce similar goods and services, and potential for entry into the market by new entrants or firms (Bocij et al., 129).

Figure 1: Porter and Millars five forces model

Source: Adapted from Porter M., Competitive Strategy, Free Press, 1980.

Competitive rivalry

Bank of Africa has faced and will continue facing stiff competition from such big banks as Citigroup, Well Fargo and JP Morgan.

Globalization which has opened the world into a global village will create oversea competitors both in the U.S and other countries where the bank operates or intends to operate. It is evident that the slow speed of the industry growth in the US provides a serious state of competition for market share among the major competitors.

To curb this issue, it is the responsibility of the body responsible for global operation to help the firm capture new markets, new customers as well as ensure that the existing ones are satisfied. There is also the need to have the e-business strategy to be unified so that it was effective and efficient (Bocij 412).

Customers bargaining power

It is worth noting that since the banking industry is experiencing a decline in market share, there are no possibilities of having new customers hence the existing ones have more power. Additionally, due to public education, the customers are more informed and clearly know what they want from banks, as well as from the associated price tags (Porter 172).

To help address this issue, the bank needs to further improve its customer care services concerning both, online and offline banking. Additionally, the bank needs to furnish its website and ensure that it works effectively and it is user friendly.

This will help capture new market and attract new customers. Lastly, there is a need to be vertically integrated in terms of major consumers as this will help address the bargaining power of customers (Porter 238).

Suppliers bargaining power

Since the firm is a large company, it is an important customer of supplier group. There are few suppliers who can meet the demands of such a big firm. Considering that there are also other big firms such as Citigroup, the supplier will have a higher bargaining power.

To curb this issue, Bank of America needs to have a unified data base where it will be able to evaluate the prices of the various suppliers and choose the one which is favorable and that will allow the bank to charge customers different prices as a result of differences in the value created from the supplier hence a competitive advantage.

Threat of new entrants

It is difficult for an outsider to replicate the position of Bank of America due to the following reasons; the firm has a well developed brand that cannot be copied and the cost of entry particularly investing in technology and human resource.

I strongly believe that in order for the bank to successfully curb these five forces, there is need for it to adopt e-business. This will not only strengthen its core competencies but also widen its market share and maintain existing customers who are obsessed with technology.

Additionally, having in place an effective and user-friendly website will be a plus to this goal. Lastly, having in place well trained and motivated employees will help in ensuring that the firm maintains and improves its current position.

Substitute products

There are indeed substitute products from other related industries, such as JP Morgan and Well Fargo among others. To curb this issue, Bank of America should engage in non banking products and services. Similarly, it should continue building its brand which will make substitute brands less appealing to current, as well as new customers (Porter 244).

Porters generic competitive strategies

The position of a firm within its industry is dictated by whether its profitability is below or above the industry average which is a result of long term sustainable competitive advantage. There are three main generic strategies to achieving low cost or differentiation performance and include cost leadership, differentiation and focus.

For the bank of America, the strategy it has been applying for long is cost leadership in terms of proprietary technology (Johnston 132). The firm has been always in the forefront in adopting new technologies to help it stay a step ahead of its competitors. Indeed, the adaptation of these technologies was well throughout and sufficiently met the demands of customers (Chen 78).

Nolans stage model

The model holds that an organization which adopts information technology has to undergo four main stages of maturity. The stages are as follows: initiation stage, expansion or contagion stage, formulation or control stage and integration or maturity stage.

However, there are cases where some firms skip some of these stages nonetheless; the stages provide us with an opportunity to analyze the growth of an organization based on its adoption of IT.

Linking the model with the Bank of America, it is evident that it has tried to use technology in running its day to day business. The firm has gained control over the IT resources and has actively engaged in formalizing processes, as well as standards. In numerous occasions the firm has tried to employ cost-effective criteria.

Although reports come from various departments, such as sales and marketing, to be sorted out by the company. There are some serious issues, such as the lack of adequate skilled manpower in the department of Information Technology preventing to do this (Johnston 57). Thus, the firm is in stage three formalization or control stage.

For the firm to reach or attain the perfection stage or maturity stage, e-business strategy will play an integral role where the firm will have a well thought-out plan.

Mc Farlans Strategic Grid

This is an Information Technology specific model usually used to examine the nature of a set of projects which an organization is undertaking to establish how best the portfolio supports the day to day running of the organization in question. Ideally the model has 4 sections namely turnaround, strategic, factory and support (Figure 2).

Figure 3: McFarlans strategic grid

Source: Bocij et al (2006) Business Information System, 3^rd edition.

In the case of the bank of America it is evident that it has employed information technology in her business processes as well as management issues. In terms of factory it will about effective resource use, high quality of product and services.

In terms of strategy it will add high value, enhance vertical integration, as well as foster continuous innovation. It is also evident that concerning support, IT has supported efficiency as well as sustained quality. Lastly, with regards to turnaround, it will initiate cost control. In my view, adopting e-business will ensure that all these are realized.

E-business strategy formulation

Ideally, this entails part of a business strategy that will transform the firm from a brick to click while ensuring that it maintains the current customers, attracts and maintains new ones through fostering provision of high quality services and products, efficient and effective operation not only in America but also in the entire world. The following opts to be done;

• Developing a website that is effective and user friendly characterized by high speed of data link to enhance e-business
• Linking both, online and offline sales and marketing strategies whereby the firm will introduce services that customers can access through both, website and from the banks.
• Developing an online system where it will be possible for customers to track the firms products and services
• The customers will also be able to make inquires, issues of concern are addressed online and even product acquisition and other forms of transaction be accomplished without visiting the brick and mortar offices.
• The system needs to support communication across the globe
• It would be rational for the firm to create and use customer relation management software which should be user friendly
• Fully adopt IT in all the relevant sectors and have all data set unified and managed by a central organ to enhance efficient and productive operation.
• Have a plan to regularly train and educate employees on IT issues so that they are be able to use the IT
• It will also be rational to have annual budget that will support investment and maintenance of ICT department

To implement this strategy, there is a need for the firm to do it step by step. It is the responsibility of the chief information officer to decide on these steps and the related reviews.

Evaluation

The proposed strategy will be accommodated by the budget of the firm. It is the task of a chief information officer to choose one of the ERP applications that can be integrated with other separate softwares to develop a unified database. For the firm to achieve success, it should adopt a strategy where there is ongoing training of relevant employees during the building of the plan.

Having an improved website that is easy to use will help foster interactions between customers and the firm. Similarly the customer relation management software will help the firm to capture new customers. Ideally, adopting technology will help the firm to maximize its operation thereby meeting the demands and aspirations of customers.

M-commerce

There is no doubt that mobile phones, together with the internet, have revolutionized consumers engagement in firms and business. For this reason, organizations have gone a step further to adopt m-commerce which considers utilizing mobile devices such as mobile phones to support business transactions via a mobile telecommunication network (Chaffey 254).

The following can be done through m-commerce advertising and promotion, store location, in-store navigation, comparison shopping, information and extended packaging, payment, among others. However, there are some potential barriers that face each and every organization when trying to adopt this technology, bank of America is not an exception (Nash 197).

Among the challenges that a firm can face are

Issues related to infrastructure levels and requirements; It is a fact that to utilize mobile devices in business effectively, there is a need to have in place a platform that offers speed data access (Chen 408). The firm needs also to develop a platform that will be compatible with the mobile network. In addition, employees are to be well trained and educated to support its adoption.

Another barrier is central to the different mobile devices capabilities. Although it might be the desire of the firm to provide its customers with all relevant products and services, this will be limited by the type of mobile handset one owns. The low memories of some mobile handsets will hinder such an effort (Turban et al., 123).

Similarly other emerging issues pertain to personal security. It is a fact that viruses have spread quickly within networks compromising the privacy of customers.

On the same note scientists have linked some health complications such as cancer to using mobile devices so people will try to avoid using them at all costs. Concerning privacy, people are always apprehensive when it comes to doing business through mobile devices (Turban & Volonino 89).

It is not to be assumed that all individuals are literate. For that reason, the efforts of the bank top adopt m-commerce might be jeopardized since some individuals particularly in developing countries which offers new market opportunity for the bank are not well versed with technology advancement.

Lastly, it is evident that it is easy for one to loss a mobile device. The mobile phone contains a lot of personal information that when it gets into the wrong hands, the customer will have a lot of problems. This will potentially restrain possible customers from using it (Chaffey 12).

In my view, to overcome the afore mentioned barriers, the firm needs to do the following;

• Do a thorough consultation on how best it can create a standard platform to be used by the potential customers.
• Since it will be a global initiative, the firm should try to understand legal provisions, laws and taxation of the respective countries
• There is the need for the firms to assure customers of their privacy and security while doing transaction through mobile devices
• Have in place a webhost that is secure; periodically evaluate the state of security and use the best antivirus possible to help curb issues related to information theft.
• Employing individuals who are well versed and experience in mobile technology will be plus since they will also train other workers about the technology

Critical success factors for e-business

Capturing new markets

With technological advancement, the world has turned into a global village and the only way to survive it is to continue attracting new customers as well as capturing new markets. To accomplish this, the bank ought to develop new products and services and give added value to their customers. It is no doubt that the e-business initiative if done successfully will help the firm respond quickly to the demands of new markets.

Supporting the IT department

Technology plays an integral part in development of any organization in the present century. Funds need to be allocated to ensure regular upgrade of the ICT equipment as well as employee training.

Customer centered marketing

There is the need to always center on the needs and aspiration of customers when doing marketing. Since customers are well informed, having customer based policies will help maintain the stability of the firm as well as cut it self an edge in this competitive world. With this, it will be possible to collect large data about customers preferences and behavior (Turban et al., 234).

Works Cited

Bocij, Paul, Chaffey, Dave, Greasley, Andrew, and Simon Hickie. Business Information Systems. Essex, England: Pearson Education Limited, 2006. Print.

Chaffey, Dave. E-Business and E-Commerce Management. Upper Saddle River, NJ: Prentice Inc., 2007. Print.

Chen, Stephen. Strategic Management of E-Business. Chichester, England: John Wiley & Sons Ltd, 2005. Print.

Johnston, Moira. Roller Coaster: The Bank of America and the Future of American Banking. New York: Ticknor & Fields, 1990. Print.

Nash, Gerald D. A.P. Giannini and the Bank of America. Norman, Oklahoma: University of Oklahoma Press, 1992. Print.

Porter, Michael E. Competitive Strategy: Techniques for Analyzing Industries and Competitors. New York: Free Press, 1980. Print.

Turban, Efraim and Linda Volonino. Information Technology for Management, 7th edn. New Jersey: John Wiley & Sons Inc., 2009. Print.

Turban, Efraim, King, David, McKay, Judy, Marshall, Peter, Lee, Jae and Dennis Viehland. Electronic Commerce 2008: A Managerial Perspective. Upper Saddle River, NJ: Pearson Education, 2008. Print.

The economic recession that began in 2007 continues to affect a great number of U.K. businesses and one of its effects is the decrease in the number of jobs available to young people. The situation becomes particularly challenging for them since many employers value the experience of candidates (UK Commission for Employment and Skills 2012, p. 4).

Furthermore, one should note that the economic downturn and competition force many companies to reduce their labor costs. Therefore, it may be difficult for some of the candidates to retain their jobs. These are the main aspects of economic climate.

There are several trends of youth unemployment that one can identify. First of all, it should be noted that young people are traditionally occupied in sales or elementary jobs (UK Commission for Employment and Skills 2012, p. 4). Yet, the number of such jobs has significantly decreased within the last decade. The second trend is the growing number of small businesses.

To some extent, it is a positive tendency because it leads to job creation. Nevertheless, these organizations usually focus on the experience of a professional. Furthermore, one should note that young people often need informal relations with in order to secure employment (UK Commission for Employment and Skills 2012, p. 4).

Additionally, young people, who continue their education, are less likely to be employed because companies usually require full commitment of their workers (UK Commission for Employment and Skills 2007, p. 12). These are the main tendencies that are important for explaining youth unemployment.

It is important to discuss the education of young people and the expectations of employers. First of all, schools and colleges can give a person a set of skills that are necessary for a certain profession. Furthermore, good education ensures that a graduate can acquire new skills in the course of his/her career.

Overall, the majority of companies are satisfied with way in which educational institutions prepare young people for work (HM Government 2012, p. 7). Nevertheless, companies expect new hires to integrate into the organization as quickly as possible. An employee can do it provided that he/she has previous working experience. Furthermore, they expect full commitment and motivation of every worker.

It should be noted that some of the companies attempt to increase the percentage of young employees. These organizations normally work in such sectors as manufacturing, public administration, education and healthcare (The Chartered Institute of Personnel and Development 2011, p. 1).

Certainly, these organizations also value experience of potential candidates, but they also value the ability of an employee to bring innovations. This is why they hire young candidates.

Companies adopt several strategies in order to recruit the most talented candidates among young people. First of all, one can speak about graduate programs that are supposed to identify potential candidates even before they start searching for a job (The Chartered Institute of Personnel and Development 2012, p. 16).

Furthermore, many organizations prefer to hire interns who have not yet graduated (The Chartered Institute of Personnel and Development 2012, p. 16). These strategies increase the opportunities that young people have.

However, one should note that such practices are adopted by large organizations that have the resources to implement such programs. For instance, one can mention IT companies, hospitals, or public agencies. Yet, one cannot say the same thing about small businesses.

References

HM Government 2012, Supporting youth employment, HM Government, London.

The Chartered Institute of Personnel and Development 2011, Labor Market Outlook: Young People. The Chartered Institute of Personnel and Development, London.

The Chartered Institute of Personnel and Development 2012, Annual Survey Report, Resourcing and Talent Planning, The Chartered Institute of Personnel and Development, London.

UK Commission for Employment and Skills 2007, Youth Inquiry Evidence Base, UK Commission for Employment and Skills, London.

UK Commission for Employment and Skills 2012, The Youth Employment Challenge.Web.

BigLafz Puzzle Company is experiencing some organizational challenges owing to the deteriorating financial performance. Having been in the business environment for almost a century, the organization finds itself caught between a rock and a hard place owing to its decreasing profitability. In fact, it has lost its competitive edge over its rivals and the collapse of the economy that has stripped the consumers off their spending power complicating the situation even further.

To rectify the situation, the managing director seeks to minimize the labor costs through layoffs and downsizing strategies. This brings about the ethical dilemma of which employee to fire given that the company has decided to fire only one employee. Potential employees for layoff are four. The manager ought to choose the one to fire considering they all have different credentials and needs. This analysis provides insights of the employee who deserves to go home by use of reasoning.

Baradacco Jr (1997) provides an outline of factors to consider when making right versus right decision and solving ethical dilemmas and puzzles. Cost benefit analysis explores the consequences of a certain managerial decision. If the negative consequences are considerably lower than the expected benefits, the decision is appropriate. Beyond this analysis, it is important not to infringe on the human and labor rights of an individual when making a decision (Baraccado Jr, 2002).

Hence, it is appropriate to explore the potential of the decision to violate peoples rights. Third, individual character is of paramount importance and so is the organizations character. For this reason, a manager ought to analyze the way the decision will injure or enhance the organizations character and integrity. Finally, a manager should consider pragmatism as explicated by Machiavelli of dealing with the world as it is and being realistic (Baraccado Jr, 2002).

Considering all these factors, as the manager of BigLafz Puzzle Company I would make a decision of firing Tyrone. The rationale is that on a cost-benefit analysis, the company stands to lose a young, ambitious and multi talented employee whose has been impeccable in performance.

But at what cost? In Tyrone, the organization has a person who is boastful of his achievements, casual on deadlines and ignorance of detail when asked to deliver on a project. Apparently, the organization is unsure of the longevity of his stay at the company owing to various resumes he has dropped to competing companies. As such, the company will lose an employee it has nurtured making the organization to train other people or even recruit new person to fill his position incurring even increased expenses in the long-term.

Second, the company will not be infringing on the employees rights. The rationale is that the company management has noticed his unbecoming behavior in the context of the organization and consequently, given him some warnings. He has not worked for the organization long enough to be pensionable and thus, his rights will not be violated. Third, character is an important factor that managers should consider when making such decisions.

Tyrone is single and has no dependants unlike employees such as Felicia who works extra hard to meet the obligations of her household composed of three teenagers. Hence, the only person that the decision will affect is Tyrone. This will enhance the character of organization since the barbaric behavior he exhibits is not in line with the culture of the organization. It also defies integrity that the organization desires (Baraccado Jr, 2002).

Finally, the organizations management should be pragmatic and deal with the world as it is. This does not entail acting recklessly but understanding that the image of the organization would ultimately stand to lose owing to the behavior of Tyrone. To that end, I would fire Tyrone.

References

Badaracco Jr, J. (1997). Defining Moments: When Mangers Must Choose Right and Right. Wisconsin: Pearson Books.

Braccado Jr, J. (2002). Defining Moments: Lecture Text. Harvard Business School, 1(2), 1-12.

Chester, B. & Thomson, K. (2003). Organization and Management. New York: McGraw Hill Publishers.

There are a lot of different ways of moving a product from a supplier to the customer. The process of organization of different elements involved in the delivery of the product from the supplier to the customer is called a supply chain.

Grieger (2004) in his dissertation defines supply chain management as the integration of key business processes from end user through original suppliers that provides products, services, and information that add value for customers and other stakeholders (p. 105). Reading Whiteley (2000), he has the same approach to supply chain in e-commerce.

E-commerce was relatively new trend in 2000, the year of the book publishing. During that time E-Commerce: Strategies, Technologies and application by Whiteley (2000) was an innovative and reasonable source devoted to supply chain in e-commerce. Nowadays, reading that source, most of the strategies, approaches and specific peculiarities remain up to date.

E-commerce has changes in the rate of use, mechanism of functioning, etc. However, the approach to the process of the delivery of the product from the producer to the customer has remained unchanged.

One of the most powerful aspects in the use of the source under consideration is time. Being written more than ten years ago, it remain up to date and it is easy to understand why it is if to consider the information properly. The second chapter is devoted to the supply chain and value chain. The author of the book refers to the popular and world known model offered by Porter.

Proposing the simplest manufacturing value chain which consists of the components of supply which are shifted to the to the sub assembly supply and further appear at the manufacturing stage after which go to wholesale and appear in hands of retails which deliver the product to the customer.

Basing on this manufacturing value chain, Whiteley (2000) offers Porters value chain model as the most effective and it is easy to explain why. Porter offers five primary activities necessary for successful process, these are inbound logistics, operations, outbound logistics, marketing and sales, and service.

Additionally to these primary processes, Whiteley (2000) points at procurement, technology development, human resources and firm infrastructure.

The model mentioned above is just the model, the skeleton which may be used as the basis for applying to the companys needs. Each company referring to this model should understand that depending on its peculiarities, the chain may have another view, however, the central elements are to be included.

Following the pieces of advice offered by the book, the company which refers to this specific strategy should identify the components applicable to its organizational process, then define the linkages and analyze each of the elements from the point of view of cost and value added.

This will help to add efficiency to the model. Therefore, having read this source up to the end, it may be concluded that the date of publication does not play any role as the models used there as the models are referred to by the modern companies and the explanation to those models and the pieces of advice given for better understanding of the process are also efficient.

This source if obligatory for reading by all students who deal with management, marketing, e-commerce and other related spheres as being easy in understanding, it presents a lot of effective and comments which help apply a theoretic model into real life.

Reference List

Grieger, M. (2004). Internet-based electronic marketplaces and supply chain management: a systems approach towards a holistic concept of utilizing internet-based electronic marketplaces to support supply chain management. Copenhagen: Copenhagen Business School, Ph.D. School of Technologies of Managing.

Whiteley, D. (2000). E-Commerce: Strategies, Technologies and application. Maidenhead: McGraw Hill.

Approach and tools needed

The business idea that EnerNOC came with tells of the company founders desire to meet the growing demand in electricity. Traditionally, electric utilities supplied to consumers power but when power shortages occurred, it very difficult to meet the consumption demands of the ever growing number of consumers.

EnerNOC therefore became a monopoly in the provision of its services customers driven by an idea of, Turning energy savings into sales (Douglas, 2010).

This ideally was not only intended to spearhead EnerNOC to massive business opportunities but it also through its image before prospective investors.

There, the company had the following questions to answer. How were they to deliver value to customers and convince the investors to venture into their fields of operation thus providing satisfactory services to customers with time as a constraint?

The case study only mentions on the kind of approach that EnerNOC was to use without clearly stating it.

As a new service provider on market, and since the company was still in its infancy stages, coming on market with the theme of providing solutions to power shortages and peak moments consumption constraints, service delivery was therefore its primary concern.

From the case study, EnerNOC approach to establish a Network Operations Center was its major breakthrough to reaching its North American customers through remote control and monitoring technology.

With this technology at its disposal, growth, and therefore market penetration was at its disposal for grabs (Douglas, 2010).

Approach of saving power to sale was also another challenge and perhaps EnerNOC other challenge. The reason is they had never been in any other business of this kind nor was there any documented evidence such service provision.

To EnerNOC founders, from the history of its foundation, this was a business idea that entrepreneurs Tim Healy and David Brewster were bringing to birth and without practical background.

From a consumption analytical point of view, the figures provided for the comparison between consumption of electricity versus generation and transmission during 1950s to 1990s periods shows a reduction in demand due to improved efficiency in generation and transmission to consumers (Douglas, 2010).

The period it takes electric utilities to make a demand difference (drop) of 6.5% is long enough to give EnerNOC an approach clue. And that is improvement of efficiency in generation and transmission and generation within a short period of time than it took electric utilities.

Luckily, EnerNOC was not doing generation and transmission, but saving energy to sale. This was the highest efficiency in the shortest time to be achieved. The figure below shows percentage decrease in demand between the periods mentioned above as opposed to consumption over the same period of time (Carlson school of management, 2010).

Figure 1: analysis of demand and consumption of electricity

From the figure above it is evident that as a low demand in electricity is experienced, there is a sharp rise in consumption. Here, the approach is to curtail the high consumption by approaching as many end consumption units with the sole purpose of negotiating a cut in consumption during peak moments.

From the relationship above, the more saving units that EnerNOC could manage to get, more negawatts it could save to sale to utilities (Carlson school of management, 2010).

It is explained that EnerNOC made its sales in two ways, first to the utilities which had to grant access to its customers and place an order from EnerNOC.

This approach could also have taken the course identifying likely customers who could consume power during peak demand then create a link to them through its remote monitoring technology. This has the benefit large sales since the burden of placing an order for negawatts is not solely left to the utilities.

The same way EnerNOC created a notification system to customers to reduce consumption during peak demand it could also create a link with peak demand consumer customers by giving them access to its remote network.

This benefits both EnerNOC and the customer by making sure that whenever there is a power need, that customer in need of power immediately notifies EnerNOC and EnerNOC in turn closes that immediate sale to the utility concerned, instead of waiting for the utility to place an order by accessing the customer (Carlson school of management, 2010).

Capacity improvement

It is from this case study that unlike electric utilities which had physical generation and distribution plants, EnerNOC was a virtual plant. Consumption statistics of the periods shows that the periods 1950s to 1990s showed a sharp rise in the consumption of power.

The solution lay in generational power. However, this was not the idea of EnerNOC. EnerNOC relied on encouraging power savings in order to sale. In first place, regulatory changes were already favoring them since their way of energy sale was environmentally clean (no emission of carbon dioxide).

With all this at their disposal, EnerNOC could only produce 700MW of power to sale. If we consider growth of EnerNOC during the business period of 2005 to 2008, the figure below analyses growth in profits of the company over the same period (Carlson school of management, 2010).

Fig 2: EnerNOC energy sources. Growth trend between 2005 and 2008

It is evident that there was a significant rise in growth over the period in question. However, this is only a portion of an enormous growth opportunity. At this point they are faced with the following issues to address:

1. Was the company willing to expand its capacity by also switching to low cost sources energy like wind and solar in order to improve on capacity? This is not mentioned either in the case study. The advantages of using this kind if energies shall be discussed in table 1, drawing a comparison to other energy sources.
2. Was the company willing to take its first growth from regional level to an international level thus exploring and penetrating new markets?

These two issues in my opinion could be positively embraced by the company could spearhead it into profitability. The figure below therefore analyses profitability of EnerNOC based on data provided by the case study for profitability trends.

Figure3: profitability trends on EnerNOC between 2005 and 2008

The figure clearly brings out an upward growth trend but a downward profitability of the company. The companys net profitability is below zero. This trend is not attractive to investors either.

For a business to attract investors, it should be profitable. EnerNOCs profitability trend instead scares away investors. To address this they should venture into new markets in order to break even.

It is evident that their operating expenses are higher than their net profit before tax. In order to improve on profitability, the following table gives a suggestion to EnerNOC additional energy substitutes that would improve their profitability while maintaining a low input cost profile (Albers et al, 2008).

Of the four energy options at hand to EnerNOC the next available source of energy to distribute is solar and wind power.

Keeping the sales team dynamic

The sales team comprised of 50% of EnerNOC staff. Closing contracts, both long and short term, depended so much on effort of innovativeness of the sales team. Categorically, the sales team may have been entrusted with different responsibilities at individual level; success of EnerNOC was as a result the sales team.

The companys current rewarding system is based on small commissions on a regular basis. Realizing the complexity of making sales person, it is clear that special skills were necessary for EnerNoc.

By way of example, from the case study, the sale person was supposed to understand the business and operational dynamics of that individual customer (Albers et al, 2008).

As a result, each sales person was entrusted with a responsibility of tracking down potential customers and closing deals with them. It was a noble decision by the company to retain a base compensation to its sales team, no matter the commissions.

However it was not the mistake the sales person if the sealed contract went sour due non responses from the customers over issues like a company for instance has changed hands and therefore there are contacts.

In that case, the record system up-to-date information about EnerNOC customers is questionable. If sales person fails to receive commissions based on the possibility that a utility does not pay due to communication breakdown between a service provider and receiver, it amounts to demoralization.

Conclusion

EnerNoc has a great potential of growth while making profits if only it could address the issue of capacity expansion, correcting mistakes and rewarding sales people through the suggested ways.

The older system of remitting commissions to sales people at the closure of a deal should be encouraged. Rewarding should also be based on a team as an entity but not on individual basis for sale people selling the same products.

At some point in the case study, it is mentioned that at some point a sales person earned more than a CEO. This is encouraging though it lacks a motivational factor.

References

Albers, S, Murali K., Mantrala, S. G. & Kissan J., (2008). Introduction: Special Issue on Enhancing Sales Force Productivity. Journal of Personal Selling and Sales Management, (28), pp. 109-113

Carlson school of management. (2010). Obstacles to Growth of New Technology Based Enterprises. Web.

Douglas, Y. (2010). Management. Web.

Introduction

One of the tasks delegated to the management function in an organization is the implementation of organizational culture geared toward creating a good working environment for the human assets in an organization. Organizational cultures are developed to steer companies toward the development of certain values that dictate on the behavior of the member of the company.

It follows that the application of good organizational cultures opens the grounds for employees in a given company to develop good rapports with each other, and this promotes the attainment of ultimate competence on the performance of individual members of the organization. A good organizational culture can serve as a motivational factor for the members of the organization.

The management function has the obligation to ensure that the values set for the human assets in an organization to follow are geared toward creating a good working environment. It is common for companies to conduct various organizational changes to maintain high performance on the part of the employees. This paper will look into several aspects of an organization with reference to the current news on the aspects evaluated.

Environment and organizational culture

Organizational cultures develop an internal environment with a perception of shared values among the members of the organization; thus, they can be effective in developing high performing workforce or they can fail if there is resistance on the part of the employees. The effectiveness of organizational culture depends on the level of acceptance portrayed by the human assets of an organization.

The acceptance of a new culture is dependent on the environment that the values develop in the company. The environment in an organization comprises of how employees relate to each other and the management through the values set by the organizational culture. In the current modern era, many companies have failed in the application of organizational cultures that best suit their companies internal and external environments.

The external environment is consists the society, competitors, suppliers, and customers (Ravasi & Schultz 2006, p. 434). The internal environment in organizations should possess effective communication channels to create an environment where employees can communicate directly to their leaders.

The channels help in the delivery of information in an effective way; hence it can be used in the advocacy for organizational changes (Robbins, Bergman, Stagg & Coulter 2011).

One of the most eminent constraints for organizational cultures is resistance from the employees. Resistance occurs when the management develops oppressive values in the culture, especially in multi-cultural organizations. An organizational culture must be centered in the beliefs of the members of the company to gain the acceptance level that influences positive changes (Schein 2006).

If the values set in the culture are against personal beliefs of the employees, resistance to the changes implied is divine. Employees also require norms that do not build to their work stress; thus, managements should look into developing a culture that provides a good working environment in terms of limited pressure on the employees (Cameron & Quinn 2011).

The culture should consider the cultural dynamics in the organization in terms of the personal beliefs held by the members of the organization (Alavi, Kayworth & Leidner 2006, p. 193). Wal-Mart is among the many companies that have seen their authoritarian organizational culture lead them to trouble with the employees.

In 2011, Wal-Mart was sued by its employees for sex discrimination because it organizational culture was geared toward providing male workers with more promotion opportunities than their female counterparts.

The discrimination was clearly indicated by the values set by the management, whereby the male employees were placed under higher expectation opportunities than their female counterparts (Lichtenstein 2011). Through Wal-Marts case, it is clear that management functions should develop a culture that is not oppressive of any members of the organization.

Motivating employees

Organizational performance is directly dependent on the performance of the human assets in the company in their individual workstations. For employees to portray their highest competence levels in the workflow, they have to be subjected to motivational factors by the management in the organization.

Motivational factors in an organization are derived from the provision of a good working environment, meeting employees needs, and providing them with enticements (Tsai, Yen, Huang & Huang 2007, p. 158). Luring employees into assuming self-controlled ambition to meet the organizational goals requires the management in an organization to identify with the needs of the employees from a motivational perspective.

One of the most effective ways of motivating employees is engaging them in the decision-making processes in an organization. When employees are included in the development of important decisions in their company, they are likely to gain more interest in attaining the goals set collectively by the members of the organization.

Employees also need to be provided with opportunities to develop their personal goals in their workplace. The opportunities can be provided through the creation of promotional chances for the best performing employees. Promotions motivate the ambitious human assets to work hard toward harnessing the available opportunities (Robbins, Bergman, Stagg & Coulter 2011).

Companies across the world have also identified the power of developing reward programs in motivating employees. When a company develops an enticing reward program for the best performing employees or teams, the members of the company are likely to be motivated to employ their highest competence levels in handling the workflow (Messmer 2011).

Developing some unique reward programs for employees is also a good motivation source in companies facing challenges in human assets performance. The programs should be geared toward influencing employees to portray their highest performance levels to attain the reward (Robbins, Bergman, Stagg & Coulter 2011).

The Apple Inc. Company is one of the most successful companies in the world, and its remarkable success in its business industry can be directly linked to the highly motivated HR team in the organization.

Steve Jobs, the late CEO of the company, developed a motivational culture whereby his employees were provided with the financial requirements of their innovative projects if the projects were unique and viable for the market (Tobak 2014). Steve Jobs would help in the development of every viable idea developed by his team of employees.

This culture still prevails in the company, and it has resulted in the development of human asset base with highly motivated employees.

Steve Jobs also developed an effective organizational culture that was geared toward providing employees with the freedom to make decisions in their work, and this is also a motivating factor in the company because the human resources are obliged to attain high levels of self-efficacy (Pallis 2013).

The Apple Inc. Company has effectively demonstrated that employee motivation is an important management obligation for any company looking to get to the top of its business industry in terms of competitiveness. A video recorded speech by Apples CEO, the late Steve Jobs, revealed that motivating employees is an integral part of building a company to success (Motorbreath0007 2012).

Managing change and innovation

Change management in an organization is a crucial task for the leadership and management functions. The challenges following the implementation of change depend on the implications of the change on the resources available for a company including the human resources.

In most cases, the changes proposed by the management and leadership fit a companys budget; hence, the only challenge is the acceptance of the change by the human resources. Managing change is a task delegated to the human resource management department in most organizations. The HRM develops programs to accommodate the change (Burke & Ng 2006, p. 87).

Some of the programs geared toward compelling employees to accept change is training and development programs. For instance, if an organization is looking to shift from a paper based information system to an electronic information system, the employees are bound to resist the change if they are not acquainted with the necessary training on the use of the new system.

Managing change management also entails training the human resources toward embracing certain values geared toward leading an organization to reach an intended state (Carnall 2007). Change management must be developed within realistic goals and a transitional period must be offered to the stakeholders.

Innovation, on the other hand, involves the development of creativity and the utilization of self-rationale in the development of new ideas. Innovativeness enhances the competitiveness of an organization; hence, management teams should look to develop innovative human resources through training and development (Drucker & Drucker 2007).

Having an innovative team provides managers with an easy task of developing ideas to attain the organizational goals. Innovative employees should be monitored because sometimes they may fall into business risk traps in the process of developing and implementing their ideas (Tidd & Bessant 2011). Innovation is also an important tool for managers looking to develop solutions to challenges in their organizations.

Samsung is one of the most innovative companies in todays smartphone business, and its success is attributed to its innovative teams and effective management of the many changes that the company has gone through over the past decade (Grobart 2013). Samsung has taken a leading position in the production of high-tech Smart phones through its innovative product development teams.

Conclusion

Management is a challenging task for managers facing resistance from their employees; hence, managers should look to provide their employees with a good working environment.

Organizational cultures are an effective way of developing the environment required for employees to attain their optimum performance levels. Many companies face challenges in the development of effective organizational cultures because of the implications of the espoused values trigger resistance from the employees.

Organizational cultures can develop a positive environment leading to easier management of human resources. Motivating employees is a requirement for managements looking to influence high performance levels of their employees. Managers can use motivational factors on their employees to exploit their skills and knowledge fully.

Motivating factors include enticing offers for the best employees, training and development programs for personal career development and promoting individuals to reach their career goals. Without the motivation of employees, managers hardly have the ability to actualize organizational goals.

Change management entails piloting employees into assuming a specific direction for an organization to attain a defined form. The HRM is responsible for preparing employees for changes in an organization. Innovation is an important factor for managers because it helps them develop effective ideas to tackle challenges.

List of references

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Grobart, S. 2013, How Samsung became the worlds No. 1 Smartphone maker. Web.

Lichtenstein, N. 2011, Wal-Marts Authoritarian Culture. Web.

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Motorbreath0007, 2012, Steve Jobs Motivation and Success, Video recording, You Tube, California.

Pallis, M. 2013, Boosting employee motivation: Lessons from Steve Jobs. Web.

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Tsai, P. C. F., Yen, Y. F., Huang, L. C. & Huang, I. C. 2007, A study on motivating employees learning commitment in the post-downsizing era: Job satisfaction perspective, Journal of World Business, vol. 42, no. 2, pp. 157-169.