Thomas Davison finance report Essay Example | Topics and Well Written Essays - 2000 words

Thomas Davison finance report - Essay Example Salaries Wages and Payroll Costs A more detailed study of the available accounting data reveals that Salaries and Wages showed a 9.6% negative variance over the budgeted amount and Payroll Costs also showed a negative variance of 9.6%. While Salaries and Wages are basically the amount of money paid to employees and are self explanatory, it must be mentioned that Payroll Costs essentially consist of employers’ contribution to social security and other statutory expenditures incurred by an employer in connection with employing a personnel. These variances, though noteworthy, can, however, be explained. One must remember there is a genuine dearth of good manpower in the area of operation of our company and the management must be prepared to pay high remuneration packages if they are intent upon selecting the best that is available in the market. So, an increase in Salaries and Wages and Salaries is bound to happen if the company wishes to remain competitive. The increase in Payro ll Costs by almost an equal percentage is obvious as these are statutory liabilities that are bound to increase if Salaries and Wages increase. The main variance, however, lies in Recruitment Costs which is a massive 82% over what had been budgeted. This surely needs some serious analysis. Employee Training and Development Costs The foundation of any organization is talented and hardworking people who are the principal assets of any firm, especially one that is involved in providing consultancy services. It is an established fact that the growth of an organization requires continual infusion of quality staff and an organization can achieve its objectives only when it has the right person in right positions (Carlson, Connerley and Mecham 2002). But this is a continuous process that just does not begin and end with getting hold of suitable people and somehow put them on company’s payroll. Even in a situation where only a single job vacancy might attract a few hundreds of applic ations, there is a challenge of selecting the most appropriate one. Freshly appointed persons might need orientation training to familiarize them of the way things are done in the organization. And, in case they have been selected only on the basis of academic qualifications and aptitude for learning, they might need training in specific skills as well. The employee’s experiences during orientation and placement form their ‘first impression’ of the organization. So, any organization, especially a service provider like us that is so very much dependent on the quality of human resources available at our disposal we should be extra cautious about ensuring that the new recruits get a very good â€Å"first impression’ about our organization. This would motivate employees and who does not know that a motivated employee is the costliest resource that an organization can ever possess. However, training and development is never restricted to new employees. Even ex isting employees, whilst on job, need training for up-gradation of knowledge and skills and for preparing for higher responsibilities. One should never lose sight of the acutely competitive market where we operate. It is absolutely necessary for our company to be well acquainted with cutting edge technology in order to remain at the top of the heap and this can only happen if there is a continuous system of training and deve

Advertising Pitch for a new shampoo launch for Procter & Gamble in Coursework

Advertising Pitch for a new shampoo launch for Procter & Gamble in Nigeria. Budgeting for a marketing plan - Coursework Example lyze the marketing and advertising budget, and detail the importance of monitoring and control for the success of a marketing plan with close relation to the pitch. The decisions made in the marketing plan budget were aimed at ensuring the spending is in synchrony with the strategy of the Aussie Shampoo launch in terms of sales and marketing activities. The prioritize given in terms of high and low spending for high spending to be made to facets that will result in high market acquisition, increased sales and revenue generation from the Nigerian market including advertising, use of websites mainly social sites and the Procter and Gamble website (Armstrong, 2002). The main social sites used will include facebook, twitter, instragram, and the Procter and Gamble website for advertising information relation to the Nigerian target population. The percentage of sales of the spending for marketing expenses is at 5% for July and 7%, this evidences the low percentage impact of spending on the performance of the Shampoo business and if the projection of the sales is accurate it results in augmented benefits for the firm. The main ways these projections h ave been made are based on the industry trends and performance of the industry and the competitors in the Nigerian market. The budgets are realistic and achievable owing to the demographic characteristics and abilities of the Nigerian market as determined in the PESTLE analysis in the marketing plan. A marketing budget plans a number of benefits in a marketing plan including giving the marketing manager an ability to control the expenses and forecast revenues in the formulation and performance of a marketing plan. The other benefits of a marketing budget are assisting in coordination of marketing activities and aids in keeping the efforts on target as well as acting as a control measure to ensure modifications ensure the aims of the marketing plan are met. A marketing budget also aids in establishment of performance

Sample Persuasive Message Essay Example for Free

Sample Persuasive Message Essay Most people have ventured onto the world wide web. Some enter the online world to check email from family members far away. Other people enjoy the web to watch videos on YouTube of babies doing the weirdest thing. Some log online for social media websites that let them know what their friends, family and celebrities are doing that day. Most people who have ventured online have shopped on electronic retail sites like Amazon or Overstock. Electronic retailing has become a big part of who we are today. There are many sites that allow you to shop for everyday items, groceries, or furniture like Amazon, Overstock, Alice, or Newegg. You also have big box stores that have followed suit with e-commerce as they allow customers to purchase products online that can be shipped to their home or a local store. As new and existing retailers grow retailers are forced to stay competitive, retain current customers, find new customers, and keep fighting to be the best e-commerce retailer out there. According to Turban, King, McKay, Marshall, Lee and Viehland (2008) â€Å"one of the keys to building effective customer relationships is an understanding of customer behavior online† (p. 157). So for businesses to be active and competitive online they need to understand the general online behaviors of the customer to stay in business. In this paper I will be discussing three behaviors natural to e-tailing that assist e-commerce companies understand customer behaviors online. I will be discussing the type of communication used when each behavior occurs and explain how each type of communication enables e-commerce. Analyzing each behavior using the communication process will also be discussed ensuring to include descriptions of the purpose, sender, receiver, message, environment, technology, noise, and feedback in the communication process. Lastly, I will explore a sample persuasive message designed for a virtual audience. Behaviors in E-tailing I see myself as a savvy online customer. I have shopped for products for my home, family, and friends. I have shopped for services like insurance, dog sitting, or home maintenance. The internet has a vast number of websites that help me pick and choose the products and services that work best for me and the general population. When shopping online customers are looking at the type of product or service (is it safe, recommended, green, easy to use, etc. ), how can they go about purchasing the product or service, and the reason customers choose one company over the other. Finding the Right Product or Service If you are shopping online you probably have a clear idea of what kind of product or service you are looking for. If a customer is looking for a camera that is user friendly, can take pictures during important moments in their life, can take pictures in a flash, and is pocket sized they can essentially look on numerous websites. Best Buy, Target, Amazon, Newegg, the options are endless. With all the options finding the right camera could be difficult. Turban et al. (2008) explains that the product search is influenced by independent variables (p. 158-159). Independent variables include personal characteristics and environmental variables. When searching for the right camera your personal characteristics – age, gender, education, lifestyle, values, personality, etc. – weigh in on finding the right camera. Environmental variables like a customer’s social influence and culture help to narrow down which camera the customer would likely purchase (Turban et al. , 2008, p. 158-159). Who a customer is and who they socialize with is not the only thing that influences them in purchasing a camera. In order for customers to know a little about a camera the manufacturer or retailer needs to be able to get the camera out there and communicate to the customers of the perks of the camera. Like regular retailers, e-tailers use internet based advertisements on their website as well as sponsorship websites (i. e. Yahoo, Google, Bing) to advertise the product. When using sponsorship websites e-tailers are driving sales by driving customers toward that specific camera. As e-tailers advertise the camera they are using the communication process. The customer – or the sender – initiates the start of the communication process as he or she searches online for right camera. The customer finds an ad online (message) that matches their WINs (Wants, Interests, and Needs) of the product. The advertisement helps to â€Å"comprises the target audience of a message transmitted by the sender† (p. 10) which according to Roebuck (2006) stands as the receiver in the communication process. The advertisement links the customer with the e-tailer which allows the e-tailer to provider further information and reviews for the camera. Purchasing product or service Once you find the right camera you go into the purchasing behavior. Turban et al. (2008) states â€Å"the two most-cited reasons for not making purchases are shipping charges (51 percent) and the difficulty in judging the quality of the product (44 percent) (p. 59). If the customer finds the perfect camera and it is available at Sony. com for $299 with a $19. 95 shipping charge and BestBuy. com for $307 with free shipping the customer would most times go through BestBuy. com because of the cost savings. Quality of a product is important. E-tailers who offer a â€Å"chat now† option that allows customers to ask experts questions on the quality and durability is a positive step towards purchase. E-tailers who have reviews of the product also assist customers in understanding the general consensus of the product. Customers also weigh in on how secure the online payment is prior to purchasing a product. Customers are weary about unsecure online payments due to the coming age of hacking and identity theft. Having a certificate of security online gives the customer added security to make the purchase. The â€Å"Chat Now† option and a valid certificate showing a secure site for payment are forms of communication in the purchasing process. During this e-tailing behavior the e-tailer becomes the sender as it provides the customer (receiver) with how to purchase the product and general customer service. By providing superior medium in customer service the e-tailer and customer build a relationship that heads toward loyalty. Company â€Å"The internet customer is very hard to predict and is different from the normal customer† (Prasad amp; Aryasri, 2009, p. 73) because of this the e-tailer’s online store must appeal to the buyer and find ways to encourage the customer to purchase the product with them instead of a similar product elsewhere. When the e-tailer paved the path towards customer loyalty during the purchase process they opened the door to complete e-loyalty. Turban et al. 2008) advised that â€Å"customer acquisition and retention is a critical success factor in e-tailing† (p. 167). Providing a customer with loyalty programs, promotional emails, and discounts allows the customer to feel valued. Retaining customer information (name, address, credit card information) also assists in building customer loyalty as it makes for easier check out. Using the communication process, the sender is the e-tailer. The e-tailer can email or mail information regarding loyalty programs, promotional emails, and discounts to the customer who is the receiver. Providing such information makes the customer feel valued and willing to return to the e-tail website. Sample Persuasive Messages A persuasive message helps to influence people in making a certain decision or action. Using the same camera sample we used in e-tailing behaviors we could create a persuasive camera message that helps to influence people to want to purchase the camera. Finding the right persuasive message for a camera boils down to understanding a customer’s WINs. Wants. Interests. Needs. The customer wants to purchase a camera that is user friendly because they do not use the camera for anything but recreation. The customer is interested in a camera that can take pictures during important moments in their life like graduations, 1st birthdays, and family functions. The customer needs a camera that can take pictures in a flash and is pocket sized so they can take it out in a whim and put it back without fuss. Using this customer’s WINs a persuasive message aimed for the virtual audience can easily be made: Aim amp; snap precision for all of your unforgettable moments. A message does not have to be long with so much information. Instead, it can be short but still reach the audiences WINs. Using persuasive messages allows e-tailers to acquire new business and persuade current customers in upgrading their current equipment. Conclusion E-tailers have to understand each customer to ensure that traffic goes in and out of their virtual store. Understanding the product and service search of a consumer, understanding what affects the customer’s purchasing decision, and creating a loyal customer base helps strengthen those traffic numbers. Using the communication process I was able to define how each behavior occurs and what type of communication was used to address each behavior. Creating a persuasive message that was short but covered the customer’s WINs demonstrated how a simple message can generate e-commerce.

Strategies for Operations Strategy

Strategies for Operations Strategy DEFINITION OF STRATEGY: The pattern of most important objectives, goals and purposes and the fundamentals, plans, policies and philosophies for achieving those goals, that are declared in such a way as to define what business the firm is engaged in, and what kind of organization it is or would like to be. OPERATION MANAGEMENT: Operations management is an area of business concerned with the production of goods and services, and involves the responsibility of ensuring that business operations are efficient in terms of using as little resource as needed, and effective in terms of meeting customer requirements. It is concerned with managing the process that converts inputs (in the forms of materials, labors and energy) into outputs (in the form of goods and services). OPERATION STRATEGY: There are two types of operations strategy: They have a particular essence, a blend or fusion of building blocks that give each a unique composition customized to the embeddedness of the situation; and These various operations strategies have a number of tactical factors or contingency issues that influence the deployment of the strategy and also act as management levers to enhance its competitive ability. The operations strategy cannot be designed in a vacuum. It must be linked to the customers and other parts of the enterprise and the supply network.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  (Alan Rushton and John Oxley 1989) The operations strategy has an important role in coordinating the operational goals to those of the organization. However, the objectives will change over time; hence the need for the operations strategy to anticipate future needs. In this way it acts as a portfolio that can adopt to the changing product and the service combination needs of the final customer. SUCCESS FOR OPERATION STRATEGY: The keys to competitive success for the operations strategy lie in: To know the requirement of markets Identifying the priority choices Understanding the consequences of each choice Appreciating the various trade-offs TECHNOLOGY: Technology is the survival of the fittest. Know a days every firm is trying to get new environment which is surrounded by vast eruptions of not only nuclear power but also technological power as well. Globalization has led Managers to become more fully equip and face their competitors fiercely with strong and analytical based marketing strategies. The number of world-class competitors is increasing at an alarmingly rate and to gain the upper edge a firm has to develop an internal system so strong that it can leave its competitors far behind in the race and earn the loyalty of not only its existing customers but also take over the new market successfully. In order to penetrate into the market successfully organizations are realizing that strong engineering, design, and manufacturing functions are necessary. So where it all did began that organizations began to realize the customer needs and fulfill them according to their demand. No longer was the customer dumb but the integral force behind an organizations position in the market, the organization soon learnt to cater to its needs and specifications, designing and engineering customer specific goods available within time and at cost effective prices. It was in the early 1980s that demand for new products escalated and manufacturing organizations soon realized that in order to meet the ever changing customer needs they need to become flexible and responsive in modifying existing products and processes. As manufacturing capabilities improved in the 1990s, managers realized that materials and service inputs from suppliers had a major impact on their organizations ability to meet customer needs. This led to an increase focus in the supply base and the organizations sourcing strategy. Managers also realized that producing a quality product was not enough. Getting the products to customers when, where, how, and in the quantity that they want, in a cost-effective manner, constituted an entirely new type of challenge. More recently the era of the â€Å"Logistics Renaissance† was also born, spawning a whole set of time-reducing information technologies and logistics networks aimed at meeting these challenges. As a result of these changes, organizations now find that it is no longer enough to manage their organizations. They must also be involved in the management of the network of all upstream firms that provide inputs (directly or indirectly), as well as the network of downstream firms responsible for delivery and after-market service of product to the end customer. From this realization emerged the concept of the â€Å"supply chain management†.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  (Stephens 1992) Supply chain management is the back-bone of operations management without it the flow of products from producer to customer would in fact collapse. To better understand the operations management and how strategies are applied to it to get the competitive advantage over other firms let us take an example of FedEx Business Logistics Services and Laura Ashley EXAMPLE OF FEDEX BUSINESS LOGISTICS SERVICES   LAURA ASHLEY: The United Kingdom-based garment and home furnishing company Laura Ashley had severe financial problems in the early 1990s. The company had grown rapidly since Bernard and Laura Ashley started production in 1953 of hand-printed scarves, and by 1990 Laura Ashley employed more than 8000 people and owned or leased about 550 retail shops in 27 countries. The company also supplied a number of franchise shops in other countries. Total sales in 1990/1991 were about GBP 325 million, more than 40% of which came from North America.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  (Stephens 1992) Poor logistics performance was recognized as a major cause of the above-mentioned financial difficulties. Laura Ashley had serious problems in servicing its customers worldwide. The company could not get products from distribution centres to stores quickly enough to avoid stocking out on major items. Laura Ashley had seven distribution centers around the world, but they were largely unconnected by management information systems. Overall stock availability was only about 80%, although inventory costs were high. The transport system was inefficient and spread over eight principle carriers. In 1992, Laura Ashley decided to hand over the global logistics functions to Federal Expresss newly formed business logistics division. The two companies signed a 10-year contract. All in-house logistics operations were transferred to Business Logistics. The 300 Laura Ashley employees from distribution centres and distribution all become employees of Business Logistics. Laura Ashleys distribution centre in Newton, Wales, was transferred to Business Logistics, and the remaining six centres were closed. The higher efficiency of a single-hub distribution system more than offset the extra transport costs. The new contract targets a 10% reduction of distribution costs in the first year. Beyond cost savings, the new system will be more reliable, with frequent store deliveries. The target is to be to supply shops anywhere in the world within 24 or 48 hours, depending on location. A further advantage is access from the individual stores to Business Logistics on-line information system, which provides data on which products are in stock, expected dates for receipt of out-of-stock items and the location of all items in-transit. The partnership with Business Logistics has enabled Laura Ashley to re-launch its catalog mail order business. CAPACITY Maximum output or producing ability operating at capacity Capacity of service firms is constrained by Time Labor Equipment Facilities Four ways to manage constrained capacity Amount of capacity needed The timing of changes Need to maintain balance throughout the system Flexibility of facility and workforce Capacityuse existing resources more efficiently Extend hours of operation Staff work more efficiently during peak times Reduce service levels or offer smaller range of options during peak times Improve customer service Vary capacity to meet demand adjust the firms resources to match demand What could be done during peak periods? i.  Ã‚  Ã‚  use part-time/casual employees ii.  Ã‚  share or rent extra facilities or equipment iii.  Ã‚  cross-train (multi-skill) employees iv.  Ã‚  outsource some functions i.e. reservations (Robert B. Hanfield Ernest L. Nichols) What could be done during off-peak periods? Schedule down-time Reduce staff numbers LOCATION: The marking out of the boundarier, oridentifying the place or site of, a piece of land, according to the description given in anentry, plan, map, etc. The location of facilities involves a commitment of resources to a long-term plan. Once the size, number, and location of these are determined, so are the possible paths by which product flows through to the final customer. These decisions are of great significance to a firm since they represent the basic strategy for accessing customer markets, and will have a considerable impact on revenue, cost, and level of service. Every firm/business looks for location that will help them to expand their markets. Location decision represents a key part strategic planning process of virtually every organization. Need for Location Decisions Marketing Strategy Basic Cost of a Business Expand of business Depletion of Resources Nature of Location Decisions Importance of strategic Entail a Long term commitment/costs Impact on investments, revenues, and Operations Supply chains Goals/objectives Profit potential No single location may be better than others Make right decision to choose perfect location More Options Expand existing facilities Addition of new facilities Shifting Objectives of Location Decisions Decide on the criteria Identify the important factors(location of markets or Raw materials) Develop location alternatives Evaluate the alternatives Make selection Trends in Locations Foreign producers locating in U.S. â€Å"Made in USA† Currency fluctuations Just-in-time manufacturing techniques Micro factories Information Technology EXAMPLES OF VARIOUS COMPANIES: Let us consider some examples of various companies which have taken location under account in order to grow Nike and Reebok, the two largest athletic footwear companies, look to contractors in Asia to manufacture their shoes. Sourcing from Asia offers advantages of low cost and flexibility, When FedEx opened its Asian Hub in Subic Bay, Philippines, in the 1990s it set the stage for its new â€Å"round-the-world† flights linking its Memphis and Paris package hubs to Asia. When Mercedes announced its plan to build its first major overseas plant in Vance, Alabama, it completed a year of competition among 170 sites amongst 30 states and two countries. When Hard Rock Cafà © opened in Moscow in late 2002, it ended three years of advanced preparation of a Russian food supply chain. PROCESS: Hammer and chamhys defines process as a collection of activities thats takes one or more kinds of input which generate an output that is of value to the customer.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  (Hammer chamhys 1993) The various kinds of business process are: Supporting processes:- this include IT support, recruitment, Accounting. Operational processes:- operational processes are manufacturing, purchasing, sales, marketing. Core process:- Add direct value to the customer in term of products or services, Corporate Governance: one can define corporate governance as the culture of company which includes rules, policies, and customs. They also manitain relationship with management board of director, shareholder and stakeholder (Employees, bank, supplier, customer etc). Strategic Management: strategic mangement provides overall directions of an organisation. The aims and objectives, developing polices and plans to achieve these objectives. This Managemrial top level actitvity is usually performed by CEO (Chief Executive Officer) and the exclusive team. LAYOUT: In operations management strategy there are four types of Layouts: Facility Layout and Basic Formats Process-oriented Layout Layout Planning Service Layout Facility layout Facility layout can be defined as the process by which the placement of departments, workgroups within departments, workstations, machines, and stock-holding points within a facility are determined. Process-Oriented Layout Design places departments with large flows of material or people together Dept. areas have similar processes Used with process-focused processes Product-Oriented Layout Facility organized around product Design minimizes line imbalance Types: Fabrication line; assembly line Retail Service Layout Goalmaximize net profit per square foot of floor space. Services capes EXAMPLES: Examples of companies who have employed layout strategies In 1995, Toshiba was the market leader in portable computer sales worldwide. The company used layout strategy in its Ome factory in Japan. Total Quality Management(TQM) Definition â€Å"TQM is a complete re-organizing of the work process and the workplace by application of principles of â€Å"teamwork and work â€Å"teams† that are supposed to involve the worker and give them greater control in their work.† Total Quality Management (TQM) is a comprehensive and structured approach to organizational management that seeks to improve the quality of products and services through ongoing refinements in response to continuous feedback. TQM requirements may be defined separately for a particular organization or may be in adherence to established standards, such as the International Organization for Standardizations ISO 9000series. TQM can be applied to any type of organization; it originated in the manufacturing sector and has since been adapted for use in almost every type of organization imaginable, including schools, highway maintenance, hotel management, and churches. As a current focus ofe-business, TQM is based on quality management from the customers point of view. Business Process Outsourcing Business process outsourcing (BPO) is the act of giving a third-party the responsibility of running what would otherwise be an internal system or service. For instance, an insurance company might outsource their claims processing program or a bank might outsource their loan processing system. Other common examples of BPO are call centers and payroll outsourcing. Typically, companies that are looking at business process outsourcing are hoping to achieve cost savings by handing the work to a third-party that can take advantage of economies of scale by doing the same work for many companies. Or perhaps the cost savings can be achieved because labor costs are lower due to different costs of living in different countries. In exchange for the potential cost savings, the company in question must relinquish control over an aspect of their business which explains why business process outsourcing is often reserved for non-critical, non-core type of work. REFERENCES: Philip B. Schary and Tage Skjott-Larsen, Managing the global supply chain management, Munksgaard International Publishers Limited (pages 16, 24 and 38) Alan Rushton and John Oxley, Handbook of Logistics and Distribution Management, 1st published in 1989 by Kogan Page Ltd (pgs 74-76) Ronald H. Ballou, 3rd edition Business Logistics Management, Prentice hall (pages 44, 56 and 171) Robert B. Hanfield Ernest L. Nichols, JR. Introduction to Supply Chain Management (pgs9-22, 45-56) William J.Stevenson 9th edition Operation Management(International student edition with global readings)(pgs361-367,227-229) http://www.netmba.com/operations/project/cpm/ http://www.ganttchart.com/Ganttwith%20DependenciesExample.html BIBLIOGRAPHY: Philip B. Schary and Tage Skjott-Larsen, Managing the global supply chain management, Munksgaard International Publishers Limited (pages 16, 24 and 38) Alan Rushton and John Oxley, Handbook of Logistics and Distribution Management, 1st published in 1989 by Kogan Page Ltd (pgs 74-76) Ronald H. Ballou, 3rd edition Business Logistics Management, Prentice hall (pages 44, 56 and 171) Robert B. Hanfield Ernest L. Nichols, JR. Introduction to Supply Chain Management (pgs9-22, 45-56) http://www.netmba.com/operations/project/cpm/ http://www.ganttchart.com/Ganttwith%20DependenciesExample.html Heinrich, Claus E. Adapt or die: transforming your supply chain into an adaptive business network. Hoboken, N.J: J. Wiley Sons; 2003. Fredendall, Lawrence D. Basics of supply chain management. Boca Raton: St. Lucie Press; 2001 Hugos, Michael. Essentials of supply chain management. Hoboken, NJ: John Wiley Sons; 2003 David Simchi Levi, Philip kaminsky, and Edith Simchi Levi. Designing and Managing the Supply Chain: Concepts, Strategies, and Case Studies. Irwin McGrawHill, 2000. Sunil Chopra and Peter Meindel. Supply Chain Management: Strategy, Planning, and Operation, Prentice Hall of India, 2002.

Independence: Building a New Nation 1947-1977 :: Essays Papers

Independence: Building a New Nation 1947-1977 In 1942, after the considerable pressure of Mahatma Gandhi's "Quit India" campaign and needing to maintain Indian support against Japanese troops advancing on India's Eastern border, Sir Stafford Cripps proposed a new constitution to the Indian National Congress, including the right of the new government to secede from the Commonwealth. The proposal was rejected but the arena of independence had been opened and, in 1946, after the defeat of the Japanese in Hiroshima and Nagasaki, local and provincial elections were held. The Muslim League, led by Muhammed Ali Jinnah, won most of the Muslim vote. Britain, most of whose military units had disappeared, agreed to Indian self-rule and, in the succeeding negotiations determined that the date of independence would be midnight of 14 August. Following intensive rioting, it was also agreed that the demands of the Muslim League should be met and an India-Pakistan partition conceded at the same time, defined by the Radcliffe Boundary award. Thus the new government's first difficulty was a divided Punjab and a divided Sikh community. Percival Spear estimates that five and a half million refugees travelled each way across the Punjab border, the chaos intensified by the continual Hindu-Muslim-Sikh massacres. By the time the 1950 constitution was implemented, Jawarharlal Nehru was in sole leadership of congress and he embarked upon a plan of industrialisation, intensified in 1956 by a series of five-year plans. Social reform accompanied this. In 1964, Nehru died and his daughter, Indira Gandhi, became prime minister. Having confirmed this in a 1970 election, she was faced with war between the East and West wings of Pakistan. Refugees poured into India from the former wing, causing a crisis in the economics of the country. Pakistan raided Indian airfields and war was declared on 6 December 1971.East Pakistan was captured on 18 December and the new state of Bangladesh was created. Mrs Gandhi's second crisis came in the shape of O.P.E.C quadrupling of oil prices, increasing over-population and massive inflation.

Staffing Essay -- essays research papers

All About Staffing I. Nature of Staffing Staffing is an organization-wide function, comparable to other functions such as marketing, focused on solving problems and adding value with a company's human, social, and intellectual capital. Staffing includes attracting and hiring talented people, as well as developing, appraising, and rewarding them through performance management and training programs. Staffing has a heavy legal emphasis, since employment and labor laws significantly impact both employee and employer rights and responsibilities. Staffing is the process of recruiting, selecting and training of personnel. It means putting the right men on the right jobs. All business organizations should focus their attention and be concerned about the effectiveness and efficiency of their employees specially their managers. The function of staffing has to do with manning an organization structure so that it can completely operate in the present and in the future. II. Recruitment Recruitment is the process of encouraging, inducing or influencing applicants to apply for a certain vacant position. Whenever there are vacancies, it is necessary to find a person to fill those vacancies. Some organizations do not wait until the vacancy arises, but they anticipate such vacancies and new openings in the short and long run and thus plan for future needs. Steps in Recruitment 1. Study the different jobs in the company and writing the job description and specification. 2. Requisition for new employee. 3. Recruiting qualified applicants. 4. Reception of applicants. 5. Application form. 6. Testing. 7. Checking the applicant’s work experiences, school records and personal references. 8. Interview. 9. Matching the applicant with the job. 10. Final selection by immediate supervisor or department head. 11. Physical and medical examination. 12. Hiring. III. Training Training is the systematic development of the attitude/knowledge/behavior patterns for the adequate performance of a given job or task. All employees on a new job undergo a learning process whether or not formal training exists. Learning to perform or be more efficient in performing a job is made easier for employees where there are formal training. For the growth of the individual and the organization, these activities are carried out continuously in many organizations. The quality of this initial training ca... ...on to another without increasing his duties, responsibilities or pay. B. Promotion It refers to the shifting of an employee to a new position to which both his status and responsibilities are increased. 1. Horizontal Promotion – an advancement in pay that does not involve a move into a anew job classification. 2. Vertical Promotion – an advancement that moves an employee into a job with a higher rank or classification. C. Separation Separation from employment of the company may either be temporary or permanent, voluntary or involuntary. 1. Lay-off is temporary and involuntary, usually traceable to a negative business condition. 2. A discharge is a permanent separation of an employee, at the will of the employer, a person may be discharged if he is not competent in his job even after an honest effort has been made. 3. Resignation is the voluntary and permanent separation of an employee due to low morale, low salary, etc. 4. Retirement can either be voluntary or involuntary. It is voluntary if an employee retires upon reaching the number of years of services in the company as provided for by its policies. It is involuntary if one retires upon reaching the retirement age of 65.

International trade theory Essay

Abstract In this reading a number of international trade theories are explained to help the reader better understand why it is beneficial for a country to engage in international trade, and explains the patterns of international trade that is observed in the world economy. It is understood how the theories of Smith, Ricardo, and Heckscher-Ohlin all make strong cases for unrestricted free trade. In contrast, the mercantilist doctrine and, to a lesser extent, the new trade theory can be interpreted to support government intervention to promote exports through subsidies and to limit imports through tariffs and quotas. In explain the pattern of international trade, the exception of mercantilism, which is silent on this issue, the different theories offer largely complementary explanation. Although no one theory may explain the apparent pattern of international trade, taken together, the theory of  comparative advantage, the Heckscher-Ohlin theory, the product life-cycle theory, the new trade theory, and Porter’s theory of national competitive advantage do suggest which factors are important. Comparative advantage tells us that productivity differences are important: Heckscher-Ohlin tells us that factor endowment matter; the product life-cycle theory informs the reader that where a new product is introduced is important; the new trade theory inform the reader that increasing returns to specialization and first mover advantages matter; and Porter theory states that all these factors may be important in so far as they affect the four components of the national diamond. Introduction International Trade is the exchange of capital, goods, and services across international borders of territories. In most countries, such trade represents a significant share of gross domestic product also known as GDP. While international trade has been present throughout much of history, its economic, social, and political importance has been on the rise in recent eras. People trade because they believe that they benefit from the exchange. They may need or want the goods or services. Industrialization advanced in technology transportation, globalization, multinational corporations, and out outsourcing are all having a major impact on the international trade system. Increasing international trade is crucial to the continuance of globalization. Without international trade, nations would be limited to the goods and services produced within their borders. International trade is, in principle, not different from domestic trade as the motivation and the behavior of parties involved in a t rade do not change fundamentally regardless of whether trade is across a border or not. The main difference is that international trade is typically more costly than domestic trade. The focus of this essay is to understand the different theories in international trade. First, the discussion of mercantilism, even though mercantilism is an old and largely discredited doctrine that method echoes remain in modern political debate and in the trade policies of many countries. Secondly, the absolute advantage theory by Adam Smith. Smith’s theory was the first to explain why unrestricted free trade is beneficial to a country. Free trade refers to a situation where a government does not  attempt to influence through quotas or duties what its citizen can buy from another country, or what they produce and sell to another country. Smith argues that the â€Å"invisible hand† of the mechanism, rather than government policy, should determine what a country imports and what are exports. His arguments imply that such a laissez-faire stance toward trade was in the best interests of a country. Building on Smith’s work are two additional theories that we shall review. One is the theory of comparative advantage, advanced by the 19th century English economist David Ricardo. This theory is the intellectual basis of the modern argument for unrestricted free trade. As the 20th century approach, two Swedish economists, Eli Heckscher and Bertil Ohlin, who theory is known as the Heckscher- Ohlin Theory, refined Ricardo’s work. The Benefits of Trade The dominant strength of the theories by these economists was that they identify with precision the specific benefits of international trade. Common sense suggests that some international trade is beneficial. For example, nobody would suggest America produce their own oil, due to lack of resources. America could benefit from trade by exchanging some of the products it can produce at a low cost wheat for some products in cannot produce at all oil. Thus by engaging in international trade, China gains wheat and America gains oil. The theories of Smith, Ricardo, and Heckscher-Ohlin go beyond this common sense notion, however, to show why it is beneficial for a country to engage in international trade even for products it is able to produce for itself. This is a difficult concept for people to grasp. For example many people in the United States believe that American consumers should buy products produced in the United States by American companies whenever possible to help save American jobs from foreign competition. The same kind of nationalistic sentiments can be observed in many other countries. However, the theories of the economists give an understanding that a country’s economy may gain if its citizens buy certain products from other nations that could be produced at home. The gains arise because international trade allows a country to specialize in the manufacture and export of products that can be produced most efficiently in that country, while importing  products that be produced more efficient in other countries. The economic argument is often difficult for segments of a country’s population to accept. With their future threatened by imports, American textile companies and their employees have tried to persuade the U.S. government to limit the importation of textiles by demanding quotas and tariffs. The Pattern of International Trade The theories of Smith, Ricardo, and Heckscher-Ohlin also help to explain the pattern of international trade that we observe in the world economy. Some aspects of the patterns are east to understand. Climate and natural resources endowments explain why certain countries export certain products. For example, Ghana exports cocoa, Brazil exports coffee, Saudi Arabia exports oil, and China exports catfish. David Ricardo’s theory of comparative advantage offers an explanation in terms of international differences in labor productivity. The more sophisticated Heckscher- Ohlin theory emphasizes the interplay between the proportions in which the factors of production (such as: land, labor, and capital) are available in different countries and the proportion in which they are needed for producing particular goods. One early response to the failure of the Heckscher-Ohlin theory to explain the observed pattern of international trade was the product life-cycle theory. Proposed by Raymond Vernon, this theory suggested that early in their life cycle, most new products are produced in and exported from the country in which they were developed. As a new product becomes widely accepted internationally, however, production starts in other countries. By the 1980s, Paul Krugman an economist from Massachusetts Institute of Technology (MIT) developed the revolutionary theory of trade known as the new trade theory. New trade theory stresses that in some cases countries specialize in the production and export of particular product not because of essential differences in factor endowment, but because in certain industries the world market can support only limited number of firms Mercantilism The main theory of mercantilism was that it was in a country’s best interests to maintain a trade surplus, to export more than it imported. By doing so, a country would accumulate gold and silver and consequently, increase its  national wealth and prestige. Consistent with this belief, the mercantilist doctrine advocated government intervention to achieve a surplus in the balance of trade. The mercantilists saw no virtue in â€Å"large volume of trade.† Rather, the recommended policies to maximize exports and minimize imports. To achieve this imports, were limited by tariffs and quotas, while exports were subsidized. Developed in the sixteenth century, mercantilism was one of the earliest efforts to develop an economic theory. This theory stated that a country’s wealth was determined by the amount of its gold and silver holdings. In its simplest sense, mercantilists believed that a country should increase its holdings of gold and silver by promoting exports and discouraging imports. In other words, if people in other countries buy more from you (exports) than they sell to you (imports), then they have to pay you the difference in gold and silver. The objective of each country was to have a trade surplus, or a situation where the value of exports are greater than the value of imports, and to avoid a trade deficit, or a situation where the value of imports is greater than the value of exports. A closer look at world history from the 1500s to the late 1800s helps explain why mercantilism flourished. The 1500s marked the rise of new nation-states, whose rulers wanted to strengthen their nations by building larger armies and national institutions. By increasing exports and trade, these rulers were able to amass more gold and wealth for their countries. One way that many of these new nations promoted exports was to impose restrictions on imports. This strategy is called protectionism and is still used today. Nations expanded their wealth by using their colonies around the world in an effort to control more trade and amass more riches. The British colonial empire was one of the more successful examples; it sought to increase its wea lth by using raw materials from places ranging from what are now the Americas and India. France, the Netherlands, Portugal, and Spain were also successful in building large colonial empires that generated extensive wealth for their governing nations. Although mercantilism is one of the oldest trade theories, it remains part of modern thinking. Countries such as Japan, China, Singapore, Taiwan, and even Germany still favor exports and discourage imports through a form of neo-mercantilism in which the countries promote a combination of protectionist policies and restrictions and domestic-industry subsidies. Nearly every country, at one point or another,  has implemented some form of protectionist policy to guard key industries in its economy. While export-oriented companies usually support protectionist policies that favor their industries or firms, other companies and consumers are hurt by protectionism. Taxpayers pay for government subsidies of select exports in the form of higher taxes. Import restrictions lead to higher prices for consumers, who pay more for foreign-made goods or services. Free-trade advocates highlight how free trade benefits all members of the global community, while mercantilism’s protectionist policies only benefit select industries, at the expense of both consumers and other companies, within and outside of the industry. The Flaw with mercantilism was that it viewed trade as a zero-sum game. (A zero- sum game is one in which a gain by one country results in a loss by another.) It was left to Adam Smith and David Ricardo to show the shortsightedness of this approach and to demonstrate that trade is a positive-sum game, or a situation in which all countries can benefit. The mercantilist doctrine is by no means dead. Absolute Advantage In 1776, Adam Smith questioned the leading mercantile theory of the time in The Wealth of Nations. Smith offered a new trade theory called absolute advantage, which focused on the ability of a country to produce a good more efficiently than another nation. Smith attacked the mercantilist assumption that trade is a zero-sum game. Smith argued that countries differ in their ability to produce goods efficiently. Smith reasoned that trade between countries shouldn’t be regulated or restricted by government policy or intervention. He stated that trade should flow naturally according to market forces. Hypothetically, say two-country world, if Country A could produce a good cheaper or faster (or both) than Country B, then Country A had the advantage and could focus on specializing on producing that good. Similarly, if Country B was better at producing another good, it could focus on specialization as well. By specialization, countries would generate efficiencies, because their labor force would become more skilled by doing the same tasks. Production would also become more efficient, because there would be an incentive to create faster and better production methods to increase the specialization. The absolute advantage occurs in the production of a product when it is more efficient than any other country in producing  it. According to Smith, countries should specialize in the production of goods for which they have an absolute advantage then trade these for goods produced by other countries. In Smith’s theory reasoned that with increased efficiencies, people in both countries would benefit and trade should be encouraged. His theory stated that a nation’s wealth shouldn’t be judged by how much gold and silver it had but rather by the living standards of its people. Smith’s basic argument therefore, is that a country should never produce goods at home that it can buy at a lower cost from other countries. According to Smith, by specializing in the production of goods in which each has an absolute advantage, both countries benefit by engaging in trade. Comparative Advantage The challenge to the absolute advantage theory was that some countries may be better at producing both goods and, therefore, have an advantage in many areas. In contrast, another country may not have any useful absolute advantages. To answer this challenge, David Ricardo, an English economist, introduced the theory of comparative advantage in 1817. Ricardo reasoned that even if Country A had the absolute advantage in the production of both products, specialization and trade could still occur between two countries. Comparative advantage occurs when a country cannot produce a product more efficiently than the other country; however, it can produce that product better and more efficiently than it does other goods. The difference between these two theories is subtle. Comparative advantage focuses on the relative productivity differences, whereas absolute advantage looks at the absolute productivity. Let’s look at a simplified hypothetical example to illustrate the subtle differenc e between these principles. Miranda is a Wall Street lawyer who charges $500 per hour for her legal services. It turns out that Miranda can also type faster than the administrative assistants in her office, who are paid $40 per hour. Even though Miranda clearly has the absolute advantage in both skill sets, should she do both jobs? No. For every hour Miranda decides to type instead of do legal work, she would be giving up $460 in income. Her productivity and income will be highest if she specializes in the higher-paid legal services and hires the most qualified administrative assistant, who can type fast, although a little slower than Miranda. By having both Miranda and her assistant concentrate on their  respective tasks, their overall productivity as a team is higher. This is comparative advantage. A person or a country will specialize in doing what they do relatively better. In reality, the world economy is more complex and consists of more than two countries and products. Barriers to trade may exist, and goods must be transported, stored, and distributed. However, this simplistic example demonstrates the basis of the comparative advantage theory. Heckscher-Ohlin Theory (Factor Proportions Theory) The theories of Smith and Ricardo didn’t help countries determine which products would give a country an advantage. Both theories assumed that free and open markets would lead countries and producers to determine which goods they could produce more efficiently. In the early 1900s, two Swedish economists, Eli Heckscher and Bertil Ohlin, focused their attention on how a country could gain comparative advantage by producing products that utilized factors that were in abundance in the country. Their theory is based on a country’s production factors—land, labor, and capital, which provide the funds for investment in plants and equipment. They determined that the cost of any factor or resource was a function of supply and demand. Factors that were in great supply relative to demand would be cheaper; factors in great demand relative to supply would be more expensive. Their theory, also called the factor proportions theory, stated that countries would produce and export goods that required resources or factors that were in great supply and, therefore, cheaper production factors. In contrast, countries would import goods that required resources that were in short supply, but higher demand. For example, China and India are home to cheap, large pools of labor. Hence these countries have become the optimal locations for labor-intensive industries like textiles and garments. Leontief Paradox In the early 1950s, Russian-born American economist Wassily W. Leontief studied the US economy closely and noted that the United States was abundant in capital and, therefore, should export more capital-intensive goods. However, his research using actual data showed the opposite: the United States was importing more capital-intensive goods. According to the factor  proportions theory, the United States should have been importing labor-intensive goods, but instead it was actually exporting them. His analysis became known as the Leontief Paradox because it was the reverse of what was expected by the factor proportions theory. In subsequent years, economists have noted historically at that point in time, labor in the United States was both available in steady supply and more productive than in many other countries; hence it made sense to export labor-intensive goods. Over the decades, many economists have used theories and data to explain and minimize the impact of the paradox. However, for what remains clear is that international trade is a complex and has impacted numerous and often-changing factors. Trade cannot be explained neatly by one single theory, and more importantly, our understanding of international trade theories continues to evolve. Product Life Cycle Theory Raymond Vernon, a Harvard Business School professor, developed the product life cycle theory in the 1960s. The theory, originating in the field of marketing, stated that a product life cycle has three distinct stages: (1) new product, (2) the growth of the product (3)maturing product (4) the decline in the product. The theory assumed that production of the new product will occur completely in the home country of its innovation. In the 1960s this was a useful theory to explain the manufacturing success of the United States. US manufacturing was the globally dominant producer in many industries after World War II. It has also been used to describe how the personal computer (PC) went through its product cycle. The PC was a new product in the 1970s and developed into a mature product during the 1980s and 1990s. Today, the PC is in the standardized product stage, and the majority of manufacturing and production process is done in low-cost countries in Asia and Mexico. The product life cycle theory has been less able to explain current trade patterns where innovation and manufacturing occur around the world. For example, global companies even conduct research and development in developing markets where highly skilled labor and facilities are usually cheaper. Even though research and development is typically associated with the first or new product stage and therefore completed in the home country, these developing or emerging-market countries, such as India and China, offer both highly skilled labor and new  research facilities at a substantial cost advantage for global firms. Global Strategic Rivalry Theory Global strategic rivalry theory emerged in the 1980s and was based on the work of economists Paul Krugman and Kelvin Lancaster. Their theory focused on MNCs and their efforts to gain a competitive advantage against other global firms in their industry. Firms will encounter global competition in their industries and in order to prosper, they must develop competitive advantages. The critical ways that firms can obtain a sustainable competitive advantage are called the barriers to entry for that industry. The barriers to entry refer to the obstacles a new firm may face when trying to enter into an industry or new market. The barriers to entry that corporations may seek to optimize include: research and development, the ownership of intellectual property rights, economies of scale, unique business processes or methods as well as extensive experience in the industry, and the control of resources or favorable access to raw materials. Porter’s National Competitive Advantage Theory In the continuing evolution of international trade theories, Michael Porter of Harvard Business School developed a new model to explain national competitive advantage in 1990. Porter’s theory stated that a nation’s competitiveness in an industry depends on the capacity of the industry to innovate and upgrade. His theory focused on explaining why some nations are more competitive in certain industries. To explain his theory, Porter identified four determinants that he linked together. The four determinants are (1) local market resources and capabilities, (2) local market demand conditions, (3) local suppliers and complementary industries, and (4) local firm characteristics. Factor Conditions). Porter recognized the value of the factor proportions theory, which considers a nation’s resources (e.g., natural resources and available labor) as key factors in determining what products a country will import or export. Porter added to these basic factors a new list of adv anced factors, which he defined as skilled labor, investments in education, technology, and infrastructure. He perceived these advanced factors as providing a country with a sustainable competitive advantage. Demand conditions. Porter believed that a sophisticated home  market is critical to ensuring ongoing innovation, thereby creating a sustainable competitive advantage. Companies whose domestic markets are sophisticated, trendsetting, and demanding forces continuous innovation and the development of new products and technologies. Many sources credit the demanding US consumer with forcing US software companies to continuously innovate, thus creating a sustainable competitive advantage in software products and services. Related and Supporting industries. To remain competitive, large global firms benefit from having strong, efficient supporting and related industries to provide the inputs required by the industry. Certain industries cluster geographically, which provides efficiencies and productivity. Local firm characteristics. Local firm characteristics include firm strategy, industry structure, and industry rivalry. Local strategy affects a firm’s competitiveness. A healthy level of rivalry between local firms will spur innovation and competitiveness. In addition to the four determinants of the diamond, Porter also noted that government and chance play a part in the national competitiveness of industries. Governments can, by their actions and policies, increase the competitiveness of firms and occasionally entire industries. Porter’s theory, along with the other modern, firm-based theories, offers an interesting interpretation of international trade trends. Nevertheless, they remain relatively new and minimally tested theories. Today’s Dominate International Trade Theory The theories covered in this reading explain the evolution of the international trade theory. While they have helped economists, governments, and businesses better understand international trade and how to promote, regulate, and manage it, these theories are occasionally contradicted by real-world events. Countries don’t have absolute advantages in many areas of production or services and, in fact, the factors of production aren’t neatly distributed between countries. Some countries have a disproportionate benefit of some factors. The United States has ample arable land that can be used for a wide range of agricultural products. It also has extensive access to capital. While it’s labor pool may not be the cheapest, it is among the best educated in the world. These advantages in the factors of production have helped the United States become the largest and richest economy in the  world. Nevertheless, the United States also imports a vast amount of goods and services, as US consumers use their wealth to purchase what they need and want—much of which is now manufactured in other countries that have sought to create their own comparative advantages through cheap labor, land, or production costs. As a result, it’s not clear that any one theory is dominant around the world. This section has sought to highlight the basics of international trade theory to enable you to understand the realities that face global businesses. In practice, governments and companies use a combination of these theories to both interpret trends and develop strategy. Just as these theories have evolved over the past five hundred years, they will continue to change and adapt as new factors impact international trade.